I recently conquered a 20-mile hike that stretched over the course of three days. I lugged my 40-pound backpack ten miles into the Colorado Rocky Mountains and set up camp. Exhausted, I spent Day Two enjoying my destination: Conundrum Hot Springs. I spent the day exploring a little, but mostly relaxing my sore muscles in the warm waters of the hot springs, hopeful that the sulphur-rich springs would be the recovery boost I needed to hike ten miles out the next morning.

As I lounged in the bubbling hot springs and soaked up the scenery, two older gentlemen stepped off the trail and politely asked if they could share the springs with me for an hour. The men, both extremely fit senior citizens, explained that they were actually completing the 20-mile trail as a day hike. They had just hiked up and wanted to rest in the springs for an hour before making their descent. Thoroughly impressed and intrigued, I made room and we began to chat about what brought each of us this far into the wilderness.

The men explained that they were best friends, “just out here, living the retirement dream.” As a CERTIFIED FINANCIAL PLANNER™ professional and an outdoor enthusiast myself, I was tickled to meet two people that reached the pinnacle of retirement and were making the absolute most of it! I had to know what their secret was, and they were eager to share their wisdom.

“Think about what you want retirement to look like, long before you retire. Set goals, make a plan, and stick to it. When you finally do retire, move your body every day and never stop learning new things.”

The men, ages 73 and 76, previously worked as a cardiologist and an attorney. They enjoyed camping together as boys and picked up hiking together as young adults. They both agreed that they never wanted to quit seeking adventure, and decided early in their careers that they wanted to continue being active in retirement. As they launched their careers, they began saving as much as reasonably possible. They admitted that sometimes it was difficult to max out retirement savings and live modestly while their colleagues flaunted successful careers by living in luxury, but that today the sacrifice was totally worth it. As professionals in their own fields, they respected the value of a financial professional and leveraged the expertise of a few over the years. They each had financial advisors that built them retirement plans and they stuck to their plans over the decades. The cardiologist added that because he witnessed cognitive decline rob some patients of the opportunity to travel in retirement, he made a commitment that once he retired, he would move his body every day and keep his brain fit by continuing to learn.

Today, the two men travel the United States in their RVs. They plan their travels around educational conferences and symposiums hosted by state and national parks, conservation groups, and even National Geographic. They learn about the nation’s most delicate landscapes and vulnerable wildlife populations and how they can support conservation efforts. After taking in as much knowledge as they can about their destination, they experience it first-hand by hiking to the most magnificent and remote regions their legs can take them. These men weren’t just retired, they were living their life to the fullest. How intentionally they chose to spend their time inspired me.

After an hour of great conversation, I waved farewell as my new friends set off down the mountain together. These men were enjoying a remarkable life, fueled by a lifetime of making unremarkable choices. I soaked up some wisdom from them that falls right line with what I would tell anyone planning for retirement.

If you don’t have a retirement plan yet, start thinking now about how you want to spend your time in retirement. Set personal and financial goals. Have a retirement plan built with confidence by a CFP® professional. Then work towards your goals by sticking to your plan. And, while my expertise is confined to financial planning, I must agree with my new friends. Don’t stop at retirement – move your body every day and keep learning new things.

You don’t have to climb a mountain to get retirement planning advice, but you can take the first step by going to https://www.letsmakeaplan.org/.

Hannah Gohmert, CFP® is the Chief Compliance Officer of KMH Wealth Management, LLC.

Somehow we’ve entered the month of August. For many this means the end of summer vacations, the beginning of school, and the kickoff of fall sports. This rings true to me and my family, and additionally brings the planting of our fall garden. Last summer, I began my garden ‘experiment’ as I’ve come to refer it as. I grew up gardening with my dad and remembered it being a ‘fun and easy’ thing that we did together. I thought this would be a great hobby to start with my kids…and maybe talk them into eating a few extra vegetables if they grew them. To my surprise, I’ve realized just how much raising a garden and raising financially savvy kids are alike.

Our summer garden has had a bumper crop of cucumber…as in taking over and trying to suffocate every other plant. We’ve had to rip out the excess more than once this season to let the other plants grow. Just like pruning back in the garden, I prioritize talking to my kids about pruning the excess in our lives and living within our means. Considering they’re still young, this looks like discussing how different choices can affect their ability to do other things. For example, choosing to regularly eat out or buy a small toy adds up which could result in not getting to participate in a fun activity or camp.

We have had our fair share of visitors to the garden over the past year and a half. The deer and birds that we once loved seeing in our backyard have now become an enemy of our bell pepper and tomato plants. Luckily, we’ve installed a fence to keep the larger animals out as a safeguard. Similar to the layer of protection the fence adds to our plants, we’ve already begun to discuss the importance of saving money. Eventually this will develop into conversations of having an emergency fund saved should they ever lose a job or have an unexpected expense come up in adulthood.

As we approach the changing of seasons, we have already begun discussing the preparations needing to be made to the soil to accommodate a new garden and the reasons why. Just like creating a good foundation for a fruitful garden, creating a good financial base for your child takes hard work and lots of dedication. I began discussing money with our children young. This can be as simple as comparing how similar items cost different amounts at the grocery store or allowing them to make money doing chores to work towards a small purchase. As they get older, we’ll discuss different kinds of investment accounts and how compound interest works.

Soon my little gardeners and I will begin planning exactly what want to plant for the fall. I’ll try my best to explain that while H-E-B may have all produce year round, that doesn’t mean we’ll be able to grow it in South Texas. We’ll discuss what items we’d like to grow and approximately how long until harvesting. Then we’ll wait (im)patiently each day as we watch seeds turn into sprouts, sprouts into plants, then finally something we can actually eat. Any good CERTIFIED FINANCIAL PLANNER™ Professional turned gardening enthusiast knows, patience and planning for your goals is key not only in gardening, but for your finances as well. In a world full of instant gratification, I use the opportunity to teach my kids that just as it takes time for our garden to grow, so does your money. We’ll continue to have conversations that different financial goals require different amounts of hard work and focus. For now, it’s a new Hot Wheels track, but I know that today’s discussions will shape their dedication for saving for things like homes and retirement in the future.

Whether your new found hobby is gardening like mine, or it’s something else, I encourage you to look for opportunities in your day-to-day life to relate to your children about finances. Preparation is key to growing good roots. As always, reach out to a CFP® professional if you need more guidance along the way.

Sara Potts is a CFP® Professional and Lead Advisor with KMH Wealth Management, LLC.

My coworker often says “insurance is the one thing you buy not wanting to use”. How true is that? Think of all the insurance you pay (an extraordinary amount of money) for…auto, home, personal property, health, long-term care, vacation…life. None have claims that I would be happy to file, but all offer insurance coverage I would be happy to have in the event of a casualty.

Each May I go through the process of reviewing my own insurance renewal documents. A task that I don’t entirely enjoy and I am sure my insurance agent even more so. I ask questions. I look at the details. I compare not only the cost, but the coverage from prior years. Once I get through the tedious task with a dozen emails and/or a 45-minute phone call with my agent, I feel empowered with knowledge and am comforted by knowing what exactly my family is covered for and to what extent. Then I file these document away, hoping not to use, until next year’s process.

I work in the industry. Insurance planning and risk management is one of the core components of financial planning. One of the reasons I entered the field of study at Texas A&M was knowing that the topics learned would eventually help me in my own life. Selfish? No, I knew I could make a career out of helping people too. So, let’s get to it…below are 10 insurance tips and tricks:

1. Make it a process to actually review your coverage annually, not just the cost.
2. Find a reputable agent that can independently shop a variety of highly rated insurance carriers.
3. Ask agent (from tip #2) for a list of discounts that you may be eligible for. Also know that some companies offer additional membership benefits and discounts for things like travel, vehicles, services and products.
4. Know your deductible amounts for each of your insurance policies. Keep your emergency fund fluid to cover these deductibles.
5. Review the policy riders (aka “insurance add-ons”). Do these add value to you? If you experience a health-related change such as cancer diagnosis, certain insurance riders may be triggered for your benefit. It pays to know what riders exist on each policy.
6. Be cautious filing a claim. This tip hurts to say, but know that a claim may raise the cost of your renewal in the future. So, filing a claim for a window chip on your comprehensive auto coverage should be used sparingly and consider paying for replacement out of pocket.
7. Inventory documentation. The better documentation or proof you have, the easier a future claim will be. For personal property, I was advised to use a smart phone to periodically record a walkthrough of my home, then save to the cloud or electronically.
8. Not too little, not too much, make sure your coverage is just right. Know the replacement value of your insured items, coverage should align. Calculate an appropriate amount of life insurance coverage for each spouse.
9. Know what’s NOT covered. Understand where coverage ends. Consider other types of endorsements or policies to extend your coverage. Decide on the cost vs. benefit to each.
10. Read and understand the definitions in your policy. Ask questions and gain clarification. A CFP® professional can help. The Texas Department of Insurance also is a great resource for fellow Texans.

Published in the Victoria Advocate

Beth Koonce is a CFP® Professional and Lead Advisor with KMH Wealth Management, LLC. She is licensed by Texas Department of Insurance as a Texas General Lines Agent for life, accident, and health.

Market volatility, debt ceiling default and impending financial doom continue to dominate the headlines of major news outlets as they have for the past year. Most so called “experts” predict at some point in 2023, the United States economy will dip in to a recession. The general definition of a recession is a fall in Gross Domestic Product (“GDP”) in two successive quarters, but there are also other factors that economists look to before officially declaring a recession.

The timing of a recession is difficult to predict so it is best to be prepared for one before it hits. Below are a handful of tips to help you prepare your finances for the next recession, whether that be in 2023 or in the future.

1. Inspect your budget. Personal financial planning does not have to be complex or complicated. One of the easiest methods to ensure long-term financial success is to craft your budget with cash inflows exceeding cash outflows. Realizing positive discretionary cash flow will allow you to increase your savings, pay off debt and invest for the future. If pen and paper or an Excel spreadsheet do not work for you, there are many smart phone apps or online budget tools such as Quicken or Mint that will help you prepare a budget. Analyze your spending for a few months to determine where your money is being spent and if any changes are necessary.
2. Beef up your emergency savings. Your budget is crafted, your spending has been adjusted and you are now cash flow positive. It is time to beef up your emergency savings. The general rule of thumb is to maintain 3 to 6 months’ worth of living expenses in savings. Like most rules of thumb, this really serves as a good starting point. The appropriate balance for your savings account will depend on factors that are unique to you such as your budget, other streams of income and number of dependents. Your budget and financial plan serve as two great resources that will help determine the right amount that you should keep in savings.
3. Pay off high interest debt. By paying off your debt, you will be increasing the amount of positive cash flow for your monthly budget. I am reminded of a young couple who became clients of our firm about 5 years ago. They were both young pharmacists who had just graduated from college and were looking to get rid of the large debt burden they had, mostly in the form of student loan debt. One of our advisors worked with them to prepare a budget and identified that they had strong, positive cash flow. She worked with them to increase their emergency fund and then to aggressively pay down their debt. The end result was a plan for the clients to pay off over $100,000 of student loan debt in just under two years. Talk about huge lifetime savings by not paying decades worth of interest!

This is just one of many stories I could share about the impacts of the three simple tips shared above. These are the same initial steps our firm takes with almost all new clients who hire us for financial planning services. While we do not know when the next recession or economic downturn will hit, it is never too late to work to prepare your finances to weather the next storm.

Published in the Victoria Advocate

Kyle W. Noack CPA/CFP® is Chief Executive Officer of Keller & Associates CPAs, PLLC and KMH Wealth Management, LLC.

The annual NFL draft recently took place. As a Houston Texans fan, it has been a bleak few years of fandom. I closely monitored the draft in hopes the Texans would acquire some much needed support toward building the foundation for a winning team. If you have never watched the NFL draft, it is quite the spectacle. Teams are feverishly negotiating trades of their designated picks, up or down, to better position their chance to win the elusive Super Bowl. Months of analysis go into the decisions of what positions the team should draft based on weaknesses within the team. Just like in football, it takes all the right people to put together a winning team for your financial success. This same due diligence should be used in drafting your team of professionals to win your own financial Super Bowl. The three key professionals you should have on your financial planning team are a Certified Public Accountant (CPA), a CERTIFIED FINANCIAL PLANNER™ and an attorney.

Accountants and tax preparers can be found anywhere you look. Consider locating a professional who has earned their Certified Public Accountant (CPA) designation to be on your team. For many people, this teammate should be providing more than just tax preparation. Make sure this draft pick will provide you with guidance and recommendations on your taxes. They should also be working with the rest of your team to help ensure that your financial plan is successful. Find someone who is annually reviewing items such as retirement contribution options and ensuring your financial plan is carried out most tax efficiently.

Similarly, if you perform an internet search for financial planner, the volume of results are overwhelming. Narrow your searches by finding a CERTIFIED FINANCIAL PLANNER™ to be on your lineup. This professional has a fiduciary responsibility and is required to act in the best interest of their clients. This teammate should not only keep up with your investments, but also prepare a plan for your financial goals and estate planning. They are an integral part of the team.

Lastly, make sure to have an attorney on the roster. Find an attorney who practices estate planning and administration. These professionals have a specialized focus on the nuances within the world of financial planning. Have the attorney draft and/or regularly review your already existing will and Power of Attorney documents. This teammate should consult with both your CPA and CFP® professionals to make sure current legislation and estate tax considerations are taken into consideration.

Just as the teams do in the NFL draft year over year, review your team to make sure you have strong teammates in all three positions. If any of the positions on your financial planning team are currently vacant, consider drafting the positions as soon as possible to better your chances of financial success. Last, but certainly not least, GO TEXANS!

Published in the Victoria Advocate

Christopher Laughhunn CPA/CFP® is the Tax & Accounting Principal for Keller & Associates CPAs, PLLC and an Associate Advisor for KMH Wealth Management, LLC.