News & Notes

Personal Finance Q&A Notes

WIFV had the pleasure of hosting a Q&A session for WIFV members with presenters John Aaron, CPA, Jackie Hopkins and Dave Hedrick of Lincoln Financial discussed “The Rules of Money”, “The Cans”, “The Can’ts” and “The Do’s” and “ The Don’ts” around personal finance.

The conversation started with a clever video that used a restaurant dining setting and menu to frame the financial choices that individuals need to make along their life journey. Watch it here.

Priorities change as we age. When we are young, our priorities should be budgeting, insurance, and emergency funds. Good budgeting guidelines: 50% towards needs; 20% to savings and 30% to wants. In our 30s, we should be getting out of debt- paying student loans, managing credit card debt. In our 40s and 50s, as we are further in our careers, the priorities are retirement, our children’s college costs, and other goals and dreams. And finally, estate planning. It is important to keep in mind that although priorities shift throughout one’s life, that does not mean that you should wait until you get to a certain age to move forward in your financial plans. It is never too early! If you take advantage of compounding interest and save $6.67 per day starting at age 25, you will have nearly $1 million at retirement!

Before you get to retirement, you’ve got to have something to retire FROM. If you are self-employed, you are responsible for paying quarterly estimated taxes. You CAN be self-employed while also having w-2 income. It’s suggested that you have a separate checking account for self-employment/business income…it will be much easier come tax time! You move a “draw” from this account to your personal account as your “income”.

Speaking of retirement, how do you get there? Roth IRAs, SEP IRAs- look at your options – not just from how much money they can make for you, but also what tax implications exist on withdrawals, before/after retirement.

Beyond retirement, estate planning is not just about who gets what. This also includes designating Power of Attorney and filing your Advance Directives. This is also the time to consider Long Term Care insurance, which is less expensive the younger you are when you buy it. After retirement, women live an average of 20 years more, and men live an average of 17.1 years more. Reverse mortgages may also be a consideration for homeowners- this is a complicated process, but can be a means to finance senior living care. A licensed fiduciary can look at your assets and how they can work to your advantage. There was also discussion around the accessibility and security of online vs hard copies of documents, passwords, etc. so that your wishes can be met and your affairs put in order.

If you have questions about your own personal finances, certified fiduciaries Dave and Jackie are happy to answer them at If you are looking for an accountant well-versed in the production industry, reach out to John Aaron at Thanks to Sharon Sobel for providing this summary!

News & Notes Categories