Author Archives: Sebastian

By Kimberly Quinn, CFP®

As a financial advisor, I know how many concerns and considerations you have on your plate. There’s a lot to think about—from investment management to insurance needs to estate planning and beyond!

Over the years I’ve seen many of my clients make the same omissions again and again. To help educate other investors, I thought it’d be helpful to share these oversights. After reading about these common money issues I hope you’ll be less likely to make them yourself.

Let’s look at some of the biggest money pitfalls I see and how you can avoid them.

Not Understanding the Factors That Can Affect Your Outcome

Financial planning isn’t as simple as investing in the market and letting your portfolio grow. There are many factors to consider, some of which are in your control and some of which aren’t. Some common factors I see many investors overlook include:

Inflation

As an investor, you’re always fighting against inflation. While we can’t control inflation rates, we can control the choices you make with your investments to help beat inflation. According to the U.S. Department of Labor, the current annual rate of inflation is 8.5% for the previous 12 months, ending in March 2022.(1) This means that to beat inflation, your investments need to be earning more than 8.5%. Many investors forget to consider inflation, a critical oversight.

Sitting Out the Market

Many investors are nervous about entering the market, and I understand that hesitation. But I often see investors make the strategic mistake of waiting too long to invest or sitting out the market. I encourage my clients to start investing early and take the steps they can now to prepare themselves for the future. We don’t have a crystal ball and will never know where life will take us, so it’s better to be prepared for whatever the market might bring.

Investor Psychology

I urge my clients to consider their own psychology as an investor, one of the most consequential factors. We’re all different with different goals, risk tolerances, and financial needs; that being said, often my clients are their own worst enemies. For example, it might be tempting to sell some of your investments and bail when we see the market dip. But data shows that when you ride out the dip, you often come out ahead. According to the Securities and Exchange Commission (SEC), “over the long term the stock market has historically provided around 10% annual returns (closer to 6% or 7% ‘real’ returns when you subtract for the effects of inflation).” (2)

Emotional, rash decisions are often one of the biggest detriments to an investor’s performance.

Not Updating Your Financial Plan As Life Changes

Your financial plan shouldn’t just sit on a shelf and collect dust. It should be as dynamic as you are, changing with you as life changes. Whether you get married, go through a divorce, or welcome children or grandchildren into your life, these important life milestones impact your plan, from investment management to insurance planning to estate planning. Talk to your financial advisor, CPA, and attorneys if something in your life changes and you need to review and potentially update your plan.

Not Selecting the Right Insurance

You likely need different types of insurance (and different amounts of coverage) for each stage of life. I encourage my clients to think outside of just health insurance and consider comprehensive coverage. Your insurance needs might include:

• Disability insurance
• Life insurance
• Umbrella coverage
• Long-term care insurance
• Medicare insurance

Proper risk management is key to staying afloat during uncertain times. This can be accomplished by considering unexpected risks like divorce, disability, accidents, and illness, and ensuring you’re properly covered. Is your life insurance through your employer? It’s important to know if your coverage is portable. If not you may no longer have coverage when you leave the employer.

Are You Making Some of These Financial Mistakes?

Don’t let these common financial mistakes derail your wealth management plan. If you’d like to discuss how to navigate your financial questions, call us at (617) 610-0587 or email us at info@cim.financial.

(1) https://www.bls.gov/news.release/pdf/cpi.pdf
(2) https://www.sec.gov/investor/pubs/sec-guide-to-savings-and-investing.pdf

About Kim

Kimberly Quinn is co-owner and CERTIFIED FINANCIAL PLANNER™ professional at Catalyst Investment Management, an independent firm dedicated to providing personalized financial advice and planning. With over 30 years of experience, Kim is passionate about developing long-term relationships with her clients so she can provide them with customized solutions that make the most impact on their lives. Kim specializes in serving business owners and pre-retirees and post-retirees who desire a road map to their ideal retirement and women who are recently divorced or in the process of getting a divorce. Every client of Kim’s receives her utmost dedication and attention as they work toward their goals. She graduated from Boston University with a bachelor’s degree in business administration and spent much of her career prior to CIM at Charles Schwab, where she held various roles, including financial planner, vice president, and financial consultant. Outside of work, Kim loves spending time with her two teenage children, cooking, and staying active by running and skiing. Learn more about Kim by connecting with her on LinkedIn, and be sure to register for her free divorce workshop that takes place on the second Saturday of every month.

By Nick Shea, MBA

An oft-overlooked yet headache-inducing retirement transition task is planning for healthcare coverage and thus navigating the Medicare system. Medicare offers a variety of enrollment options, which gives you the flexibility to choose components of the plan that you need. Unfortunately, all those choices can also be confusing to understand. The enrollment process itself can also bewilder even the most prepared retirees, so in this article, I break down the basics of your Medicare plan to help you make decisions that are right for you.

The Coverage Option Puzzle

Medicare is divided into parts: Part A, Part B, Part C, and Part D (there are more options, but we’ll start with the basics). Each retiree or married retired couple must understand and evaluate the different Parts to determine the most relevant and appropriate options for their situation.

Original Medicare is a package that includes Part A and Part B, with the optional add-on of Part D. Part A covers hospital services. If you or your spouse paid Medicare payroll taxes during your working years for at least 10 years, Part A is free for you. If you didn’t, you can still get coverage by paying a monthly premium. Part B covers doctor visits and other outpatient services. Even if you or your spouse paid Medicare payroll taxes, Part B comes with a monthly premium. Part D is an optional add-on that includes drug coverage. Not to make things even more confusing, but Part D has a late enrollment penalty. Even if you don’t need prescription coverage when you are first eligible for Medicare, enroll in the plan to avoid extra long-term costs.(1)

To help with Medicare costs such as copayments, coinsurance, and deductibles, many retirees will purchase Medigap insurance from private insurance companies to supplement their Original Medicare plan. Some Medigap plans also cover additional services not covered by Part A or Part B but typically exclude services such as dental, vision, and hearing visits.

Medicare Advantage, also known as Part C, is an alternative to Original Medicare that is offered through Medicare-approved private companies. This plan bundles Part A and Part B and often includes Part D as well. Your choice of providers is often limited to providers that are in-network for the plan you purchase. Medicare Advantage plans also often cover additional services not covered by Part A, Part B, or Part D, including vision, hearing, and dental visits. Medigap policies cannot be combined with the Medicare Advantage plan.

When to Enroll

After you’ve decided on the best coverage option, the work to enroll in your Medicare plan unfortunately doesn’t get easier. The good news is, if you’re already taking Social Security benefits, you’re automatically enrolled in Parts A and B. Because Part B comes with a monthly premium, you can choose to opt out of this coverage. Otherwise, the premiums will be deducted from your Social Security payments.

Here’s where it gets complicated. If you’re not taking Social Security but need to enroll in Medicare, you will have to sign yourself up for Parts A and B on your own. You can begin enrolling in Medicare three months before the month you turn 65. The initial enrollment period ends three months after your birthday month. To ensure coverage starts by the time you turn 65, it’s important to sign up in the first three months of the initial enrollment period.

If you’re 65 or older but still working with employer-sponsored healthcare insurance, you may be able to delay enrolling for Medicare coverage. However, there are still rules to follow, and if you don’t enroll within 8 months after losing your employer-sponsored health insurance, you could pay significant lifetime penalties when you do eventually enroll. And if you ever want to switch the type of Medicare coverage you’ve opted for, you will have to wait for specified enrollment periods each year.

Unique Life = Unique Medicare Plan

Once you’ve successfully navigated through your coverage options and your enrollment period, it’s smooth sailing. But there are other things to consider, including (but not limited to):

• Your income level
• Your travel plans
• Your future healthcare needs

Unfortunately, high-income retirees will pay extra for Medicare Parts B and D. In 2021, if your adjusted gross income is above $88,000 as a single filer or $176,000 as a married couple filing jointly, you will have to pay a surcharge on your premiums.(2)

Additionally, if you plan to travel much in retirement, it’s important to know that Medicare doesn’t offer coverage outside of the U.S. If you were to get sick or suffer an injury abroad, you would have to pay for those medical costs out of pocket unless you have purchased Medigap insurance that offers travel coverage.

Finally, Medicare does not cover long-term care needs. Long-term care can be extraordinarily expensive, so it’s important to build long-term care expenses into your overall retirement plan rather than relying on Medicare coverage to protect you.

You Don’t Have to Navigate Medicare Alone

Are you overwhelmed yet? It’s understandable. Medicare is complex, and the coverage options that are right for you may not be right for someone else. Not to mention, when life changes come your way, you may need to make changes to your health plans as well. Thankfully, at Catalyst Investment Management, we can help you weigh your options while taking into account your needs, goals, and various other components of your financial plan. You don’t have to wade through the Medicare maze alone. Call us at (617) 610-0587 or info@cim.financial to schedule a call and start the process with the support of an experienced guide.

1. https://www.medicare.gov/drug-coverage-part-d/costs-for-medicare-drug-coverage/part-d-late-enrollment-penalty
2. https://www.medicare.gov/Pubs/pdf/11579-medicare-costs.pdf

About Nick

Nick Shea is founder and financial advisor at Catalyst Investment Management, an independent firm dedicated to providing personalized financial advice and planning. Over 40 years ago, Nick started reading The Wall Street Journal, building his own portfolios, and developing a passion for the financial world. He turned this interest into a career, working for many years at the former Dean Witter, now Morgan Stanley, and Charles Schwab, where he worked as an investment consultant, branch manager, and product developer. As a learning and development director, Nick created and delivered the branch management leadership program for the entire branch network. He has a bachelor’s degree in political science from Occidental College and an MBA from the University of Notre Dame. Nick specializes in serving entrepreneurs and helping retirees navigate through the complexities of the Medicare system. He is passionate about helping his clients mitigate the risks that can derail their financial goals. He is known for championing his clients’ dreams and striving to help them find the financial peace of mind they long for.

Nick is actively involved in his community, faithfully serving in the Knights of Columbus. He is also an elected member of the Windham Zoning Board of Adjustment. When he’s not working or giving back, Nick loves to read, spend time with his family, research his family’s genealogy, and travel, both in the U.S. and abroad. To learn more about Nick, connect with him on LinkedIn.

By Nick Shea, MBA

As you move down your retirement checklist, do you get caught up on healthcare? Enrolling in the right healthcare coverage is an incredibly important decision that can often feel overwhelming. Not only do you want to make sure you have coverage for your medical needs (both known and unknown), but you also want to find a plan that offers good value without an exorbitant price tag. In other words, there’s a lot riding on your decision.

To help you out, here’s a summary of the multiple Medicare plans available and the various enrollment periods to be aware of. For those who are already enrolled, this is an ideal time to reassess your coverage to make sure it’s still the best fit for you.

Who Should Be Aware of Medicare Annual Enrollment?

Medicare annual enrollment is for people who are already a part of the Medicare system. Even if you have only signed up for Parts A and B, you can still take advantage of the annual enrollment period.

If you have not yet enrolled in Medicare, then annual enrollment does not apply to you. Your initial enrollment period is based upon your birthday, not a set date on a calendar. You need to sign up for coverage during the window of time that starts three months before the month of your 65th birthday and ends at the end of the third month after, for a total of seven months. If you are getting close to your initial enrollment period, carefully consider the coverage you choose. When first eligible, you can sign up for a Medicare Supplement plan under Guaranteed Issue Rights. This means you cannot be turned down for pre-existing conditions. If you don’t choose a Medicare Supplement plan during this time, you may not have this option in the future.

You may be wondering if you need to do anything about the annual enrollment period if you already have a plan that works for you. It’s important to review your plan and stay abreast of 2022 changes since doctor networks and drug formularies change from year to year. This review is especially true for those who are on a Medicare Advantage plan or a stand-alone prescription drug plan. If you’re unsure if your current plan is the right choice for next year, our team would be happy to help you analyze your current plans and assess other options.

When Is Medicare Annual Enrollment?

Annual enrollment for existing Medicare participants, though, has nothing to do with your birthday. It is at the same time every year, and everyone currently enrolled can participate in it, even if you only began Medicare the month before. This year, annual enrollment is in effect from Oct. 15, 2021, to Dec. 7, 2021. The decisions you make during that period will affect your 2022 medical coverage.

Starting in 2019 and continuing into subsequent years, there is a new open enrollment period for Medicare Advantage plans only from January 1 to March 31. (1) This open enrollment is more restrictive than the Medicare annual enrollment that happens in the fall. Also, it only applies to the Medicare Advantage plans, so any other changes need to be made during the Medicare annual enrollment that is fast approaching.

What Are My Annual Enrollment Options?

Medicare annual enrollment is the annual opportunity for all participants to change their Medicare coverage. Here are some of the changes you can make during annual enrollment:

• Enroll in Medicare Part C (Medicare Advantage) for the first time. If you currently have Parts A and B (Original Medicare), you can switch to Part C. Part C is contracted by outside companies and offers the same coverage as Original Medicare but can include even more services.
• Switch back to Original Medicare (Parts A and B) if you currently have Medicare Advantage (Part C).
• Change your current Part C plan to a different Medicare Advantage plan.
• Enroll in or drop Part D prescription drug coverage.
• Change your current Part D plan to a different prescription drug coverage Part D plan.

What Will Annual Enrollment Changes Cost?

Each year Medicare may change the monthly premium for Part B. Currently, the standard premium for Medicare Part B is $148.50 for 2021. However, if your income is over $88,000 for a single person or $176,000 for a couple, then your premium will be higher. The premium range for high-income earners is from $297 to $504.90.

Other costs related to Original Medicare may change from year to year. For example, the Part A deductible can increase as well as the Part B deductible. The Center for Medicare and Medicaid have not released the 2022 deductible info yet.

Medicare Part A is free if you or your spouse paid into Medicare for at least 10 years, or 40 quarters. If you only have 30-39 quarters, it costs $259. The premium for less than 30 quarters is $471. (2)

Remember that both Medicare Part B (which covers most medically necessary doctor’s services) and Part D (the prescription drug benefit) have late enrollment penalties. For Part B, that looks like a 10% Part B premium penalty for every 12-month period you don’t enroll (unless you have medical coverage through an employer or a spouse’s employer). (3) For Part D, the penalty amount accumulates over time and is permanent, even once you’ve enrolled. You’ll be charged the penalty if you go more than 63 days in a row without Medicare drug coverage or coverage through other means, such as an employer plan. The amount varies and is dependent on how long you didn’t have coverage. (4) If you go long enough without enrolling, your penalties could be higher than the cost of the Part D premium. Even if you don’t need prescription coverage when you are first eligible for Medicare, enroll in the plan to avoid extra long-term costs.

Overwhelmed by Medicare Annual Enrollment? We Can Help.

A recent study conducted by the Kaiser Family Foundation found that only 6% to 13%, a relatively small percentage of Medicare enrollees, switched their Medicare Part D in any single year between 2006 and 2016. And nearly half of enrollees “rarely or never” review their Medicare plans during that same time period. According to that same study, nearly half of those surveyed said it was too difficult to compare plans. (5)

While it is true that choosing the right Medicare plan can be a complicated endeavor, it is also true that choosing the wrong plan could negatively impact your wealth management strategy. Simply put, taking your time and shopping around for the right plan will benefit your health and medical needs while also benefiting your pocketbook. The right financial advisor can help you reassess which plan will work for you. Schedule a complimentary phone consultation by reaching out to us at (617) 610-0587 or emailing info@cim.financial.

1. https://www.ehealthinsurance.com/medicare/advantage-all/new-medicare-advantage-open-enrollment-period
2. https://www.cms.gov/newsroom/fact-sheets/2021-medicare-parts-b-premiums-and-deductibles
3. https://www.medicareinteractive.org/get-answers/medicare-health-coverage-options/original-medicare-
   enrollment/medicare-part-b-late-enrollment-penalties
4. https://www.medicare.gov/drug-coverage-part-d/costs-for-medicare-drug-coverage/part-d-late-
   enrollment-penalty
5. https://www.kff.org/medicare/issue-brief/no-itch-to-switch-few-medicare-beneficiaries-switch-plans-
   during-the-open-enrollment-period/

About Nick

Nick Shea is founder and financial advisor at Catalyst Investment Management, an independent firm dedicated to providing personalized financial advice and planning. Over 40 years ago, Nick started reading The Wall Street Journal, building his own portfolios, and developing a passion for the financial world. He turned this interest into a career, working for many years at the former Dean Witter, now Morgan Stanley, and Charles Schwab, where he worked as an investment consultant, branch manager, and product developer. As a learning and development director, Nick created and delivered the branch management leadership program for the entire branch network. He has a bachelor’s degree in political science from Occidental College and an MBA from the University of Notre Dame. Nick specializes in serving entrepreneurs and helping retirees navigate through the complexities of the Medicare system. He is passionate about helping his clients mitigate the risks that can derail their financial goals. He is known for championing his clients’ dreams and striving to help them find the financial peace of mind they long for.

Nick is actively involved in his community, faithfully serving in the Knights of Columbus. He is also an elected member of the Windham Zoning Board of Adjustment. When he’s not working or giving back, Nick loves to read, spend time with his family, research his family’s genealogy, and travel, both in the U.S. and abroad. To learn more about Nick, connect with him on LinkedIn.

By Nick Shea, MBA

Whether you’re a Realtor, property owner, house flipper, or landlord—buying, selling, and renting real estate is often a lucrative industry. While there is great income potential in real estate, there is risk and a learning curve to achieving success.

You’ve taken on real estate as a career or chosen it for its semi-passive income qualities. While generating income is the goal, educating yourself on the industry, time involved, and tax implications is key to making the most of your investments.

Mixing Real Estate and Retirement

Standard long-term rentals and vacation rentals are great ways to build your retirement income. But it’s important to remember it’s not 100% passive. It’s important to think about your desired retirement lifestyle before jumping in.

Will you live near your rental property? Will you be away for part of the year? How about added travels, even if only for a few days at a time?

Will you be available for the occasional “the furnace is out” call? If not, you may need to consider hiring a property manager. Turning over properties, leasing, renter communication—it’s time to start thinking about who will handle the work that comes with your real estate once you’re retired.

Also, consider how dependent you’ll be on your real estate. Building a cash reserve is often advised when relying on investments to cover everyday expenses. A property may sit empty or require large expenses. Cover these expenses with cash to ensure your real estate doesn’t derail your retirement plans.

Investing in Real Estate for Retirement

For some, investing in real estate and retirement planning are nearly synonymous. But is that where your plan ends? You may need to step back and think about how much you’re pouring into real estate compared to how your other retirement accounts are looking.

This is where proper retirement planning becomes a factor. Many choose for their real estate earnings to complement their retirement savings. No matter how stable a real estate investment appears today, a diversified portfolio can help offset unforeseen risks.

Opening an IRA is a great retirement savings mechanism for any professional. You may choose to fund an IRA with real estate earnings. Working with a financial advisor can provide concrete guidance when it comes to fund allocation between the stock market and real estate.

When it comes to buying real estate, a mortgage will require extra planning. Although you may think your assets are enough to qualify you for a mortgage, most lenders highly value a steady income.

While you will collect Social Security during retirement, this income stream is often not enough to qualify for a mortgage. It’s often necessary to pre-plan to pull funds from a retirement account for at least two months prior to purchasing a property. For this reason, you may consider solidifying any last mortgages prior to retirement.

Selling Properties for Retirement Income in NH

At some point, you’ll want to sell your real estate. While the property has hopefully provided income while under your ownership, properly timing the sale should be accounted for.

If you sell your real estate within a year of purchasing it, New Hampshire is the place to be. Where many states would collect income tax on the earnings, New Hampshire does not have a state income tax.(1) Another tax benefit of New Hampshire is no estate tax—good news for those hoping to pass on property to a beneficiary after their passing.

For properties you’ve held longer, capital gains taxes come into play. Most can expect a 15% capital gains tax if their taxable income falls under $496,600 for a married couple filing jointly. The rate jumps to 20% if above the 15% threshold.(2)

Avoiding Capital Gains Taxes

Consider a 1031 exchange to push out paying capital gains taxes. A 1031 exchange is essentially selling one real estate investment and using the money to turn around and buy another like-kind property to defer capital gains taxes.

While simple on the surface, there are details you need to be aware of:

• Both properties must be investment properties or used for business.
• What does like-kind property mean? Generally speaking, this means one income-generating property for another. Gains from farmland you rented out as pasture could be swapped for an apartment complex. Both are real property used for investment/business purposes.(3)
• A qualified intermediary is required to conduct the transaction. This is a third party that holds the earnings from the first sale and sees through the transaction of purchasing the new property. Tax accountants and title companies are often able to provide qualified intermediary references.

There is also a timeline to be aware of:

• The exchange starts the day your property is sold.
• From the date of sale, you have 45 days to identify a replacement property.
• To complete the exchange and avoid capital gains tax, you must have purchased and taken over ownership of a new property by day 180.

Stick to the rules and approximately 6-month timeline, and you will successfully defer paying a capital gains tax associated with the sale of your property. Meeting with a tax professional is highly advised when planning the sale of any real estate investment.

Create a Retirement Plan Based Around Your Real Estate

While real estate is a great way to fund retirement, creating a plan that incorporates your goals and retirement timeline can be tricky. Leaning on the expertise of a financial advisor can bring clarity and direction to your real estate endeavors. Our advisors at Catalyst Investment Management would love to partner with you and, when necessary, introduce you to specialists to combine efforts to tackle these complex situations.

To learn more about personalized financial planning with Catalyst Investment Management, schedule a call by reaching out to us at (617) 610-0587 or emailing info@cim.financial.

1. https://www.revenue.nh.gov/assistance/tax-overview
2. https://www.irs.gov/taxtopics/tc409
3. https://www.irs.gov/businesses/small-businesses-self-employed/

About Nick

Nick Shea is founder and financial advisor at Catalyst Investment Management, an independent firm dedicated to providing personalized financial advice and planning. Over 40 years ago, Nick started reading The Wall Street Journal, building his own portfolios, and developing a passion for the financial world. He turned this interest into a career, working for many years at the former Dean Witter, now Morgan Stanley, and Charles Schwab, where he worked as an investment consultant, branch manager, and product developer. As a learning and development director, Nick created and delivered the branch management leadership program for the entire branch network. He has a bachelor’s degree in political science from Occidental College and an MBA from the University of Notre Dame. Nick specializes in serving entrepreneurs and helping retirees navigate through the complexities of the Medicare system. He is passionate about helping his clients mitigate the risks that can derail their financial goals. He is known for championing his clients’ dreams and striving to help them find the financial peace of mind they long for.

By Nick Shea, MBA

I recently learned that blind spots are a real thing. At a routine appointment with my optician, my doctor said some alarming words: “Now I’m going to test you for your blind spot.” Panicking, I said, “I’m not going blind!” She patiently explained to me that everyone has a blind spot where the optic nerve and blood vessels leave the back of the eye. If you’re like me, you probably thought blind spots were just a metaphor for how we miss things in life. It turns out, they’re real.

They’re also real when it comes to investing and financial planning. They can come as a result of many things, such as past experiences, lack of knowledge, and emotions. Since we can’t see our own blind spots, it’s a good idea to have an objective perspective from someone who knows what to look for so you don’t make avoidable mistakes. That’s what Catalyst Investment Management strives to do.

Whom We Serve

We founded Catalyst Investment Management to offer a solution to the lack of personalized financial advice and planning in the financial industry. Our clients are number one, always. And because we care so much about our clients’ lives and well-being, we want to see them succeed.

We make this a reality through secure, comprehensive plans that are tailored to your values, concerns, circumstances, and goals. Whether you need help with retirement planning, investment management, education planning, estate planning, insurance options, tax strategies, or all of the above, our knowledge, expertise, and care allow us to provide clarity and give insight that prevents you from falling prey to unnecessary risk and blind spots. Our goal is to be the catalyst (hence the name) that can take you from worry about retirement to excitement for the future.

Who We Serve

The clients we serve work hard every day to provide for their families and save for the future. While we serve a variety of clients, many of them are looking ahead to retirement and want to not only secure their finances, but also understand their healthcare choices. With the cost of healthcare increasing and inflation going up, the healthcare coverage you have in retirement can make a big difference in how long your money lasts. Our team can educate you and help you understand your options.

We also serve real estate agents and entrepreneurs. Many times, people in these careers don’t have steady, guaranteed income or access to retirement plans. That doesn’t mean they can’t plan for the future, and we can walk them through what retirement planning looks like when you work for yourself.

The Catalyst Difference

Care and relationship. That’s the difference we bring to the table. Our clients know without a shadow of a doubt that they have a strong support system and people who genuinely care about them when they work with us. We are proactive in our services and want to make a difference in people’s lives.

If you are ready to work with someone who is committed to helping you reach your goals and will be there for you every step of the way, we invite you to schedule an introductory call by reaching out to us at (617) 610-0587 or emailing info@cim.financial.

About Nick

Nick Shea is founder and financial advisor at Catalyst Investment Management, an independent firm dedicated to providing personalized financial advice and planning. Over 40 years ago, Nick started reading The Wall Street Journal, building his own portfolios, and developing a passion for the financial world. He turned this interest into a career, working for many years at the former Dean Witter, now Morgan Stanley, and Charles Schwab, where he worked as an investment consultant, branch manager, and product developer. As a learning and development director, Nick created and delivered the branch management leadership program for the entire branch network. He has a bachelor’s degree in political science from Occidental College and an MBA from the University of Notre Dame. Nick specializes in serving entrepreneurs and helping retirees navigate through the complexities of the Medicare system. He is passionate about helping his clients mitigate the risks that can derail their financial goals. He is known for championing his clients’ dreams and striving to help them find the financial peace of mind they long for.

Nick is actively involved in his community, faithfully serving in the Greater Salem Rotary Club, the Knights of Columbus, and on the Windham Economic Development Committee. He is also an elected member of the Windham Zoning Board of Adjustment. When he’s not working or giving back, Nick loves to read, spend time with his family, research his family’s genealogy, and travel, both in the U.S. and abroad. To learn more about Nick, connect with him on LinkedIn.

By Kim Segal, CFP®

Most (if not all) of us have dreams and goals. It might be owning a vacation home or helping your kids out with college. Maybe it’s investing in a hobby or having the time to spend with grandchildren. The dreams aren’t usually the problem; the impasse happens because people often don’t know how to transform their dreams into reality.

This is where financial planning comes in. Let’s look at some of the benefits of financial planning and a sample financial plan to give you a visual of how the process works.

A Financial Plan Is A Road Map For The Journey

Having a financial plan is like having a map for your finances. If you have gotten off track from your goals or financial destination, having a plan to refer back to is essential to getting back on course. If misplaced priorities are starting to siphon dollars from your budget, having a plan can remind you of what you are willing to make sacrifices for and keep you accountable.

In a way, writing your financial plan is like making a contract for yourself, and making a sure reminder instead of an empty promise.

A Financial Plan Covers Your Bases

Financial plans often address a myriad of concerns and goals, from college planning to retirement income strategizing. Depending on your needs, your plan may narrow in on one element or address multiple goals you’d like to achieve over time. We believe a good financial plan should give you a detailed, complete view of your current financial situation, a thorough modeling of where you want to be, and the actions you need to take to reach those goals. It should address all the pieces of your financial puzzle, from stresses and fears to your values and dreams, and include risk factors, cash flow, retirement, estate planning, taxes, education, and income strategies to help bring you clarity and guidance. It is through our planning process that we can help you prepare for life’s expected and unexpected circumstances.

Your plan also serves as an objective sounding board; because it is customized to your life and lays out the steps you need to take to reach your desired future, it tells you what you need to hear, even if you don’t want to hear it. It shows you if you have financial blind spots or are making decisions that might make you feel good now but aren’t beneficial to your future.

A Financial Plan Is Built On Your Life

Your life is unlike anyone else’s. Using a one-size-fits-all template isn’t going to feel valuable or keep you on track when the rubber meets the road. Designing a personalized financial plan takes into account your dreams, goals, concerns, and life circumstances. Maybe you have some obstacles that prevent you from saving as much as you’d like to. Your plan will take that into account and help you find solutions. Maybe you have deeply held values about giving back to the community. Your financial plan will then include charitable goals and tax planning to maximize your generosity. Having a customized guide will empower you to take the daily actions necessary to reach the life you dream about.

It’s also important to remember that a financial plan is not a one-and-done deal. A solid plan grows with you and adapts as you reach milestones and face major life changes that not only change your circumstances, but also your priorities, such as marriage, the birth of a child, or a career change.

Let’s Take A Closer Look

The following sample plan looks at a fictional client’s lifestyle income plan and how we developed it, including identifying their goals, creating a balance sheet, reviewing their cash flow, and more.

Keep in mind that this is only a hypothetical plan presented to illustrate what a client’s plan may resemble should they work with me. The characters and circumstances are completely fictional and are for illustrative purposes only. Be sure to seek the advice of a qualified professional for your particular situation and not rely upon any of the information herein to make personal financial decisions.

We provide an overview of your current situation. With just one glance, you can see a big picture of your financial life, including income and expenses, assets broken down into specific categories, short-term and long-term liabilities, and cash flow assumptions.

With all that information in hand, your plan will go on to analyze every piece of your financial puzzle, showing detailed projections for income, expenses, assets, and mapping your progress toward your goals. This will show you where you will stand in retirement and give you something to aim for as you draw closer to your retirement years.

Get Started On Your Plan!

If you want to see even more features of our financial plans, download our full sample plan here. Once you’ve taken a look, reach out to us at Catalyst Investment Management today to schedule a no-obligation consultation, and together, let’s find out if we’re the right people for you to depend on during your journey to a comfortable retirement. You can schedule a call by reaching out to us at (617) 610-0587 or emailing info@cim.financial.

About Kim

Kim Segal is co-owner and CERTIFIED FINANCIAL PLANNER™ (CFP®) at Catalyst Investment Management, an independent firm dedicated to providing personalized financial advice and planning. With over 20 years of experience, Kim is passionate about developing long-term relationships with her clients so she can provide them with customized solutions that make the most impact on their lives. Kim specializes in serving business owners and pre-retirees and post-retirees who desire a road map to their ideal retirement and women who are recently divorced or in the process of getting a divorce. Every client of Kim’s receives her utmost dedication and attention as they work toward their goals. She graduated from Boston University with a bachelor’s degree in business administration and spent much of her career prior to CIM at Charles Schwab, where she held various roles, including financial planner, vice president, and financial consultant. Outside of work, Kim loves spending time with her two teenage children, cooking, and staying active by running and skiing. Learn more about Kim by connecting with her on LinkedIn.