VOYAGER

FROM THE DESK OF… features rotating columns from Helmstar

partners Tom Steelman, and Ben Boettcher, ChFc, CFP.®

ISSUE 12 . MAY . 2019

When is it OK to splurge?:

Some questions to ask yourself before a splurge

P1

Navigating Tough Conversations with Aging Parents

Uncomfortable,but necessary

P3

6 Essential Savings Tips for the Self-Employed

Tips to keep you on track when traditional advice may not apply

P2

FROM THEDESK OF…

We didn’t go into this business because we love math (but we do!). For us, financial planning has always been about something so much bigger...

All too often, so many of us can get caught up in the “what” of money: what type of investments, what asset classes, what retirement plan.

But it’s the “why” behind financial planning that inspires us to come to work everyday. We call this our North Star, our higher purpose that extends beyond the 9-to-5 days at the office.

When clients come to us, each have their own unique vision for the future. They want to know how to get from where they are now to the life they want 10, 20 or 30 years from now — and we map out the route to get there.

Every day, we watch our clients take steps closer to the future they hope to create. We get to work with them to understand their fears, dreams and wishes. We get to celebrate their victories, encourage them through the setbacks and set new goals.

We act as both a witness and an advisor as they move closer to aligning their financial plan with their life plan.

At the end of the day, this is what we love most: seeing people living the life they’ve always wanted. After all, it’s the assets that can’t be measured — time spent with family and close friends, the freedom to pursue new passions, the stability to start a dream business — that matter most.

Insights on wealth, personal finance and more

A R E G I S T E R E D I N V E S T M E N T A D V I S O R Y F I R M

BENBOETTCHER

Have a friend or family member who you think could benefit from receiving our Voyager newsletter?

Let us know.

Go to helmstargroup.com/contact or call 208.429.0800

and we’ll make sure they receive it.

PASSALONG!

While there are 60 stock markets around the world, the U.S. stock

market dominates global market cap. U.S. market

capitalization is 5X greater than the value of the runner-up nation,

Japan, and more than 10x greater than France or Germany’s markets.

When is it OK TO SPLURGE?Whether it’s a new sports car or a long-overdue vacation, the temptation to splurge surrounds us every day.

Spontaneously spending money just to “treat ourselves” can be a trap, a surefire way to derail long-term goals of retirement, building a business, or chasing other dreams. But many financial experts — including the Helmstar team — believe that a measured splurge here and there can actually help us stay on track with our financial plans.

Here are some questions to ask yourself before a splurge: Do you have adequate savings? Check to make sure you have six to 12 months worth of emergency savings tucked away into an account. If you’re currently unable to save for retirement or are weighed down by credit card debt or loans, this might not be the right time. Can you afford it? Splurges shouldn’t have to be financed. Before making a purchase, look into your budget and check that you can still be on track with your savings plans and bills. A general rule of thumb? Don’t go into debt for an unnecessary expense. Will it derail other goals and plans? Maybe you’re planning to retiring early. Maybe you’re paying off your mortgage. Whatever your long-term goals are, don’t lose sight of them for a short-term luxury. Continued on page 4

© 2019 The Helmstar Group.Material in this newsletter is for informational purposes only. It is not to be construed as tax, legal or investment advice. Information has been gathered from sources believed to be reliable, but individual situations can vary. Please consult with an investment, legal, accounting or tax professional about your unique situation.

T 208.429.0800 | F 208.429.0801250 S. 5th St. Suite 600 | Boise, ID 83702

44

“Navigating Tough Conversations with Aging Parents” Continued from page 3

SET THE EXPECTATION. Regardless of how much we want to support our loved ones, we all have limited resources. Being honest about how much we can contribute helps our parents stay realistic about planning ahead for their future. It also prevents us from taking on too many unexpected costs down the road.

PROVIDE YOUR PERSPECTIVE. Explain the link between your parents’ financial decisions and your own. Let them know that by sharing this information, they can help you make decisions that honor their preferences and protect their wealth.

TAKE YOUR TIME. You won’t be able to tackle all the important subjects in one sitting. Not only are these conversations emotionally draining, but they also require listening to everyone’s perspectives and coming to a consensus. It’s also important to update your records of this information at least once every year, as situations and circumstances change.

FOLLOW US ON LINKEDIN! linkedin.com/company/the-helmstar-group/

Have you done your research? Splurges don’t have to be an unplanned impulse — you can always research beforehand to avoid buyer’s remorse. Look into discounts or comparison shop, if possible. Learn about the risks involved with making the purchase and understand exactly what you will be putting your money toward.

Will it bring you joy? If you’re putting down a significant amount of money, your purchase should bring you joy. Think about the thrill that sports car might give you every time you get behind the wheel, or the memories you’ll keep from that vacation abroad.

Financial experts say experiences tend to bring more long-term joy than items do. Will you be able to keep it in check? Splurging is addictive. You might spend money on a sports car here, a vacation home there and then a series of jewelry, art or home renovations — with no end in sight. Make sure you can reign it in and get back to your plan.

Long story short: Splurges aren’t always poor decisions, and they aren’t always unplanned. In fact, splurging at the right time and place can prevent you from feeling discouraged during the pursuit of long-term goals.

A good splurge can remind us why we’re saving in the first place.

4

“When is it OK to splurge?” Continued from page 1

IF YOU’RE SELF-EMPLOYED,CHECK OUT THESE 6 SAVINGS TIPS TO KEEP YOU ON TRACK.

WANT TO TALK THROUGH YOUR UNIQUE SITUATION? WE’RE HERE TO HELP.The Helmstar team can even help connect you with a team of professionals to make sure

you are getting a 360-degree view of your financial, insurance, and tax situation.

THINK IN PERCENTAGES. When you’re creating a budget, use percentages of your income rather than dollar amounts. This allows you to sacrifice the same proportion of your income, no matter what next month may bring. Simply put: You can give more when you have more, and give less when you have less.

SAVE FOR TAXES FIRST. After a successful year, the last thing you want is to find out you owe thousands in taxes. Create a savings account devoted entirely to the taxes you’ll pay in the upcoming year. Each month, make sure you set enough aside for the worst-case tax scenario. (You can make additional money on what you’re setting aside by placing it in an interest-bearing savings account or short-term CD.)

KNOW THE BASICS. While your income may fluctuate, the amount of money you need to survive typically does not. Calculate the bare amount you need to make ends meet for a month, including rent, utilities, food, transportation, insurance, etc. Treat this as the baseline for your budget.

SAVE MORE WHEN YOU MAKE MORE. Create an overhead account or reserve fund. On the months you do well, set aside some of that extra income into that account. During the slower months, you’ll have a fund to pull from to keep your salary consistent. Once you have at least six months of savings in that account, use the extra money to tackle other financial goals (retirement, mortgages, debt, etc.).

ALWAYS TRACK YOUR DEDUCTIONS. From mileage to office supplies and even the lease on your office space, there’s a ton of tax deductions created specifically for the self-employed. Research which of your expenses qualify as deductions and maintain detailed records of those expenses with receipts.

BE PROACTIVE ABOUT RETIREMENT PLANNING. Check out all of your options — from a Roth IRA to 401(k) — and find a plan that fits. A huge benefit of self-employment is the freedom to save in a way that works best for you and your lifestyle.

1 4

5

6

2

3

ESSENTIAL SAVINGS TIPS for the Self-Employed

Continued on page 4

NAVIGATING

TOUGH CONVERSATI NSDeath, dying and money — these are some of the most uncomfort-able subjects to discuss with anyone, let alone our parents.

But when our parents start to age, having tough conversations like these are absolutely necessary. Statistics show 70% of seniors need some form of long-term care as they age. On average, their adult children contribute $10,000 a year to their medical care and living expenses.

Unfortunately, nearly 85% of these long-term care choices are made during a medical crisis — not exactly the prime time to make financial decisions.

You can avoid this same fate by starting the conversation early.

HAVE A PLAN. Prepare for the conversation with a list of the information you’ll need. This will help you stay on track even when stress levels are high. Some of the information you’ll need might include... • Personal information (SSNs, birthdates, etc.)

• Important contacts (financial advisors, accountants, doctors, etc.)

• Insurance information • Private security and access information (passwords, safety deposit boxes, etc.)

• Financial information (bank accounts, retirement accounts, investments, etc.)

• Estate planning documents (wills, trusts, advanced medical directives, power of attorney)

• Medical history • Funeral arrangements

MINIMIZE DISTRACTIONS. Coordinate a time and place with your parents ahead of time, and let them know about the topic of discussion. Use a private, quieter setting where you and your parents will feel comfortable and everyone can feel focused.

TRY TO HAVE ALL SIBLINGS PRESENT. Keeping everyone in the loop about your parents’ financial plan will help ensure their preferences are respected and upheld by the entire family. If your parents aren’t able to make these decisions later on, you and your siblings will be working from the same information.

START WITH VALUES OVER LOGISTICS. Every generation (and every individual) has different perspectives on how money should be used. Understanding the reasoning behind your parents’ financial decisions can give you a better insight into what they want for their future. Your parents can walk away from the conversation feeling heard, understood and valued.

Nearly 15 million professionals in the U.S. are self-employed. For those freelancers, contractors and entrepreneurs, traditional financial advice doesn’t always apply. With fluctuating incomes and sometimes unpredictable workflow, they’re placed in a unique position when it comes to saving for their future — especially when it’s tax season.

With the right preparation and plan, self-employed professionals can always stay on track with their long-term goals. They can take advantage of the freedom they have to build a financial future on their own terms.

62 3

AGINGPARENTS

W I T H

VOYAGER

FROM THE DESK OF… features rotating columns from Helmstar

partners Tom Steelman, and Ben Boettcher, ChFc, CFP.®

ISSUE 12 . MAY . 2019

When is it OK to splurge?:

Some questions to ask yourself before a splurge

P1

Navigating Tough Conversations with Aging Parents

Uncomfortable,but necessary

P3

6 Essential Savings Tips for the Self-Employed

Tips to keep you on track when traditional advice may not apply

P2

FROM THEDESK OF…

We didn’t go into this business because we love math (but we do!). For us, financial planning has always been about something so much bigger...

All too often, so many of us can get caught up in the “what” of money: what type of investments, what asset classes, what retirement plan.

But it’s the “why” behind financial planning that inspires us to come to work everyday. We call this our North Star, our higher purpose that extends beyond the 9-to-5 days at the office.

When clients come to us, each have their own unique vision for the future. They want to know how to get from where they are now to the life they want 10, 20 or 30 years from now — and we map out the route to get there.

Every day, we watch our clients take steps closer to the future they hope to create. We get to work with them to understand their fears, dreams and wishes. We get to celebrate their victories, encourage them through the setbacks and set new goals.

We act as both a witness and an advisor as they move closer to aligning their financial plan with their life plan.

At the end of the day, this is what we love most: seeing people living the life they’ve always wanted. After all, it’s the assets that can’t be measured — time spent with family and close friends, the freedom to pursue new passions, the stability to start a dream business — that matter most.

Insights on wealth, personal finance and more

A R E G I S T E R E D I N V E S T M E N T A D V I S O R Y F I R M

BENBOETTCHER

Have a friend or family member who you think could benefit from receiving our Voyager newsletter?

Let us know.

Go to helmstargroup.com/contact or call 208.429.0800

and we’ll make sure they receive it.

PASSALONG!

While there are 60 stock markets around the world, the U.S. stock

market dominates global market cap. U.S. market

capitalization is 5X greater than the value of the runner-up nation,

Japan, and more than 10x greater than France or Germany’s markets.

When is it OK TO SPLURGE?Whether it’s a new sports car or a long-overdue vacation, the temptation to splurge surrounds us every day.

Spontaneously spending money just to “treat ourselves” can be a trap, a surefire way to derail long-term goals of retirement, building a business, or chasing other dreams. But many financial experts — including the Helmstar team — believe that a measured splurge here and there can actually help us stay on track with our financial plans.

Here are some questions to ask yourself before a splurge: Do you have adequate savings? Check to make sure you have six to 12 months worth of emergency savings tucked away into an account. If you’re currently unable to save for retirement or are weighed down by credit card debt or loans, this might not be the right time. Can you afford it? Splurges shouldn’t have to be financed. Before making a purchase, look into your budget and check that you can still be on track with your savings plans and bills. A general rule of thumb? Don’t go into debt for an unnecessary expense. Will it derail other goals and plans? Maybe you’re planning to retiring early. Maybe you’re paying off your mortgage. Whatever your long-term goals are, don’t lose sight of them for a short-term luxury. Continued on page 4

© 2019 The Helmstar Group.Material in this newsletter is for informational purposes only. It is not to be construed as tax, legal or investment advice. Information has been gathered from sources believed to be reliable, but individual situations can vary. Please consult with an investment, legal, accounting or tax professional about your unique situation.

T 208.429.0800 | F 208.429.0801250 S. 5th St. Suite 600 | Boise, ID 83702

44

“Navigating Tough Conversations with Aging Parents” Continued from page 3

SET THE EXPECTATION. Regardless of how much we want to support our loved ones, we all have limited resources. Being honest about how much we can contribute helps our parents stay realistic about planning ahead for their future. It also prevents us from taking on too many unexpected costs down the road.

PROVIDE YOUR PERSPECTIVE. Explain the link between your parents’ financial decisions and your own. Let them know that by sharing this information, they can help you make decisions that honor their preferences and protect their wealth.

TAKE YOUR TIME. You won’t be able to tackle all the important subjects in one sitting. Not only are these conversations emotionally draining, but they also require listening to everyone’s perspectives and coming to a consensus. It’s also important to update your records of this information at least once every year, as situations and circumstances change.

FOLLOW US ON LINKEDIN! linkedin.com/company/the-helmstar-group/

Have you done your research? Splurges don’t have to be an unplanned impulse — you can always research beforehand to avoid buyer’s remorse. Look into discounts or comparison shop, if possible. Learn about the risks involved with making the purchase and understand exactly what you will be putting your money toward.

Will it bring you joy? If you’re putting down a significant amount of money, your purchase should bring you joy. Think about the thrill that sports car might give you every time you get behind the wheel, or the memories you’ll keep from that vacation abroad.

Financial experts say experiences tend to bring more long-term joy than items do. Will you be able to keep it in check? Splurging is addictive. You might spend money on a sports car here, a vacation home there and then a series of jewelry, art or home renovations — with no end in sight. Make sure you can reign it in and get back to your plan.

Long story short: Splurges aren’t always poor decisions, and they aren’t always unplanned. In fact, splurging at the right time and place can prevent you from feeling discouraged during the pursuit of long-term goals.

A good splurge can remind us why we’re saving in the first place.

4

“When is it OK to splurge?” Continued from page 1