Spousal Contributions | Features vs. Bugs

ACCIDENTAL MILLIONAIRES: One of the unique experiences we get is telling people for the first time that they are multi-millionaires or millionaires, and they had no idea. They have been consistent with good financial habits over a long period, but they’ve never taken a step back to realize the cumulative impact.

Many of these clients also wish that their adult children understood the value of these healthy behaviors and “money scripts.” The narrative is that it’s increasingly hard for younger generations to save. But might they be more motivated if they saw the cumulative impact of those small behaviors?

These conversations are often hard to start, but extremely beneficial. If you would like ideas on how to approach them with your specific family, we are always here as a sounding board.

VOLATILITY AND RETURNS: “Volatility is the price of admission. The prize inside is superior long-term returns. You have to pay the price to get the returns. Many aren’t.” – Morgan Housel, best-selling author of “The Psychology of Money”

What if volatility is a feature, not a bug?

MANAGE YOUR PAYCHECK: Communication is the key to avoiding tax “surprises.”  If you have a history of large tax refunds or bills, ask your CPA for a recommendation on your withholdings. Common life events that impact your taxes and paycheck withholdings:

• Bought a house or started renting
• Moved to a new state
• Family change—birth/adoption
• Change in marital status
• Retirement or a change in employment
• Major increase or decrease in earned income, bonus, or commission

COLLEGE PREPAREDNESS FOR LIFE: In a Gallup poll, just 3% of college graduates say they had all six experiences that strongly relate to whether they felt like colleges prepared them well for life. Given the cost of college education, this type of reporting highlights the frequent disconnect in expectations between the student, parents, professors, and institutions:

SPOUSAL CONTRIBUTIONS: Making IRA contributions before year-end is a smart move if you or your spouse has earned income—and the good news is that spousal income counts toward eligibility. Even if only one of you worked this year, you can each contribute up to the annual limit to your own IRA, whether traditional or Roth, as long as your combined earned income covers the total contributions. Don’t miss this opportunity to maximize your tax-advantaged savings before year-end. Invite us into the conversation.

WHEN THE JONAS BROTHERS BOOST YOUR RESUME: It’s a “once-in-a-lifetime” moment, as they call it. Watch it here.

*The views expressed represent the opinions of Compass Ion Advisors, LLC, as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, an investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial, or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website here. Past performance is not a guarantee of future results.