2027 Open Enrollment Guide for Tech Professionals

2027 open enrollment

How to make thoughtful decisions about health insurance, retirement savings, equity compensation, and the benefits that protect your family’s future.

Open enrollment season is here again. And while reviewing health insurance plans and retirement contributions may not be the most exciting thing on your calendar, it’s one of those annual decisions that can make a meaningful difference in your financial life.

For tech professionals, 2027 open enrollment isn’t just about choosing health insurance. It’s an opportunity to coordinate your retirement savings, equity compensation, tax planning, and family protection.

Your employee benefits may include opportunities to reduce taxes, build long-term wealth, protect your family’s income, and create greater flexibility in your life.

But more benefits don’t automatically mean better financial outcomes.

The goal isn’t to maximize every benefit simply because it’s available. It’s to understand which opportunities matter most for you, your family, and the life you’re building.

Your 2027 Employee Benefits Checklist

Before making your elections, consider these questions:

  • Health insurance: Does your plan still fit your family’s anticipated healthcare needs?
  • HSA and FSA: Are you taking advantage of tax-advantaged savings opportunities, including limited-purpose FSAs for dental and vision expenses?
  • 401(k): Are you receiving the full employer match, and does your plan offer after-tax contributions?
  • Disability insurance: Would your benefits cover your family’s spending needs? Can you elect after-tax premium treatment?
  • Life insurance: Have you accounted for accelerated RSU vesting and any executive survivor benefits?
  • Additional benefits: Are you overlooking educational assistance, legal coverage, wellness programs, or family benefits?
  • Charitable matching: Could you make your planned charitable giving go further through employer matching or appreciated-stock donations?

You don’t need to make every possible change. But a thoughtful review can help ensure the benefits you’ve selected still support your financial plan.

1. Health Insurance: Compare Your 2027 Options Before Renewing

It’s easy to leave your health insurance unchanged from year to year. But the plan that made sense last year may not be the best fit for the year ahead.

Start by thinking about what 2027 might look like.

Are you expecting a baby? Planning surgery? Managing an ongoing medical condition? Or is your family generally healthy, with relatively few anticipated healthcare expenses?

These details can change which plan offers the best overall value.

Look beyond the monthly premium. Compare annual premiums, deductibles, copays, coinsurance, prescription costs, and out-of-pocket maximums.

A plan with higher premiums may be less expensive overall if you expect substantial medical care.

Also check whether your preferred doctors, specialists, hospitals, and medications remain covered. Provider networks and prescription formularies can change, even when the plan name stays the same.

HDHP vs. PPO: Which Health Insurance Plan Is Better?

One of the most common questions we hear is whether a high-deductible health plan (HDHP) or a traditional PPO makes more sense.

For someone with relatively predictable, limited healthcare needs, an HSA-eligible HDHP may offer meaningful long-term advantages.

For someone expecting significant medical expenses, a plan with higher premiums but lower costs when receiving care may be more attractive.

There isn’t one right answer.

We encourage comparing the total expected annual cost, including employer HSA contributions, rather than choosing based on the deductible alone.

Read more: HDHP or PPO: Which Health Insurance Plan Is Right for You?

2027 HSA Contribution Limits: Don’t Overlook the Tax Advantages

If you’re eligible to contribute to a Health Savings Account (HSA), don’t overlook it.

HSAs offer three potential federal tax advantages:

  • Contributions can reduce taxable income.
  • Invested funds can grow tax-free.
  • Withdrawals for qualified medical expenses are tax-free.

These tax advantages apply at the federal level. State tax treatment may differ, including in California and New Jersey.

Unlike most Flexible Spending Accounts, unused HSA money can remain in your account year after year. It can also follow you when you change employers.

2027 HSA contribution limits

Coverage

Maximum contribution

Self-only

$4,500

Family

$9,000

Additional catch-up, age 55+

$1,000

These limits include employer contributions, and your personal maximum may be lower if you’re eligible for only part of the year.

For eligible households with enough cash flow to cover current medical expenses, investing some HSA assets for future healthcare needs may be worth considering.

Flexible Spending Accounts: Plan for Healthcare Expenses

If an HSA isn’t appropriate or available, a healthcare Flexible Spending Account (FSA) may help reduce taxes on eligible medical expenses.

FSAs generally have use-it-or-lose-it rules, although some employer plans offer a limited carryover or grace period.

Before electing a contribution, review what you realistically expect to spend and whether your employer offers either provision.

Limited-Purpose FSAs: Especially Helpful for Braces and Dental Work

If you’re contributing to an HSA, you may also have access to a Limited-Purpose Flexible Spending Account (LPFSA).

Unlike a traditional healthcare FSA, a limited-purpose FSA generally covers eligible dental and vision expenses while allowing you to continue contributing to your HSA.

This can be especially helpful if you have children who may need braces or other orthodontic work in 2027.

Orthodontic treatment can cost thousands of dollars, and using pretax dollars to cover eligible expenses can create meaningful savings.

Limited-purpose FSAs can also help pay for dental procedures, eyeglasses, contact lenses, and other qualifying expenses.

A few things to consider:

  • Plan ahead for larger expenses. If your child is starting braces in 2027, review the orthodontist’s payment schedule and your FSA’s reimbursement rules before choosing your contribution.
  • Check your employer’s rules. Limited-purpose FSAs generally have use-it-or-lose-it provisions, although some plans allow a limited carryover or grace period.
  • Coordinate with your HSA. Using an LPFSA for eligible dental and vision costs may allow you to preserve more of your HSA balance for future healthcare expenses.

For families anticipating significant dental or vision expenses, this is one of those smaller benefits decisions that can make a meaningful difference.

Dependent Care FSAs: Another Benefit for Families

If you have young children or other qualifying dependents, look into a Dependent Care FSA.

This is separate from a healthcare FSA and may help you pay eligible childcare or dependent care expenses with pretax dollars.

Review how this benefit interacts with the dependent care tax credit, particularly if both spouses work or you have substantial childcare expenses.

2. 2027 401(k) Benefits: Employer Matching, Roth Contributions, and Mega Backdoor Roth Strategies

Your workplace retirement plan may be one of the most powerful wealth-building tools available to you.

But for many tech professionals, the opportunity goes well beyond the standard 401(k) contribution.

Start With the Employer Match

If your employer offers matching contributions, understand exactly how the match works.

Some employers match each paycheck. Others make annual contributions or provide a year-end true-up.

That distinction matters if you’re considering maximizing your 401(k) early in the year.

You don’t want to accidentally miss part of the employer match because of how your contributions were timed.

Traditional vs. Roth 401(k): Which Makes Sense?

Traditional 401(k) contributions generally reduce your taxable income today, while qualified Roth distributions can be tax-free in retirement.

Which option is better depends on your current marginal tax rate, expected future tax situation, and broader financial plan.

For someone receiving substantial RSU income, bonuses, or other equity compensation, traditional contributions may be especially valuable during high-income years.

For someone earlier in their career or temporarily in a lower tax bracket, Roth contributions may be more appealing.

The right choice isn’t necessarily the same every year.

After-Tax 401(k) Contributions and the Mega Backdoor Roth

Many large technology employers offer something that can be particularly valuable for high earners: voluntary after-tax 401(k) contributions.

These are different from Roth 401(k) contributions.

Depending on the plan, they may allow you to contribute beyond the standard employee elective deferral limit, up to the applicable overall annual contribution limit.

If the plan also allows Roth conversions or rollovers, this can create an opportunity commonly called the mega backdoor Roth strategy.

For someone already maximizing their regular 401(k), this may provide additional tax-advantaged retirement savings capacity.

But the details matter.

Employer contributions count toward the overall limit. Plan provisions determine whether after-tax contributions and Roth conversions are available. And the timing of conversions can affect taxes on any associated earnings.

Learn more: Is a Mega Backdoor Roth Strategy Worth It?

Review Your Investment Allocation

Open enrollment is also a useful reminder to revisit how your retirement savings are invested.

Has your stock allocation increased after a strong market year? Are you approaching financial independence? Does your retirement portfolio complement (or duplicate) the exposure you already have through company stock?

You don’t need to make dramatic changes every year.

But your investments should still support your long-term plan.

3. Disability and Life Insurance: Protect Your Income, Equity Compensation, and Family

Insurance isn’t always the most interesting part of a benefits package. But it can be one of the most important.

Your ability to earn an income is often one of your family’s largest financial assets, especially during your working years.

Disability Insurance: Could Your Family Manage Without Your Paycheck?

Many employers offer short-term and long-term disability insurance.

Before assuming you’re adequately covered, review how much income the policy would actually replace.

Pay attention to the replacement percentage, monthly benefit cap, waiting period, benefit duration, and definition of disability.

For higher-income tech professionals, the monthly maximum can be particularly important.

A policy might replace 60% of eligible salary but cap benefits at a level well below your family’s ongoing spending needs. Bonuses or equity compensation may not be included in covered earnings.

An Overlooked Opportunity: After-Tax Disability Insurance Premiums

Some technology companies allow employees to elect to pay their disability insurance premiums with after-tax dollars rather than having the employer pay them on a pretax basis.

Why does this matter?

Generally, when your employer pays disability premiums without including their value in your taxable income, the disability benefits you eventually receive are taxable.

But when premiums are paid with after-tax dollars, the corresponding disability benefits may be received income-tax-free.

That can make a meaningful difference if you ever need to rely on the coverage.

For example, a policy providing $10,000 per month in disability benefits could leave you with considerably more spendable income if those payments are tax-free rather than taxable. However, this potential benefit should be weighed against the additional taxes paid on the premiums, and actual tax treatment will depend on how the coverage is structured.

The tradeoff is that you may pay a little more in taxes today in exchange for potentially better protection if you become disabled.

Not every employer offers this election, and the tax treatment depends on how premiums are funded and administered. It’s worth asking your benefits team whether an after-tax disability premium option is available.

If employer coverage still leaves a meaningful gap, an individual supplemental disability policy may also be worth exploring.

Life Insurance: Think Beyond the Employer-Provided Amount

Employer-provided life insurance is a helpful starting point, but it may not be enough if you have children, a mortgage, or other people depending on your income.

Consider what you would want the coverage to accomplish.

Would it pay off a mortgage? Fund education? Allow your partner to reduce work hours? Provide several years of financial flexibility?

For many families, the right amount is based on those needs – not simply a multiple of salary.

Individual term life insurance may also offer something employer coverage doesn’t: portability.

A personally owned policy can remain in place when you change jobs, and level-term policies can offer predictable premiums for a specified period.

Accelerated RSU Vesting: What Happens to Your Company Stock if You Die?

For tech professionals, life insurance isn’t necessarily the only financial protection available to surviving family members.

Some companies offer accelerated vesting of restricted stock units (RSUs) in the event of an employee’s death.

Depending on the employer and the terms of the equity award, this could mean that some (or even 100%) of your outstanding unvested RSUs vest upon death.

For someone with a substantial equity compensation package, accelerated vesting could represent a significant financial benefit for surviving family members. However, the actual value depends on the employer’s policies, the terms of the equity awards, applicable taxes, and the value of the underlying shares.

Some policies vary considerably.

Some companies accelerate only a portion of outstanding awards, while others offer full acceleration. Certain awards may have different treatment, and the timing of settlement and applicable taxes also matter.

Review your equity award agreements and company stock plan documents to understand what would happen to your unvested shares.

This is especially important when calculating how much additional life insurance your family may need.

Executive Survivor Benefits: An Additional Layer of Protection

Some companies also provide special survivor benefits for executives.

These arrangements may offer a surviving spouse ongoing payments for the remainder of their life, functioning similarly to a lifetime annuity.

For families eligible for these benefits, the potential value can be substantial.

However, these arrangements are often governed by separate executive compensation or survivor benefit agreements.

Eligibility, payment amounts, duration, tax treatment, and whether benefits are guaranteed can vary significantly.

If you’re an executive, review your total compensation package, not just the standard employee benefits guide, to understand what additional protections may be available.

When evaluating your family’s financial security, consider all the resources that may become available if something happens to you: life insurance, disability coverage, accelerated equity vesting, survivor benefits, and your existing assets.

Understanding how these pieces work together can help you avoid both gaps in protection and paying for coverage you may not actually need.

4. Wellness, Legal, and Family Benefits: Look Beyond the Obvious

Some of the most useful employee benefits are the ones people forget they have.

Take a few minutes to review the full benefits guide, not just the health insurance comparison.

Mental Health and Wellness Support

Your employer may provide access to counseling, therapy, employee assistance programs, wellness reimbursements, fitness memberships, or mindfulness resources.

These benefits may help with costs you’re already paying out of pocket.

Legal Services and Estate Planning

Employer-sponsored legal plans can sometimes provide access to attorneys for estate planning, landlord disputes, or other personal legal matters.

If you’ve been putting off creating a will, powers of attorney, or other estate documents, this may be an opportunity to get started.

Just confirm what the plan actually covers. More complex estate planning may require additional services outside the benefit.

Pet Insurance and Other Everyday Benefits

Pet insurance, commuter benefits, adoption assistance, fertility benefits, and family-building support can also be worth exploring.

Not every benefit is right for every household. But knowing what’s available helps you avoid paying separately for something your employer may already subsidize.

5. Educational Benefits: Invest in Your Future Self

One of the most overlooked benefits at many employers is educational assistance.

Some companies reimburse tuition for degree programs. Others support professional certifications, continuing education, language learning, or personal development courses.

If you’re thinking about changing career paths, developing a new skill, or simply exploring something you’ve always wanted to learn, take a look at your employer’s policy.

You may be surprised by what qualifies.

Some programs require coursework to be directly related to your role. Others are considerably more flexible.

Before enrolling, review approval requirements, reimbursement limits, and any repayment obligations if you leave the company.

And remember that career development doesn’t always mean climbing the next rung of the ladder.

Sometimes the most valuable education is the kind that gives you more choices about what comes next.

6. Charitable Giving Tax Changes: What to Know for 2027

New federal tax rules that took effect beginning with the 2026 tax year continue to shape charitable giving decisions in 2027.

If charitable giving is already part of your financial life, check whether your employer offers a matching gifts program.

Many technology companies match eligible employee donations, sometimes up to several thousand dollars annually.

That can meaningfully increase the impact of gifts you were already planning to make.

One important detail: Employer matching programs often require cash donations made directly to eligible charities. Contributions of appreciated stock or grants from a Donor Advised Fund (DAF) may not qualify for the match.

Before making your gifts, review your employer’s matching policy, eligible organizations, annual limits, and submission deadlines.

Cash Donations vs. Appreciated Stock: Two Different Opportunities

If you regularly give to charity, there may be an opportunity to be more intentional about how you give.

Cash donations can be particularly valuable when your employer matches them.

A $2,000 contribution to an eligible charity, for example, could become $4,000 of support with a dollar-for-dollar employer match.

But for larger charitable gifts, especially if you own highly appreciated company stock, contributing eligible shares directly to a charity or Donor Advised Fund may be more tax-efficient than selling those shares and donating the proceeds.

A DAF allows you to make an irrevocable charitable contribution, potentially receive a tax deduction subject to applicable rules, and recommend grants to eligible charities over time.

For eligible long-term appreciated securities, contributing shares directly may also avoid realizing the capital gain you would otherwise recognize by selling them personally.

This can be especially useful for tech professionals who have accumulated substantial gains in company stock following an IPO or other liquidity event.

The goal isn’t necessarily to choose between cash giving and appreciated-stock giving.

It’s to understand which assets make the most sense to give, and how each gift fits into your broader financial plan.

2027 Charitable Giving Tax Changes: What to Know

Beginning with the 2026 tax year, new federal tax rules change how charitable deductions work.

If you take the standard deduction:

You may now deduct up to $1,000 in qualifying cash charitable contributions, or $2,000 if you’re married filing jointly, in addition to your standard deduction.

This creates a new tax benefit for households that don’t itemize.

However, the deduction applies only to qualifying cash contributions made directly to eligible charitable organizations. Contributions to Donor Advised Funds do not qualify for this particular deduction.

For families who already make regular cash gifts, this is an opportunity worth understanding.

If you itemize deductions:

A new limitation applies to charitable giving.

Only the portion of your total qualifying charitable contributions that exceeds 0.5% of your adjusted gross income (AGI) is generally deductible, subject to other applicable limitations.

For example, if your household has $400,000 in AGI, the first $2,000 of charitable contributions would fall below the deduction threshold.

If you contributed $10,000 to eligible charities during the year, generally $8,000 would remain potentially deductible before considering other applicable limitations.

This rule also applies to contributions to Donor Advised Funds.

For households making substantial charitable gifts, the new floor makes it even more important to consider the timing and structure of contributions.

In some situations, combining several years of planned charitable giving into one larger contribution to a DAF may be worth evaluating.

This strategy, often called bunching, can help coordinate deductions while allowing grants to charities to be distributed over time.

For taxpayers in the highest federal income tax bracket, an additional limitation generally caps the federal tax benefit of itemized deductions at 35% rather than 37%.

These changes don’t necessarily mean you should give more or less.

They simply mean that how and when you give may have a greater impact on the tax benefits you receive.

Bringing It All Together

For many tech professionals, a thoughtful charitable giving strategy might include:

  • Making qualifying cash donations directly to charities to capture employer matching contributions.
  • Taking advantage of the new charitable deduction if you use the standard deduction.
  • Contributing eligible appreciated company stock to a DAF when charitable giving is already part of your long-term plan.
  • Coordinating larger charitable contributions with unusually high-income years, IPOs, or other liquidity events.

Charitable giving should start with the causes and people you care about.

The tax strategy comes afterward, helping you make the most of the generosity you already intended.

Learn more: Using a Donor Advised Fund for Charitable Giving

7. Your Equity Compensation: One More Benefit Worth Reviewing

If you work in technology, equity compensation may represent a significant portion of your overall compensation.

Although RSUs, stock options, and employee stock purchase plans (ESPPs) are not always part of open enrollment, this is a useful time to review how they fit into your financial plan.

Employee Stock Purchase Plans

If your employer offers an ESPP, understand the purchase discount, offering periods, contribution limits, and rules for selling shares.

Some plans offer meaningful discounts that can create an attractive employee benefit.

But participating also increases your exposure to your employer’s stock, particularly if you’re already receiving RSUs.

Review how much company stock you’re accumulating and whether you have a plan for diversification.

RSUs and Concentrated Stock

RSUs can create significant wealth, but they can also leave your financial future dependent on the performance of one company.

Consider whether your current stock holdings, future vesting schedule, and other investments are appropriately balanced.

A useful question is:

If these shares were cash today, would you choose to invest that much in your employer’s stock?

You don’t necessarily need to sell everything.

But your decision to keep company stock should be intentional, rather than simply the default outcome of receiving equity compensation.

Final Thoughts: Your Employee Benefits Should Work Together

Open enrollment can feel like a series of disconnected decisions.

Which health plan should I choose? How much should I contribute to my HSA? Should I elect additional life insurance? Am I maximizing my 401(k)?

But these choices aren’t really separate.

Your healthcare elections affect your cash flow. Your retirement contributions affect your taxes. Your insurance protects the income supporting your family. And your equity compensation can influence everything from your investment allocation to your estate plan.

The goal isn’t to check every box or take advantage of every program.

It’s to make sure the benefits you’re choosing are supporting the life you’re living now – and the one you want to create.

A little thoughtful attention during 2027 open enrollment can make the rest of the year feel much simpler.

This material is provided for informational and educational purposes only and does not constitute legal, tax, or investment advice. The strategies discussed may not be appropriate for all individuals or situations. Eligibility and suitability depend on your specific circumstances, financial objectives, and current laws, which are subject to change.

Any examples are hypothetical and provided for illustrative purposes only. They do not represent actual client outcomes, and results will vary. You should consult with qualified tax, legal, and financial professionals before making decisions related to the topics discussed.

References to third-party resources or websites are provided for informational purposes only. SeedSafe Financial, LLC does not endorse or assume responsibility for the accuracy or completeness of external content.

SeedSafe Financial, LLC provides tax preparation and planning services for advisory clients; however, this material is for educational purposes only. Transmission of this information does not create a client-preparer relationship. Please consult with your SeedSafe advisor or a qualified tax professional before implementing these strategies.

Advisory services are offered through SeedSafe Financial, LLC, an SEC-registered investment adviser. Registration with the SEC does not imply a certain level of skill or training.

How to Stop Overspending: Understanding Your Money Triggers

money triggers

We can’t talk about money without talking about the messy, beautiful, and often irrational reality of being human. We can have all the knowledge in the world and still find ourselves clicking “complete purchase” on an expensive jacket we didn’t necessarily need. That’s because money decisions typically aren’t purely logical. Our brains seek immediate gratification and emotional relief, while also tracking where we stand relative to other people. When friends share a new purchase or vacation photos, it can trigger comparison and create the feeling that we’re behind. That sense of FOMO can show up even when nothing about our actual financial situation has changed.

If personal finance were just about math, many more of us would be millionaires. But in reality, your “Logical Self” (who wants to save for a house) is constantly at war with your “Stressed Self” (who just wants a hit of joy). This is why budgeting and overspending aren’t simply discipline problems, it’s also an emotional and psychological problem. The goal is to move from shaming our habits to understanding the drivers behind them.

Common Spending Triggers

One of the most common hurdles to staying on track is mental accounting. This is the tendency to treat money differently based on where it came from. We’re often more willing to spend a tax refund or a birthday check than we are with our hard-earned salary, even though every dollar has the same value. 

There’s also the stress spend loop. You come home after a long workday and a passive-aggressive email from your manager. You check your bank account and think, “I worked hard for this money. I deserve to enjoy it.” At that moment, shopping isn’t really about the item itself, it’s about the dopamine hit.

Experiences > Material Things

If spending is emotional, the goal is to spend in a way that better supports long-term happiness. Research suggests that experiences often bring more happiness and satisfaction than material purchases. Put simply, we get used to new things very quickly. While that new phone or pair of shoes might provide a thrill on day one, that feeling often fades as the purchase becomes part of everyday life. Experiences, on the other hand, often gain value over time, especially because of the memories attached to them.  

One of the unique benefits of choosing experiences is anticipation. Planning a trip or looking forward to a dinner often creates happiness before the event even happens AND long after it ends, you’re still left with the story. Those memories tend to stick in a way physical items rarely do. Experiences are also harder to compare. It’s easy to measure your phone or car against someone else’s, but a shared memory doesn’t lose value because someone took a different trip. By investing in experiences, you step off the cycle of constant comparison and putting your money toward things that tend to deliver lasting fulfillment.

So what can you do today?

Reflect on Your Money Habits

Self-awareness is one of the best budgeting tools you have, so for now the goal is simply to notice. Take a moment to reflect on these questions:

  • What are the top 3 values (freedom, adventure, health, etc.) I want my financial decisions to reflect?
  • What purchases from the last month felt fully worth it? Which did I regret, and what was I feeling in the moment when I spent the money?
  • When I feel overwhelmed, do I have a pattern of finding relief through spending? What are a few other ways I could respond in those moments?
  • What messages did I hear growing up about spending, saving, or debt? How might those stories still influence me today?
  • How do social media and the people I spend time with impact how I see my own progress and my spending habits?

Accountability

Since our brains are great at justifying impulsive buys, having an outside perspective can be incredibly helpful. We are often far more likely to follow through on a promise made to someone else than a promise made internally to ourselves.

Social accountability can be the starting point if your friends are working toward goals of their own. Consider a no-spend week or a savings challenge together. When financial discipline becomes a shared effort, even a little competition can shift the same social instincts that often drive overspending into something that works in your favor. 

If a more structured form of accountability would be helpful, a tool like MyBudgetCoach could be a good option. If you feel your money stories are taking over your ability to move forward, it may be time to reach out to a Certified Financial Therapist (CFT-I™). Working with a real person creates a natural pause before decisions are made.They can help you notice patterns, identify triggers, and work through the behavioral habits you’re trying to change. 

Closing Thoughts

Ultimately, the goal isn’t to live a life of total restriction. It’s to reach a point where you can look back at your spending and feel genuinely proud of where your money went. Remember, if your relationship with money feels especially heavy or painful, consider working with a Certified Financial Therapist™. They focus on the beliefs and emotional experiences behind money habits, bridging the gap between your finances and your overall well-being.

 

What is one small money habit you could start this week that feels realistic? And who could help hold you accountable?

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We believe good financial planning is good life planning, so if you’d like guidance that aligns your money decisions with what matters most to you, we invite you to schedule time to chat with us!

Disclaimer: This material is provided for informational and educational purposes only and does not constitute legal, tax, or investment advice. The strategies discussed may not be appropriate for all individuals or situations. Eligibility and suitability depend on your specific circumstances, financial objectives, and current laws, which are subject to change.

Any examples are hypothetical and provided for illustrative purposes only. They do not represent actual client outcomes, and results will vary. You should consult with qualified tax, legal, and financial professionals before making decisions related to the topics discussed.

SeedSafe Financial, LLC is not affiliated with, nor do we receive compensation from, the third-party tools mentioned in this post. References to third-party resources or websites are provided for informational purposes only. SeedSafe Financial, LLC does not endorse or assume responsibility for the accuracy or completeness of external content.

Advisory services are offered through SeedSafe Financial, LLC, an SEC-registered investment adviser. Registration with the SEC does not imply a certain level of skill or training.

Announcing Canopy: When the questions shift, the work has to evolve

Canopy Investments

Over time, we began to notice a quiet shift in the conversations we were having with clients – to a more holistic conversation including adult children and parents.

The questions sounded like:

  • I’m not sure if my parents are truly okay.
  • I want to help my child – but money isn’t something we’ve ever talked about openly.
  • I don’t think my parents have anyone guiding them.
  • There are some health concerns coming up… I just want to know they’re supported in the best way possible.

The lack of clarity prevented one family from moving forward with moving from a two earner household to a one earner household.  Without knowing where their parents stood, it was hard to know what they could do for their own financial independence.  By guiding the conversation with the parents, the family was able to move forward. Having more clarity around their parents’ situation helped the family refocus on their future.

These moments often surfaced gently – during estate planning, or conversations about caring for the people they love.

And beneath the words, there was something deeper:

A sense of responsibility.

A layer of uncertainty.

A quiet, persistent concern that didn’t have a clear place to land.

When thoughtful planning meets real life

Naturally, we tried to meet that need within our existing planning work. We invited parents into the same comprehensive process designed for building and managing complex financial lives.

But something didn’t quite fit.

Not because the work lacked value – but because it wasn’t aligned with what they actually needed.

For many, the questions were more foundational:

  • Am I going to be okay?
  • Can I continue living the life I’ve built?
  • Are my decisions—around investments, taxes, giving—sound?
  • How do I support my family in a thoughtful, sustainable way?

They weren’t looking for more complexity.  They were looking for clarity. Steadiness. Reassurance they could trust.  So we paused – and asked a better question:

What does it really mean to serve them well?

Introducing Canopy

We believe financial lives don’t exist in isolation.  They are shaped by relationships, responsibilities, and the people we care about most.  And when there’s uncertainty around aging parents, it rarely stays contained.

It shows up in emotional bandwidth.

In decision-making.

In how freely someone can engage in their own life.

Supporting our clients fully means honoring the full picture of their lives – including the people they love.

Canopy was created as a natural extension of that belief.

A different kind of support

Canopy is designed for those who have already built their financial lives – and are now focused on preserving them with care.

It centers on what matters most at this stage:

  • Thoughtful investment stewardship
  • Clear, proactive tax guidance
  • Ongoing perspective to support long-term sustainability

The structure is intentionally simple:  Two meaningful touchpoints each year – one to look ahead, and one to reflect and adjust.  Because at this point in life, more meetings and more decisions don’t create peace.

Clarity does.

Canopy isn’t comprehensive planning in the traditional sense.  It’s something more grounded:

A steady, trusted relationship that helps answer the question beneath all the others – are we okay?

At its core, Canopy is a steady, thoughtful approach to managing wealth in a season of independence.

Canopy is designed for individuals and families who have reached—or are nearing—financial independence.

The foundation is simple, but intentional:

  • Ongoing investment stewardship
  • Integrated tax preparation and guidance
  • A consistent rhythm of thoughtful review and adjustment

All held within one relationship.

So your financial life can feel more coordinated, clear, and supported. .  Like any good canopy, it’s designed for those who’ve done the hard work of growing — and are ready to simply thrive.

Who It’s For

Canopy is often a natural fit if you are:

  • Living in retirement or approaching it with intention
  • Financially independent and focused on sustaining what you’ve built
  • Transitioning from a more complex financial life into something more streamlined
  • Wanting trusted guidance without the need for ongoing, intensive planning

Or simply:

You’ve done the work to build wealth – and now you want to live alongside it, not manage it.

Designed with families in mind

Every family holds its own dynamics, its own rhythms, its own boundaries.

Canopy honors that.

Each relationship is supported independently, with care and discretion. And when it’s helpful, we create space for shared conversations.

This allows:

  • Parents to maintain autonomy and privacy
  • Children to feel informed and prepared
  • Families to move forward with greater alignment – on their own terms

The result is a structure that adapts to the family, not the other way around.

As connected (or as independent) as needed.

What begins to shift

When the right support is in place, the change is often subtle, but meaningful.

Parents may feel more supported in their decisions.  More confident in continuing to live fully. Less burdened by uncertainty.

Children may have fewer quiet questions in the background. They gain clarity, context, and the ability to engage more openly.

And across the family, something softens:

Less guessing.

More clarity. 

More honest conversations.

More space for what actually matters.

Why “Canopy”

We’ve always believed that wealth, when nurtured with intention, becomes something more than numbers.

It becomes a source of support.

A foundation for living well.

A way to care for yourself, and for others.

But growth, and making the right tweaks now to ensure long term success, is only part of the story.  At a certain point, what’s been built deserves protection.

In nature, the strongest ecosystems don’t stand alone.

They are interconnected roots beneath the surface, and above, a canopy that offers balance, shelter, and space to thrive.

Canopy is inspired by that idea:

To protect what’s been built.

To bring alignment across generations.

And to create the conditions for everyone to live with greater ease.

We created Canopy for people in your life who may not need the same level of planning you do—but still deserve thoughtful, coordinated support.

If a parent, older sibling, or family friend is managing their finances largely on their own — this was built for them.  

Canopy is priced simply, based on assets under management: 0.75% up to $2M, 0.25% over $2M, with a $4,500 annual minimum fee. Straightforward, like everything else about it.

Reach out to start a conversation via our scheduling link.

Disclaimer: This material is provided for informational and educational purposes only and does not constitute legal, tax, or investment advice. The strategies discussed may not be appropriate for all individuals or situations. Eligibility and suitability depend on your specific circumstances, financial objectives, and current laws, which are subject to change.

Any examples are hypothetical and provided for illustrative purposes only. They do not represent actual client outcomes, and results will vary. You should consult with qualified tax, legal, and financial professionals before making decisions related to the topics discussed.

References to third-party resources or websites are provided for informational purposes only. SeedSafe Financial, LLC does not endorse or assume responsibility for the accuracy or completeness of external content.

Advisory services are offered through SeedSafe Financial, LLC, an SEC-registered investment adviser. Registration with the SEC does not imply a certain level of skill or training.

Should You Buy a Vacation Home? Financial Considerations

Should you Buy a Vacation Home?

First off – CONGRATULATIONS!  Considering buying a vacation home means you feel comfortable financially and that is a wonderful feeling.

Now, before you start browsing listings and envisioning lazy days by the beach, it’s important to carefully consider whether purchasing a vacation home aligns with your financial goals.

  • Do you have your financial foundation in place?
  • What will the vacation home bring to your life?  What will it take away?
  • Is this an investment or a pure cost?
  • What can I afford?

We like to think of finances in a hierarchy.  

First, you need a strong financial foundation to know you are secure and can meet your basic needs of shelter, food, etc.

Then, you can focus on financial flexibility.  Financial flexibility is taking a big breath, centering your mind, and focusing on what your most fulfilling life is.  Then, you focus on aligning your values with your money.

This may mean focusing on your kids – private school, college funding, getting your time back to spend making memories with them.

And/or it may mean more time flexibility – leaning into travel, sabbaticals, or a different career path.

For many of our clients, this is where thinking about a vacation property comes into play. 

What do you feel you will enjoy most from owning a vacation home?

Often I hear: 

…a place to gather family,

…to make memories with my kids, 

…a place to ‘just’ be and not be subject to the city hustle, etc.  

These beautiful visions bring my clients peace.  And we want to keep it that way by exploring some of the key factors to make an informed decision.

Evaluating your Finances for a Vacation Home

First and foremost, evaluate your finances. Can you afford to purchase a vacation home without compromising your other financial goals?

  • Do you have a good emergency reserve in place?
  • Are you on track for college funding?
  • Have you already maxed out your company benefits and retirement accounts?
  • What additional cash flow can you put towards this investment on an ongoing basis?
  • Are there any other large expenses coming down the road in the near future?

Next, consider the total cost of owning a vacation home. This includes not only the purchase price but also ongoing expenses in maintaining it.  Property taxes, homeowners insurance, maintenance, utilities, and possibly association fees.  

Will you get a mortgage on the property?  What is your total debt to income ratio now?  Would you qualify for it based on your current finances?  Vacation home properties aren’t the same as primary homes.  They generally experience higher interest rates and require larger down payments as second homes.

If you are looking at a beach home or ranch property, the rate of increasing costs may also be in question.  How much has the homeowners insurance and association fees gone up annually?  Many beach home communities are finding their insurance rates skyrocket at 40% a year the last few years.  This is something you want to know for future planning.

Another consideration beyond the home is how are you getting there?  Will you be able to drive or do you need to fly to get there?  Fuel and wear-and-tear on your car while driving to and from the vacation home and a larger dining out budget may factor into your decision.

What kind of activities do you plan on pursuing there?  Does this lead to a membership at a ski lodge or a boat purchase?

What may feel like buying a vacation home can lead to buying a vacation lifestyle.  Know the all in cost.

Evaluating the Investment Opportunity of a Vacation Home

To lessen the overall cost, could it be an investment property?   If you are considering renting out the property, you will need to add a rental income estimate to your calculation.  What is thee rental demand in the area?  Are there seasonal fluctuation? 

Renting out the home can often lessen the total price tag of a vacation home but can lead to more hassle if you aren’t ready for that step.

  • Will you offer the property as a short term rental?  What will be your minimum stay requirement?  
  • How will you manage the property?  Will you hire a property manager or will you personally manage it?  
  • Will you give up holidays for higher rental income periods? When will you use it?

Once you estimate the vacation home revenue and costs, it’s time to dive deeper.  Now, it’s time to dive into what your return on investment (ROI) and cash-on-cash return would be for the investment property.  There are many real estate investment calculators available.  The hardest part is deciding what numbers to put into the calculator 🙂

To learn more about the investment property side of real estate, we recommend checking out Bigger Pockets, the Real Estate Rookie Podcast, and Wharton school’s certificate program (if you are looking to make this your encore career).

What Can YOU Afford?

Now that you’ve evaluated your personal finances and the investment opportunity, it’s time to ask yourself what you are willing to do in trade-offs…

…Knowing this, what is possible now?

Depending on the area, I’ve calculated the annual cost for clients (even with rental income) to be $50,000+ for the pleasure of owning the home.   

What would it cost to rent an AirBnB in the same area?  Could you come up with an even nicer travel tradition for your family for less than $50,000?  

Additionally, think about your long-term plans and lifestyle preferences. Are you committed to returning to the same vacation spot year after year?  Or do you prefer the flexibility of exploring different destinations?  

If you have small kids, what are your hopes for them growing up?  Many kids activities can take over weekends with competitions and practice.

For our clients, my favorite YES BUY IT! moments are when we create a P&L and look at the return on investment of renting the property out less than half the year, and using it for the remainder of time. 

If the ROI and cash-on-cash return are still positive at that level, I know the property can function as an investment property in a worse case scenario.

Buying a vacation home can be a rewarding investment and lifestyle choice, but it’s essential to carefully weigh the financial considerations and ensure it aligns with your overall financial plan.

The above discussion is for informational purposes only.  Recommendations are of a general nature, not based on knowledge of any individual’s specific needs or circumstances, and there is no intent to provide individual investment advisory, supervisory or management services.

What is the maximum 529 contribution? Should I fully fund it?

What is the maximum 529 contribution? Should I fully fund it?

What is the maximum 529 contribution?  This question can actually mean two separate things.

  • What is the annual maximum contribution I can make before gift taxes apply?
  • What is the maximum contribution I can make in total to my 529 plan?
  • What should I fund for a 529 plan for my child(ren)?
Let’s break these questions down…
 

Annual Maximum 529 Contribution

When you hear ‘maximum 529 plan contribution’, this usually refers to the annual gift tax exclusion.  A 529 contribution is considered a gift to another person (i.e. your child).  Gifts to other individuals above a certain threshold are taxable events in the United States.
 
For the 2024 tax year, gift taxes may apply for gifts above $18,000 per individual (or $36,000 for married couples filing jointly).  
 
This applies to 529 contributions as well.  You can contribute up to $18,000 each year, per child, without having to pay gift tax as of 2024.  This amount can change annually based on inflation.
 
On the flip side, 529 contributions may earn you a tax deduction or tax credit in certain states.  Generally, to obtain the tax deduction or credit, you must use the 529 plan designated by the state.  The benefit can range from $80 to $1,200+ in a reduction of state taxes.  Find out whether your state offers a benefit HERE.
 
If you are willing to file a Gift Tax Return (Form 709), you can stretch this contribution even further in a year.  
 

The 5-Year Election for 529 Contributions

If you are going through an IPO or a large liquidation event in one year, you may decide to make a ‘5 year election’ to superfund your 529 plan.  
 
This means you can contribute up to $90,000 per individual (or $180,000 for married couples filing jointly) to a 529 plan in a year.  The catch is you cannot make further contributions to the 529 plan in the following 4 years and you must file a Gift Tax Return.
 
The benefit of making the 5 year election is mostly around time.   You fund the 529 plan now and allow more time for the investments to grow.  This can be a great way to ‘set it and forget it’.
 

Total Maximum Contribution to a 529 Plan

So if I can technically make a 529 plan contribution each year up to $36,000 for married filing jointly couples and I start the day my child is born, I could actually put in $648,000 by the time they graduate from high school???
 
Nope!
 
529 plan total contribution limits range from $269,000 to $570,000, depending on the state.   This limit really boils down to what the state believes is a good estimate for attending school.  North Dakota believes this to be $269,000 while Utah says this is $560,000.  
 
Where you open your 529 plan should account for tax benefits, plan costs, investment choices, and how much you plan to contribute to it.
 

Funding a 529 plan for your child

Whether or not you should fund your 529 account to the max depends on a number of factors, including your income, your savings goals, and your child’s age. Here are some things to consider:
  • Your income: If you are in a low tax bracket and expect to stay there, you may be eligible for financial aid through the FAFSA process.  Get to know the components of how your ‘expected family contribution’ (EFC) is calculated to know how much would be expected of you in today’s dollars.  If you are in a higher tax bracket or you’ve accumulated $2 million+ in investments, you will need to pay for the majority of your child’s college expenses.
  • Your savings goals: Prioritize retirement savings and high-interest rate debt first. Put your own oxygen mask on first before helping a child!  Then, if you feel comfortable you are on track financially, then consider what 529 contributions you can make. 
  • Your child’s age: If your child is young, you have more time to allow the 529 contribution to grow. This may mean a few years of maximum annual contributions will go a long way.  However, if your child is older, you may need to contribute each year in order to save enough money.  If your child is already in high school, you may want to consider whether a 529 plan is still the best option for you.
  • Your child’s college plans: If your child is likely to attend a state school, you may not need to save as much as if they are planning to attend a private school. This is because state schools are typically less expensive than private schools.

The 529 conundrum

The best time to fund a 529 plan is when your child is still under age 3 for the largest potential growth… but you should only fund it based on what kind of college you expect them to attend…  What does that mean I should do? 
Ultimately, the decision of how much to contribute to your 529 account is a personal one. There is no right or wrong answer. 
 
At SeedSafe Financial, we make sure our clients are on track financially.  Then, we balance retirement dreams, expense expectations, and the desire to set their family up for success.   This means each family may have a different plan:
  • some may contribute $36,000 for a few years and stop,
  • others may contribute $8,000 a year until high school, 
  • and a few will make a 5 year election and superfund a 529 plan to the max
The important piece of this is to know what you can afford to do that doesn’t put your own long term safety at risk.
 

Why should I consider contributing the total maximum to a 529 plan?

If you are in a good place financially, making $1M+ a year, or have a net worth of $10M+, there is a case to consider contributing the total maximum allowed.
 
It’s called the ‘multigenerational’ 529 plan strategy (or Dynasty 529 plan).
 
This is where you use a single 529 plan account to support education for multiple individuals.  You start by creating the plan for your child and contribute up to the maximum $560,000 over the first 15 years.  
 
Then, you utilize the funds for college expenses for your child (as intended).  However, there will most likely be quite a bit left as the investments continue to grow.  What happens to this ‘leftover’ money?
 
The IRS allows for a beneficiary of a 529 plan to be changed to “a member of the family” of the beneficiary.  This means you could change the beneficiary from your child to your grandchild in the future.
 
The goal is for the investments to continue to grow over long periods of time – allowing the gains to compound.  Then,  when each future generation goes to college, they are able to use those gains and continue the line of funding.  This feels like magic.
 
And with all magic, the IRS wants to know it isn’t being abused.  Changing the beneficiary may still trigger the gift tax rules (remember those from the beginning of the article?).  However, another 5-year election or part of the lifetime gift exclusion could be used to help offset this tax cost.  (Work with your tax advisor to make sure this is correctly reported).
 

That is a lot to think about.

Remember how I said there is no right or wrong answer?  Consider your individual circumstances and make the decision that is best for you and your family.
 
Some tips we suggest for all 529 plans:
  • Start early: The sooner you start saving, the more time your money has to grow in the account. Even if you can only contribute a small amount each month, it will add up over time.
  • Set up a regular contribution schedule: One of the best ways to save for college is to set up a regular contribution schedule. This will help you stay on track and reach your savings goal.  You may decide to use ESPP funds on a quarterly basis, RSUs as they vest, or from your paycheck.  Whatever method you choose, make it consistent.
  • Take advantage of gifts:   Let family know you’ve set up the 529 plan and send them a gift link.   You may be pleasantly surprised at who all wants to help fund your child’s education 🙂
  • Get professional advice: If you are not sure how much to contribute or which type of 529 plan is right for you, be sure to get professional advice from a financial advisor.  
If you don’t have a financial advisor, consider scheduling some time to chat with us.
 
Did you enjoy this article and are looking for other ways to set your child up for financial success?  Check out our blog post HERE.
 
The above discussion is for informational purposes only.  Recommendations are of a general nature, not based on knowledge of any individual’s specific needs or circumstances, and there is no intent to provide individual investment advisory, supervisory or management services.
 

 

How to Set Your Child up for Financial Success

How to set your child up for financial success

As you continue on your journey towards financial freedom, you may start to think about the legacy you leave behind.   For many of our clients, this becomes a crucial conversation at around $5 million in investments.  Security for themselves is no longer their main concern.  Now, it is about making the right moves to have a lasting impact on their family. 

How do you set your child up for financial success?  What can you do now, to change their relationship with money and help them make better decisions?

Money is emotional, logical, and takes time to understand.  Your approach should be similar and provide them with the right money mindset.

The best ways to set your child up for financial success are to teach money lessons around:

  • What is money?  How is it used?
  • What do I value?  How can I use money to support those values? 
  • Create a framework for using money towards what you want in life
These lessons may look different at each age.  We are big Montessori followers in my home, so we group the lessons based on the three planes of development: age 0-6, 6-12, 12-18.  
 

Setting your child up for financial success: Age 0-3

From birth until 3 years old, the #1 thing you can do for your child is to model the behavior you seek.  What is your own relationship with money?  This is the time for you to go through your own money stories and understand why you view money the way you do.
 
To lead by example, you will need to ask yourself:
What does money mean to me?
What do I value in my life?
How do I use money to support those values?
Do I spend money in ways that do not align with my values?
 
From age 0 to 3, if you find you struggle with these questions, it may affect your ability to lead your child down a financially successful path.  This is the time to learn more about your own money mindset and to set a new course to mentor your child.  I love Morgan Housel’s Psychology of Money, Thomas Stanley’s The Millionaire Nextdoor, and John Bogle’s The Little Book of Common Sense Investing to start.  These look at mindset and simple ways to start investing.
 
You should also ask, how do I want to support my child into adulthood?  If you want to pay for their college education, a down payment on a home, etc. then the best time to start saving and investing for these goals is now 🙂
 

Setting your child up for financial success: Age 3-6

At age 3, we can begin to introduce money to our children’s experiences and concrete use of dollar bills and coins.  
 
Name the ways we pay for things: dollars, quarters, checks, credit cards, etc.
Name the ways we make money:  “I provide value to X by doing Y, and they pay me money for the work I do.  I then use that money to buy what we need (and want) for our family.”
 
When you are at the store, include your child in the checkout process and help them give the cashier coins and dollars.  We are building the muscle that money is used to buy the things we want and need.
 
If you buy your child a toy, go out to dinner together, or enjoy another experience that costs money, ask them some questions about how they value it.
 
Think of this as a ‘happiness test’.  One of my favorite happiness researchers, Elizabeth Dunn, speaks of an example in her book, Happy Money: The Science of Happier Spending.  I will butcher the example here, but the main point was when looking at a car purchase, the most happiness felt was before purchase.   It’s about dreaming and the ideal – less about the reality.  The happiest individuals with their car purchase were able to enact many of the wonderful things the car allowed them to do.  So dream big with your kids about experiences and items they want to purchase, and then check in.
 
Keeping this in mind, we will review purchases together with our children:
  • Day of:  How does it feel to have X?  What will you do with it?
  • Week out:  How does it feel to have X?  Are you using it the way you wanted?  
  • Month out:  How does it feel to have X?  When did you use it last?
Then, we will talk about the differences in what we felt when we purchased something vs how we value it over time.  This often leads to, I have more fun with these toys when I get to play with them for a day or two.  How can we borrow X toy instead of buy it and use money on something that made me happy longer term?
 

Setting your child up for financial success: Age 6-12

At this age, morality and independence become prominent.  Children begin to take control of their own learning, so this is an age of supporting them on their journey.
 
Depending on where their interests lie, you may be able to help them set up to earn their own money.  They may participate in a garage sale (to sell their old things), set up a lemonade stand on a hot summer day, or be ready for ‘extra’ chores that you will pay them for.
 
This is a great time to help them count their money and decide on how to use it.  As a family, you may decide your child should have a similar strategy with money that you do.
  • How do you want to think about using your money towards investing, future wants, and current needs?
  • When you make $10, how will you allocate it towards those goals?
  • What is the best way to set up financial accounts based on those goals?
These are small actions that lead to great long term habits.  Talk about what you do personally to augment their learning and understanding of the family finances as well.
 

Savings Strategies for Children

I like to think of this as a ‘hierarchy of financial literacy’.
  • When spending money, consider beginning with cash so they can feel the inflows and outflows.  Younger children thrive on concrete concepts and this can help them better understand the flow of money.
  • Consider ‘appifying’ spending by finding online tools/games.
  • If saving for a larger purchase, consider a savings account specifically for the purchase so they can see how close they are to their goal over time.  This may be a great time to learn about compounding interest as well.
  • For investing, consider opening a UTMA account with them and choose how to invest the money together.  Note: depending on the size of the account you may run into ‘Kiddie tax’ issues.  Please consult with your tax advisor.
  • As they work more, consider setting up a Roth IRA for long term compounding of investment growth.

Setting your child up for financial success: Age 12-18

The old saying is really true – kids do grow up fast. It’s hard to believe by age 12, children strive for social and economic independence and a sense of control of their life. They are already small adults (tears).

Here, we see children create their own identity and are more socially aware of what peers are doing/what they have. This is when ‘keeping up with the Joneses’ may start.

If you’ve set good financial habits by now, then it is time to start discussing the differences in spending money vs being truly wealthy.

Share the stories from the books I’ve mentioned above. Help them reframe what they see in that light.

This may be time to also discuss debt and leverage with your child. How spending can be augmented by loans and debt, and how this impacts future wealth.

Then, it’s time to discuss credit and how our financial system works in the USA. Being able to start building credit at age 12 is an opportunity for getting a better mortgage or student loan rate in the future.

As college approaches, discussing the value of college and what they want to get out of it. Let them know how much you can contribute and help them think through a budget for spending. There are many studies and helpful analysis tools for college and expert coaches to help.

How to Build your Child’s Credit

There are a few ways to build credit for your child. You can add them to your credit card as an authorized user, you may sign them up for a special debit card, or you may be able to get a secured credit card in their name.

Each of these methods to build credit have pros and cons. Making them an authorized user on your credit card is subject to age restrictions and may only influence their score minimally. If you give them the actual credit card, then spending limits will not be as easily controlled.

Secured credit cards and debit cards may allow your child to have a better impact on their credit score while maintaining more controls.

One card (and app) I’ve played around with is Greenlight. Greenlight is a card and budgeting portal for young adults. It costs around $5/month (their special), and has an entire platform built to help kids save, invest, spend, and build their credit history. There are other platforms as well, and the goal is to find the right one for your family.

Wrap-Up

In the end, there are many ways to set your child up for financial success.  The actions you take as a parent to prepare yourself and your child are important.  For both of you, the sooner you start, the better!
 
Ready to learn more?  Check out other ways to launch your family:
If you would like guidance in developing your financial strategy to know what you can do to set your family up for financial success, please schedule some time to chat with us.
 
The above discussion is for informational purposes only.  Recommendations are of a general nature, not based on knowledge of any individual’s specific needs or circumstances, and there is no intent to provide individual investment advisory, supervisory or management services.
 

Year End Planning and Setting Intentions for 2024

Year end planning

Each year we reflect on what went well for the year, what could be better, and how we will improve in the following year.  Some of the reflections are financial, some are based on improving quality of life, and others are around giving back to the community.

In my reflection this year, my heart is full of gratitude for the lives we touched at SeedSafe Financial.  We partnered with our clients to stay the course towards better finances in 2023, and that’s a big deal to me!

Although 2023 did not include the start of a pandemic, or fumbling through what that means in a ‘new world’, the year had its own challenges.  Rising interest rates, layoffs, and a stumbling stock market felt heavy at times and caused many to pause and ask the questions:  

How long will this last?  

Does this change big financial decisions I want to make?  

Where do we go from here?

Each year I hear these questions asked in year end meetings and it reminds me that life is full of unpredictable changes that will test our resolve.  The best way to stay the course is through a long term vision, reviewing plans, and creating priorities on an ongoing basis.

Build a long term vision of life

What is your most fulfilling life?   What are you doing in your most fulfilled life?  How are you feeling?  Where do you lean towards in this life?

We often skip right over our life vision and the purpose of money.  We may go straight to financial tactics: reading up on investment and tax strategies or the ‘top 5 things to do’.  We forget – money is a tool to facilitate a meaningful life.   

Money may mean different things to different people – comfort, security, freedom, anxiety.  It’s how we use money towards our life vision that makes an outsized impact.

Changes happen every year and our vision can lead us through it.  Your vision of your life should be your anchor and color all decisions (financial or not) that come your way.

With a vision of your life and the values you want to lean into, the next step is building financial flexibility towards that vision.

Knowing my long term vision of life, how do I feel about last year?

Work and life ebb and flow – some years you will have more time and energy to focus and some years less energy.

Review your time and energy over the last year.  What gave you more energy?  What took away energy?  How can you bring more energy to your life?

An enlightening exercise, The Wheel of Life, reviews major areas of a fulfilled life and asks you to assess how you are doing in those areas.  This can help you think more about what needs attention and time in the coming year and longer term.

As humans, we can (too) easily find ways we want to improve our lives.  Sometimes this is for ourselves, but sometimes it is what we ‘think’ we need to be happy.  Too often we can end up on the hamster-wheel of life.  Few on their deathbed wish they had more money.

One caregiver wrote about the experience of working with those towards the end of life and the regrets they had.  In The Top Five Regrets of the Dying, Bronnie Ware writes about the regrets:

1) “I wish I’d had the courage to live a life true to myself, not the life others expected of me.” 

2) “I wish I hadn’t worked so hard.” 

3) “I wish I’d had the courage to express my feelings.” 

4) “I wish I had stayed in touch with my friends.” 

5) “I wish I had let myself be happier”

It takes time and energy to live a life true to yourself, surrounded by those you love, and free from the ‘keeping up with the Jones’ attitude. 

Where can I lean into this year?

Now that you have your long term vision, reviewed last year and identified where you want to grow towards…what could possibly get in the way?  🙂

What can you make a priority this year?  How will you make it a priority?  Creating SMART goals rears its head again!  If you only have so much time and energy, then how you use it will make the biggest difference.

What can you remove from life that keeps you from a fulfilling life?

What can you lean into towards your most fulfilled life?

Considering your time

Each year I review my calendar and rate the activities and events I was part of.  What got me closer to my most fulfilled life?  What took away from it?

Knowing this, what can I do now to make next year even better?  It may include blocking out more days for creative work or scheduling out friend gatherings.  I love to host board game nights so I am penciling in those nights now.

Considering your energy

I am by nature an over-doer.  I want to do ‘all the things’ and find energy from a jam packed life, but even I have my limits.  What helps build your energy?  What takes away from it?

Are there activities that ‘must be done’?  Who else can do them?

Often I find our clients come to us because they know finances are important, but finances just are not on their priority list in life…and that’s okay!

If money is stressful, anxiety inducing or just ‘not fun’, why would you put more energy into it?  This may be an ideal place to begin to outsource and have a thinking partner that helps with money decisions.

The same may go for cleaning your home or cooking.  If you don’t enjoy it and you could use that time towards a more fulfilling life, then what can be done to reduce these activities?  For some, this may be buying a smaller home, reducing material things, or hiring a cleaning service.

For those who don’t have time to cook or have no desire to, it may mean hiring a meal prep service or buying ‘ready made’ frozen meals.

Each of us are individuals that deserve to be happier, healthier, and living our most fulfilled life.

If you go through the exercise of envisioning your most fulfilled life and find finances are something you want to change, please schedule a chat with us.

We wish you a beautiful holiday season!

The above discussion is for informational purposes only.  Recommendations are of a general nature, not based on knowledge of any individual’s specific needs or circumstances, and there is no intent to provide individual investment advisory, supervisory or management services.

 

How can you help your parents in an emergency?

Aging parents emergency

 

Preparing for a Parent Emergency

Each year, our financial advisors launch an ‘Annual Renewal’ with clients.  We discuss, what does money allow you to do?  What should we focus on for this year?  Are there any changes with children, parents, etc that you need help thinking through?

A big theme we saw this year was parents reaching their 70s and the implications of what could happen to them.  What would happen if they have an emergency?  Where would we even start?

Your parents may have an estate plan (wills, trusts, etc) but do you know anything about it?  Who has it?  Who is the executor/in charge?  What part do you play in it?

An estate plan isn’t fool proof.  Beneficiaries still need to be listed.   Accounts still may have auto-pays coming from them.  There is certainly more to a life than 50+ pages of legalese.

So how do you give your parents – or your partner – a leg up in an emergency?  

This is a great question our Paraplanner, Alex Smith, is pondering for our clients and himself.  There are so many blogs or kits out there on ‘Legacy Binder’ or ‘Death Letter’ and boil down to similar components:  

What you want for your family

Not everything is in an estate plan.  Start with your hopes and dreams for your family.  Did you create a tangible asset list for your will?  If not, consider sharing who you’d like certain items to go to.

Where to go for help

  • Contact info for lawyer / advisors
  • Contact info for current employer HR department
  • What custodians / banks you have accounts with
  • Lastpass or 1Password account(s)

What needs to be paid

  • Monthly bills to expect
  • A list of what is on auto-pay
  • Loan agreements / statements
  • Where deposits come from (Pension, Annuity, etc)

The legal jargon aka financial documents

  • Car title(s)
  • House deed(s)
  • Estate plan documents
  • Powers of attorney
  • Insurance policies
  • Copies of keys to any tangible safe drawers/safe deposit boxes

Do you feel like you can start this conversation with your parents?  It can be hard, especially if parents do not wish to be a burden on you or are afraid of judgment based on where they are in their life. 

How can you make a baby step in the right direction?

Alex recommends reading Mom and Dad, We Need to Talk: How to Have Essential Conversations with Your Parents About Their Finances by Cameron Huddleston

If your parents do not have an estate plan or an advisor, consider gifting them some time with a financial advisor.  There are so many great firms available now that can do hourly planning work or project based work.  XY Planning Network has a great Find an Advisor portals to review for the right fit.  

We are all on a journey.  Step by step.

The above discussion is for informational purposes only.  Recommendations are of a general nature, not based on knowledge of any individual’s specific needs or circumstances, and there is no intent to provide individual investment advisory, supervisory or management services.

New Year’s Resolutions Suck. Joyful (Money) Habits are Better.

I’m not pessimistic usually, but New Year’s Resolutions are definitely at the top of my list of anti-cool.  How in the world am I suppose to be able to say, ‘Poof! And now I will eat healthy from now on, starting today!’…?  Or decide that this year I will sleep more, drink less, meditate more, do better with my money, etc. Why do I need this special holiday to finally make a change?

In reality, we know we should eat healthier, sleep more, keep our mental state clear, but we still have trouble taking this logic and making it a reality. Just look at the top resolutions for 2020! 

Top New Year's Resolutions 2020 by Statista

It is really about marrying the logical with the emotional. Without finding a way to make the logical ‘feel good’, we won’t be able to move forward in a meaningful way.

We all want to manage our time and energy to make it through the day in one piece.  So the question is: what story have I told myself emotionally feels good about what I am doing, even if logically I know it isn’t quite right for me?

When I am looking to change something, I generally want to understand:

  • Why am I doing this?  Do I find joy in doing this?
  • Has this become a ‘ritual’?  
  • What do I want to change?  How can I make this change feel good?
  • How can I interrupt my mental path?
  • What do I need to do to create a new ‘ritual’ that has a better chance of long term success?

Let’s take my great nemesis, TV, as an example.  I can go months without watching much TV at all, but then a sudden addiction of Netflix and HBO set in.  Mostly this happens when times are stressful and I want a mental break. Being human is hard.

  • Why am I doing this? Do I find joy in this?  I turned TV time into my ‘I deserve a mindless break’ time to give my brain a pause.  I’ve told myself this is a happy relaxing moment for me…but afterwards I’m always asking myself why it doesn’t feel like I really relaxed much.
  • Has this become a ‘ritual’?  Yes, we put the kiddo to bed and I stretch out on the couch with a blanket and curled up with the dogs.  It feels so good, but then I wonder where the time went.
  • What do I want to change?  How can I make this change feel good? I still want a mental break for myself, but I want to be more aware of the act so I can luxuriate in the feeling of the mental break.
  • How can I interrupt my mental path?  Log out of Netflix and HBO (or cancel them).
  • What do I need to do to create a new ‘ritual’ that has a better chance of long term success?  My downfall seems to be sitting down on the couch. Maybe taking the dogs for a walk outside instead.  After that, I can doodle in a notebook, listen to relaxing music, or read a book about something totally unrelated to work.

Ready for the punch line?  It works with money habits too!

Right now, we are going through a 2019 Post-Mortem for the majority of our clients.  This post-mortem is meant to answer the same questions around spending. Yet, everyone is at a different level of understanding of what their spending plans are.  And yes, even if you don’t have a spending plan, you do. Spending happens every day and you are making choices one way or another.

First, we go through all transactions from the prior year (including an Amazon order history report) and categorize them to see what ‘is’.  We categorize to better understand where spending happens. House expenses, subscriptions, dining out, shopping, kids stuff, entertainment, etc.  

Then, we get together to go through the questions:

  • Why am I doing this?  Do I find joy in this?  

For example: some clients eat lunch out every day because of time and energy.  However, when they talk about joy in eating out for lunch – this tends to be the farthest thing from their mind. It’s not like they are eating out with friends every day, they are grabbing lunch as fast as possible to get back to work.  

  • Has this become a ‘ritual’?  

For sure, no packing lunch in the morning (little time) and in need for a quick fix by lunch time.  I meant to pack a lunch, but the kids never seem to know where their shoes are and forget how to brush their teeth every morning!

  • What do I want to change?  How can I make this change feel good?

I want to feel less like I’m coming at this from a scarcity place of no food and no time.  That stresses me out and then I feel guilty about spending so much money on it by the end of the week.  Sometimes I don’t have time to wait in line for the good healthy food places and I end up with fried stuff I don’t even like.

I’d love the change to feel better by giving me time.  I don’t want to feel frazzled about making food, and I want a nice break at lunch time where I can actually relax a bit instead of rushing around. Basically, a good (money) habit.

  • How can I interrupt my mental path?

Weekend food prep?  Checking into a weekly chef / food service that can bring me healthy meals on the weekend that I can pop into the fridge and grab on the go during the week.

  • What do I need to do to create a new ‘ritual’ that has a better chance of long term success?

I will let my family know this is something that is important to me and block time off on my calendar now to make this a priority and a reminder.

 Believe it or not, a weekly meal prep service can often cost less than eating out for lunch every day.  Others find it easy if they can get a slow cooker and recipes that allow them to throw stuff in, set it and forget it on the weekend.  Both of these options take a good habit, and turn it into a good (money) habit for the client. And for others this isn’t even something they care to change. The goal is to find where you do want to stretch and find ways to make the change easy.

If you are interested in digging into this more, I suggest reading…

The Power of Habit:  Why We Do What We Do in Life and Business

Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones

Good Habits, Bad Habits: The Science of Making Positive Changes That Stick

Here’s How to Easily Create a Budget

3 Steps for Long Term Budgeting Success

January 1st isn’t the only time we can start fresh.  Any day is a good day to review your habits and decide whether making a change could mean better mental health and a better life 🙂

Ready to change your money habits?  Schedule an introductory call with us to find out how we can help you.

Here’s How to Easily Create a Budget

RSUs in your portfolio

Budgets and the New Year go hand in hand. If you already budget, you may review how well you did and decide what to do different for 2018. If you don’t budget, this may be the time to look at your income and figure out where to start.

I am a believer in simplicity to get the job done right. There are two ways to look at it: top-down or bottom-up. If you prefer to start with expenses and where you spend money, check out 3 Steps for Long-Term Budgeting Success. If you are interested in starting with total income, keep reading!

Step 1: Determine estimate of net cash inflow

What are you expecting for total compensation this year?

Salary + expected cash bonuses + RSU sales = estimated income

Estimated income – 401(k) contribution + vesting RSUs = est. taxable income

Once you know your expected income, then it’s time to make an estimate of how much you will need to pay in taxes. A nice tax bracket chart for 2024/2025 is HERE. I don’t make it too complicated and only deduct my expected 401(k) contribution.

Est. income – estimated taxes due = net cash inflow

Step 2: Determine what you want to save this year.

Do you want to save a percentage of your net cash or do you have specific goal amounts? If you aren’t sure where to start in saving, check out how to change your life with your bonus for some great ideas.

Net Cash Inflow – 401(k) Contribution – Savings Goal = Annual expenses

Step 3: Break down expenses and think about increasing savings.

Expenses fall into two categories – fixed and variable.

Fixed expenses in budgeting include: housing, transportation, utilities, and groceries. These are your ‘must haves’.

Variable expenses are miscellaneous items like travel and lifestyle choices that vary from month to month. Lifestyle choices may include hobbies, eating out, Kindle books, Audible, etc.

Monthly fixed expenses x twelve months = Annual fixed expenses

Annual expenses – Annual fixed expenses = Miscellaneous expenses + Savings Opportunity

Once you determine your ‘must haves’ it is time to see what is left over. Do you have more in your budget for miscellaneous expenses than you need? This is a great opportunity to add more savings to your year. See the compounding effects of saving more now versus later!

Were you surprised by how many expenses you have to fit into your budget? It may be time to reassess what you are spending money on and to take a deeper look.

Want a helping hand to keep you accountable with your new goals? Schedule a free consultation to see how we can help.

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The above discussion is for informational purposes only. Recommendations are of a general nature, not based on knowledge of any individual’s specific needs or circumstances, and there is no intent to provide individual investment advisory, supervisory or management services.