In today’s ever demanding, fast paced, rapidly changing world we are always being pulled in many directions at once. We’re faced with constant connectivity, over stimulation, and a relentless focus on speed and efficiency. We face a daily battle splitting us between two important resources: Time and Money.

The value of our time and the value of money has never been more relevant. Both of these resources are finite, and both resources represent different forms of wealth. Money is an emotional, tangible asset that can be accumulated, spent and invested. However, time is intangible, cannot be stock piled, and once spent, cannot not be regained. Finding a balance between these two assets shapes our decisions, priorities, and the overall framework of our lives.

Our time can be broken down into three categories – work, relationships, and recovery.         Focusing on the work category of time, there are different stages of life which gives a different value to our time. At the beginning of a career, you have good health, a good amount of time, but not as much money. Later in your career you accumulate more money, but it’s been traded for time. Now you’re spending more of your time to acquire money. Later in life, as you’re about to retire, the money and time tend to balance out, but it’s at a time when you may not have the health of your youth.

It's possible to bring the imbalance into more of an equilibrium when we practice good time management skills and consciously align how we spend our time with our goals and values.

We often hear time is money, reversing that, and   looking at our money in units of time can help determine the true value of something. Determining value is a skill to develop; start by asking yourself, “am I willing to work the hours necessary for the required sum?” This is where time and money become emotional.

It’s arguable that our time becomes even more valuable the older we get. This is especially true if we have used our time wisely throughout our life. Making good investments with our time, doing things that build our life as well as the lives of others, increases the value of our time.

We currently live in an age where we are surrounded by time saving things, technology and tools that help make our lives easier and more accessible. Even the simplest person has wealth beyond what any previous generation had. Most people have a smart phone these days, an incredible tool that compared to the newest computers of generations past, is quite affordable. While attending college I purchased my first computer in 1984 with 128K memory. Even with the student discount, after purchasing some accessories, an external 2nd drive, a printer, a few programs, and a box of disks the cost was over $5,000. While this new technology saved me time, it can’t hold a flame to the value we get from our most common devices today. This makes us quite rich in time and money.

How we spend our time and the choices we make in spending our money determine the true value of it. Time and money are both invaluable resources, but they need to be managed carefully in order to achieve a balanced and successful life. Time is       irreplaceable, while money can act as a means to provide comfort, opportunities, and freedom. The key lies in finding the balance. These two things work in tandem to create a life that is wealthy in financial terms, as well as personal satisfaction and peace.

Photo 1: Garik Barseghyan

Yes, I know, Medicare, a topic younger people think is irrelevant. However, learning about Medicare is important for those who qualify for it as well as the younger generation, simply because the younger generation, perhaps decades away from needing it, should still understand their parents’ medical care.

Most Americans know that Medicare is the United States federal health insurance program primarily for senior citizens; but if asked, those same people would probably admit confusion or frustration when it comes to understanding all the associated parts.

Medicare can be like a giant jigsaw puzzle, but once you see how the pieces fit together, it’s easier to see the big picture. Medicare has several parts, each with its own rules and costs. That’s where it can be a little tricky.

Part A (Hospital Insurance): This covers inpatient care in hospitals, skilled nursing facilities, and limited home health care. It’s generally free if you’ve worked and paid into Medicare for at least 10 years. However, if you need to stay in a hospital for a while, get ready for some out-of-pocket costs, like deductibles and coinsurance.

Part B (Medical Insurance): This covers things like doctor visits, outpatient care, and preventive services. Unlike Part A, you do have to pay a monthly premium for Part B. It usually starts around $164.90 per month in 2025, but it can go up based on your income. Here’s where things can start to get a little confusing. There are deductibles and copays on top of the monthly premium, and it doesn't cover everything—like most dental, vision, and hearing care.

Part C (Medicare Supplement): This is like a bundle deal where private insurance companies take over your   Medicare benefits (including Parts A and B) and sometimes even Part D (the drug coverage). They often offer extra benefits (like dental, vision, hearing) but can come with higher premiums, rules, and network restrictions. It’s a way to get more coverage, but you have to pay attention to which doctors and hospitals are covered.

Part D (Prescription Drug Coverage): If you don’t have Part C, you can get Part D to cover prescription drugs, but not all Part D plans are the same. Some cover more meds, and others might have more affordable copays. The plan you pick can affect how much you’ll pay.

If that didn’t seem like enough puzzle pieces, there’s more! You’ll also have to navigate how to handle Medigap, or Medicare Supplement Insurance, which helps pay the costs that Original Medicare (Parts A and B) does not cover, like copays, coinsurance, and         deductibles. There’s an open enrollment period for this, if you miss it, you might get hit with penalties. You may be subject to medical underwriting instead of guaranteed issue or you might not be able to get the plan you want.

The complexity of this puzzle comes from balancing premiums, copays, rules, networks, and deadlines, all while figuring out whether you need additional coverage (like Medigap or a Medicare supplement insurance plan) and how to keep track of costs. It can start to feel like the small four part puzzle has grown to a 250 piece puzzle. 

Don’t let the complicated intricacies overwhelm you. Sometimes a second set of eyes and ears can be useful in helping to find the right pieces to complete your own personal picture. As always, we are here to help; give us a call and we can help you sort through all the pieces.

If you would like a copy of our Medicare Special Report email us at peaceofmind@yieldins.com

Image 1 by congerdesign

Image 2 by Marjon Besteman

Here we are, kicking off the tax season once again. Everyone knows you have to pay taxes on your income, but how familiar are you with the tax system?

The deadline for filing your 2024 tax returns for most taxpayers is April 15, however, you are able to request an extension, which gives you an additional six months to submit your return. It is important to remember that this extension does not apply to paying the taxes that you may owe.

Calculating income is the first challenge of a tax return. Income from all sources is added up to arrive at the adjusted gross income, commonly referred to as AGI.  This will include interest and dividend income, business income, (or losses) and other items that are  considered “above the line.” “The line” in this reference is the AGI. Everything else happens below this line.

Every taxpayer is entitled to a standard deduction, which reduces your taxable income, meaning you are only taxed on the income that exceeds this amount. For the 2024 tax year, the standard deduction amount is $14,600 for single filers and $29,200 for married couples filing  jointly. So, if you had $50,000 in adjusted gross income and you file as a single filer, you would subtract the standard deduction, leaving you with $35,400 in taxable income.

Tax Credits also help lessen the amount of tax you owe. Unlike a deduction, which reduces your taxable income, a tax credit directly reduces the tax you pay.

In the United States, the federal income tax system is  progressive, which means the rate you pay increases as your income rises. The IRS sets different tax rates for different ranges of income, called tax brackets. The tax brackets determine the rate at which different portions of your income are taxed. If your taxable income falls into a higher tax bracket, only the portion of your income that falls within that bracket is taxed at the higher rate.

Every year the IRS adjusts tax brackets to account for  inflation. For 2024, the tax brackets are slightly different than in previous years, which could affect how much tax you owe.

Taxes are calculated on a marginal tax rate. The rate is applied to the last dollar you earn in a given bracket, not your entire income. For example, if you are a single filer with a taxable income of $50,000, the first $11,600 of that will be taxed at 10%. The income from $11,601 to $47,150 will be taxed at 12%, the remaining $2,850 will be taxed at 22%. Your tax bill would be about $6,053. The highest tax rate you pay only applies to the top portion of your income.

Many people mistakenly think they didn’t pay taxes because they didn’t have to write a check after filing their return or they were due a refund. However, refunds are basically interest free loans to the government. If this is the case, you might consider adjusting your  withholdings. The goal of an accurate tax return would be to owe (after all withholdings) or receive less than $100.

The U.S. tax system can be complicated, marked by loopholes, disparities, and other inefficiencies. If you are ever confused about how to file your taxes or what you owe taxes on, reach out to us.

Despite the many “doom and gloom” predictions we faced at the start of 2024, the year ended on a bit of a high note. The economy was performing well, showing signs that it was on solid footing to start the new year. The data continued to show gradual, but growing strength, the GDP grew at a 3.1% in the third quarter of 2024. The year closed out with a healthy labor market, lower unemployment, and inflation  slowly starting to drop.

Reflecting back on last year, we can clearly see how our economy defied expectations, in spite of global challenges, inflation, geopolitical uncertainty, and other challenges. Our economy managed, with great resilience, to avoid the much-feared recession. There were many factors that played a role in bringing stability and recovery in many sectors.

After the pandemic, central banks around the world, particularly the U.S. Federal Reserve, initially ramped up interest rates to curb inflation, but by 2024 these institutions began to fine tune their policies. We saw the Fed lower interest rates three times last year. It was a difficult task trying to manage inflation without stifling growth but is largely credited for staving off the dreaded recession.

Consumer spending was also a key driver of the recovering economy. Because unemployment rates were below market expectation, it signaled a demand for workers, creating a stable income for many households. Several sectors, including technology and healthcare, saw higher wages. Having a reliable stream of income bolstered consumer spending, having a domino effect which fueled growth in industries like tech, real estate, and consumer goods. Consumer spending is the primary component of the increased GDP.

This isn’t to say that there weren’t any issues in our economy, it wasn’t all sunshine and roses. There were many people struggling against high inflation. For a good portion of Americans, grocery bills nearly doubled, which can account for a portion of the uptick in consumer spending. And while many people were able to find jobs, they weren’t necessarily high paying or reliable jobs.

So, while the numbers looked good on paper, there were still many Americans wondering if we really had avoided a recession. For a recession to be declared there needs to be  two successive quarters in which there is economic decline in which trade and industry are reduced. This is usually reflected in a drop in GDP. But you know how the old saying goes, “When your neighbor is out of work it’s a recession; when you’re out of work it’s a depression.”

Regardless of the difficulties that still exist, the continued growth we have seen in recent months gives hope for this coming year. According to current projections, the US economy is expected to see moderate growth with a projected GDP growth rate around 2.1%, cooling inflation, and lower unemployment. Here’s to a prosperous year!

60, 63, 71, 75. What do all these numbers have in common? They are the average healthy life expectancy for different countries around the world. The US ranks pretty low despite the fact that we spend more money on health, 16.9% of our GDP, higher than any other           Organization for Economic  Co-operation and Development (OECD) country. The US is projected to drop from 80th to 108th by 2050. The United States has a lower healthy life expectancy than Canada, Japan, and most Western European countries.

Healthy life expectancy is more than just the projection of how long the average person will live. It accounts for both the quantity and quality of life, estimating how many of your years will be free of chronic diseases, physical impairments or limitations, and mental health issues.

Recent studies have shown that 80% of your health depends on your lifestyle and habits, like how active you are, your diet, and the environment you live in; unfortunately, the US has been falling behind in all those areas for the last few decades.

Modern medicine has increased life expectancy, but this has not brought with it an equivalent healthy life expectancy. Many people are living longer, but many of those additional years are lived with chronic diseases like hearth disease, diabetes, and cancer. The healthy life expectancy in 2024 was 63.9 years, a decline of 1.4 years from 2000.

What does this mean for your retirement? Many people plan for retirement based on how they live at the current time. However, once you reach a certain age, past the “healthy life expectancy,” your cost of living will increase based on your health needs. (This is why it is incredibly important to make sure you have signed up for Medicare and put into place all your supplement plans.) Healthy life expectancy has become a crucial indicator for retirement quality.

Looking at the data can cast a shadow on the golden years following your career, making them seem like they won’t be as enjoyable as you had hoped. Luckily you can make changes that can dramatically improve your health over time. Make simple choices that will improve your health in the long run. You can make small changes such as getting up and taking a walk after sitting for a long period of time, saying no to sweets at least once a day, going to bed earlier, add in more vegetables to your diet, drinking more water, or exercising at least ten minutes each day. As you successfully incorporate one healthy habit, add in another.

It is so important to prioritize your health NOW. Don’t wait until you retire, don’t risk losing your healthy years. The best investment you can make is in your own health.

Over the last few decades student reading performance has been a growing concern, declining since the 1970’s. The National Assessment of Educational Progress (NAEP) shows that reading scores have been consistently declining since 2012. In 2023 the nine-year-olds group had their largest decline in reading since 1990.

In 2024, the literacy rate in the US was 79%, meaning 79% of adults had literacy skills that allow them to compare and contrast information, paraphrase, and make low-level inferences. The remaining 21% of adults had low literacy skills, boiling down to about 43 million adults in the United States not able to read at a functional level.

Diving into that 79% literacy a little deeper we see that the average American reads at a 7th to 8th grade level, and 54% of adults have a literacy below a 6th grade  level. 44% of American adults do not read even a single book in a year. 33% of high school graduates never read a book after high school.

According to most experts, the average age when a child in the US can read well is around 6 or 7 years old. Statistically students that can’t read proficiently by the end of fourth grade will end up in jail or on welfare. 85% of juveniles in the court system are illiterate. 70% of      inmates in US prisons can’t read above a 4th grade level. According to the Department of Justice, the link between academic failure and delinquency, violence, and crime is connected to reading failure.

The Child Mind Institute states that reading to a child at a young age, even before they can communicate    verbally, helps to lay a foundation for the neurological groundwork for effective language and literacy. Many studies have shown that when a family, especially the mother, reads to and teaches young children they perform better academically, including literacy. 78% of peer-reviewed studies on academic achievements show that homeschooled students perform significantly better than those in institutional schools. This is believed to be because of the effects of being in a family setting and having more one-on-one attention and learning.

Reading is considered to improve societies because it helps the reader to develop empathy, increases their knowledge and understanding of diverse perspectives, promotes critical thinking, and encourages tolerance towards different viewpoints. Reading leads to a more informed and engaged population.

Reading is important for our health as well. Multiple   studies have shown that reading reduces stress and    promotes wellness and can even help improve sleep. It can also help combat Alzheimer’s and Dementia and decrease the feeling of loneliness or social isolation.

It is crucial that we foster a love of reading in the people of this country. It is critical that reading becomes a focus of our education system. This year instead of the typical New Year’s resolutions, perhaps you could focus on and encourage those you know to read more. You could join a book club, make a reading/book goal chart, share books with loved ones, learn a new word each day, or devote a certain amount of time each day to reading.

For the health and wellbeing of our nation, it is paramount that we raise the literacy rate and encourage reading in the younger generations.

Every year Christmas rolls around brining carols, presents, joy…and stress. Deep down, inside each of us, lies the potential for a big green hairy Grinch to emerge. The Christmas season is a time for family and celebration, but for many, it can also be a time of  financial frenzy and stress that feels more akin to a Grinch-like robbery than a joyful occasion. So, how can you make sure that the Grinch doesn’t steal your hard-earned money and throw your holiday budget into chaos? Here are a few tips to keep your finances and your holiday joy secure. 

Create a realistic budget, and STICK TO IT. Nothing   triggers a grumpy Grinch more than having your budget fly off the rails. However, the first step to keeping that grumbly Grinch at bay is to have a budget in place. Start by reviewing your finances and determine how much you can comfortably spend on holiday expenses, including gifts, decorations, travel costs, meals, parties, or any other holiday-related expense. Prioritize the essentials and account for all the little extras that always come up. 

The Grinch in us loves when we wait until the last minute to buy gifts. That’s when we tend to overspend and stress ourselves out. Planning your shopping in advance gives you time to research sales, compare prices, and avoid the temptation of overpriced last-minute sales gimmicks. Try making a gift list for everyone you need to buy gifts for and budget for each person. A tip for the coming year: put money aside throughout the year and look for gifts all year long, especially during holiday sales. Planning ahead allows you to put more thought into the gifts you give, making them more meaningful for you and the recipient. 

Don’t be afraid to DIY some of your gifts. Handmade crafts, baked goods, photo albums, and similar things make wonderful gifts that will be cherished and can be a lot more budget friendly than some expensive store-bought items. 

Limit how much you put on credit cards. Remember that credit cards are debt, a liability, and you need to be mindful of what you’re willing to take on and increase your debt. Nothing brings out the Grinch like lots of credit card debt. Credit cards make purchases quick and easy. The easiness of credit cards can also make it easy to lose track of how much you’re   spending. If you feel the need to use credit cards for your Christmas spending, set limits and track your spending closely. Then make sure you pay it off as soon as possible. 

Do not use emergency funds for Christmas. Whatever money you have put aside for a rainy day, do not touch it; it has its own purpose and it’s not Christmas. Instead, create a different bucket for Christmas saving and/or other holiday spending. No justification is good enough to use emergency funds for holiday spending. 

Remember, you’re not trying to buy happiness or Christmas cheer. The best way to enjoy the holiday is by creating memories, not debt. Focus on the things that matter to you and your family. Make sure the Grinch doesn’t steal your hard-earned money, your peace of mind, or the joy of the season. 

We are nearing the long-awaited event where people all over the country will line up in the predawn hours to get the best deal of the year on socks…well at least they used to. Black Friday now starts on Thanksgiving and overflows into Cyber Monday. Businesses nationwide are gearing up for the peak sales of the year,  offering “unheard of” deals as well as other ploys to get people in the doors or to their websites.

Often seen as the kick-off to holiday shopping, Black Friday is an important day for many businesses across America, including local and small businesses. Like the big-box counterpart, small businesses see a surge in sales as consumers shop for unique gifts for the holidays. This high-profile weekend can bring in new shoppers,   providing expanded visibility and attracting new customers. However, on a small business level, Black Friday is not always all it’s cracked up to be. In some ways, it can have a negative impact.

While Black Friday definitely gets more people in the door and perusing websites, small businesses may struggle to compete with the massive discounts larger retailers can afford to offer. By discounting their products, small businesses cut into their profits, shrinking their profit margins which may even end in a loss, this greatly affects their financial health. Many people approach their holiday shopping expecting to find the best deals. Unfortunately, small businesses typically can’t keep pace with the heavy discounts offered by larger retailers.

What small businesses may lack in “killer deals” they make up for in their ability to offer unique items and often superior customer service. Many small businesses focus on        creating a specific “shopper experience” that is more desirable than shopping Big Box stores.

Consider shopping on Small Business Saturday. This day was initiated by American Express in 2010 as a way to help promote small businesses and boost their sales going into the holiday shopping season. This day emphasizes the importance of small businesses and the role they play in our economy. By choosing small and local over the larger retailers you have the opportunity to discover unique products as well as support your local economy.