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Summer Newsletter 2025 – Conference Recaps

Over the last three months both Christine and Reyna have had the opportunity to attend some helpful and educational conferences. In April, Christine attended the Taiko Conference in Cabo, building more relationships with our sub-advisor team and learning more about the platform. In June, both Christine and Reyna attended the IPI home office conference in Chicago.

Taiko Conference:

Christine spent a few beautiful days in Mexico, at the invitation of our partnered research and advisory team of TAIKO. She had the opportunity to connect one-on-one with the research team and network with advisors from around the country. She was able to take this opportunity to dive deeper and gain even more confidence surrounding their investment research, customized portfolio offerings, as well as their service and communications platform.  What this means for our clients – it frees Christine up to more effectively and personally serve our clients’ planning and lifestyle needs.  We get to sit across the table from you and learn more about what is important, and then we partner with strategic teams like TAIKO and MAI so that while we are meeting and talking, someone else has their eyes on the market and the trends at all times!  This allows her as your advisor, to prioritize you and your needs. Our office always wants to be the first point of contact for you, offering a range of services and advice that can go beyond financial planning. 

IPI Conference:

In June, we spent three days listening to and learning from many voices that contribute to the financial world; from learning about how much money is changing generational hands to the power of words and positive thinking. 

Christine’s most impactful moment – learning that the word Silent and Listen have the same letters.  You cannot have one without the other.  “My most important job as a financial advisor is to listen to my client needs, wants, concerns and goals.”  Another powerful reminder is that we are in the service industry NOT the sales industry.  We are at your service and are here to support you.  The financial advice and planning go hand-in-hand as part of that support, but it is so much more.

Reyna’s most impactful moment was – realizing that communication needs and wants are different for everyone.  We need to be willing to communicate in the way that is best received by our audience.  “I also realized that we can be more than just a financial service firm for our clients, we can strive to be a family ally that is there in all times; good and bad.”  Finally, clarity over creativity, we need to be intentional about the words we use and making sure our message conveys our knowledge and values.

We learned more about the rebrand of our home office from Investment Planners, Inc to IPI Wealth Management, stepping into and embracing the new technology era with a fresh look.  As we slowly roll out the rebrand of the home office, be on the look-out for some new changes from us as well 😉.

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Investment Planners Presents: Amy Florian of Corgenius

Amy Florian combines the best of neuroscience and psychology with a good dose of humor in teaching people how to prepare for, cope with, and support their loved ones through all the losses and transitions of aging and life. She published over 250 articles, and her book, titled “A Friend Indeed: Help Those You Love When They Grieve,” won an International Book Award and was also the gold medal winner of the Indies Award. Amy was honored as an “Influential Woman in Business” from the National Association of Women Business Owners and received the Chicago Business Journal’s Women of Influence award.

Amy taught a graduate class at Loyola University of Chicago for almost 10 years and has worked with over 2,500 grieving people. In 2008, Amy founded Corgenius, a company that specializes in training professionals about death, loss, aging, and transition so she could spread solid education about preparing ahead of time, coping with loss, aging, and transition, and learning to support each other through it. She consults with firms, corporations, and individuals worldwide, always garnering rave reviews for her dynamic presentations. Everything Amy does comes from her passion to help people heal and live fully.

On a personal note, Amy is the third of ten children, and she makes fabulous homemade cinnamon rolls and chocolate chip cookies!

“What You and Your Family Need to Know about Dementia and Fraud”

Did you know that 1 in 8 people over age 65 is living with dementia? As we age or care for aging family members, it is essential to prepare ahead of time, to understand the risks and realities of cognitive decline, and to be equipped to prevent fraud and financial exploitation.

In this session, you’ll learn what dementia is, how to recognize early signs, and what treatments and support resources are available. You’ll review important documents to complete before anything occurs. You’ll also gain practical tools and strategies to help protect yourself and your loved ones (regardless of current cognitive health) from scams, schemes, and exploitation. Come hear from an expert in the field, get your questions answered, and walk away with the knowledge and practical strategies your family needs. We’ll see you there!

Save the Date: Thursday September 25th from 2-5pm

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Breaking Down the Numbers:

The Soaring U.S. National Debt

The U.S. national debt is the total amount of money owed by the federal government. As of January 2025, it stands at $36.16 trillion.1

The difference between deficit and debt

When the federal government spends more money than it collects in taxes in any given fiscal year (the government’s fiscal year runs from October 1 to September 30), there is a deficit. The opposite of a deficit is a surplus. 

To fund its operations when there is a deficit, the government borrows money by selling Treasury notes, bills, bonds, and other securities to investors, paying interest based on the interest rate environment at the time the security is issued. The interest owed to these investors adds to each year’s spending deficit (if any) and further increases the national debt over time.

In the past 50 years, the U.S. has run a deficit 46 times. The last U.S. budget surplus was in 2001. In 2024, the deficit was $1.83 trillion, the third-highest on record. The highest deficit was in 2020 during the pandemic, when it was $3.13 trillion.2

Why is the national debt so high?

There are several reasons for the ballooning national debt. One reason is previous tax cuts and pandemic spending. Another major reason is the increasing cost of Social Security and Medicare, two popular programs that serve a growing demographic of older Americans and make up the two biggest slices of the federal budget pie.3 Cutting spending on these programs is not politically popular, though in theory, future benefits could be trimmed. Military spending also consumes a significant portion of the federal budget.

A category of spending that can’t be cut is the interest the federal government must pay to investors who have purchased Treasury securities, which is consuming an increasing share of the federal budget. This is sometimes referred to as “servicing the national debt.” As of September 2024, $1.13 trillion went toward maintaining the debt, which was 17% of total federal spending in fiscal year 2024.4

Comparing a country’s total debt to its gross domestic product (GDP) is typically a better way to gauge a country’s ability to pay down its debt than just looking at the raw debt number. For fiscal year 2024, the U.S. debt-to-GDP ratio was 124%. This was just under the record 126% in 2020.5 According to the nonpartisan Congressional Budget Office, based on current spending and revenue projections, the debt-to-GDP ratio is projected to reach 179% by 2054.6

Clearly, Congress has work ahead to better balance U.S. revenue and spending.

Projections are based on current conditions, subject to change, and may not come to pass.

1–5) fiscaldata.treasury.gov, 2025

6) Congressional Budget Office, 2025

IMPORTANT DISCLOSURES

The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Securities and investment advice offered through Investment Planners, Inc. (Member FINRA/SIPC) and IPI Wealth Management, Inc., 226 W. Eldorado Street, Decatur, IL 62522. 217-425-6340.

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Debt After Death: What Happens to Debt When Someone Dies?

Losing a loved one is never easy. In addition to the emotional challenges you may face, you might also be worried about what will happen to their debts once they are gone.


Generally, with limited exceptions, when a loved one dies you will not be liable for their unpaid debts. Instead, their debts are typically addressed through the settling of their estate.

How are debts settled when someone dies?

The process of settling a deceased person’s estate is called probate. During the probate process, a personal representative (known as an executor in some states) or administrator if there is no will, is appointed to manage the estate and is responsible for paying off the decedent’s debts before any remaining estate assets can be distributed to the beneficiaries or heirs. Paying off a deceased individual’s debts can significantly lower the value of an estate and may even involve the selling of estate assets, such as real estate or personal property.


Debts are usually paid in a specific order, with secured debts (such as a mortgage or car loan), funeral expenses, taxes, and medical bills generally having priority over unsecured debts, such as credit cards or personal loans. If the estate cannot pay the debt and no other individual shares legal responsibility for the debt (e.g., there is no cosigner or joint account holder), then the estate will be deemed insolvent and the debt will most likely go unpaid.


Estate and probate laws vary, depending on the state, so it’s important to discuss your specific situation with an attorney who specializes in estate planning and probate.

What about cosigned loans and jointly held accounts?

A cosigned loan is a type of loan where the cosigner agrees to be legally responsible for the loan payments if the primary borrower fails to make them. If a decedent has an outstanding loan that was cosigned, such as a mortgage or auto loan, the surviving cosigner will be responsible for the remaining debt.


For cosigned private student loans, the surviving cosigner is usually responsible for the remaining loan balance, but this can vary depending on the lender and terms of the loan agreement.


If a decedent had credit cards or other accounts that were jointly held with another individual, the surviving account holder will be responsible for the remaining debt. Authorized users on credit card accounts will not be liable for any unpaid debt.

Are there special rules for community property states?

If the decedent was married and lived in a community property state, the surviving spouse is responsible for their spouse’s debt as long as the debt was incurred during the marriage. The surviving spouse is responsible even if he or she was unaware that the deceased spouse incurred the debt.

How much debt Americans expect to leave behind when they die

Source: Debt.com Death and Debt Survey, 2024

What if you inherit a home with a mortgage?

Generally, when you inherit a home with a mortgage, you will become responsible for the mortgage payments. However, the specific rules will vary depending on your state’s probate laws, the type of mortgage, and the terms set by the lender.

Can you be contacted by debt collectors?

If you are appointed the personal representative or administrator of your loved one’ s estate, a debt collector is allowed to contact you regarding outstanding debts. However, if you are not legally responsible for a debt it is illegal for a debt collector to use deceptive practices to suggest or imply that you are. Even if you are legally responsible for a debt, under the Fair Debt Collection Practices Act (FDCPA), debt collectors are not allowed to unduly harass you. Finally, beware of scam artists who may pose as debt collectors and try to coerce or pressure you for payment of your loved one’s unpaid bills.

IMPORTANT DISCLOSURES
The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is
not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each
taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for
general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure
the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
Securities and investment advice offered through Investment Planners, Inc. (Member FINRA/SIPC) and IPI Wealth Management, Inc., 226 W.
Eldorado Street, Decatur, IL 62522. 217-425-6340.

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Accounts for Two: A Team Approach to Retirement Savings

Almost half of U.S. families headed by a married couple include two working spouses.1 With dual careers, many spouses accumulate assets in separate retirement accounts. Each might have funds in an employer-sponsored plan and an IRA.


Even if most of a married couple’s retirement assets reside in different accounts, open communication and teamwork can help them craft a unified retirement strategy.

Working together


Tax-deferred retirement accounts such as 401(k)s, 403(b)s, and IRAs can be held in only one person’s name. [A spouse is required to be the beneficiary of a 401(k), and to some extent, a 403(b), unless the spouse signs a written waiver.] Taxable investment accounts, on the other hand, may be held jointly.
Owning and managing separate portfolios allows each spouse to choose investments based on his or her individual risk tolerance. Some couples may prefer to maintain a high level of independence for this reason, especially if one spouse is more comfortable with market volatility than the other.


However, sharing plan information and coordinating investments could help some couples build more wealth over time. For example, one spouse’s workplace plan may offer a broader selection of investment options, while the offerings in the other’s plan might be somewhat limited. One employer may offer a better contribution match than the other.


Spouses who use a joint strategy might agree on an appropriate asset allocation for their combined savings and invest their contributions in a way that takes advantage of each plan’s strengths while minimizing any weaknesses. (Asset allocation is a method to help manage investment risk; it does not guarantee a profit or protect against loss.)


In 2025, the maximum employee contribution to a 401(k) or 403(b) plan is $23,500 (plus an extra $7,500 for those age 50 and older or an extra $11,250 for those age 60 to 63). Employers often match contributions up to a set percentage of salary.

Spousal IRA opportunity


While many married couples have two wage earners, some spouses stay home to take care of children or other family members, or just to take a break from the workforce. And it’s not unusual for one spouse to retire while the other continues to work. In any of these situations, it can be difficult to keep retirement savings on track.


Fortunately, a couple can contribute $7,000 to the working spouse’s IRA and an additional $7,000 to the nonworking spouse’s IRA (in 2024 and 2025), as long as their combined income exceeds both contributions and they file a joint tax return. An additional $1,000 catch-up contribution can be made for each spouse who is age 50 or older. All other IRA eligibility rules must be met.


Lagging Balances


Despite solid saving habits, women report lower household retirement savings than men across all age groups. This is due primarily to lower wages, more women working part-time without benefits, and more women taking time off to care for children and other family members.

Source: Transamerica Center for Retirement Studies, 2024 (2023 data)

Contributing to a spousal IRA may not only help a couple with a nonworking spouse save more towards retirement, it might also offer a potentially valuable tax deduction. That’s because the IRS imposes higher income limitations for deductible contributions to spousal IRAs than for contributions made to the IRA of an active participant in an employer plan.


For married couples filing jointly, the ability to deduct contributions to the IRA of an active participant in a work-based plan is phased out at a modified adjusted gross income (MAGI) between $123,000 and $143,000 in 2024 ($126,000 and $146,000 in 2025). When the contribution is made to the IRA of a nonparticipating spouse, the phaseout limits are higher: MAGI between $230,000 and $240,000 in 2024 ($236,000 and $246,000 in 2025).


IRA contributions for the 2024 tax year can be made up to the April 15, 2025, tax filing deadline (May 1, 2025, for taxpayers affected by certain natural disasters). Withdrawals from tax-deferred retirement plans are taxed as ordinary income and may be subject to a 10% federal tax penalty if withdrawn prior to age 59½, with certain exceptions as outlined by the IRS.


1) U.S. Bureau of Labor Statistics, 2024 (2023 data)

IMPORTANT DISCLOSURES
The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
Securities and investment advice offered through Investment Planners, Inc. (Member FINRA/SIPC) and IPI Wealth Management, Inc., 226 W. Eldorado Street, Decatur, IL 62522. 217-425-6340.

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The Versatile Roth IRA

Used with care, the Roth IRA may help serve several objectives at once — like a multipurpose tool in your financial-planning toolbox. 

Retirement

First and foremost, a Roth IRA is designed to provide tax-free income in retirement. If your modified adjusted gross income (MAGI) falls within certain limits, you can contribute up to $7,000 ($8,000 for those age 50 or older) in earned income to a Roth IRA in 2024 and 2025. Although Roth IRA contributions are not tax-deductible, qualified withdrawals are tax-free. A qualified withdrawal is one made after the account has been held for at least five years and the account owner reaches age 59½, becomes disabled, or dies. Nonqualified withdrawals of earnings are subject to ordinary income taxes and a 10% penalty, unless an exception applies.

2025 Income Limits for Roth Contributions
Source: IRS

Emergency savings
Because contributions to a Roth IRA are made on an after-tax basis, they can be withdrawn at any time — which means, in a money crunch, you could withdraw just your Roth contributions (not the earnings) free of taxes and penalties. In addition, account holders may withdraw up to $1,000 in earnings each year to cover emergency expenses.1

Teachable moments
A Roth IRA can also be an ideal way to introduce a working teen to long-term investing. Minors can contribute to a Roth IRA as long as they have earned income and a parent or other adult opens a custodial account in their name. Alternatively, an adult can contribute to a Roth IRA within a custodial account on a child’s behalf, as long as the total amount doesn’t exceed the child’s total wages for the year.


College and first home
Roth IRA earnings can be withdrawn penalty-free to provide funds for college and the purchase of a first home.


College. Roth IRA funds can help pay for certain undergraduate and graduate costs for yourself or a qualified family member. Expenses include tuition, housing and food (if the student attends at least half time), fees, books, supplies, and required equipment not covered by other tax-free sources, such as scholarships or employer education benefits. An advantage of using a Roth IRA to help pay for college is that assets held in retirement accounts are excluded from the government’s financial-aid formula. (A related point: up to $35,000 in 529 plan assets that are not used to pay for college may be rolled over to a Roth IRA for the same beneficiary, provided certain rules are followed.)


First home purchase. Up to $10,000 (lifetime limit) can be used for qualified expenses associated with a first-time home purchase. You are considered a first-time home buyer if you haven’t owned or had interest in a home during the previous two years. Funds may be used for acquisition, construction, or reconstruction of a principal residence and must be used within 120 days of the distribution. If the account has been held for at least five years, the distribution will be income tax-free as well.


Estate planning
Roth IRAs are not subject to the age-based required minimum distribution rules that apply to non-Roth retirement accounts during your lifetime. For this reason, if you don’t need your Roth IRA funds, they can continue to accumulate. After your death, the tax-free income benefit continues to apply to your beneficiaries (however, the value of your Roth IRA will be assessed for federal and possibly state estate tax purposes).


Proceed with caution
Although it’s generally best to avoid tapping money earmarked for retirement early, the Roth IRA can help serve multiple needs — if used wisely.

The tax implications of a 529 savings plan should be discussed with your legal and/or tax professional because they can vary from state to state. Also be aware that most states offer their own 529 plans, which may provide advantages and benefits exclusively for their residents and taxpayers. These other state benefits may include financial aid, scholarship funds, and protection from creditors. Before investing in a 529 savings plan, please consider the investment objectives, risks, charges, and expenses carefully. The official disclosure statements and applicable prospectuses, which contain this and other information about the investment options, underlying investments, and investment company, can be obtained by contacting your financial professional. You should read these materials carefully before investing.


1) Due to ordering rules, Roth IRA contributions will always be distributed before earnings.

IMPORTANT DISCLOSURES
The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
Securities and investment advice offered through Investment Planners, Inc. (Member FINRA/SIPC) and IPI Wealth Management, Inc., 226 W. Eldorado Street, Decatur, IL 62522. 217-425-6340.

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Financial Spring-Cleaning Tips

With the first day of spring on March 20, now is the perfect time to think about a little “spring cleaning” — not just at home but also for your financial plans.

Here are some quick, actionable tips to help freshen up your finances and keep them in shape for the year ahead:

  • Reassess your financial goals – Take stock of your short- and long-term goals, such as retirement plans or major purchases. Are they still aligned with your priorities, or is it time for an update? 

  • Organize your accounts – Consolidate old retirement accounts or scattered investments to simplify management and reduce fees. It’s also a good time to update beneficiaries on all financial documents if you’ve experienced major life changes.

  • Review your spending plan – Review recent bank and credit card statements to identify recurring charges or subscriptions you no longer need. Redirect those funds toward savings or investments.

  • Rebalance your portfolio – Check investment allocations in relation to your current risk tolerance and goals. If you want to adjust your portfolio, reach out, and we can discuss further. 
  • Streamline debt management -If you have high-interest debt, consider consolidating or refinancing to lower rates. Create a strategy to pay off balances faster, such as prioritizing the highest interest rates.

  • Boost your emergency fund – Aim to have three to six months’ expenses in an easily accessible account. If yours needs topping up, set a small monthly savings goal to reach the desired amount.

  • Evaluate tax strategies -Before April 15, review tax-advantaged accounts like Individual Retirement Accounts (IRAs) or Health Savings Accounts (HSAs) to ensure you maximize contributions for 2024. Remember, the IRA contribution limits for 2024 are $7,000 for those under age 50 and $8,000 for those age 50 or older. For HSAs, you can contribute up to $4,150 as an individual or $8,300 as a family. 

  • Protect your digital assets -Update passwords for online banking and investment accounts. Activate two-factor authentication wherever possible for added security.

If you’d like to discuss any of these in greater detail or want assistance tailoring these tips to your specific goals, please feel free to reach out. I’m here to help however I can. 

IMPORTANT DISCLOSURES

The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Securities and investment advice offered through Investment Planners, Inc. (Member FINRA/SIPC) and IPI Wealth Management, Inc., 226 W. Eldorado Street, Decatur, IL 62522. 217-425-6340.