https://parkbench.com/blog/ipg-independence-planning-group-financial-services-emmaus-michael-waterhouse

SummaryMike Waterhouse - IPG Independence Planning Group
Financial Advisor - Series 7 and 66
Health, life and disability license



Describe your businessI first help people and businesses to understand the foundation to every financial decision; Cash flow. Without a proper understanding of what is coming in, where it is going and what is left over, we will never be able to achieve our optimal financial situation.


What has surprised you most while working here?What has surprised me the most, and why I choose to be a cash flow expert, is that many people do not have a solid grasp on their finances. Often times, we uncover a large sum of unaccounted for dollars; often times more than five to ten thousand dollars. I have heard the following phrase countless times; "I have no idea where that money goes". That is what I am here for. I help to analyze where money is currently going, and redirect those into areas that will satisfy short and long term goals.


Why did you decide to work here?Through my prior experiences personally and professionally, I have developed a passion to lead individuals, families, and business owners down the path of financial success. I worked for five years at an investment management firm down in the Tampa Bay Region of Florida. I was in a compliance role, working with and visiting thousands of advisers throughout the nation. During my time with them, I had the opportunity to ask many questions and gain valuable advice about their career path, not to mention I was able to see firsthand the great work that many of these advisers did for their clients.

When I moved back up north to the Lehigh Valley, I was going to join a local office of the firm I worked for down in Florida until I was introduced Independence Planning Group(IPG) by an old friend. I realized quickly that what we do at IPG is very different from a traditional investment firm, and far more complete planning, as I like to call it. We do not just look at investments and retirement accounts; we dig deep into protection of assets, proper structure of debt instruments, unique allocations of savings and investments, and of course, cash flow. Once I learned about our philosophy, I never looked back.


What was it like when you first started?Anytime you are building your own business, there are challenges. No different for me when I first started. There were many long days and late nights, which involved driving to and from six, seven, eight networking events per week, numerous charitable organizations, taking over as President of my local alumni chapter, and volunteering for the Pennsylvania Golf Association. I was determined to get involved and give back to the community, be at every networking event, and share what I am doing to help people as often as I possibly could. At first, the expenses were going out significantly faster than revenue was coming in, however I had a long term, lifetime vision of success. I knew everything I was doing would pay off, and I was right.

On a side note, I actually put a paid advertisement in the Lehigh Valley Easy Pages despite that I was fairly certain I would never receive a call from the book. However, the purpose for taking out this ad was very strategic: I would take a picture of the ad in the book once it was published, and post the picture on my social media pages to gain awareness. I wanted to let my network know that I am not going anywhere and I am very passionate about what I do. The cost for the ad was not cheap, however the two hundred likes on Facebook and fifty comments showed that people acknowledged and supported what I do. It was well worth the cost!


What would your customers say they love most about your business?The time that we spend together educating, organizing, and understanding their complete financial picture. They love the depth that we go into rather than just focusing on product sales.


What is the most memorable experience you’ve had working there?Every time a client says "thank you so much for helping us", or "I appreciate all that you do". That, to me, never will get old. I have been involved with some pretty memorable experiences so far, from some very interesting client stories, to some unforgettable homes and unique events I have been at. I even was nominated as a candidate for the Lehigh Valley Man of the Year by the Leukemia and Lymphoma Society! We raised $30,000 for a wonderful cause, and have built some amazing relationships along the way.

Probably the most memorable experience was driving back from a meeting two and a half hours away on the night of the NCAA basketball championship in 2016. My colleagues car broke down about ten minutes after we left the clients home, and it was well past 5:00pm. All of the shops were closed, so we would have had to tow the car to a closed mechanic, get a hotel, and wait until the morning to see if they could even fix it right away. Instead, we decided to get the truck towed all the way back to Allentown, and ride in the tow truck all the way back; the three of us piled in the front seat! On top of that, the driver has one of the most interesting life stories I have ever heard!


Why do you think it's important for people to shop local?The number one reason is the personal relationship. When someone buys from a large retailer, or online, the salesperson or the business website know absolutely nothing about the buyer. How does the buyer know they are purchasing the right product, or they are paying a fair price? Same goes for me and my industry. There are a lot of companies out there where one can buy financial products or invest at their fingertips. I have actually seen people lose money because they do not remember where it is, or death benefits of life insurance policies not paid out because their family did not know who to contact to make the claim. When you shop local, you build that relationship, and you know you are being taken care of.


What do you love most about the neighborhood?The people of Emmaus are the best around. For example, our neighbor has lived on the same road all of his life, and he is 85 years old. He is like the mayor! He has told us much history of Emmaus, and shared some great hidden treasures of the area. We love walking the dogs down Chestnut and Main St., stopping in the local shops, and going to the Emmaus Farmers Market. We also walk the Emmaus Community Park and the beautiful trail a few days a week, as it is only two blocks from our home.


Where are your favorite places to go in the neighborhood?The community park, the farmers market, House and Barn, the Trapp Door, Yergeys Brewery and Triple Suns Spirits. We still have much to try, such as 187 Rue Principale, the local bakery and seafood shop, and the Emmaus Theater.


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It is important that individuals are informed about retirement. Much of this information comes from the media, financial services providers and even from employers. However, amid this mass wave of information, it’s important to remember three key fundamentals to achieving a rewarding retirement.


1. IT’S UP TO YOU: The days of employers providing guaranteed retirement benefits have faded, while the long-term viability of Social Security remains uncertain. The reality is that the quality of your retirement will be directly tied to the actions you take today and the discipline you exhibit during your working years. Your planning success will come from:

• Minimizing your debt
• Protecting yourself against financial losses
• Saving as much as you can

2. HEALTH CARE: One of the biggest expenses in retirement may be health care. Not only will health care represent a larger share of your budget in retirement, but their costs may rise faster than other living expenses. Medicare won’t cover everything, including the cost of long-term care. Recognizing this, you may want to plan for out-of-pocket medical expenses such as premiums for Medigap insurance to cover the expenses that Medicare does not, and long-term care insurance to pay for nursing and home care services.

3. PSYCHOLOGICAL PREPAREDNESS: Our careers provide us with more than just an income. They offer a sense of self-identity, fulfillment and purpose. You may think relaxing all day is the dream, but it loses its allure quickly.

Ultimately, a well-lived retirement is one filled with satisfying relationships, being fit of mind and body and pursuing personal passions. Each requires preparation well before your retirement date.

4. THE TIME VALUE OF MONEY: It is not the passage of time that erodes the value of money, but inflation through time that reduces the purchasing power of your savings.

A forty-year-old expects to retire in 25 years and has determined that $40,000 in living expenses satisfies her vision of a financially comfortable retirement. Assuming a 3% rate of inflation, she will need $125, 627 in after-tax income upon reaching retirement age in order to maintain her targeted standard of living. Said differently, the $40,000 spending target in 25 years will only provide the standard of living that $19,104 does in today’s dollar. This would represent a greater than 50% loss in purchasing power, significantly impacting her financial budget and possibly quality of life.

As individuals live longer healthier lives, retirement can stretch for up to 30 years or more so it’s important to have a plan and to cover your basic expenses in retirement with your guaranteed income sources and determine what other assets you’d like to use to cover your discretionary expenses (e.g. hobbies, travel, etc.).

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 What is life insurance? The simplest definition is that it’s a financial service to help protect your loved ones. People primarily buy life insurance to solve a basic problem – one that’s not necessarily a whole lot of fun to consider – what happens if you die?  A life insurance policy is a good way to guarantee that the people you leave behind (or your favorite charitable causes) will receive financial protection after you’re gone. They will receive a sum of money that is generally tax-free that can be used to help take care of them.

Here we discuss a few common questions about life insurance:

• Are there different types of life insurance, and if so, which is better? Life insurance comes in two basic varieties. Term life will cover you for set amounts of time, usually 1-30 years, with protection that expires when the period is up, meaning you would have to qualify for and purchase another policy to continue your coverage. The second type is permanent life insurance. Whole life, one of the most common types of permanent insurance, covers you during your entire life (as long as your payments to the insurance company remain current), while simultaneously building up a guaranteed cash-value, money you can use during your lifetime, that’s tax-advantaged.2 The advantage of whole life is that it doesn’t vanish with nothing to show for all the payments you've made. Note: some term life policies can be converted to a permanent product, such as whole life, throughout the duration of the term period.

• How much life insurance would my loved ones require? Various insurance companies will calculate this in different ways. Factors could include: How many dependents you have, how much you expect to earn, what lifestyle you hope your loved ones can experience, and more. A simple rule of thumb is that if you’re in your 20’s, an ideal amount of coverage would be 30 times your income, and as you age, less may be required. In your 50’s, you might need only 10 times your income. However, each person deserves an individualized look, and insurance options and costs vary.

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• I get life insurance coverage through my workplace. Is that enough? Many businesses include company paid life insurance as part of their employee benefits. While this is a worthwhile perk, look closely at the amount of money your loved ones would receive. Chances are that the base coverage wouldn’t meet your dependents’ costs for long.  You may be able to add more coverage by paying extra each pay period. Also, look into an insurance policy that you can take with you if you were to leave/lose the job. Some company packages are portable (you would generally have to continue making the monthly payments yourself), so that you can avoid your coverage expiring. If you’re not sure if your coverage at work is enough, seek some advice outside the workplace from an established financial representative.​

• Do I have to pass a physical exam? For traditional group plans, such as those obtained at work, no exam life insurance policies are common for base coverage. For private plans, it varies. By not requiring a physical exam, an insurance company is gambling on the fact that you’re in reasonable health.  As a result, life insurance without medical exams tends to cost more and may cover you for a smaller amount of money. 

Life insurance is an important form of financial protection that can even be an asset used during your lifetime. Be sure to look into a policy sooner rather than later, as the older you get, the more a new policy would cost. It’s also important to look at the reputation of the company you purchase from, so that you’re sure the protection can be relied upon. While it may not be fun to contemplate a world without you, you’re doing this for your loved ones. 

Many business owners and professionals fear losing wealth as a result of creditors and lawsuit judgments. With proper advance planning, everyone can protect some or most of their assets, making it hard for creditors to reach them. Here are some strategies to consider:

1. Review liability coverage, limits and exclusions

If you’re a homeowner or automobile owner, you should obtain maximum homeowner’s or automobile insurance coverage and have an excess liability (“umbrella”) policy that provides additional protection beyond the underlying policy limits. For optimal protection, an umbrella policy of at least several million dollars should be purchased. In addition, review liability policy exclusions. Some homeowners impacted by Hurricane Katrina were denied claims on the basis that their homeowner’s insurance did not cover  flooding.

2. Avoid conducting business as a sole proprietor or as a general partner

A general partner or sole proprietor is personally liable for all business obligations. If you’re a business owner, conduct business as a LLC (Limited Liability Company) or a corporation. Generally, your personal assets will be protected from the claims of creditors of the business. Keep in mind that you should operate your company as a business and not commingle personal assets and affairs with the business.

3. Have business owned employment and  fiduciary insurance

Your business should purchase liability coverage to protect the company against employee claims for discrimination or wrongful termination. If you are trustee of the company’s qualified plan, you may be able to purchase insurance to protect you and the company against employee claims regarding violation of a trustee’s  fiduciary responsibility.

4. Create wealth in employer sponsored qualified retirement plans

Under ERISA (Employee Retirement Income Security Act of 1974), participating employer sponsored retirement plans are generally not subject to claims of personal or business creditors.

5. Create an IRA or rollover qualified retirement plan money to an IRA

Most states have enacted statutes protecting IRAs (Individual Retirement Accounts) entirely from creditor claims. Others protect up to a certain amount of money. Claims by the IRS, spouses and children owed alimony and certain child support payments are typically not protected.

6. Title assets in the spouse’s name

Typically, your spouse isn’t liable for your debts and obligations. Therefore, a simple way to protect wealth is for the spouse with less exposure to liability risk to own all property in his or her own name. Be sure to revisit this protection strategy if you’re considering divorce. If the property-owning spouse dies, the property will be distributed by the terms of a will, trust, or by the laws of intestate distribution (if there is no will).

7. Create wealth in an exempt asset

​Depending on state law, certain types of personal property may be exempt from general creditor claims even if debtor-owned. The most common types of assets are cash value life insurance, non-qualified tax deferred annuities and a personal residence in states that have a homestead exemption. Consult with a tax and legal advisor in your local jurisdiction. These approaches can help safeguard your assets. Still, the best way to protect wealth is to plan for the future when you’re financially solvent and without debt.

#TODAY #ASSETS #CREDITORS #INSURANCE PLANNING #IRA #LIABILITY #QUALIFIED PLANS #RETIREMENT BUSINESS PLANNING

An executor is the individual appointed in a decedent’s Last Will and confirmed by the Probate Court, and the person who is responsible to administer the estate and carry out the wishes of the decedent as expressed in the Last Will.
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While the death of a loved one is an emotional time, there are many things that must be done – funeral arrangements, bills to pay, investments to manage, legal and tax affairs, and many more things. An executor’s duties vary from state to state – local laws and customs play an important role in an estate’s administration, and the estate’s attorney should determine the requirements that must be followed. The responsibilities listed below are not meant to serve as an all-inclusive list, and an executor should be acting with the advice of an attorney, accountant, and financial advisor – many items are actually performed by an attorney or accountant, but the executor is responsible for managing this process.

Responsibilities of an Executor (not in any particular order):

1. Locate the decedent’s Last Will, and submit it for probate and petition the court for appointment as the estate’s executor.

2. Ensure that funeral arrangements are carried out, if not already done by the family.

3. Obtain several copies of the death certificate.

4. Locate assets by reviewing income tax returns, investment statements, bank account statements, life insurance policies, etc. (obtain life insurance claim forms and submit claims).

5. Notify all heirs and family members of their interests in the estate.

6. Establish values for all assets as of the date of death either through published sources or appraisals.

7. Prepare an inventory of all of the estate assets and liabilities.

8. File the final federal and state income tax returns, and estate tax returns if necessary.

9. File the final accounting for the estate showing all of the assets and income collected, expenses paid, all investments and re-investments, all distributions made, and other pertinent information concerning the administration of the estate (this accounting will be provided to the beneficiaries and the court).

10. Make the final distribution of assets to the beneficiaries (assets should not be distributed too early if there are substantial claims by creditors against the estate).

The person you appoint as Executor of your estate assumes certain responsibilities upon your death. Also, you may be appointed as an executor when a parent, spouse, or best friend passes away. With these in mind, it’s important to understand your Executor’s duties to help you choose an appropriate person and understand your potential responsibilities.

Buying your  first home is a big decision that involves a major  financial commitment, so you want to make sure you approach it smartly. Here are some important tips to help you make this decision.

1. Make Sure Homeownership is Right for You

The purchase of a home brings a lot of responsibilities that will demand considerable time and money. Homeownership involves home repairs, improvements, furniture purchases, property upkeep and the need for a range of tools that, as a renter, you never needed before. Are you  financially and mentally prepared?

2. Understand What You Want

Narrow down what you want out of a home (e.g., condo vs. single-family home), where you want to live and how much you can afford. This will help focus your search and make the most efficient use of your time. Do this together with your spouse or partner so you are on the same page!

3. Determine What You Can Afford

Use a reputable mortgage calculator to determine monthly payments. You’ll need to know how much of a down payment you can afford. Don’t forget to include property taxes, homeowner’s insurance and other bills, such as utilities, repairs, appliances, etc. when deciding how much you can afford. Your monthly mortgage should not exceed more than 15% of your monthly gross income.

4. Check Your Credit Score

Your ability to get a mortgage will be based in part on your creditworthiness. If your credit score is low, look to take steps to improve it.

5. Compare Prices

Like any major purchase, gain an understanding of what your dollar can buy. Home values can vary widely so be sure to compare recent sales online and obtain comps from your realtor.

6. Work with a Realtor

Realtors know the market and the neighborhoods you’re considering. They have access to inventory that may not be available to you alone. While realtors are a potentially valuable resource to you, you should ascertain whether they work for the buyer, the seller or both.

7. Understand Your Mortgage Options

Your mortgage type will be based on a number of factors. For instance, though a 15 year mortgage might seem preferable, a 30 year mortgage may afford you a lower monthly payment and more  financial flexibility. Consider the pros and cons of each mortgage option carefully.

8. A Home is Not an Investment

Your home may turn out to be a good investment, but there is no guarantee that its value will increase. Buy a house because you want to create a home.

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Purchasing a home for the  first time is  filled with questions and uncertainties. Starting the process with these tips in mind may alleviate some of the stress and uncertainty.


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However strong love may be, the sway money has in a relationship should not be underestimated. Fortunately, there are a number of things that committed couples can do to avert financial frictions in their relationship.

1. Sharing is Caring When it Comes to Goals: Each individual comes into the relationship with fundamentally different experiences and outlooks that drive behavior. You need to share your financial goals, memories and habits to gain a better understanding of one another’s financial personalities.

2. You’ve Shared, Now Set: Setting goals establishes a mutually-agreed upon objective that you both commit to achieve. Together, create a household budget, which will serve as your spending and savings plan to help you achieve your goals.

3. Share Responsibility: By working in concert, you both become vested in all decisions, reducing the friction that can come when there is a single decision-maker. Set aside a scheduled time (e.g., bi-weekly or monthly) to discuss  finances. Review your budgeting, upcoming expenses and any changes in circumstances.

4. You Bought What?!: You earn your own money so expecting spending latitude is perfectly reasonable. However, large expenditures that impact you both financially should be discussed ahead of time. Sit down and agree to a dollar amount over which neither of you can spend without the consultation and agreement of the other.

5. Update and Revise: You will need to update the beneficiaries on your accounts, reevaluate your insurance coverage and revise (or create) wills.

6. Love, In Action: Financial topics can become contentious. Discuss these issues with care and understanding, be honest about money decisions you’ve made that might upset your spouse, and trust your spouse to be responsible.
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7. Work with a Financial Professional: A trusted  financial professional has the experience, expertise and objectivity to help you work through the critical  financial decisions that all married couples face.
With a little bit of work, self-awareness and patience, you can avoid the relationship stress that money can cause, leaving you the time and energy to tackle those in-law challenges.


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Have you spent your working career thinking about retirement as a finish line . . . only to find the race may be longer than expected? Increasing numbers of Americans are running extra laps in their careers and postponing retirement longer than anticipated. In 2013, The Urban Institute reported that 24.4% of adults aged 62+ participated in the labor force, an increase from 17.1% in 2000.  Their reasons vary from inadequate savings to on-going family obligations. Many continue to work simply because they enjoy their job or have the opportunity to work in a new role. As your peers continue to work later in life, you might be asking: If everyone else is postponing retirement, should I? Here are four questions to ask if you think you might postpone retirement.

Can you identify a tangible benefit to your savings plan?

Let’s say you’ve calculated your retirement budget, and you’re confident in your replacement ratio (the amount of income necessary to maintain your current standard of living in retirement). Your retirement savings plan is adequate to cover your everyday expenses and to allow for some special experiences. Retire at will, but remember…if you’re still able to work it might be worth your while to do so. According to the Urban Institute Retirement Policy Center, working an additional year can help increase your annual retirement income by as much as 9%. Even if you’re at full retirement age, postponing retirement and waiting longer to draw Social Security benefits can also increase your monthly distribution.

Can you secure health care coverage?

Many Americans will postpone retirement because they don’t want to lose employer-provided health care coverage.  Although you may have adequate resources to retire earlier, it is likely cost prohibitive to pay for private medical insurance until you qualify for Medicare at age 65. Health care costs are on the rise. They’ll continue to be a major factor for those in good health as well as those who are managing chronic conditions.

Can you survive a financial crisis?

In its 2014 Retirement Confidence Survey, the Employee Benefits Retirement Institute reported that 36% of worker respondents and 29% of retiree respondents said they had less than $1,000 in savings. Unplanned expenses, particularly those related to health care, can escalate quickly. Your retirement savings plan should be structured to provide for cash flows to cover daily cost of living expenses as well as emergencies or unplanned expenses. Are you confident that your current plan is adequate to cover both kinds of expenditures?  The risk-averse may consider working longer in order to increase the adequacy of your savings plan.

Can you make saving for retirement a priority?

As noted in EBRI’s 2014 annual Retirement Confidence Survey, a sizable percentage of workers report they have virtually no savings and investments. Fifty-three percent of workers cite cost of living and day-to-day expenses as the leading reasons for not saving (or saving more) for retirement. However, if you don’t make saving for your retirement a priority, no one else will do it for you.
Remember, there will always be demands on your money. The ability to prioritize your budget is the key determinant of your timeline for retirement. The sooner you make saving for retirement a priority, the sooner you can retire.

SOURCES:2015-7827
Employee Benefit Research Institute Retirement Confidence Survey 2014.
The Urban Institute’s Retirement Policy Center, “Fact Sheets on Population Aging.”
The Urban Institute, Retirement Security Data Brief, Number 10, December 2013.