Love & Money

Managing Finances as a Couple

Managing finances as a couple can be one of the most rewarding yet challenging aspects of a relationship. Money touches nearly every facet of life, from daily expenses to long-term goals, and navigating it together requires trust, communication, and shared vision.

Here are some key strategies to help couples harmonize their financial lives:

1. Open and Honest Communication
The foundation of financial harmony is open dialogue. Couples should discuss their financial histories, including debts, savings, spending habits, and attitudes toward money. Transparency helps build trust and allows both partners to understand each other's financial mindsets.

Tips for success:

• Schedule regular "money talks" to discuss finances.  Make it fun and not stressful.

• Approach conversations with empathy, avoiding blame or judgment.

• Share financial goals and dreams to align your visions for the future.

• Seek the help of a fiduciary financial planner.

2. Set Joint Financial Goals
Identifying common goals can give your financial planning purpose and direction. Whether saving for a home, paying off student loans, planning for college costs, when to retire and where, or planning a dream vacation, working together toward a shared goal builds commitment.

Steps to take:

• Review your current monthly spending and savings plan.

• List short-term, medium-term, and long-term goals.

• Assign priorities to each goal.

• Break down each goal into actionable steps with timelines.

3. Decide on a Financial System
Couples need to determine how to manage their money practically. This might involve merging finances, keeping them separate, or adopting a hybrid approach.

Options include:

• Joint accounts: Pooling all money into a single account for shared expenses.

• Separate accounts: Keeping finances independent but sharing responsibility for joint bills.

• Hybrid approach: Combining a joint account for shared expenses while maintaining individual accounts for personal spending.

Choose a system that suits your relationship dynamic and financial needs.  It really does come down to personal preference for each couple.

4. Create a Budget Together
A joint budget is essential for tracking income, expenses, and savings. Working on it together ensures both partners are accountable and aware of their financial situation.

Budgeting tips:

• Use tools like spreadsheets or budgeting apps to simplify the process.

• Include categories for joint expenses (e.g., rent, groceries) and personal spending.

• Review your budget regularly and adjust as needed.

• Don’t forget to budget for fun together!

5. Address Debt as a Team
Debt can be a source of stress in any relationship, but tackling it together can strengthen your bond. Discuss any existing debts and create a repayment plan that works for both partners.

Key considerations:

• Be honest about all debts, including credit cards, student loans, or personal loans.

• Make sure you understand the debt terms, like length and interest rate.

• Decide whether to tackle debts together or separately.

• Explore strategies like the snowball or avalanche method for repayment.

6. Establish an Emergency Fund
Unexpected expenses can strain finances and relationships. Building an emergency fund provides a safety net for life's uncertainties, giving you peace of mind.

How to get started:

• Aim to save three to six months' worth of living expenses.

• Contribute regularly, even if in small amounts, to grow the fund.

• Have a goal end mind of what to do with the extra funds after your emergency fund is met.

7. Plan for the Future
Long-term planning, including retirement savings, investments, and estate planning, is crucial for financial security. Discuss your aspirations for the future and create a roadmap to achieve them.

Steps to consider:

• Open retirement accounts and contribute regularly.

• Consider life insurance and wills for protection.

• Meet with a financial advisor for professional guidance.

8. Respect Individual Differences
Partners may have different spending habits, financial priorities, or risk tolerances. Respecting these differences and finding compromises is key to a healthy financial relationship.

Practical tips:

• Allow each partner some personal spending money within the budget.

• Focus on shared goals rather than differences.

• Practice active listening to understand your partner's perspective.

• Don’t be afraid to speak up respectfully.

9. Check in Regularly
Life changes, and so do financial circumstances. Regular check-ins help couples stay on the same page and adapt their plans as needed.

When to check in:

• Annually to review overall progress and goals.

• Monthly or quarterly for budgeting and expense tracking.

• During major life events, such as job changes or starting a family.

• Don’t forget to make it fun! 

Love and money are deeply interconnected, and managing finances as a couple requires patience, teamwork, and a shared commitment to growth. By fostering open communication, setting joint goals, and respecting each other's differences, couples can build a strong financial foundation that supports their relationship for years to come.

If you are interested in finding about more about how you and your partner feel/think about finances, contact a Gilbert & Cook advisor to ask them about our behavioral finance tools.

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Authored By: Jerit Tripp, CFP®, CRPS®, CWS®, BFA, CPFA

All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material has been gathered from sources believed to be reliable, however Adviser cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Gilbert & Cook does not provide tax or legal or accounting advice, and nothing contained in these materials should be taken as such. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. As always please remember investing involves risk and possible loss of principal capital and past performance does not guarantee future returns; please seek advice from a licensed professional. Gilbert & Cook is a Registered Investment Adviser. SEC Registration does not constitute an endorsement of Gilbert & Cook by the SEC nor does it indicate that Gilbert & Cook has attained a particular level of skill or ability. Advisory services are only offered to clients or prospective clients where Adviser and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Adviser unless a client service agreement is in place.

Getting Ready for Tax Time: Key Considerations For Both Retirees & Those Who Are Still Working

Tax season is in full-swing, and whether you are retired or still in the workforce, it’s important to be prepared. Understanding how your income, deductions, and credits affect your tax return can help ensure that you are maximizing your benefits and minimizing your tax liabilities. Whether you’re navigating retirement income, required distributions, or job-related expenses, taking time to review the details of your tax return is crucial. The following considerations will help guide you in reviewing your 2024 tax return.

When reviewing your 2024 tax return as a retiree, there are several key considerations to keep in mind:

Social Security Benefits:
Determine how much of your Social Security income is taxable. If you have other sources of income, a portion of your Social Security may be subject to taxes. The taxable portion can depend on your combined income (total income plus half of your Social Security benefits).

Required Minimum Distributions (RMDs):
If you are 73 or older (as of 2024), you are required to take RMDs from your retirement accounts (such as traditional IRAs and 401(k)s). Ensure that you’ve taken the appropriate distribution for the year and report it correctly.

Pension and Retirement Income:
Pensions, annuities, and other retirement income sources are generally at least partially taxable. Review how these are reported on your tax return to ensure that your income is properly accounted for.  Specifically, make certain your tax preparer is aware of any Qualified Charitable Distributions that you made from your IRA during the tax year 2024!

Tax-Advantaged Accounts:
If you still have tax-advantaged accounts such as IRAs or Roth IRAs, review any contributions or conversions that may have been made during the year. Roth IRAs, for example, are not taxable upon withdrawal, but conversions from traditional IRAs to Roth IRAs are taxable.

Deductions and Credits:
You may be eligible for various deductions or credits specific to retirees, including the standard deduction for those over 65 (which is higher than the basic standard deduction), medical expense deductions (if they exceed a certain percentage of your income), or credits for certain types of care or living assistance.

State Taxes:
Various states tax Social Security income, pension income, or retirement distributions differently, so make sure to review how your state taxes your income. If you’ve moved to a new state, consider how your new state's tax laws will affect you.

Tax Rate Changes:
Changes to tax brackets or rates may impact your overall tax liability. Stay up-to-date on any tax law changes that could affect your situation.

Health Savings Accounts (HSAs) and Medical Deductions:
If you qualify for an HSA or have significant medical expenses, ensure that you’ve maximized your contributions or are deducting eligible medical costs that exceed the IRS threshold.

Estate and Gift Tax Planning:
Consider any potential estate or gift tax implications if you made large gifts or have substantial assets in retirement accounts or other investments.

Tax Withholding and Estimated Payments:
Make sure your withholding or estimated payments are on track to avoid penalties. Many retirees rely on withholding from retirement accounts or make quarterly estimated tax payments.

When reviewing your 2024 tax return as someone who is working, here are some important considerations:

Income Reporting:
Make sure all sources of income are correctly reported, including wages, salary, self-employment income, and any additional side income. Check that your W-2s (from employers) or 1099s (for contractors, freelancers, etc.) are accurate.

Tax Withholding:
Review whether your tax withholding is on track. If you received a large refund or owe a significant amount, you might want to adjust your withholding for the next year. Use the IRS’s withholding calculator to estimate if any adjustments are needed.

Deductions and Credits:
Review any deductions or credits you are eligible for. Common examples include the standard deduction (or itemizing deductions like mortgage interest, property taxes, charitable contributions, or medical expenses), child tax credits, or education-related credits (e.g., Lifetime Learning Credit or American Opportunity Credit).

Retirement Contributions:
Check if you contributed to any retirement accounts (e.g., 401(k), IRA) and make sure those contributions were reported correctly. Contributions to traditional IRAs or 401(k)s can reduce your taxable income. If you contributed to a Roth account, keep in mind those amounts are not tax-deductible but grow tax-free.

Health Savings Accounts (HSAs):
If you have an HSA, verify that your contributions and distributions are accurate. Contributions to HSAs are tax-deductible, and withdrawals used for qualifying medical expenses are tax-free.

State Taxes:
Some states have unique tax laws that may affect your filing, especially around deductions, credits, or the taxation of specific income types (like state-specific credits for working individuals). Review your state’s tax return closely to ensure compliance and maximize potential savings.

Job-Related Expenses:
If you’re eligible for job-related deductions (though these have become less common under recent tax law), review whether you can claim any unreimbursed work expenses, particularly if you’re self-employed or have a side business.

Self-Employment Considerations:
If you’re self-employed, you need to review your income, expenses, and deductions related to your business. Be sure to track things like business mileage, home office deductions, and other business-related costs that could reduce your taxable income.

Taxable Benefits:
If you receive benefits from your employer, such as health insurance, stock options, or bonuses, ensure those are accounted for correctly in your tax return. Some benefits are taxable, while others may not be.

Tax Rate Changes:
Be aware of any changes to the tax brackets or tax rates in the current year. This can affect how much you owe or the amount of your refund.

Student Loan Interest:
If you have student loans, check whether you qualify to deduct the interest paid on your loans. There are income limits for this deduction, so review whether you meet the eligibility criteria.

Tax Planning for Future Years:
It might be a good time to review your overall tax strategy with a tax advisor to plan for future years. This could involve adjusting your withholding, contributions to retirement accounts, or utilizing tax-saving strategies for upcoming years.

Reviewing these considerations carefully can help ensure that you're taking advantage of available benefits and avoiding potential pitfalls. If you’re unsure, it may be helpful to consult with your CPA and your Gilbert & Cook Advisor, both of whom can offer personalized guidance and help navigate the specifics of your financial situation.

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Authored By: Al Ryerson, CPA, ASA, CDFA®

All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material has been gathered from sources believed to be reliable, however Adviser cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Gilbert & Cook does not provide tax or legal or accounting advice, and nothing contained in these materials should be taken as such. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. As always please remember investing involves risk and possible loss of principal capital and past performance does not guarantee future returns; please seek advice from a licensed professional. Gilbert & Cook is a Registered Investment Adviser. SEC Registration does not constitute an endorsement of Gilbert & Cook by the SEC nor does it indicate that Gilbert & Cook has attained a particular level of skill or ability. Advisory services are only offered to clients or prospective clients where Adviser and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Adviser unless a client service agreement is in place.

An Economic Outlook 2025

Insights From The Past & The Path Ahead

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As we take stock of the past three years, it is crucial to recognize the distinct challenges that defined the year 2022, setting it apart from the subsequent years of recovery. The S&P 500 experienced a significant decline, finishing 2022 down approximately 18%. Inflation emerged as a major issue, proving to be persistent rather than temporary, which affected consumer purchasing power and confidence. In response, central banks implemented measures to combat rising prices by increasing interest rates, contributing to a decline in consumer sentiment amidst financial uncertainties.

In contrast, the economic landscape in 2023 and 2024 presented a dramatic turnaround, with these years marking some of the highest returns in recent history. The S&P 500 rebounded sharply in 2023, posting a return of about 26%, followed by continued strong performance in 2024 with a return of 25%. Financial markets reached all-time highs during these years, reflecting robust performance across various sectors. However, despite this growth, inflation continued to remain elevated, presenting ongoing challenges for policymakers. Rate cuts, though anticipated, did not materialize as quickly as hoped, leading businesses and consumers to recalibrate their strategies in response to the evolving economic environment.

Looking ahead for 2025, the outlook appears promising, with expectations of sustained economic growth. Central banks have indicated a cautious stance regarding rate cuts, suggesting that higher interest rates may persist for longer periods. This strategy aims to balance inflation targets while fostering economic expansion. Additionally, new policies designed to enhance infrastructure and promote innovation are expected to further support this upward trajectory.

In light of these developments, it is advisable for investors to consider a diversified portfolio as a prudent measure. By spreading investments across various asset classes, sectors, and geographies, individuals and institutions can better mitigate the risks associated with fluctuating economic conditions. As the path to 2025 unfolds, maintaining a diversified investment strategy will be critical in navigating potential uncertainties.

The journey from the challenges encountered in 2022 to the recovery experienced in 2023 and 2024 highlights the resilience of the economy. While obstacles such as inflation and interest rate pressures continue to loom, the outlook for 2025 remains cautiously optimistic. With sustained economic growth on the horizon and supportive policy developments, stakeholders can adopt a proactive stance toward investment. As the landscape evolves, the emphasis on diversification will be essential, enabling both individuals and institutions to effectively navigate uncertainties and seize emerging opportunities.

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Authored By: Kate Gudgel, CFA & Thomas McCaffrey, CFP®, CFA

All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material has been gathered from sources believed to be reliable, however Adviser cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Gilbert & Cook does not provide tax or legal or accounting advice, and nothing contained in these materials should be taken as such. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. As always please remember investing involves risk and possible loss of principal capital and past performance does not guarantee future returns; please seek advice from a licensed professional. Gilbert & Cook is a Registered Investment Adviser. SEC Registration does not constitute an endorsement of Gilbert & Cook by the SEC nor does it indicate that Gilbert & Cook has attained a particular level of skill or ability. Advisory services are only offered to clients or prospective clients where Adviser and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Adviser unless a client service agreement is in place.

January is Financial Wellness Month

Your 2025 Financial Wellness Check-Up

Now that we’re already a couple of weeks into 2025, it’s a great time to take stock of your finances and ensure you’re on track to live your life of abundance. With a little planning and a few strategic adjustments, you can help position yourself to stay on track for the duration of the year.

While financial planning may not carry the same excitement as New Year’s resolutions focused on health and wellness, your financial health is deeply tied to your overall wellbeing – and January happens to be Financial Wellness Month. The good news about new year resolutions? You don’t need to make major changes all at once. By taking simple, manageable steps, you can confidently maintain or improve your financial health throughout 2025.

1. Evaluate Your Spending
Start the year by reviewing your spending—this simple act can bring clarity and focus to your finances. Assess your monthly income, fixed and variable expenses, and consider how inflation may have impacted your spending in recent months. This is the perfect time to realign your budget with your financial priorities for 2025.

2. Tackle Your Debt
Managing debt effectively is an essential part of financial health. If you’ve been diligently managing your debt, this could be a great time to take it a step further. Consider applying any extra income from a raise or bonus to high-interest debt to reduce your balances faster. Another strategy to explore is debt consolidation, which can simplify your finances by combining multiple loans into one with a potentially lower interest rate. A streamlined debt management plan can also reduce financial stress. Your Gilbert & Cook Advisor can guide you on the best strategies for your specific situation.

3. Revisit Your Asset Allocation
Asset allocation is key to ensuring your portfolio aligns with your evolving goals. As life stages shift, so should your investment strategy. If you're approaching retirement, you may want to adjust your portfolio to a more conservative mix. Alternatively, if recent market events have you feeling uncertain about your current allocation, it’s a great idea to visit with your advisor to discuss if any changes may be needed. A well-diversified portfolio helps you weather market fluctuations and stay focused on your long-term goals, so it’s important to revisit your allocation periodically.

4. Check Your Emergency Fund
A well-stocked emergency fund is your financial safety net. It's always a good idea to check whether your current fund is sufficient, especially given the unpredictable nature of the economy. A general rule is to have three to six months’ worth of living expenses set aside in a safe, liquid account. However, as life evolves, so too should your savings goals. Ensure that your emergency fund is still in line with your current financial situation and lifestyle. Conversely, It’s may be a good idea to review to make sure you’re not keeping too much in your emergency fund and if so, you could consider redistributing some of those funds towards your investments, paying down debt, or your non-financial goals.

5. Make Sure You’re on Track with Your Goals
It’s important to regularly assess whether you’re making progress toward your financial goals, especially long-term objectives like retirement. If recent market fluctuations have affected your progress, don’t worry—work with your Gilbert & Cook Advisor to recalibrate and get back on track. If you're meeting your goals, consider setting new ones. For example, if you were able to increase your retirement contributions last year, see if you can boost them again in 2025.

6. Update Your Estate and Insurance Plans
As you review your financial picture for 2025, don't forget to review your estate and insurance plans. If you haven’t already, creating or updating your estate plan ensures your assets will be distributed according to your wishes. This is also a great time to review your insurance policies (life, disability, long term care). Whether it's through your employer or an individual policy, make sure it reflects your current needs. Major life changes like marriage, the birth of a child, or changes in your income or debt can impact your insurance requirements. An annual review ensures your policy provides the right level of protection for you and your loved ones.

While it's easy to lose track of resolutions as the year progresses, staying focused on your financial health will help you navigate any challenges that may arise. By making intentional adjustments and working with your Advisor, you can stay on course to help reach your goals and build a secure financial future.

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All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material has been gathered from sources believed to be reliable, however Adviser cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Gilbert & Cook does not provide tax or legal or accounting advice, and nothing contained in these materials should be taken as such. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. As always please remember investing involves risk and possible loss of principal capital and past performance does not guarantee future returns; please seek advice from a licensed professional. Gilbert & Cook is a Registered Investment Adviser. SEC Registration does not constitute an endorsement of Gilbert & Cook by the SEC nor does it indicate that Gilbert & Cook has attained a particular level of skill or ability. Advisory services are only offered to clients or prospective clients where Adviser and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Adviser unless a client service agreement is in place.

Advisor Spotlight - Jarret Sheets

Meet Jarret Sheets, CFP®, CPFA(TM)

Jarret’s passion for being a financial advisor stems from his deep desire to help others find clarity and purpose when it comes to their financial futures. This early experience ignited a journey that now sees him guiding individuals and families toward discovering what abundance means to them. His mission is to be a trusted advisor who supports clients every step of the way, helping them navigate retirement and other significant life transitions with confidence.

“One finance class in high school sparked my interest in financial planning. I learned that financial plans are not a one-size-fits-all solution, and I wanted to be the person to help others navigate through this. Everyone’s financial situation is unique, and everyone should be made to feel like they are being heard and understood by their Advisor.”

At the heart of Jarret’s approach is a commitment to listen generously—to both his clients and his team. He understands that each client’s needs and goals are distinct, requiring active listening and thoughtful collaboration. By engaging deeply with clients, Jarret is able to relay critical information to his team, ensuring that everyone is aligned in crafting personalized and sophisticated strategies. This collaborative approach allows him to provide solutions tailored to each client’s vision of abundance, whether that means retiring sooner than planned, traveling the world, supporting local causes, or any other goal that defines abundance for them. Jarret is driven by the desire to bring clarity and peace of mind during complex decisions. His approach is grounded in the values of Gilbert & Cook, where building genuine relationships and working together as a team are just as important as offering financial guidance.

“I enjoy helping clients pursue their life of abundance while making sure their financial decisions are in harmony with their values and aspirations.”

Jarret embodies the core values of Gilbert & Cook, where a commitment to growth, understanding, and client-centric care comes first. By helping clients discover and achieve their version of abundance, he offers more than just financial advice; he provides a partnership that lasts a lifetime.

Optimize Your Year-End Giving

Optimize Your Year-End Giving:
A Strategic Approach to Philanthropy

As the year draws to a close, many individuals look for ways to give back to their communities and causes that matter most to them. Year-end giving is an effective way to make a meaningful impact, while also optimizing your charitable contributions for tax benefits. By strategically planning your philanthropy, you can maximize the benefits for both the organizations you support and your financial well-being.

Start by Evaluating Your Giving Goals

Before making any donations, take a step back and evaluate your philanthropic goals. Do you have specific organizations in mind? Are there causes or issues that resonate with you more this year than in the past? Consider the type of impact you want to make and the long-term relationships you’d like to build with charities. This evaluation will help guide your giving and ensure that it aligns with both your values and financial plans.

Understand the Tax Benefits of Year-End Giving

One of the key benefits of giving at the end of the year is the potential for tax deductions. Charitable contributions are tax-deductible if you itemize your deductions, which can reduce your taxable income for the year. You can also give appreciated assets like stocks or real estate to avoid paying capital gains taxes while supporting causes you care about. Understanding the specific tax advantages of different donation types is essential to optimizing your gift.

Work with Your Financial Advisor

A financial advisor can play a crucial role in helping you navigate your year-end giving strategy. They can provide insight into the most tax-efficient giving methods, such as donor-advised funds (DAFs) or charitable trusts, which allow you to give in a way that benefits you both today and in the future. Advisors also have the expertise to help you balance charitable giving with other year-end financial priorities, like tax planning and retirement contributions.

Explore Donor-Advised Funds (DAFs)

Donor-Advised Funds (DAFs) are becoming an increasingly popular way to give. These accounts allow you to contribute to a charitable fund, take an immediate tax deduction, and then direct donations to your chosen causes over time. A DAF gives you the flexibility to donate to multiple charities while spreading out the timing of your actual contributions. Your financial advisor can help set up and manage a DAF to ensure it fits into your overall financial strategy.

Timing is Key for Maximizing Impact

To make the most of your year-end giving, timing is crucial. Make sure you’ve completed your charitable donations by December 31st to count them toward the current year’s tax deductions. Additionally, if you're looking to support a charity with a significant year-end fundraising campaign, your contribution could make a substantial difference during this critical time. Your advisor can help track deadlines and provide reminders to ensure you're meeting your philanthropic and tax goals.

Review Your Giving Plan Regularly

Year-end giving is just one piece of your long-term financial and philanthropic strategy. After the year ends, take time to review how your charitable contributions aligned with your financial goals and adjust your plan for the following year. Working with your financial advisor throughout the year will help ensure that your giving remains consistent with your values, financial situation, and the causes you wish to support.

By carefully planning your year-end giving with the help of your financial advisor, you can create a more impactful and tax-efficient strategy, all while supporting the causes you care about most.

By: Jerit Tripp, CFP®, CRPS®, CWS®, BFA, CPFA

Announcing Zach Ripka as COO

Gilbert & Cook Promote Zach Ripka to
Chief Operating Officer

November 8, 2024 – West Des Moines, Iowa – Gilbert & Cook is pleased to announce Zach Ripka’s promotion to Chief Operating Officer.

With over a decade in finance, Zach has become known for his commitment to helping clients achieve their financial goals. Formerly the firm’s Planning & Tax Strategist, he brings expertise in both accounting and financial planning, enabling clients to benefit from well-structured strategies.

Throughout his tenure, Zach has embodied Gilbert & Cook’s values, building strong relationships with clients and colleagues. “At Gilbert & Cook, we emphasize a unique experience centered on a team approach.” Zach shared. Known for his collaborative style, Zach has strengthened both client relationships and the firm’s culture of trust and collective success.

As COO, Zach will continue to champion teamwork and shared knowledge, expanding his collaborative approach across the organization. His previous role involved partnering with the Planning Department and Advisors to deliver tailored financial solutions; now, he’ll align leadership to advance the firm’s strategic vision and growth.

Zach is a Certified Public Accountant (CPA) and Certified Financial Planner™ practitioner, with further credentials as a Certified Exit Planning Advisor (CEPA) and Certified Divorce Financial Analyst (CDFA). These reflect his dedication to continuous learning, a core value at Gilbert & Cook. “I sought ways to better serve our clients by deepening my knowledge,” he explained. The CEPA supports succession planning for business owners, while the CDFA aids clients navigating divorce for long-term stability.

Zach’s promotion underscores his commitment to helping clients lead a life of abundance. The team looks forward to his leadership as he fosters a culture of growth and teamwork at Gilbert & Cook.

October 11, 2024 Medicare Event Recap

Understanding Medicare in 2025:
Key Changes and What You Need to Know

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As the Annual Enrollment Period (AEP) for Medicare approaches, it’s crucial to be informed about the latest changes to make the best healthcare decisions. This year’s Medicare Educational Event provided insights into Medicare basics, the annual enrollment timeline, and essential updates for 2025. Here’s what you need to know.

Medicare Basics: An Overview

Medicare, the federal health insurance program primarily for those 65 and older, comprises different parts with distinct benefits:

1. Medicare Part A – Covers hospital services.

2. Medicare Part B – Covers medical services like doctor visits.

3. Medicare Part D – Assists with prescription drug costs, offered through private insurers.

For those new to Medicare, eligibility typically starts three months before turning 65 and extends three months after. Applying is simple through the Social Security website or at a local office.

Integrating Medicare with Your Financial Plan

A strong financial plan does more than help to secure your future; it also complements your Medicare choices. By planning for healthcare expenses early, you can optimize your Medicare options and reduce out-of-pocket costs. A well-structured financial strategy provides the resources to comfortably cover premiums, deductibles, and unexpected medical expenses, while helping you take full advantage of Medicare benefits.

Additionally, aligning your financial goals with healthcare needs ensures that even as costs shift over time, you’re prepared with an abundance-focused approach to your retirement and healthcare. Having open communication with your financial advisor about any medical expenses is helpful to your financial plan.

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Options for Medicare Coverage

Medicare beneficiaries can either stick with Original Medicare or select a Medicare Advantage (Part C) plan, often bundled with additional benefits. The two primary routes for coverage are:

Original Medicare: This traditional setup allows adding a Part D drug plan and Medigap coverage to help with out-of-pocket costs.

Medicare Advantage (Part C): Combining Part A, Part B, and usually Part D, these plans often provide additional benefits like vision, dental, and OTC allowances.

Medicare Advantage plans vary based on location and can feature different network structures, such as HMO or PPO.

What’s New for 2025?

This year brings some major changes to Medicare’s prescription drug coverage:

1. Deductible Phase: Beneficiaries cover 100% of their drug costs until meeting a $590 deductible.

2. Initial Coverage Phase: After the deductible, beneficiaries pay 25% coinsurance on all covered prescriptions, up to a new out-of-pocket limit of $2,000.

3. Catastrophic Coverage: Beyond this limit, insurers and manufacturers cover the remaining costs.

These changes reduce the out-of-pocket maximum for drug costs, down significantly from $8,000 in previous years, meaning substantial savings for many Medicare recipients.

Preparing for the Annual Enrollment Period (AEP)

The AEP is an opportunity to review current Medicare Advantage and Prescription Drug Plans and switch if necessary. Here’s how to prepare:

1. Review the Annual Notice of Change (ANOC) from your current plan to understand specific updates in coverage or costs.

2. Compile Your Medication List, including doses and frequencies, to ensure your plan covers them effectively.

3. Set Up a Medicare.gov Account if you don’t have one, as it’s a helpful resource for managing benefits.

4. Monitor Formulary Updates to check if your medications are covered.

Key Takeaways for 2025

With the reduction in out-of-pocket thresholds, insurance companies are adjusting premiums and deductibles. Additionally, some plans and carriers are consolidating, which might qualify certain beneficiaries for a Special Enrollment Period, allowing plan changes outside of AEP.

Navigating Medicare’s changes can be complex, but with proper planning, you can find coverage suited to your needs. Staying informed about your options is essential, and reaching out to both your Medicare professional and your financial advisor can provide clarity. Working with your advisor on a tailored financial plan can help you be prepared for the costs and changes that may come, supporting your goals for retirement. For any questions or personalized guidance about Medicare, reach out to  Nichole Jordan from Capitol Benefits Group at (515) 514-1204 or Nichole@capitol-benefits.com. For any questions about your financial plan, please reach out to your advisor.

Strategist Spotlight - Zach Ripka

Meet Zach Ripka, CPA, CEPA, CFP®, CDFA®

With 10 years of experience in the finance sector, Zach combines his background in accounting with his passion for financial planning as Gilbert & Cook’s Planning & Tax Strategist. His dedication to helping clients achieve financial success stems from his desire to make a lasting, positive impact on their lives and futures.

"At Gilbert & Cook, we often talk about offering a unique experience, and it’s true. What sets us apart is our team approach. Clients don’t just work with one Advisor – they have access to an entire ensemble of professionals. You get the full support of our team, which is something unique for a financial firm.”

Zach is a part of the Planning Department at Gilbert & Cook, where they take a collaborative approach when designing a client’s financial plan. “Our department works well together because we each have different backgrounds in finance and unique focus areas. We continuously collaborate as a team to create comprehensive financial plans.”  In addition to working closely with his team, Zach partners closely with Advisors to ensure clients' goals are met. “We are always working together to make sure we understand what the client is looking for in a financial plan, as well as their short- and long-term goals.” As a Certified Public Accountant (CPA) and a Certified Financial Planner TM practitioner, Zach understands how tax and financial planning can be pivotal to an individual’s financial plan.  “Possessing the knowledge surrounding tax laws and financial planning opportunities is highly beneficial when putting together a comprehensive financial plan. It helps clients optimize their plan for long-term success.”

Quest to Grow and Improve is one of our core values, and Zach has fully embraced it. During his time at Gilbert & Cook, he has earned both the Certified Exit Planning Advisor (CEPA) designation and the Certified Divorce Financial Analyst (CDFA) certification. "I wanted to find ways to better serve our clients, so I focused on areas where I could deepen my knowledge. Working with many business owners, I realized I could offer more value by earning my CEPA designation, as it’s essential for them to understand how to plan for the sale or succession of their business. When it came to divorce planning, I saw a need to support clients even more, which led me to pursue the CDFA certification. It allows me to help clients and their attorneys understand how today’s financial decisions can impact their future stability."

Building genuine relationships with clients reflects Zach’s commitment to both personal growth and serving others. As one of our core values, Genuine Relationships is at the heart of who we are, and Zach fully embodies this in his approach. For him, learning about a client’s needs and goals goes beyond just designing a financial plan. As Zach puts it, “It’s about getting to know the client and really hearing them. You are building a real relationship with them and connecting on a personal level.” By doing so, he’s able to offer guidance that is not only strategic but deeply meaningful, especially when helping clients navigate complex tax challenges or business succession.

In all that he does, Zach remains dedicated to fostering growth, both personally and financially, for those he works with. His passion for helping others live a life of abundance drives his approach, and his genuine care for his clients creates lasting relationships.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark and the CERTIFIED FINANCIAL PLANNER™ certification mark logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

Advisor Spotlight - Todd Henningsen

Meet Todd Henningsen, CFA, CFP®

With 15 years of experience in the investment and financial industry, Todd's journey began right out of college as a research analyst. Over time, he transitioned into advising individuals and families.

 "My fascination with finance sparked in my first college course, where I learned about the power of compound interest. This realization ignited my passion for helping others achieve their financial goals through strategic investing and advising." - Todd

Todd takes a holistic approach when meeting with clients and “At Gilbert & Cook, our process is centered on helping clients live their personal life of abundance. During our initial meeting, myself and other team members assess the client’s current financial situation together. We have the client identify their life and legacy goals, and create a tailored financial plan with recommendations to achieve these objectives.”

Fostering genuine relationships is one of our core values, and is fundamental to what Gilbert & Cook does. Todd believes that the building blocks to a good working relationship is getting to know one-another and keeping the channels of communication open. “Building and maintaining strong relationships with my clients is at the core of my job. The most rewarding aspect of what I do is witnessing clients’ confidence grow. Many come to us with a level of uncertainty surrounding their financial future. My goal is always to hear what they need to live their life of abundance and then work alongside each other to create that reality.”

With rewards always come challenges. Markets fluctuate and there is never a guarantee when investing. “ Even seasoned investors can experience anxiety during stressful times. However, these periods can also present unique opportunities for strategic investing and planning. My role is to educate clients during market fluctuations and then leverage these opportunities for the long-term benefit of each client.”

Todd is an advisor because he finds immense joy in helping others achieve their live a life of abundance. He values building genuine relationships with his clients which allows him to witness their personal and financial growth.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark and the CERTIFIED FINANCIAL PLANNER™ certification mark logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

Event Highlights: Navigating the 2024 Economic Landscape

On July 10th, Gilbert & Cook hosted an insightful evening at The Monroe, to delve into the Market Update & 2024 Economic Outlook; with a special emphasis on the influence of this election year's political climate on the economy. Our distinguished panel included Dave Price, Political Expert and Award-Winning Journalist; Kate Gudgel, CFA and Senior Investment Strategist at Gilbert & Cook; and Todd Henningsen, CFA, CFP®, Financial Advisor at Gilbert & Cook.

Political Insights with Dave Price

Dave Price began the discussion with an in-depth analysis of the current political landscape; particularly focusing on the implications if President Biden were to step aside. He elaborated on the complexities of this scenario, noting, "If Biden steps aside, the simplest way to handle the financial aspect is turning to Kamala Harris, as ‘both names are on the check’. However, since the duo has already raised $100 Million from supporters; if they opt for someone else, it could get quite complicated politically and financially."

Dave also provided a detailed update on the polls, emphasizing the growing lead of Trump in battleground states. He highlighted the critical battleground states, including Wisconsin, Arizona, Georgia, Michigan, Pennsylvania, North Carolina, and Nevada, which will be pivotal in the upcoming election.

"Trump is consistently leading in head-to-head matchups, which has many Democrats nervous. However, we're sitting here in July and talking about a November election, so a lot could happen." he explained.

UPDATE: Since the event took place, President Biden has declined his nomination for the 2024 Election.

Market Analysis by Kate Gudgel, CFA

When considering the impact of political shifts on economic performance; it’s important to understand that when we look back at the historical data, the market is positive regardless of the political party that's in the White House. Consider other economic influences historically. In 2008, the great financial crisis provided systematic risk for both President Bush and President Obama. The global pandemic of 2020, impacted markets beyond the control of President Trump or President Biden.

Using historical data, we can see the market's resilience under various political leaderships. "The market has been positive under all six combinations of political control," Kate stated. It is important to focus on long-term investing goals rather than short-term political fluctuations.

"The stock market doesn’t live or die based on who’s in control of the White House or Congress. It’s driven by the fundamentals of companies and economic growth."  

While politics are top of mind this year, the market's performance is more influenced by long-term earnings trends and broad-based economic growth. The Gilbert & Cook team brings focus back on the fundamentals and using the data to make logical, reasonable investment decisions.

Although easier said than done, the data shows us that it is better to ignore short-term volatility around elections. Your financial priorities and long-term investment goals should be the most important factors in your investment decision making.

Tax Policy and Economic Forecast by Todd Henningsen, CFA, CFP®

Todd Henningsen provided an examination of potential changes in tax policy and their implications. The impending sunset of the Tax Cuts and Jobs Act in 2026, would result in significant changes to tax brackets and deductions. "If no new legislation is passed by 2026, we’ll see tax rates going up pretty much across the board," Todd explained.

Comparing the tax proposals of President Biden and former President Trump; Biden’s proposal includes increasing the top tax bracket and corporate tax rate, while Trump aims to extend the Tax Cuts and Jobs Act into 2033. Todd noted, "Extending the Tax Cuts and Jobs Act would add $3.5 trillion dollars to the country’s deficit over the next ten years, according to the Congressional Budget Office."

The Federal Reserve and Interest Rates

Historically the Fed has not stood on the sidelines during election years; but rather, continues its dual mandate to keep employment at the maximum level and continue price stability, all while keeping independence from politics. Rather, the Fed's policy decisions and actions during election years have been explained by economic events, as opposed to political party or policy.

Kate projected that the Fed might start cutting rates later this year, likely in September, based on current economic trends. “The Fed is very data dependent. They continue to balance their risks and will follow the data trends. And then with inflation trending lower, and the economy starting to slow down but not contracting yet - that has given them that confidence to hopefully start that new cycle.”

A softening job market has helped bring U.S. inflation down to 2.6%, close to the Federal Reserve's 2% goal. Without any large inflationary surprises, a cut in September seems likely as the Fed can maintain its restrictive policy by matching the drop in inflation with a cut in rates.

Legal Challenges, International Relations and Market Stability

Dave Price provided an update on former President Trump’s legal challenges and their potential impact on the election. He emphasized the importance of not letting political emotions drive investment decisions. "Market performance is more influenced by macroeconomic factors than election results," he stated.

The event concluded with a dynamic Q&A session, where attendees posed questions on various topics, including the impact of geopolitical tensions on the market and the future of U.S.-China relations. Kate Gudgel addressed these concerns, stating, "Geopolitical events cause short-term market volatility, but the long-term trend is driven by economic fundamentals and corporate earnings."

All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material has been gathered from sources believed to be reliable, however Adviser cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Gilbert & Cook does not provide tax or legal or accounting advice, and nothing contained in these materials should be taken as such. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. As always please remember investing involves risk and possible loss of principal capital and past performance does not guarantee future returns; please seek advice from a licensed professional. Gilbert & Cook is a Registered Investment Adviser. SEC Registration does not constitute an endorsement of Gilbert & Cook by the SEC nor does it indicate that Gilbert & Cook has attained a particular level of skill or ability. Advisory services are only offered to clients or prospective clients where Adviser and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Adviser unless a client service agreement is in place.

Medicare: Understanding the Basics and Making Informed Choices

A summarized recap from our June 6th Medicare Event presented by Capitol Benefits Group.

Navigating the world of Medicare can be overwhelming, but Medicare is an essential aspect of an individual’s financial plan.  Gilbert & Cook recently hosted an educational seminar entitled “Medicare 101: Understanding the Basics and Making Informed Choices.”   This article will recap the information shared at the seminar.

Medicare Part A, provides coverage for inpatient hospital stays, skilled nursing facility care, home health care, hospice care and drugs administered in a hospital or nursing facility. For the year 2024, the deductible for Part A is $1,632.  Individuals are responsible for paying this amount before Medicare coverage kicks in.

Medicare Part B provides coverage for doctor office visits, outpatient mental health care, outpatient hospital care, home health care and clinical lab services.​ In 2024, the deductible for Part B is $240.​ After meeting the deductible, individuals typically pay 20% of the cost for covered services.  

Medicare Part D provides coverage for prescription drugs.  Medicare Part D is offered by private companies.​ The coverage provided by a Medicare Part D plan, including the covered drug list, can change annually.  You should review your Medicare Part D coverage annually to ensure your plan still covers your prescriptions and meets your needs.

Medicare Supplements, also known as Medigap plans, are designed to fill the “gaps” in Medicare Parts A and B.​ Medicare Supplement plans are offered by private insurance companies and provide coverage for deductibles, coinsurance, and other out-of-pocket costs.  Medicare determines whether a service is covered, not the Supplement carrier.​

Medicare Advantage, also referred to as Part C, is an alternative to original Medicare (Medicare Parts A, B and D with a Medicare Supplement).​ Medicare Advantage plans are offered by private insurance companies and only cover services provided by in-network (HMO or PPO) physicians and facilities.  Many Medicare Advantage plans have a $0 monthly premium and include dental and vision benefits, over-the-counter allowances, and prescription drug coverage.  It's important to review the specific details of each plan, as deductibles and coinsurance can vary from county to county and change annually.  If you choose a Medicare Advantage plan, you will still enroll in Medicare Parts A and B, but the insurance company will manage your care and pay claims, not Medicare.

Medicare Part A has no monthly premium, as long as the individual or his/her spouse paid Medicare taxes for at least 10 years.​ The Medicare Part B premium for 2024 is $174.70 per month.    The premiums for Medicare Parts B and D are adjusted for individuals who earned more than $103,000 in 2022 filing single or married but separate), and for married individuals who earned more than $206,000 in 2022 filing jointly.  The income lookback window for Medicare Parts B and D adjustments is two years.

You apply for Medicare through the Social Security Administration (SSA).  Your Initial Enrollment Period (IEP) typically begins three months before you turn 65 and ends three months after your birthday month. The SSA provides online resources and the option to schedule an appointment with your local office for assistance.​

Online Resources: www.ssa.gov/medicare
Schedule with your local office: www.ssa.gov/locator/

Understanding the basics of Medicare will help you make informed decisions. Whether you choose original Medicare -- Medicare Parts A, B and D plus a Medicare Supplement – or a Medicare Advantage plan, it is important to review the available options and select the plan that best meets your individual needs.  Consider consulting with a Medicare insurance professional for guidance on your Medicare decisions.

June means it's time for your Mid-Year Financial Checklist

What should you be looking at in June?

A mid-year financial check-in is a crucial practice for maintaining and improving one’s financial health. Typically this process is helpful during the month of June so that you can do a thorough review of your finances, including income, expenses, savings, and investments, to ensure you are on track with your annual financial goals.

By taking the time to assess your financial situation mid-year, you can make necessary adjustments, correct any deviations, and reinforce positive habits that will help you achieve your long-term financial objectives. This proactive approach allows for a more manageable and less stressful end-of-year financial review.

Mid-Year Checklist

Budget Review

·        Compare actual income and expenses against your budget.

·        Identify categories where you overspent or underspent.

·        Adjust budget allocations as needed for the remaining months.

Income Assessment

·        Verify all sources of income for accuracy.

·        Consider any changes in income, such as bonuses, raises, or additional income streams.

·        Plan for any expected changes in income for the rest of the year.

Expense Analysis

·        Review all regular and recurring expenses.

·        Identify any new or unexpected expenses that have occurred.

Debt Management

·        List all outstanding debts, including credit cards, loans, and mortgages.

·        Check balances, interest rates, and monthly payments.

·        Explore options for refinancing or consolidating high-interest debt.

·        Develop or update a repayment plan to stay on track.

Credit Health Check

·        Obtain a copy of your credit report from all three major bureaus (Equifax, Experian, TransUnion).

·        Check for any errors or signs of identity theft.

·        Confirm all open accounts are accurate and hard inquiries were approved.

·        Review your credit score and take steps to improve it if necessary.

  Savings Review

·        Evaluate the balance of your emergency fund.

·        Ensure you have at least three to six months of living expenses saved.

·        Review if cash on hand is in a high-yield checking or savings account.

·        Determine if cash in excess of the emergency fund should be invested.

·        Confirm you are taking advantage of employer funded savings such as an employer retirement plan match or HSA match.

·        Review savings goals for short-term and long-term objectives.

·        Adjust savings plan to meet these goals by year-end.

Investment Portfolio Review

·        Assess the performance of your investments.

·        Review asset allocation and rebalance your portfolio if necessary.

·        Check for any changes in risk tolerance or investment strategy.

·        Consider increasing contributions to retirement accounts if possible.

Insurance Coverage

·        Review all insurance policies (health, auto, home, life, umbrella, disability, etc.).

·        Ensure coverage is adequate and up-to-date.

·        Compare policies to find better rates or coverage if needed.

Tax Planning

·        Review the first half of the year's income and tax withholdings.

·        Estimate your tax liability for the year.

·        Make any necessary adjustments to withholdings or estimated tax payments.

·        If you need to make estimates, determine if estimates should be based on the prior year safe harbor or current year estimated liability.

·        Review for strategic opportunities to utilize Roth IRA contributions or conversions.

Financial Goals Update

·        Review your financial goals set at the beginning of the year.

·        Assess progress towards each goal.

·        Adjust timelines or strategies for achieving these goals if needed.

Financial Documentation

·        Organize financial documents and statements.

·        Ensure important documents are accessible and securely stored.

·        Consider going paperless if it helps with organization.

  Meet with your Advisor

·        Schedule a meeting with your Advisor

·        Discuss any major life changes that could affect your financial plan.

·     Seek guidance on any complex financial decisions or adjustments.

This holistic review ensures that your financial plans remain adaptable to any changes that may arise throughout the rest of the year. Reminder to keep an open line of communication with your Advisor for any changes in your financial situation.

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All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material has been gathered from sources believed to be reliable, however Adviser cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Gilbert & Cook does not provide tax or legal or accounting advice, and nothing contained in these materials should be taken as such. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. As always please remember investing involves risk and possible loss of principal capital and past performance does not guarantee future returns; please seek advice from a licensed professional. Gilbert & Cook is a Registered Investment Adviser. SEC Registration does not constitute an endorsement of Gilbert & Cook by the SEC nor does it indicate that Gilbert & Cook has attained a particular level of skill or ability. Advisory services are only offered to clients or prospective clients where Adviser and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Adviser unless a client service agreement is in place.

March Madness Lessons

Going into March Madness and selecting your bracket, there’s a few things to think about.

We all need a “Coach”

Great coaches excel in providing leadership, instilling confidence, and leveraging their team members' strengths and natural talents. While players execute moves on the court, it's the coach who devises and implements strategies to guide the team effectively.

Maintaining adherence to a plan poses challenges, especially when players face pressure from fans and sports writers to deliver standout performances. Hence, one of the paramount qualities of a competent coach is the ability to foster a trust-based relationship. Without trust, even the most well-crafted plan risks being disregarded.

Similar principles apply to your financial plan. There are many key players such as your advisor, investment manager, and financial services associate. The finest among them work together to assist their clients in maintaining confidence in their goal attainment, even amidst short-term market fluctuations that may suggest otherwise.

Should you rely on guess-work?

The idea behind March Madness — and much of the fun — is predicting how the tournament will unfold and which team will emerge as the winner. You can analyze past performances, or study point differentials, first round win percentages, and any number of other metrics. Ultimately, it’s a guessing game. The same holds true for the market.

Investors employ everything from past pricing history to sophisticated software in their quest to choose the big market winners. Your advisor, however, knows the goal isn’t predicting the next maven. It’s building and managing an investment portfolio that can address your specific goals, for you to live your life of abundance.

Picking the NCAA tournament champion may win you bragging rights or a few bucks from the office pool. But a financial professional's personalized guidance and focus on your long-range financial plan is what can get you working towards a winning investment strategy.

Facts over feelings 
Emotion-driven decisions can shadow both March Madness and investment markets. When there are fluctuations within the markets, investors receive heightened emotional responses. The NCAA tournament's drama mirrors market fluctuations, with intense moments and unexpected outcomes capturing attention. While the thrill of March Madness fades after the championship, emotional investment decisions can have lasting financial consequences. Financial advisors offer relief from daily market stress, guiding investors away from impulsive choices that deviate from their plans.

In both bracket predictions and investing, facts must outweigh feelings. Wishful thinking can often cloud your decision-making, leading to undesirable outcomes. Whether picking a tournament winner based on alma mater pride or following the crowd in investment trends, emotions can affect your judgment. Guidance from your advisor offers a rational approach, utilizing research and expertise. Your advisor is there to help you navigate complex financial landscapes with your best interests in mind.

Individual investors who depend solely on themselves face the potential of succumbing to emotional pitfalls similar to those experienced in March Madness brackets. In contrast, your Gilbert & Cook team can prioritize factual analysis over impulsive decisions, dissuading from following herd mentalities or emotional biases. By adopting a disciplined, evidence-based strategy, investors can minimize risks and effectively pursue long-term financial objectives under the guidance of your advisor.

Everyone can relate to a come-back

Of course, we do love to see an underdog win. The problem with that is underdog successes aren’t that common in the later rounds of the NCAA tournament. Remember that when you pick those teams for your bracket.

The same can be said for investing. It may be fun to select the under-dog investments, but they generally involve an increased level of risk. Work with your Gilbert & Cook Advisor to assess your risk tolerance. Assess this each year to keep you dialed into your goals.

Your financial well-being is no game

Regardless of who you pick to “take it all” for March Madness, life returns to normal the following day —no matter the outcome of the tournament. That championship game is just that: a game. That’s not the case with your financial well-being, it’s your future.

You really can’t do much to increase the odds of a perfect March Madness bracket. You can improve your chances of achieving your financial goals by working with your advisor to put together a thought-out plan to help get you on the winning path, to live a life of abundance®.

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Gilbert & Cook is an SEC registered investment adviser.  SEC registration does not constitute an endorsement of Gilbert & Cook by the SEC nor does it indicate that Gilbert & Cook has attained a particular level of skill or ability.  This material prepared by Gilbert & Cook is for informational purposes only.  It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product.  Economies and markets fluctuate.  Actual economic or market events may turn out differently than anticipated.  Gilbert & Cook does not provide tax or legal advice, and nothing contained in these materials should be taken as tax or legal advice.  Past performance is no guarantee of future results.

Date Night 2.0

Date Night 2.0

Valentine's Day can prompt the importance of diversification, both in matters of love and finance. Whether partnered or single, engaging in a financial date night is a wise choice.

Upon entering the dining room, you are greeted by the delicate scent of a meticulously arranged floral centerpiece. Adjacent to a glass of your favorite wine rests an open box of finely curated chocolates. Held in hand are the freshly printed bank statements, signaling the commencement of a romantic financial date night.

Transparency and open communication are vital during these discussions with oneself and one's partner regarding finances. Initiate the conversation by posing thoughtful questions about financial objectives, aspirations, and apprehensions. This exchange cultivates and strengthens the bond between partners as they align their financial visions. Together you want to pursue common objectives, fostering a deeper understanding of oneself in the process.

Questions to Consider:

• What is your current sentiment toward your financial situation?

• Does your current financial status align with your initial expectations?

• What factors contribute to financial stress in your life?

The objective of the financial date night is to explore how financial resources can be optimized to facilitate a life of abundance.

Assessment of Account Balances:
Focus on the present state of finances without dwelling on past circumstances. Compile a brief overview of current account balances, including relevant account details and authentication requirements.

Savings Evaluation:
Determine your savings rate by considering anticipated earnings over the fiscal year. Assess contributions to retirement plans such as 401(k), 457, or IRA accounts, emphasizing simplicity in analysis.

Cash Flow Analysis:
Understand your net income and fixed expenses. Calculate the ratio of fixed expenses to net income, aiming for fixed expenses to remain below 60% of net income.

Goal Setting:
Having laid the groundwork, delineate a strategic direction for the future. Reflect on successes and areas necessitating adjustment to refine financial objectives.

Embracing a financial date night can strengthen your relationship surrounding your finances. Consider the benefits and feel free to make it fun. Cheers to health, love, and a life of abundance!

Preparing for Year End

Ready for 2024?

As the end of the 2023 approaches, we want to be reminded of last-minute items we need to finalize and the goals we want to complete. Here are some of those year-end items you may want to look over and review with your Gilbert & Cook Advisor.

Annual Exclusion Planning
Plan contributions to education accounts and make any desired cash gifts to family members. The annual federal gift tax exclusion allows you to give away up to $17,000 in 2023, meaning you can gift as much as $17,000 to as many individuals as you like this year. Such gifts do not count against the lifetime estate tax exemption amount as long as they stay beneath the annual federal gift tax exclusion threshold.

The end of the year is also a good time to review any trusts you have in place. Using a trust involves a complex set of tax rules and regulations. Before moving forward with a trust, consider working with a professional who is familiar with the rules and regulations.

Charitable Giving
Individuals can donate cash, appreciated stock, or make donations via a qualified charitable distribution if they are 70 1/2 years old or older. A qualified charitable distribution is a distribution from your Individual Retirement Account (IRA) that can be excluded from income if donated to qualifying charities. The 2023 allowable amount is $100,0000 per taxpayer.

Please consult with your CPA and Advisor to determine if any of these strategies will benefit you.

Retirement strategy
If you aren't already, you may want to consider contributing the maximum to your retirement accounts and review any existing retirement accounts with your employer. If you are eligible to make any catch-up contributions, it may be a great time to also consider making that decision.
2023 limits for individuals:

• $22,500 for 401(k) with $7,500 catch-up provision for individuals 50 and over.

• $15,500 SIMPLE plans with $3,500 catch-up contribution for individuals 50 and over.

• $6,500 Roth IRA / IRA contribution; $1,000 catch-up contribution for individuals 50 and over. 1

Taxes
It's a good idea to consider checking in with your tax or legal professional before year end to discuss questions regarding large expenses or deductions. Think about any sales of property as well as both realized and unrealized losses and gains. Your Gilbert & Cook Advisor can work alongside your tax or legal professional to help provide this information and to also help plan for 2024.

Life Events
Here are some questions to ask yourself when evaluating any large life changes in the last year:
Did you happen to get married or divorced this year?
Did you move or change jobs?
Did you buy a home or business?
Was there a new addition to your family this year?
Did you receive an inheritance or a gift?

All these circumstances can have a financial impact on your life as well as the way you invest and plan for retirement and wind down your career or business. As always, your Gilbert & Cook team is here for you. Please talk to your Advisor if you have any questions regarding your financial situation.

Sources
1. IRS.gov, August 2023

Gilbert & Cook, Inc. is a Registered Investment Adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. This Newsletter is meant for informational purposes only. Advisory services are only offered to clients or prospective clients where Gilbert & Cook, Inc. and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Gilbert & Cook, Inc. unless a client services agreement is in place. Gilbert & Cook, Inc. does not offer tax or legal advice. Consult with an attorney for legal advice and a qualified tax professional for tax advice.

Medicare Open Enrollment

Medicare
Open Enrollment

Runs through December 7th
By: Wendy Stenberg, Advisor

Healthcare needs are an important part of any financial plan. Choosing a plan that best suits your health, lifestyle and budget can have a significant impact on your near-term and long-term health and financial well-being.

Is it time for a Medicare coverage checkup? 
With multiple options available, choosing the best plan can be difficult and daunting. If you ever ask yourself if you are in the right plan or getting the coverage that best suits your health and lifestyle, you may want to have a professional evaluate your current coverage. At Gilbert and Cook, we partner with local Medicare specialists who will meet with you in person to review your existing coverage and either make recommendations for changes or confirm you’re in the most appropriate plan.

The annual Medicare Open Enrollment Period is the time when people with Medicare can review their current coverage and make changes to their Medicare Advantage (Part C) or Medicare prescription drug coverage (Part D) plans. Medicare Open Enrollment runs from October 15 to December 7 each year. During this time, you can:

• Switch from one Medicare Advantage plan to another

• Switch from Medicare Advantage to Original Medicare

• Join a Medicare Advantage plan for the first time

• Switch from one Medicare Part D plan to another

• Join a Medicare Part D plan for the first time

Additional resources that can be helpful are the official Medicare website, and the State Health Insurance Assistance Programs (SHIPs) website.

What to Consider When Choosing a Medicare Advantage or Supplemental Plan
There are several factors to consider when choosing a Medicare Advantage or supplemental plan, such as:

• Your budget: Medicare Advantage and supplemental plan premiums can vary significantly, so it's important to find a plan that fits your budget.

• Your health needs: If you have certain health conditions, you may want to choose a plan that covers those conditions.

• Your preferences: Some plans offer additional benefits, such as coverage for foreign travel or preventive care.

Additional Considerations for Medicare Advantage Plans

• Network of providers: Many Medicare Advantage plans have a network of providers, which can help you save money on your care. Consider whether your preferred doctors and hospitals are in the plan's network.

• Prior authorization: Some Medicare Advantage plans require prior authorization for certain services, which means that you may need to get approval from your plan before you can get certain services.

Additional Considerations for Medicare Supplement Plans

• Standardized plans: Medicare Supplement plans are standardized, which means that they must offer the same basic benefits, regardless of which insurance company you buy them from. This makes it easier to compare plans and find the one that's right for you.

• Guaranteed issue rights: You have certain guaranteed issue rights when you buy a Medicare Supplement plan. This means that you cannot be denied coverage or charged a higher premium based on your health status.

How to Compare Medicare Advantage and Supplemental Plans

In addition to having an in-person appointment with a local Medicare specialist you can compare Medicare Advantage and supplemental plans online or by calling your State Health Insurance Assistance Program (SHIP). You can also use the Medicare Plan Finder tool on Medicare.gov to compare plans.

Please reach out to your Gilbert and Cook Advisor for more information. 

Gilbert & Cook, Inc. is a Registered Investment Adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. This Newsletter is meant for informational purposes only. Advisory services are only offered to clients or prospective clients where Gilbert & Cook, Inc. and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Gilbert & Cook, Inc. unless a client services agreement is in place. Gilbert & Cook, Inc. does not offer tax or legal advice. Consult with an attorney for legal advice and a qualified tax professional for tax advice.

2023 Mid-Year Event - Recap

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On July 27th, 2023, Gilbert & Cook hosted a mid-year update event, hosting an interactive panelist discussion on financial headlines in the news. Our panel included Chris Cook, CPA, CFA, Chief Investment Strategist, Megan Rosenstiel, CFP®, CDFA®, AWMA®, ADPA®, LTCP​, Director of Advisory Services, and Zach Ripka, CFP®, CPA/PFS, CEPA, Planning & Tax Strategist. Let’s take a look back at some of the topics that have been hitting the headlines.

As discussed by our panelists, Megan Rosenstiel,and Zach Ripka, the sweeping legislation of the SECURE ACT 2.0 has dozens of significant provisions. These updated rules can seem cumbersome and you want to know and understand how these affect you.

First and foremost: Required Minimum Distributions
One of the most critical changes was the increase in the age at which owners of various retirement accounts MUST begin taking required minimum distributions (RMDs). Starting in 2033, RMDs must begin at age 75. If you turned age 72 before January 1, 2023, you must continue taking distributions under the prior rules. But if you are turning 72 in 2023 and have already scheduled your withdrawal, we may want to revisit your plan.

Zach went on to share how there have been revisions to the rules surrounding Roth accounts.  Starting in 2024, pending certain conditions, individuals can roll a 529 Education Savings Plan into a Roth IRA. If a child receives a scholarship, goes to a less expensive school, or doesn't go to school, the money can be repositioned into a retirement account.

Individuals will be able to roll over up to a total of $35,000 from 529 plans to a Roth IRA for the same beneficiary, provided 529 accounts have been held for at least 15 years. The annual rollover amounts will be subject to the annual Roth IRA contribution limit, but not the Roth IRA income limits. Any contributions to a 529 plan within the last 5 years (and the earnings on those contributions) are ineligible to be moved to a Roth IRA.

The new legislation aligns the rules for Roth 401(k)s and Roth 403(b)s with Roth Individual Retirement Account (IRA) rules. This means that starting in 2024, there is no longer a required minimum distribution from Roth accounts in employer retirement plans.

As it should be noted, previously, employer matching contributions were required to be deposited into each employee’s pre-tax account in the retirement plan. The new legislation allows employer matches to the Roth portion of the account for electing employees. However, this now makes any Roth Employer Match, taxable income to the employee.

Lastly, Zach went over some additional highlights that many found helpful. The maximum Qualified Charitable Distributions (QCDs) amount will start indexing for inflation in 2024. Currently, ​the maximum QCD amount is $100,000 per taxpayer. The limit applies on an individual basis, so for a married couple, each person who is at least 70½ years old can make a QCD as long as it remains under the limit (currently $100,000 per taxpayer per year). Individuals will also be able to make a one-time distribution of up to $50,000 to a charitable remainder trust or charitable gift annuity.

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Our final panelist, Chris Cook, CPA, CFA, Chief Investment Strategist, gave us some insight into the current market while debunking some current headlines.

Headline: Worst Inflation in 20 Years
Reality: On a 4-yr rolling average, inflation is higher than we are used to, but not out of bounds from where we have been the last 30 years. What it is not, currently, is 1981, where the rolling, 4-year average inflation rate was nearly 11%. Inflation continues to cool and will eventually reach longer term trend levels.

In June of 2022, the Index reached the lowest point in over 50 years, indicating extreme consumer pessimism i.e. people just didn't feel good about things. However, in terms of economic data, this was not that bad of times. The unemployment rate was low, around 3.7%, and while interest rates were higher, they weren't as high as other inflationary periods in history. These low points typically represent opportunities for investors especially when economic data is positive or not as bad as we are being lead to believe in the news. Fast forward to today, with a strong stock market recovery, the outcome over the last 12 months has been consistent with previous sentiment bottoms. This is yet another reminder to stay the course as a long-term investor. The Gilbert & Cook Investment Team is constantly positioning portfolios for these opportunities and is ready to act when they arise.

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Disclosure: The presentation on July 27th, 2023, was meant for informational purposes only. Services offered through Gilbert & Cook, Inc. a Registered Investment Adviser. Please note we cannot accept any type of market orders requested via email or voicemail. Advisory services are only offered to clients or prospective clients where Gilbert & Cook, Inc. and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Gilbert & Cook, Inc. unless a client service agreement is in place. Gilbert & Cook, Inc. does not offer tax or legal advice. Consult with an attorney for legal advice and a qualified tax professional for tax advice.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

Welcome Todd Henningsen

It is with great pleasure that we introduce our newest addition
to the Gilbert & Cook team, Todd Henningsen CFA, CFP®.

At Gilbert & Cook, we take great pride in our commitment to providing our clients and their families with sophisticated strategies and genuine relationships, creating a truly unique experience. With the addition of Todd Henningsen to our team, we are confident in our ability to further enhance the exceptional service and support you have come to expect from us.

From the Cedar Valley area, Todd brings a wealth of experience and knowledge to Gilbert & Cook. He has been in the financial industry since 2009, advising clients from various backgrounds and helping them navigate complex financial landscapes. Todd's experience spans investment management, retirement planning, estate planning, and comprehensive wealth management strategies.

Active in his community, Todd is a member of the Financial Planning Association of Iowa, the CFA Society of Iowa and is the board chair of the Community Foundation of Northeast Iowa. He is a board member of the LORAL Trust and served as the past foundation chair of the Rotary club of the Cedar Valley.

Todd's passion for building strong client relationships and his commitment to delivering outstanding service align perfectly with the values and principles that Gilbert & Cook upholds. His addition to our team reinforces our dedication to excellence and ensures that we continue to provide our clients with the highest level of care.

Please join us in extending a warm welcome to Todd Henningsen as he embarks on this new chapter with Gilbert & Cook. We are thrilled to have him as part of our team and are confident that his skills and dedication will greatly contribute to empowering and enabling others to Live a Life of Abundance®.

Iowa Homestead Tax Exemption for Claimants 65 or Older

On May 4, 2023, Iowa Governor Kim Reynolds signed House File 718 into law, bringing a new tax break for some. The new legislation establishes a homestead tax exemption for individuals aged 65 or older. Eligible claimants can now apply for the exemption through the Iowa Department of Revenue, offering potential long-term benefits. This must be done by July 1, 2023.

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Eligibility Criteria and Exemption Amounts

Under the Homestead Tax Exemption, eligible claimants must be 65 years of age or older by January 1 of the assessment year and must own the home they reside in. The legislation provides two tiers of exemption amounts, depending on the assessment year.

For the assessment year starting January 1, 2023, qualified individuals are eligible for a $3,250 reduction in the taxable value of their property. Starting from January 1, 2024, the exemption amount doubles to $6,500 of taxable value. It's important to note that the exemption directly impacts the taxable value of the property rather than offering an immediate reduction in property tax payments.

 Application Process

To apply for the homestead tax exemption, interested claimants must complete the amended Homestead Tax Credit Exemption (54-028) form provided by the Iowa Department of Revenue. The deadline for submitting applications is July 1, 2023, to your local assessor's office. If the exemption is granted, claimants can enjoy the benefits in subsequent years without needing to reapply, if they continue to meet the eligibility requirements.

If you meet the eligibility criteria, make sure to submit your application before the deadline of July 1, 2023, and stay informed about any future changes or updates issued by the Iowa Department of Revenue.

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Gilbert & Cook, Inc. is a Registered Investment Adviser. This Newsletter is meant for informational purposes only. Advisory services are only offered to clients or prospective clients where Gilbert & Cook, Inc. and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Gilbert & Cook, Inc. unless a client services agreement is in place. Gilbert & Cook, Inc. does not offer tax or legal advice. Consult with an attorney for legal advice and a qualified tax professional for tax advice.