Life Planning JAN 2026

LIFE PLANNING PLANNING GUIDE

Tips on financial well-being for the road ahead

SAVING STARTS EARLY Teach children to make wise financial decisions

Learning how to handle money wisely can be tough for adults, but children can get a head start if they get good advice from their parents.

By starting when your children are young, using age-appropriate tactics, you can help your kids learn how to handle money when they get older — and hopefully avoid some of the mistakes you’ve made through the years.

START SMALL

Financial goals for children shouldn’t start out as a big deal. They may save their spare change for a piece of candy or a cheap toy, and you can start teaching them that it’s a good idea to save their money to buy bigger things later.

One simple, time-tested idea is getting your child a piggy bank, or even just a small cardboard box to keep their savings. The important thing is having a special place to set aside money for the future.

You might even help them make a simple system for separating their savings into different categories.

OPEN AN ACCOUNT

Once your child has saved enough money, consider opening a bank account for them.

Many banks and credit unions offer special accounts for children to help them learn to be good savers. As your child ages, their goals — and your involvement in their financial decisions — can become bigger and more important.

They should save with a purpose in mind. Their bank account should be for a specific goal, such as saving for college or buying a car. Many parents choose to match their children’s contributions as an incentive to save their money.

TEACH PRINCIPLES

Finally, you should work toward teaching your children the basic principles of handling money. They should learn that when they get money, they should assign it a purpose at the outset — setting aside some for saving, some for giving to charity, and some for spending on themselves.

The specific numbers involved aren’t as important as the principles involved. Money ought to be handled with the end goal in mind, not simply spent without any thought to what the future might hold.

You can also use money to teach other life lessons that fit with your family’s values. Showing children how their financial decisions can help others — through giving to your church or your favorite non-profit organizations, for example — can be a good way to teach them things that are far more important than cash.

LOOK AT YOUR RISK ROADMAP

Consider investments that change with your life

Everyone knows that the stock market has its ups and downs — peaks and valleys that are hard to predict and gut-wrenching to watch as an investor.

Fluctuations in the market become much more important, though, when a person gets close to retirement age. If the stock market takes a dip this year, for example, a 30-year-old will have another 35 years of investing to recover from it before they reach retirement age. But someone who is 64 could see a big portion of their wealth disappear just as they’re about to retire, with little time left to recover that money.

That’s why many investment advisors recommend

HOW MUCH RISK?

Generally, these time-adjusted portfolios are designed to start out with higher risk investments that also have the potential for greater returns. As time goes on, the investment allocations are automatically switched to categories that are seen as safer but without as much upside potential, such as longterm bonds.

The beauty of these plans is that the changes will happen automatically over your lifetime. You don’t have to remember to call your broker on your 40th birthday to say,

choosing investments that change their risk profile over time.

AUTO-PILOT INVESTING

Picking stocks and allocating your investment portfolio can be fun and rewarding for the right type of people, especially those with the experience to know what they’re doing and the guts to watch their choices swing up and down.

For other people, though, it makes more sense to choose an investment that adjusts itself over time.

Luckily for them, investments that change their risk profile over time are becoming more popular lately.

“I’d like to dial back some of the risk this year.” The adjustment occurs without you having to think about it.

“I’d like to dial back some of the risk this

GET PRO ADVICE

There are a lot of options for investments that adjust their risk level over time, so it’s a good idea to talk to a professional investment advisor to see what options are right for your situation.

If you choose the best ones, you’ll have a greater chance for growth in the fund’s early years and less of a chance for losses as your retirement goal draws near.

THE INSURANCE ALMOST EVERYONE NEEDS

Ultimately, the insurance coverage needed by a given individual is determined by their unique circumstances. But regardless if you’re married or single, with or without children, renting or buying a home, you’ll likely need most — if not all — of the following types of insurance.

LIFE INSURANCE

HEALTH INSURANCE

Medical expenses can literally bankrupt you if you aren’t adequately insured. If you’re over the age of 25, you’re no longer eligible for coverage under your parents’ insurance policy and will need to get your own. Many employers offer health insurance programs; if yours does not, you’ll need to locate your own provider.

If you don’t have a spouse or dependents, then it’s reasonable to give this type of insurance a pass. Otherwise, term life insurance is a necessity to ensure that your family is taken care of in the event of your unexpected demise.

DISABILITY INSURANCE

This insurance is suited to anyone who needs to work for a living. With it, you’ll receive a monthly income if ever you incur an illness or injury that prevents you from being able to work.

AUTO INSURANCE

If you’re content to commute by public transit, you can forego this type of insurance. For everyone else, auto insurance is a must. Car insurance plans vary, and coverage can be more or less extensive depending on your needs.

HOME OR RENTERS INSURANCE

Home insurance is only mandatory for homeowners, but renters are also wise to purchase insurance to cover their items in the event of fire, flood or theft.

HOW TO CHOOSE THE BEST SENIORS’ RESIDENCE

7 things to consider

Choosing a seniors’ residence is a significant decision that requires careful consideration. Here are seven criteria to help you find the one that best meets your needs:

1. YOUR HEALTH

Evaluate your current and future healthcare needs and choose a facility that can accommodate them.

2. AVAILABLE SERVICES

Find out which services are included or available for an additional fee, such as housekeeping, laundry and recreational activities. These offerings can heavily influence your decision.

3. FOOD QUALITY

If you choose a residence that provides meals, ensure the food is varied, nutritious and suitable for any dietary restrictions you may have.

4. ACCOMMODATIONS

Visit the available suites to evaluate their size, soundproofing, brightness and accessibility. A comfortable and functional environment is essential for your well-being.

5. BUDGET

Set a budget by considering rent and additional expenses, like internet access. Look for a residence that meets your financial needs without straining your budget.

6. LOCATION

Choose a facility that’s close to essential services, such as pharmacies, grocery stores and public transportation. You may also want to be near places of interest like libraries, restaurants and boutiques. Don’t forget being close to family and friends!

7. ATMOSPHERE

During your visit, take note of the general atmosphere of the residence. Are the staff friendly? Do the residents seem happy and engaged? A welcoming environment and clean common areas are positive signs.

Good luck with your research!

In

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PLANNING FOR COLLEGE

Planning ahead can ease the rising cost of college

For many, the cost of higher education can feel overwhelming.

Recent statistics from the College Board show that the average annual cost to attend a four-year public college in the U.S. is nearly $30,000 for in-state students, while out-of-state students can expect to pay close to $50,000 per year. Private nonprofit colleges average more than $62,000 annually when tuition, housing, books, and living expenses are included.

These numbers can be downright frightening for parents and students trying to save for education. However, while the price of college can seem expensive, experts agree that the long-term positive impact on a child’s career prospects and earning potential often makes the investment worthwhile.

Financial experts consistently advise parents to start saving as early as possible to help defray college costs. Whether you are a new parent or have children already in high school, now is the time to start setting money aside. Even modest, consistent savings can grow significantly over time.

UNDERSTANDING 529 COLLEGE SAVINGS PLANS

A recent study by the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation found that 41 percent of families with children have saved some money for college. Among those families, 33 percent use a tax-advantaged savings account, such as a 529 College Savings Plan.

529 plans allow families to invest money that grows tax-free when used for qualified education expenses, including tuition, fees, books, and housing. The Financial Planning Association encourages parents to research their state’s 529 plan options, as more than 30 states offer tax deductions or credits for contributions. These plans can be a powerful tool for families at many income levels.

PLANNING FOR PAYMENTS AND LIMITING DEBT

If savings fall short of covering the full cost of college, experts recommend keeping student loan debt to a minimum whenever possible. Federal student loans generally offer lower interest rates and more flexible repayment options than private loans.

Families with college-age children should have open conversations about affordability. Discuss how much parents can reasonably contribute and what students may need to cover through part-time work, scholarships, or grants. Choosing an in-state public university, starting at a community college, or living at home can also significantly reduce expenses.

By combining early savings, smart planning, student contributions, and selecting an affordable college, families can put themselves on stronger financial footing—both during college and long after graduation.

A COLLEGE SAVINGS CHECKLIST

✓When planning how to pay for college, families should consider a variety of funding sources, including:

✓Savings and investment options, such as U.S. Savings Bonds or taxable investment accounts

✓Grants, including Pell Grants, community grants, and employer-sponsored education benefits

✓Regular contributions to a college savings account

✓Financial gifts to your child or unexpected income earmarked for education

✓Low-interest student loans that offer deferred payments while the student is in school

✓Casting a wide net can help reduce the amount that must be borrowed later.

If you recently welcomed a new member to your family, you may be feeling some degree of financial stress. To avoid money woes, now and in the future, make sure to do the following.

• Have an emergency fund. Ideally, your emergency fund should contain at least three months’ worth of living expenses. This will ensure you can provide for your family in the event you fall ill, get into an accident or lose your job.

• Review your budget. In some cases, you may need to make changes to your budget (for example, if one partner is no longer earning an income). Therefore, it’s a good idea to reassess your cash inflow versus outflow and make any necessary adjustments.

FINANCIAL TIPS FOR NEW PARENTS $

• Start saving now. If possible, start putting aside money for your child’s education right away. Compare different contribution plans so you can choose the one that offers the most benefits.

• Focus on cutting costs. There are many ways to save on the items you need for your baby. For example, it may be more cost-effective to purchase reusable diapers than disposable ones. In addition, you might want to purchase big-ticket items like the stroller and crib second-hand.

For more personalized advice, consult a financial expert in your region.

MERCHANT MEMORIAL GROUP

CALL IN A PROFESSIONAL

sometimes it pays to use people, not software

One of the most popular ways to file taxes today is using computer software, those off-the-shelf programs that promise to make satisfying the IRS a breeze.

But software isn’t always the best answer. It might make sense for people who are computer savvy and have simple taxes, but not necessarily for those of us who have more complicated tax returns or don’t want the hassle of learning a new program.

A COMPLEX RECIPE

The problem with using tax software is that it takes two incredibly complicated systems and combines them together.

Think about

it: No one person can understand the United States Tax Code, which is one of the largest legislative works in human history. And many people struggle to get their computers to print correctly, much less enter every detail about their financial situation down to the decimal.

For people who still want the human touch, it’s good that there are plenty of options for picking local tax professionals.

IN-DEPTH KNOWLEDGE

Software programs aren’t always the best at explaining technical terms about the tax code.

If you’re not comfortable answering the precise questions today’s complex tax returns demand, it’s a good idea to find a person who can explain the tax rules and how they apply to your situation. They can explain things in a clear, comfortable way — something that online glossaries and do-it-yourself software simply can’t match.

CUSTOM WORK

Another advantage of working with a real human professional is that they can specialize in certain areas of the tax law that apply to you.

For example, if you own rental properties, a tax preparer with lots of experience in real estate can help you find all the breaks that you deserve, something that may be difficult if you struggle with learning a new computer program.

Anyone who owns a business or is self-employed can benefit from professional help, too, since business income can make your tax situation exponentially more complicated.

There are so many rules, guidelines and requirements to follow — not to mention loopholes that can be taken advantage of — that professional tax help can often pay for itself.

AVOID THESE 6 INSURANCE MISTAKES

The wrong choice in insurance could leave you without sufficient coverage or cost you more than necessary. Don’t make the following errors when choosing your policy.

1. Choosing the cheapest option. The plan with the lowest premiums might not offer adequate protection. Balancing affordability with comprehensive protection is key to avoiding coverage gaps.

2. Failing to update coverage. As your circumstances change, your insurance needs evolve too. Assess your policies and update them to align with your life changes to ensure you have adequate protection.

3. Not comparing quotes. Prices for the same coverage can vary significantly between companies. Take the time to shop around and find the best deal without compromising coverage quality.

4. Overlooking deductibles. A plan with a high deductible might get you a lower monthly rate. However, if something goes wrong and you can’t afford that deductible, your insurance won’t help you.

5. Not understanding your policy. Don’t just skim through your policy and hope for the best. Make sure you understand the coverage and exclusions. If you’re unsure about something, ask questions.

6. Skipping renters insurance. Even if you don’t own a home, the few bucks you spend on insurance now can save you a bundle if your valuable belongings get stolen or damaged. An insurance broker in your area can help you find the best protection at the best price.

THREE QUALITIES TO LOOK FOR IN A FINANCIAL ADVISER

A good financial adviser is worth every penny. Their guidance can help you meet and exceed your financial goals. But a bad financial adviser? Their counsel can see you lose your life savings — or worse. Separate the good from the up-to-no-good by seeking financial advisers with these stellar qualities.

THEY TALK TO YOU, NOT AT YOU

While you’re paying for guidance from your financial adviser, it’s important that they listen as much as they counsel. Offering quality advice requires understanding individual needs and objectives. The only way to get there is through asking questions and taking in the answers. So you want an adviser that takes the time to get to know you. It’s also important that you understand the advice you’re given. You should feel comfortable asking questions and confident that you understand the answers. A good financial adviser will provide this and put you at ease.

THEY’RE TRANSPARENT

Every financial adviser works a little differently. What’s key is that they’re open about their modus operandi, and more importantly, about how they get paid. What you need to know is if they’re making commission on the products they sell. Beyond these points, you also need to ensure that your adviser will report all potential risks involved with recommended investments.

THEY’RE QUALIFIED

Training and certification are basic ingredients, but they aren’t the whole recipe. Experience, a commitment to ongoing training and involvement with professional associations are just as essential. Use referrals, reviews and background checks to verify if a financial adviser can provide all the above qualities. Interview more than one candidate and make sure you feel comfortable with the person you ultimately choose to hire — never ignore a gut feeling.

Partnering throughout the years to help reach your financial goals. Let’s plan your future together.

Jessica Riehle Financial Advisor

ESTATE PLANNING: Where to start

Now that the Baby Boomer generation is reaching retirement, America is about to see one of the greatest transfers of wealth in human history.

But many families don’t have a plan in place for how to transfer that wealth, be it a big or small fortune.

The lack of a quality estate plan can lead to confusion, legal problems, a hefty tax bill and family fights. Making a well-formed plan with advice from estate professionals, though, can make a huge difference in the legacy you leave behind.

With that in mind, here are some things to consider when planning for your estate:

GET LEGAL ADVICE

Any good estate plan will include getting help from a qualified attorney who can tailor the legal framework to meet your specific needs.

While having a will is critical — for young people as well as the elderly — that’s just one part of your estate plan. Other things to consider are assigning a power of attorney, a living will, and perhaps even a trust.

All these things require specialized legal advice, though, so look for an experienced attorney who has a good reputation and long track record handling estates similar to yours.

No matter what, be sure you fully understand the insurance policies you’re buying. If you feel confused or uncomfortable about it, get secondopinions.

FUNERAL EXPENSES

Today’s funerals can cost tens of thousands of dollars. When you factor in the cost of the burial place, services, ministers and everything else that goes into a funeral, the bills can quickly add up.

That’s why it’s important to plan ahead to cover your funeral expenses. You don’t want to leave your descendants with the bill.

TALK ABOUT IT

LIFE INSURANCE

One thing to consider is investing in a life insurance policy that can be left to take care of the people who are close to you. There are a lot of different choices in the life insurance market — only some of which will be right for your situation — so it’s important to find an advisor you can trust to help walk you through the process to find the most fitting product.

Term life insurance is the most popular option because of its typically low rates and long-term coverage, but it’s not the only one.

Whole life insurance policies, annuities and other insurance products may meet your needs, too.

Luckily, in addition to traditional life insurance policies, there are other options to keep from leaving your family with a financial burden. Prepaid funeral plans are a popular choice, or you could simply purchase your final resting place so there’s one step taken care of before your passing. It’s uncomfortable to think about, but it’s something that must be dealt with as part of a good estate plan. Visit your local funeral homes to talk about their options for paying for services ahead of time.

Finally, an important part of an estate plan is talking with your heirs about what they can expect to receive as part of the estate.

You should be frank with them and — while you don’t necessarily have to go into every detail — they shouldn’t be too surprised at the inheritance they receive after your death. Many estate-related fights and heartache could have been avoided with good communication.

That’s another thing a good estate planner can help you with. They deal with estates all the time, including the family dynamics and concerns that typically accompany decisions about them.

With the right estate plan — and professional help to get you there — your estate can be a blessing for your heirs that they’ll treasure for the rest of their lives.

In the collective imagination, saving money sometimes seems accessible only to those with high salaries. But is it still possible to save even on a modest income? The answer is “yes”! Here are a few tips to help you do so.

MAKE A BUDGET

The first step to saving is to know where your money goes. Review your bank statements and make a list of the amounts you spend on your various types of expenses.

Financial experts often recommend the 50/30/20 rule for dividing income:

✓ 50% of your income for essentials, like housing, food and electricity

✓ 30% for non-essentials, like entertainment and leisure

✓ 20% per cent should go to savings

Percentages may vary depending on your situation. If your essential expenses take up more than half your income, look for ways to reduce them, like switching to a cheaper mobile plan.

TAKING A SABBATICAL REQUIRES SOLID FINANCIAL PLANNING

Do you feel the need to take a professional break to recharge your batteries or pursue a passion project? A sabbatical might just be the answer. However, you must plan your finances accordingly. Here’s an overview of what you need to know. PAID OR UNPAID

SAVING HABITS

LEAVE

A sabbatical can either be paid or unpaid, depending on various factors. You might be able—with your employer’s approval—to take a slightly reduced salary for a few years so you can receive full pay during your planned leave. In some cases, your employer might decide not to pay you a salary at all while you’re away, which would require some extra planning.

You’ll inevitably need to adjust your savings habits in anticipation of a sabbatical. Start by drawing up a budget tailored to your sabbatical plans to estimate how much money you’ll need to live comfortably. Set aside a portion of your income to reach your savings goal. Do you need a little extra cash? Think about selling some unused items.

OPEN COMMUNICATION

CREATE HABITS

Regardless of your income, set up an automatic transfer of a small amount from each paycheck into savings. Over time, this adds up to money you might otherwise spend without noticing.

Also, make it a habit to wait a day or two before making a purchase. This pause helps you decide whether something is essential or unnecessary, leading to smarter financial choices.

If you’re looking for savings strategies that work with a limited income, consider speaking with a financial advisor.

If you want a successful sabbatical, start by having an open discussion with your employer several months in advance. Highlight the benefits of your sabbatical in terms of future work performance and reassure them of your intention to return. This way, you can also address any concerns about future compensation. Do you need help planning your leave? Talk to a financial expert.

LIFE PLANNING STARTS WITH PROTECTING WHAT MATTERS MOST.

From retirement goals to healthcare

Let’s build a plan that supports your

Arnone Wealth Management

The new year is the right time to plan ahead

As the new year begins, we’re here to help you plan with intention and move forward with confidence.

We believe thoughtful financial guidance plays a role at every stage of life — from preparing for retirement to navigating major transitions with care. Our approach is personal, collaborative and built on long-standing relationships within the community we call home. Let’s get the conversation started today.

Arnone Wealth Management 302 Fifth St., Suite 1 Clarkston, WA 99403 509-758-8119

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