This year, students and their families will notice significant changes to the Free Application for Federal Student Aid (FAFSA) process. We'll review these changes and how they can impact families navigating college funding. Key topics include the reporting of student income, business and farm assets, retirement plan contributions, and the implications of having multiple children in college. Jason also touches on the impact of grandparent-owned 529 college savings plans on FAFSA results.Tune into this episode to also learn:How the new FAFSA rules in 2024 differ from previous years.The importance of understanding the nuances of reporting student income and parental assets.Strategies for maximizing college funding and financial aid opportunities.What we discussed[00:01:16] New criteria for reporting student income on FAFSA.[00:05:29] Inclusion of business value as an asset in the FAFSA.[00:07:51] Understanding the role of 529 college savings plans in financial aid.3 Things To RememberFAFSA changes in 2024 bring significant implications for students and parents.Detailed understanding and strategic planning can lead to better financial aid outcomes.Seeking advice from financial and tax advisors is crucial in navigating these changes.Memorable moments: (07:51) "You could put contributions into there and it grows tax-free and then you take the money out for educational purposes and you don't get taxed on the growth. That's what a 529 college savings plan is."(08:47) "So now that obstacle to the grandparent owning the 529 account is no longer as big of an issue as it was before."(09:38) "Retirement plan contributions that you make out of your paycheck to employer 401k plans, 403b plans are no longer added back to your income."Useful LinksConnect with Jason Gabrieli: [email protected] | LinkedInLike what you’ve heard…Learn more about HFM HERESchedule time to speak with us HERECheck out our Financial Wellness Program – HFM Ignite

Bitcoin has made a comeback in the last few weeks with the SEC's recent approval of Bitcoin ETFs. So, what does this mean for investors? Jason explains the implications of the Bitcoin ETFs, their accessibility for average investors, and the impact of this development on the value of Bitcoin while evaluating the risks regarding your investment strategy. He also discusses the broader context of investing in volatile assets like Bitcoin and offers guidance on approaching them within a diversified investment portfolio.Tune into this episode to also learn:The fundamentals of Bitcoin ETFs and their role in the financial market.Key differences between investing in Bitcoin directly versus through an ETF.The potential risks and rewards of including Bitcoin in your investment portfolio.Practical tips for investors considering Bitcoin as part of their investment strategy.What we discussed[00:00:51] Introduction to Bitcoin ETFs and its significance.[00:02:15] Risks associated with cryptocurrency exchanges.[00:03:15] Explanation of ETFs and their comparison to mutual funds.[00:06:35] Integrating Bitcoin into your overall investment strategy.[00:09:04] Where Bitcoin and cryptocurrencies fit in a portfolio.[00:11:47] Skepticism about market predictions and forecasts.3 Things To RememberBitcoin ETFs make cryptocurrency more accessible to mainstream investors, but they come with inherent risks and volatility.Investments should ideally create value, and while cryptocurrencies can store value, they don't inherently create it like stocks or bonds.It's crucial to approach investments like Bitcoin with caution and integrate them wisely into a diversified portfolio, avoiding overexposure.Memorable moments: (01:33) “For the average person, buying cryptocurrencies meant opening an account on an app and purchasing through an exchange.”(07:25) “A true investment should create value, like stocks or bonds. Cryptocurrencies, like gold, are more about storing value.”(10:56) “Be cautious with investments that are merely stores of value and subject to market whims.”Useful LinksConnect with Jason Gabrieli: [email protected] | LinkedInLike what you’ve heard…Learn more about HFM HERESchedule time to speak with us HERECheck out our Financial Wellness Program – HFM Ignite

So, how did 2023 end up?  According to the news or social media, the economy and the average person are worse off than ever. In this episode, Jason and Catherine refute that notion with real-world data and examples, and provide a balanced perspective on current economic conditions, including inflation, the GDP, and the growth of personal net worth in the U.S. Tune into this episode to also learn:How does the constant stream of negative financial news affect our perception of the economy?What are the actual numbers behind the U.S. economy's performance post-pandemic compared to the rest of the world?How have American families' net worth grown over recent years, and what does this mean for the average person?What we discussed[00:11:00] The impact of negative news on our perception of the economy and financial markets.[00:15:30] Analysis of U.S. GDP growth and comparison with other countries post-pandemic.[00:20:45] Examining the net worth growth among American families and its significance.3 Things To RememberDespite negative media narratives, the U.S. economy has shown resilience and growth, outpacing many other nations post-pandemic.Personal net worth in the U.S. has significantly increased, reflecting an overall positive trend in financial well-being.Understanding the broader economic context is critical to maintaining a balanced perspective in times of uncertainty.Memorable moments: (01:27) “ what we want to do with this kind of closing out the year is just give you some perspective. We know that we've always loved bad news, but it seems like increasingly, it's almost like we're addicted to it. It's just everywhere.”(04:08) “So not only have we recovered from what happened during the pandemic, we're a little bit ahead. And it's important to put that in context, because guess what? When you look all around the rest of the world, everyone is at least two to six percent behind. Yeah, is a half a percent better? Great? No, but it's way better than everyone else.”(09:53) “And what's really interesting is the growth on different age groups. The under 35 age group, which I just exited, you know, even with the housing issues and affordability and buying, I get that, but that group, their net worth is up 143 percent in the last three years. Crazy. It's 55 to 64, up 48 percent across the board” Useful LinksConnect with Jason Gabrieli: [email protected] | LinkedInLike what you’ve heard…Learn more about HFM HERESchedule time to speak with us HERECheck out our Financial Wellness Program – HFM Ignite

Welcome to a festive edition of the Dollar Wise podcast! Jason Gabrieli and Catherine Allen-Carlozo, both Certified Financial Planners at HFM Investment Advisors, delve into the latest world of Artificial Intelligence (AI)stocks. Tune in to hear them discuss the recent trends of investing in AI and the massive influx of AI-related companies. You will explore the risks, opportunities, and misconceptions surrounding AI investments and understand the need for caution and well-informed decisions. It's a conversation packed with insights, making it a must-listen for anyone curious about AI's role in the future of investing.Tune into this episode to also learn:What defines an AI stock, and how has the AI investment landscape evolved recently?What are the potential risks and benefits of investing in AI stocks, and how can investors navigate this field wisely?How do major companies incorporate AI into their business models, and what does this mean for investors?What we discussed[00:01:19] The emergence and impact of AI stocks in the market[00:03:34] The parallels between AI stocks and other investment trends like dot com and cannabis companies[00:05:18] Why established companies are key players in AI development and how this affects investment strategies[00:07:22] The buzz around AI and its influence on stock market trends[00:09:15] The psychological factors like FOMO affecting investment decisions in trendy sectors[00:10:24] Strategies for balanced and responsible investing in AI stocks3 Things To Remember1. AI stocks represent a diverse and rapidly evolving investment landscape, requiring thorough research and cautious decision-making.2. Established companies with AI integration may offer more stable investment opportunities compared to new AI startups.3. Balancing excitement for AI investment with a diversified portfolio and sound financial planning is crucial to mitigate risks.Memorable moments: (03:59) “ It's very interesting to me how much is going into health care and data management processing, the iCloud, as we all know, FinTech. Financial data sets and cyber security. I think that's going to be very important.”(08:33) “That's what scares me about if someone just says, Oh, I'm going to do a little research. First of all, you better have a lot of time on your hands to be able to do the kind of research to research 4,600 companies just in the U.S. To decide whether you should be investing in these companies.”(12:03) “As long as you're not derailing your whole financial plan to chase the next hot thing, because I don't think AI is going to be the next NFTs, but it can just be gone in a year. It is going to change things. It probably is going to make our society different for sure, but it's something that you still shouldn't all of a sudden take a left turn on your entire investing to pursue.” Useful LinksConnect with Jason Gabrieli: [email protected] | LinkedInLike what you’ve heard…Learn more about HFM HERESchedule time to speak with us HERECheck out our Financial Wellness Program – HFM Ignite

Jason Gabrieli is joined by recurring guest Bill Webb from Saratoga Medicare Advisors to dive into the topic of Medicare. They recognize that Medicare can be a complex subject and often misunderstood, leading to surprises regarding coverage. Jason and Bill aim to provide valuable insights and dispel misconceptions about Medicare. They start by breaking down the different parts of Medicare, exploring what they cover and who is eligible. They also discuss the options available regarding Medicare supplement and Medicare Advantage plans, highlighting the differences and benefits of each. Whether you're approaching Medicare eligibility or just looking to expand your knowledge, this episode is packed with valuable information to help you make informed decisions about your healthcare coverage.Tune into this episode to also learn: What are the different parts of Medicare, and what do they cover?How do Medicare supplement plans differ from Medicare Advantage plans, and what are the benefits of each?Who is eligible for Medicare, and how can one avoid misconceptions surrounding its coverage?What we discussed[00:01:30] Explaining Medicare's parts and covering gaps[00:07:40] How the government outsources Medicare to private insurance with varying coverage[00:10:20] The choice between Medicare supplement and Advantage is reversible but can be complex[00:12:55] The Inflation Reduction Act changes Medicare Part D, majorly affecting catastrophic coverage[00:16:26] Formulary: List of covered drugs; yearly changes can affect out-of-pocket costs3 Things To Remember Medicare, though beneficial, can be a maze with its intricate facets and is often misinterpreted, resulting in unforeseen challenges regarding coverage.Understanding the various components of Medicare, including the distinct options between Medicare supplement plans and Medicare Advantage plans, can guide you in making an enlightened choice tailored to your healthcare needs.Seeking expert insights, as provided in this episode, can help ensure that you're well-equipped to navigate the intricacies of Medicare, promoting confidence in your healthcare decisions.Useful LinksConnect with Jason Gabrieli: [email protected] | LinkedInLike what you’ve heard…Learn more about HFM HERESchedule time to speak with us HERECheck out our Financial Wellness Program – HFM Ignite

Whatever happened to that old 401(k) at your first job? Today, learn how to manage old employer retirement plans. Throughout this episode, gain insight into the various paths you can take with accrued retirement balances from past employment ventures. Jason reviews the options available to you, discussing the benefits and drawbacks of each to aid you in making informed choices regarding your retirement nest egg. As the conversation unfolds, you'll be acquainted with options such as retaining the plan with its current status, merging it into a new employer's arrangement, shifting it to an IRA, or opting for a lump sum withdrawal. Tune into this episode to also learn: What are the pros and cons of leaving your 401K balance with your old employer?How can transferring your retirement plan to an IRA benefit you in the long run?What should one consider before opting for a lump sum withdrawal from their retirement plan? What we discussed[00:00:46] Options and considerations for managing old 401K plans[00:02:52] Pros and cons of rolling old 401K into new employer's plan[00:05:52] Lump sum withdrawal pros and cons including potential taxes and penalties[00:7:51] Exploring retirement plan options post-employment3 Things To Remember Navigating the management of old employer retirement plans offers several paths, each with its unique set of advantages and downsides, which can be meticulously weighed to make an informed decision.A key decision point in managing your 401K balance from previous jobs includes evaluating options such as retaining it where it is, initiating a rollover into a new employer’s plan, transferring it to an IRA, or extracting it as a lump sum.Making a prudent choice concerning your retirement savings now can set a firm foundation for financial security in the later stages of life, and consulting with an expert can be a step toward making an informed decision.Useful LinksConnect with Jason Gabrieli: [email protected] | LinkedInLike what you’ve heard…Learn more about HFM HERESchedule time to speak with us HERECheck out our Financial Wellness Program – HFM Ignite

Would it ever make sense to sell your house for a few bucks? Jason Gabrielli dives into the world of estate planning, specifically focusing on the ownership of your house. Jason addresses a common misconception about selling your house to your kids for a low price, debunking the idea that it can help avoid taxes. He explains the federal estate tax exemption and the absence of estate tax in New Jersey, shedding light on why most people don't have to worry about estate taxes. Jason also discusses the concern of protecting your house from the cost of care and the potential downside of transferring ownership. Additionally, he touches on probate avoidance and the ease of estate administration in New Jersey. You will learn the importance of understanding the liability that comes with transferring ownership to your children, potential drawbacks, and considerations.Tune into this episode to also learn: What are the potential benefits and drawbacks of selling your house to your children for a reduced price?Why has the concept of selling your house to your kids for a few dollars become a common consideration in estate planning?What are the legal and financial implications to be aware of when considering such a transaction?What we discussed[00:01:59] Federal estate tax exemptions are high; no NJ estate tax[00:04:14] Most won't face death taxes; considering home protection from care costs[00:06:15] NJ probate is reasonable; selling home to kids raises liability issues[00:9:17] Selling a house to kids for $10 can cause significant tax issues3 Things To Remember Many people don't need to sell their house to their kids for $10 to avoid taxes, thanks to high federal estate tax exemptions and no estate tax in New Jersey.Giving your house to your children might protect it in some cases, but it can bring big risks like potential legal troubles for your children affecting your living situation.In New Jersey, passing on your assets through probate is generally simple and affordable, so selling your house to your kids for $10 to avoid it might not be necessary.Useful LinksConnect with Jason Gabrieli: [email protected] | LinkedInLike what you’ve heard…Learn more about HFM HERESchedule time to speak with us HERECheck out our Financial Wellness Program – HFM Ignite

Jason Gabrieli zeroes in on a topic he often discusses with clients: investing for the younger generation in your family. Jason reviews the options available to you as a parent, grandparent, or guardian to begin fostering a secure financial future for them. Jason reviews several options, including accounts available under a custodian's supervision, individual or joint investment accounts, and, of course, the classic 529 college savings plan. Tune into this episode to also learn: What makes UTMA and UGMA accounts a secure choice for investing in the younger generation's future, and what are the caveats?How does opening an investment account in your or your spouse's name work, and what control does it grant you over the funds designated for your children or grandchildren?What is the 529 college savings plan, and what are the stipulations for the tax reliefs it offers?What we discussed[00:01:20] Exploring UTMA/UGMA accounts for child investments[00:03:02] Maintaining control with child-earmarked personal investment accounts[00:03:36] 529 plans: state-sponsored, tax-deferred college savings[00:08:17] Roth IRAs for kids: great benefits but requires earned income3 Things To Remember UTMA and UGMA accounts allow minors to hold assets with a custodian until a specific age, offering a flexible yet controlled approach to early-age investments. Setting up an investment account individually or jointly with a spouse grants you the liberty to dictate the terms of fund usage, helping to maintain a secure financial future for the younger members of your family.The 529 college savings plan is a government-backed initiative facilitating tax-free growth of savings for educational purposes, albeit with the condition that the funds be used for approved educational expenses.Useful LinksConnect with Jason Gabrieli: [email protected] | LinkedInLike what you’ve heard…Learn more about HFM HERESchedule time to speak with us HERECheck out our Financial Wellness Program – HFM Ignite

HFM is shining the spotlight on the crucial topics of elder law planning and life care planning. CERTIFIED FINANCIAL PLANNER Jason Gabrieli is joined by Brittany Tedesco, Esq. from Bratton Law Estate and Elder Attorneys, a seasoned expert in the field,  guides listeners through the various aspects and timelines associated with these services. The conversation centers around the practical side of end-of-life planning and the resources available to those navigating this process,  with the objective is to ease the pressure on the family and the client, allowing them to focus on their roles without worrying about technical aspects.Tune into this episode to also learn: What is the importance of pre-crisis planning in elder care?How does the role of a Care Coordinator in an elder law firm help in facilitating the process of elderly care?What are the different factors considered when planning for elder care services? What we discussed[00:01:42] Elder law attorney offers comprehensive life care planning[00:05:17] Life care planning involves understanding client's concerns, goals, and financial state to provide personalized care plans[00:09:08] Seek advice for elder care and caregiver burnout[00:10:30] Estate planning firms offering life care planning can provide peace of mind for the future3 Things To Remember Elder law attorneys provide much more than just wills and powers of attorney, they can provide guidance beyond that including what they call life care planning services. Having a care coordinator can relieve the family and the client of a lot of pressure and make sure they can focus on being the child or the parent and not worry about uncomfortable conversations or making big decisions.It's good to think about these things in advance and have a plan for emergencies. Useful LinksConnect with Jason Gabrieli: [email protected] | LinkedInLike what you’ve heard…Learn more about HFM HERESchedule time to speak with us HERECheck out our Financial Wellness Program – HFM Ignite

CERTIFIED FINANCIAL PLANNER and Registered Social Security Analyst Catherine Allen-Carlozo sits with Jack McGee to delve into the world of social security and retirement planning. They emphasize the value of informed decision-making when it comes to social security benefits and retirement age. The discussion centers around exploring various options and strategies to maximize social security earnings. Accurate income figures take the spotlight, dispelling prevalent misconceptions about social security. Tune in as Catherine and Jack shed light on these crucial aspects of financial planning on this insightful episode of Dollar Wise.Tune into this episode to also learn: What factors should be considered when deciding when to start collecting social security?How can understanding the income figures and formulas for social security help in making informed retirement decisions?What strategies can be employed to maximize social security benefits and ensure a comfortable retirement? What we discussed[00:02:15] Social Security analysis provides informed decisions for retirement strategies[00:05:11] Analysis can bring confidence and excitement to retirement decisions[00:09:32] Education empowers smart decisions, debunking myths about social security's future3 Things To Remember Importance of education: The more educated you are about social security, the better decisions you can make regarding retirement planning.Analysis and visualization: Through detailed analysis and visual presentations, you can see the actual numbers and projections, helping you make informed decisions about social security and your retirement income.Debunking fears and misconceptions: Addressing common concerns and myths about social security, such as it running out of money, provides reassurance and confidence in its long-term benefits.Useful LinksConnect with Catherine Allen-Carlozo : LinkedInLike what you’ve heard…Learn more about HFM HERESchedule time to speak with us HERECheck out our Financial Wellness Program – HFM Ignite