Friendship and Finances

Jan 16, 2025 | Retirement Planning

When making plans with friends:

  • Ask for ideas from everyone in the group to ensure it fits within your friends’ budgets.
  • Give plenty of heads up if there’s a big-ticket event you’d like your crew to take part in.
  • Have an open conversation about finances to remove the taboo and build understanding.

From buying gifts and eating out, to going to weddings and planning vacations, money plays a part in all relationships. And friendships are no exception.

 

Here are some do’s and don’ts for dealing with mixed-income friendships.

Do ask your friends for input. Even if you’re the unofficial events coordinator for your group, ask everyone for ideas so nobody feels backed into a corner. You can ask questions like, “How much is OK to spend on gifts?” and What do you suggest we do for our get-together.” It will be more inclusive for everyone to suggest activities that align with their budget.

 

Do extend the invite. Always ask, even if you’re pretty sure something is out of your friend’s price range.

 

Don’t make assumptions. You can’t assume anyone’s budget and financial situation.

 

Do give plenty of notice. If you’re planning something give your friends advance notice so they can budget for it. A longer lead time gives them the chance to save up for that fancy birthday dinner or night at the theater if they want to join you. Last-minute plans might not be possible if they’re working on a tight budget.

 

Don’t be upset if they take a pass. Understand that not only do your friends’ finances differ, but so do their priorities. Even if you’ve given plenty of notice, a weekend wine tasting trip with girlfriends might not be as important as visiting family for the holidays. While you might be well-positioned to do both, you shouldn’t assume that your friend is.

 

Do offer to pay if it’s in your budget and having their company is worth it to you. That doesn’t have to mean you’ll cover the cost of their flight. But, consider offering to pay for cocktails one night while you’re away or covering the cost of a rental car in your destination city. Be open about your feelings and understand if they politely decline. Which leads to the next tip…

 

Don’t be afraid to have an honest conversation. I’m not suggesting you swap bank statements. Just don’t be afraid to say if something is out of your budget or if you’re prioritizing a different expense. With communication and understanding you can make money less of a taboo topic with friends and have a better chance of making memories that fit into everyone’s budget.

 

Keeping these do’s and don’ts in mind when it comes to finances will open communication, strengthen friendships, and provide opportunities to create lasting memories.

Sources: theeverygirl.com; huffpost.com; tampabay.com, morningbrew.com, Raymond James. CSP #315161-2 Exp. 1.16.26

Saving Family Memories

Jan 14, 2025 | Retirement Planning

“This cause is very close to my heart as my grandmother was diagnosed with Alzheimer’s and battled it for six years before passing. While we had known about her diagnosis for some time, it truly hit me emotionally on the day of my confirmation when she spent the entire day with my family and by the end, had forgotten why she was there. I was 14 years old, and when she hugged me goodbye, she wished me a happy birthday. It was a small moment, but it was the first time I truly felt the weight of her condition and how it was changing her. Watching her struggle and seeing the changes in her behavior was incredibly hard, but it also highlighted the importance of family. It brought my family together more often to visit her and spend time together, which I will cherish forever.”

~Sarah Micek

Experience Team Manager, Cornerstone Financial Solutions

Branch Associate, RJFS

Capturing Family Memories

If you’ve ever flipped through old photos or watched grainy home videos, you know the bittersweet feeling of wanting to freeze time—to hold on to those precious moments, relive them, and share them with future generations. Some of the most valuable aspects of a family’s legacy are intangible—traditions, shared values, and family history. Preserving those memories is an investment in what matters most.

From celebrating special events to capturing the beauty of everyday life, there are more tools than ever to help you create lasting keepsakes. The key is finding an approach that works for you and helps keep those connections alive for years to come. To help you get started, here are some ideas to preserve your cherished memories:

1. Turn Photos Into Stories: Photo Books

A picture says a thousand words, but a photo book tells the whole story. Services like Shutterfly, Mixbook, or Chatbooks make it easy to create albums to showcase your favorite photos and add captions, dates, and personal notes. Imagine your children flipping through a beautifully crafted book, laughing over silly moments, or admiring milestone memories.

2. Speak from the Heart: Digital Journals & Story Apps

For those who love storytelling, digital journals are a fantastic option. Apps like Day One allow you to pair photos and even video snippets with your written reflections. These digital entries can be shared across devices and stored in the cloud, making them easily accessible for future generations. Story apps like StoryWorth prompt family members with questions and compile answers into a book, perfect for capturing family history in a simple, engaging way. One day, your family might say, “I never knew this!” as they discover a part of your history.

3. Hold a Piece of the Past: Memory Boxes

There’s something magical about holding something tangible in your hands that brings stories to life. A memory box filled with mementos like ticket stubs, postcards, handwritten letters, or tiny artwork is like  a time capsule. Companies like Savor offer beautifully designed, curated keepsake boxes to store these items beautifully and evolve over the years.

4. Make the Everyday Extraordinary: Video Diaries

Whether you’re filming a quick chat over breakfast, capturing laughter during a family game night, or recording an interview with a parent, tools like WeVideo and iMovie make it easy to edit and store these snippets.

5. Create a Digital Family Hub

For tech-savvy families, a family website offers a modern way to stay connected no matter where life takes you. Platforms like Wix and Squarespace allow everyone to contribute photos, blog entries, and even family timelines. It’s a fun way to preserve memories and keep a family archive.

By taking small steps to preserve your memories, you’re creating more than just keepsakes. You’re building a foundation of love and connection for future generations. Let’s make those memories last.

 

Your Next Step:

Ready to begin your legacy project? Start small. Choose one idea and take the first step.  Whether you create a photo book, a memory box, or a short video, each action is a building block. And remember that even the most advanced tools are only as powerful as the people who use them – preserving your family’s memories starts with your heart.

If you’re unsure where to begin, we’re here to help you take the first step. Because at Cornerstone, we believe every great plan builds on what matters most – your family’s unique story.

Not a Cornerstone Client?

We can help you build a plan and define the legacy you’d like to pass on to future generations.

Call 605-357-8553 or email cfsteam@mycfsgroup.com today to schedule an appointment with one of our Wealth Managers.

CSP #684296 Exp 1.9.26

Raymond James is not affiliated with the above-mentioned digital services providers. This content was created with the assistance of artificial intelligence.

About the Markets

Aug 5, 2024 | Investing, Retirement Planning

Market Update Video – August 5, 2024

After a bright start to the year, some dark and stormy clouds have gathered above Wall Street. Friday’s weaker-than-expected jobs report raised concerns that cracks have formed in the US economy and the Fed is waiting too long to cut interest rates. Meanwhile, a group of disappointing Big Tech earnings last week showed how AI investments are not yet paying off as investors had hoped.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results.

The views and opinions expressed are not necessarily those of  Raymond James. This material is being provided for information purposes only, it not a complete description, it is not a recommendation, and it is not intended to be a substitute for specific individualized tax, legal, estate, or investment planning advice as individual situations will vary. There is no assurance any of the trends mentioned will continue or that any of the forecasts mentioned will occur. Expressions of opinion are as of this date and are subject to change without notice. This information does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.

This material is not a recommendation to buy, sell, hold or rollover any asset, adopt an investment strategy, retain a specific investment manager or use a particular account type. It does not take into account the specific investment objectives, tax and financial condition, or particular needs of any specific person. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

CSP #564884 Exp. 8.5.25

529 Plans: Smart parenting and savvy retirement planning

Jul 22, 2024 | Retirement Planning

Your dreams for your children likely include happiness, success, and perhaps the joy of raising a family. Your dreams probably don’t include them struggling in dead-end jobs, mired in debt, or living in your basement well into adulthood. If realized, concerns like these can challenge family dynamics and drain your finances – a significant problem if you’re trying to plan for retirement.

Fortunately, there are proactive steps you can take to help set your children up for success while safeguarding your financial future. One such step is investing in their education through a 529 plan or another type of education-funding account. The most common of these plans is the 529 college savings plan.

What is a 529 College Savings Plan?

A 529 College Savings Plan is a tax-advantaged savings plan allowing you to invest your money specifically for education. Funds in a 529 plan can grow tax-free, potentially allowing you to pay for more education at less cost to you.

You establish an account, choose investment options, and contribute funds that can be used for “qualified higher education expenses,” such as tuition, room and board, books, fees, and computers.

Benefits:

  • Tax Advantages: Earnings aren’t subject to federal tax. In many cases, they’re exempt from state taxes, too. Funds withdrawn solely to pay for eligible college expenses are completely tax-free.

 

  • Control: As the account holder, you maintain control over the funds, helping ensure they are used for their intended purpose.

 

  • Estate Planning: 529 Plans are not counted as part of your estate, so your family won’t owe estate taxes on the account even if you pass away.

 

  • Legacy: By helping fund their education, you’re providing financial support while also emphasizing the importance of education. Seeing that education is important to you can make it important to your children as well.

 

  • Flexibility: There are no age limits. You can invest for both children and adults, so it’s never too late to start saving for education.

 

Investing in education through a 529 plan isn’t just good parenting, it can also be good retirement planning. Depending on your overall financial plan, it can pave the way for your children’s success while helping ensure your financial stability in the years to come. Consult a financial advisor who can help you evaluate a 529 college savings plan as part of your comprehensive financial plan.

Not a Cornerstone Client?

We’d be happy to help tailor a plan that aligns with your goals and ensures your loved ones have the educational opportunities they deserve. Call 605-357-8553 or email cfsteam@mycfsgroup.com to schedule a strategy session today.

Or, if you’d simply like more information about the two types of 529 plans, call 605-357-8553 or email cfsteam@mycfsgroup.com.

Earnings in 529 plans are not subject to federal tax, and in most cases, state tax, so long as you use withdrawals for eligible education expenses, such as tuition and room and board. However, if you withdraw money from a 529 plan and do not use it on an eligible education expense, you generally will be subject to income tax and an additional 10% federal tax penalty on earnings. As with other investments, there are generally fees and expenses associated with participation in a 529 plan. There is also a risk that these plans may lose money or not perform well enough to cover college costs as anticipated. Most states offer their own 529 programs, which may provide advantages and benefits exclusively for their residents. Investors should consider, before investing, whether the investor’s or the designated beneficiary’s home state offers any tax or other benefits that are only available for investment in such state’s 529 college savings plan. Such benefits include financial aid, scholarship funds, and protection from creditors. The tax implications can vary significantly from state to state.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation.

In Case of Emergency: Organize Your Vital Info

Jul 16, 2024 | Estate Planning, Retirement Planning

Organize your vital personal, health, and financial information in one accessible place to help your loved ones navigate with ease should something happen to you.

Life can be unpredictable, and emergencies can happen when we least expect them. Think about this: if you have a medical emergency, could your loved ones access your phone? If your partner couldn’t talk, do you know their usernames and passwords? Does your family know the names of your doctor and important medical information? Could they easily find your IDs and legal documents?

Make sure your family doesn’t have to wade through piles of paperwork or argue about who will take care of the cat by having vital personal, health and financial information in a centralized and accessible place.  Here are some practical steps you can take:

Personal and Digital Connections

 

Compile a list of your usernames, passwords, and other login details in case someone needs to access your electronic devices or social media accounts. You can keep this information secure by using password management tools or a digital vault.

Create a list of essential personal and professional contacts who should be notified if you have an emergency or are incapacitated, including employers, attorneys, and financial advisors. Help make it easy for your family to reach out to your community of connections if needed.

Do you use an online financial aggregation service or app? A trusted contact will need to know how to access anything that is password protected.

Health and Medical Information

Who will advocate for your health needs during a medical emergency? Having quick access to your health information can be a lifesaver and help remove doubt and stress when handling difficult situations. Create a document with details about your primary healthcare providers, ongoing medical conditions, allergies, and any medications you’re currently taking.

Consider obtaining an advance directive to provide instructions for medical care if you become unable to make decisions. According to the Journal of Preventative Medicine only 26% of Americans have taken this important step.

Legal and Financial Documents

Ensure your important documents such as wills, trusts, advance directives, and power of attorney are in order and make sure a trusted person knows where to find all of this information. If you’re unable to manage your affairs for a period of time, your representative may need proof of ownership documents such as the deed to your house and vehicle titles or contracts such as sale of property.

Download the Important Documents Checklist

A simple tool we’ve created to help you organize your vital documents.

DOWNLOAD CHECKLIST

Not a Cornerstone client?

Will your loved ones have the information they need if something happens to you? Preparing involves organizing your personal, health, and financial information. The Cornerstone Experience® gives our clients access to our professional team and several online tools to help organize personal, health and financial information in a centralized and accessible place.

Contact us today at 605-357-8553 or cfsteam@mycfsgroup.com if you’d like to learn more about the unparalleled service you can expect from the Cornerstone team.

CSP #541388 Exp. 7.10.25

5 Steps to Determine How Much Income You’ll Need in Retirement

Mar 5, 2024 | Retirement Planning

5 Steps to Estimate Retirement Income Needs

USE YOUR CURRENT INCOME AS A STARTING POINT

It’s common to discuss desired annual retirement income as a percentage of your current income. Depending on who you’re talking to, that percentage could be anywhere from 60% to 90%, or even more. The appeal of this approach is its simplicity. It seems fairly common-sense – Your current income sustains your present lifestyle, so taking that income and reducing it by a specific percentage to reflect the fact that there will be certain expenses you’ll no longer be liable for (e.g., payroll taxes) will, theoretically, allow you to sustain your current lifestyle.

The problem? It doesn’t account for your specific situation. For example, if you want to travel extensively in retirement you might easily need 100% (or more) of your current income to get by. It’s fine to use a percentage of your current income as a benchmark, but it’s worth going through all of your current expenses in detail, and really thinking about how those expenses will change over time as you transition into retirement.

PROJECT YOUR RETIREMENT EXPENSES

Your annual income during retirement should be enough (or more than enough) to meet your retirement expenses. That’s why estimating those expenses is a big piece of the retirement planning puzzle. But you may have a hard time identifying all of your expenses and projecting how much you’ll be spending in each area, especially if retirement is still far off. To help you get started, here are some common retirement expenses:

    • Food and clothing
    • Housing: Rent or mortgage payments, property taxes, homeowners insurance, property upkeep and repairs
    • Utilities: Gas, electric, water, telephone, cable TV
    • Transportation: Car payments, auto insurance, gas, maintenance and repairs, public transportation
    • Insurance: Medical, dental, life, disability, long-term care
    • Health-care costs not covered by insurance: Deductibles, co-payments, prescription drugs
    • Taxes: Federal and state income tax, capital gains tax
    • Debts: Personal loans, business loans, credit card payments
    • Education: Children’s or grandchildren’s college expenses
    • Gifts: Charitable and personal
    • Savings and investments: Contributions to IRAs, annuities, and other investment accounts
    • Recreation: Travel, dining out, hobbies, leisure activities
    • Care for yourself, your parents, or others: Costs for a nursing home, home health aide, or other type of assisted living
    • Miscellaneous: Personal grooming, pets, club memberships

Don’t forget that the cost of living will go up over time, and keep in mind that your retirement expenses may change from year to year. For example, you may pay off your home mortgage or your children’s education early in retirement. Other expenses, such as health care and insurance, may increase as you age. To protect against these variables, build a comfortable cushion into your estimates (it’s always best to be conservative). Finally, have a financial professional help you with your estimates to make sure they’re as accurate and realistic as possible.

DECIDE WHEN YOU’LL RETIRE

To determine your total retirement needs, you can’t just estimate how much annual income you need. You also have to estimate how long you’ll be retired. Why? The longer your retirement, the more years of income you’ll need to fund it. The length of your retirement will depend partly on when you plan to retire. This important decision typically revolves around your personal goals and financial situation. For example, you may see yourself retiring at 50 to get the most out of your retirement. Maybe a booming stock market or a generous early retirement package will make that possible. Although it’s great to have the flexibility to choose when you’ll retire, it’s important to remember that retiring at 50 will end up costing you a lot more than retiring at 65.

ESTIMATE YOUR LIFE EXPECTANCY

The age at which you retire isn’t the only factor that determines how long you’ll be retired. The other important factor is your lifespan. We all hope to live to an old age, but a longer life means that you’ll have even more years of retirement to fund. You may even run the risk of outliving your savings and other income sources. To guard against that risk, you’ll need to estimate your life expectancy. You can use government statistics, life insurance tables, or a life expectancy calculator to get a reasonable estimate of how long you’ll live. Experts base these estimates on your age, gender, race, health, lifestyle, occupation, and family history. But remember, these are just estimates. There’s no way to predict how long you’ll actually live, but with life expectancies on the rise, it’s probably best to assume you’ll live longer than you expect.

IDENTIFY YOUR SOURCES OF RETIREMENT INCOME

Once you have an idea of your retirement income needs, your next step is to assess how prepared you are to meet those needs. In other words, what sources of retirement income will be available to you? Your employer may offer a traditional pension that will pay you monthly benefits. In addition, you can likely count on Social Security to provide a portion of your retirement income. To get an estimate of your Social Security benefits, visit the Social Security Administration website (www.ssa.gov). Additional sources of retirement income may include a 401(k) or other retirement plan, IRAs, annuities, and other investments. The amount of income you receive from those sources will depend on the amount you invest, the rate of investment return, and other factors. Finally, if you plan to work during retirement, your job earnings will be another source of income.

NOT A CORNERSTONE CLIENT?

If you have questions about your financial plan please contact us today to schedule a complimentary, no obligation review with one of our advisors. Call 605.357.8553 or email cfsteam@mycfsgroup.com.

M22-12417 Exp 2025.09.27. This information is not intended to be a substitute for specific individualized tax, legal, estate, or investment planning advice as individual situations will vary. Please discuss these matters with the appropriate professional.