The most common and confusing question for people planning for their retirement is the perfect age to start taking Social Security. It is quite commonly known that you can start taking Social Security distributions from the age of 62. However, very few people know that the Social Security distributions get reduced if you take them before you reach your full retirement age. You should keep the following points in your mind when you are making a financial plan for your retirement with your financial planner: When to start taking retirement benefits? The best way to decide on the perfect age when you should start taking your retirement benefits is determined not only by your present circumstances but also by your family’s current situation. You need to make sure that you are making an informed decision and are not depending on anyone else to make it for you. Make a Personal Decision Make sure you choose the age you want the Social Security distributions by, on your own. If you start taking the distributions earlier than later, you will receive a lesser amount comparatively. This decision of choosing when you would like to start receiving your Social Security must be taken solely by you. The decision varies from person to person, depending on their requirements, their dependents, and their health. The decision can also be affected by your retirement plans and if you would have other sources of income during your retirement. In order to make an informed decision, you must consider your future financial goals, obligations, and needs. You should also calculate the Social Security benefits you would receive in the future. It is an important decision to make as it will affect the monthly benefit you would receive for the rest of your life and might affect your family as well. The later you start taking your Social Security, the higher distributions you would receive Your full retirement age is determined on the basis of the year you were born in. You can visit the website: https://www.ssa.gov/benefits/retirement/planner/agereduction.html to find your full retirement age. The Social Security benefits you receive are calculated based on your lifetime earnings. The amount, however, continues to increase at the rate of 8% per annum for every year you delay taking Social Security from the age of 62 to 70. The longer you wait to begin taking the distributions, the greater the reward. This change is usually permanent, as it establishes the foundation for the benefits you will receive for the rest of your life. If you continue to work, you'll earn annual cost-of-living adjustments and, depending on your work history, higher benefits. Retirement is not as short as you think When you start planning for your retirement, make sure to have a realistic approach to your planning. Often, it happens that women end up living for a longer time than men. We often end up living longer than we initially expected. Approximately one out of every three 65-year-olds today will live to be at least 90 years old, and one out of every seven will live to be at least 95 years old. Social Security benefits are essential insurance against outliving savings and other sources of retirement income since they endure as long as you live. Social Security benefits in case you are married Your spouse will also be eligible for Social Security benefits. The amount they would receive would depend on their and your working history. In case of the demise of your spouse, you would be eligible for widowed spousal benefits. You should also consider divorce spousal benefits. However, in order to claim them, you both need to be married for at least ten years. If you and your spouse both receive Social Security benefits, it is advantageous for the higher earner to delay their Social Security benefits. In such a case, you would end up getting more benefits. After your death, your children might also be eligible for these benefits if they are under 18 years of age or if they have a disability that began before they turned 22. You can still work post-retirement You can work and earn as much as you wish once you reach full retirement age and still receive your full Social Security benefit monthly. If you're under the age of full retirement and your wages surpass specified thresholds, some of your benefit payments will be withheld for the year. This does not imply that you should aim to keep your wages to a minimum. We'll pay you a bigger monthly benefit when you reach full retirement age if we withhold some of your payments because you continue to work. As a result, working and earning more than the exempt amount will not reduce the overall value of your lifetime Social Security payments – in fact, it may raise them. This is how it works: The Social Security Office adjusts your benefit when you reach full retirement age to give you credit for months when you didn't receive a benefit due to your earnings. Furthermore, as long as you continue to work and receive benefits, the Social Security Office reviews your file every year to see if the additional earnings will enhance your monthly payment. You can find more information about it here: https://www.ssa.gov/benefits/retirement/ Medicare Benefits In case you would like to delay receiving benefits because you are working, you would have to sign up for Medicare three months before you turn 65. It is not mandatory to register for Medicare before you turn 65, you can always sign up later. However, you might have to pay an extra late enrolment fee in this case. More information about Medicare can be found at https://www.ssa.gov/benefits/medicare/ . More resources You could also visit the website: https://www.ssa.gov/benefits/retirement/ to find more information about Social Security. In order to obtain a more personalized Social Security Statement, you can access the website: https://www.ssa.gov/myaccount/ . We would be more than happy to help you with applying for Social Security and deciding on the perfect age to apply for Social Security, feel free to reach out to us at info@dunhillfinancial.com . DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

Retirement appears to be a long way off, and you have decades to prepare. However, in order to live a long and financially secure retirement, you must begin saving today. While it's a popular misperception that millennials aren't good at saving money, a little above 50 percent say they do. Seven out of ten people consider themselves savers rather than spenders, and they are now prioritizing an emergency fund or a vacation. Despite these beneficial behaviours, some people put off planning for retirement. While saving for an emergency fund is crucial, waiting to invest in retirement may not be the best option. Eighty percent of Millennials do not believe they will be eligible for Social Security when they retire. If you are just adding money to your savings account and not investing them properly while keeping your retirement plans in your mind, you might end up losing not only your retirement benefits but also, a large number of tax benefits. What are the alternatives available to you? 401(k) - This is an employer-sponsored retirement savings plan. You can pick how much you want to deduct from each paycheck before taxes, and many companies will match a portion of your contributions. Your employer's fund manager normally chooses the assets; however, you may have some say in whether you choose an aggressive or conservative strategy. If you work for a non-profit or government agency, you may have the option of contributing to a 403(b) instead. IRA – An individual retirement account, just like a 401(k) is a tax-deferred retirement savings account. This account can be set up independently as well as offered by an employer. The contribution you make each year has a cap in the case of an IRA. However, you have considerably more independence as to how you invest your money. Roth IRA – A Roth IRA is funded with after-tax dollars, that is, the withdrawals you would make after retirement would be tax-free. The contribution limit for a Roth IRA is smaller than your contribution limit or your taxable income for the year. How Risky is it to invest my money? Investments are often considered to be risky as the markets can often get quite volatile. According to a few studies, millennials are not fond of investing as they are scared that the volatility of the markets will lead to the sinking of their funds. However, they do not realize the investment returns they are missing because of this. Millennials have a significant amount of time before they retire. Hence, they should not worry about the movement of the markets. They have a lot of time to recover in case their investments go down. Additionally, you are not expected to do all your investments on your own. It is always better to discuss your plans with your financial advisor. They can help you decide on investments that would align best with your risk-taking ability. How much money do you need? Quite a few young professionals have estimated that they would need about $400,000 saved for their retirement. Although, about 50% of these admitted that they guessed this value. The goals and needs of a person differ from the other. There is not a single plan which would fit everyone’s needs. Hence, a good way to start would be by writing down a financial plan. A good practice would be to write down your goals, needs, retirement plans, long-term healthcare needs, and government assistance. It would be best to consult a financial advisor who would help you keep a track of your goals and finances while carefully creating a plan which would make your life easier and stress-free. Feel free to reach out to us if you want any financial assistance from us regarding your financial plan or investments. You can email us at info@dunhillfinancial.com or visit our website at https://www.dunhillfinancial.com/ . DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

Essentially, there are two methods which you could use to tackle debt, they are the Snowball and Avalanche methods respectively. Snowball Method: Using this method, you pay the smallest debt balances first. The way this method works is that you make the minimum monthly payments on all the debts. You also end up making an extra payment towards the smallest debt. After completely paying off the smallest debt, you start making payments to the next smallest debt. The payments of these debts continues till you are left debt-free. The only pro of this method is that you stay motivated as you pay the debts quickly. The major con of following this method of debt repayment is that you end up paying more interest in the long-term. This method works best for someone who feels happy and motivated to see results quickly. Avalanche Method: According to this method, you are required to pay the highest interest balances first. You should make minimum monthly payments on all the debts. You must make extra payments towards the highest interest loans. After completely paying off this debt, you must make payments for the next highest interest rate debt. Essentially, you continue to make debt payments till you go debt-free. The pro of this method is that you end up saving on interest in the long-term. The con of this method is that it can be demotivating as it takes you longer to repay your debts. This method specifically works for people who like to meet long-term goals and do not care much about immediate results. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

You've worked hard for years to develop a strong retirement investment portfolio. The stock market then plummets. You're $10,000 down, then suddenly $15,000 down. Now you've decided that investment is fundamentally risky. You're not going to give up until you get your money back (and then some). You increased your market capitalization. You've lost another $25,000 in a flash. Do not fall victim to this. Do you prefer to gamble or invest? Making financial decisions on your own can be dangerous, especially during times of market instability. When your hard-earned money is gone, it's easy to make poor decisions. However, when it comes to investing, it is better to think through before you make any decisions. You risk converting your properly invested savings into gambling money if you make spontaneous judgments based on emotion or the ever-present ebbs and flows of the market. Avoid becoming a gambling addict. These methods can be beneficial. Understand Your Investing Philosophy Have a clear idea of how and why you want to invest. This is necessary for making decisions that benefit your long-term financial objectives. Make sure to invest with a basic attitude of taking the bigger picture into consideration. Keep an eye on the big picture It's tempting to examine your investments on a daily basis. After all, you want to assess your performance and identify areas for improvement. However, checking your performance too frequently can be detrimental. It could make you nervous, leading you to make emotional investment judgments. Instead, review your investments once a month or once a quarter. This keeps your financial goals in mind rather than market fluctuations. Collaboration with an Expert Working with a financial professional has the advantage of reducing some of the risks associated with investing. Staying in touch with them on a regular basis will make you feel less alone in your financial decisions. They can share a load of research with you and design a strategy for implementing investments based on your objectives. This alliance is especially advantageous when your investments lose value. The majority of people who lose money in a market downturn liquidate their investments during the downturn and then reinvest when the market recovers. They basically sell low and purchase high. This makes achieving long-term financial objectives very impossible. If the market falls and you get concerned, contact your financial advisor. They should be able to help you with ideas that could help you overcome the market downfalls and help you reach your financial goals. Having an external third-party analyse your situation and keeping their analysis on hand can help you remove emotion from your financial decisions and stay on track. Have Faith in Your Financial Plan If you've worked with a professional to create a strong financial strategy, you may rest easy knowing that market volatility has been factored in. However, your financial objectives may change over time, necessitating a re-evaluation of your strategy. If you have any questions or concerns, speak with a financial professional. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

Every time you receive your tax refunds, you might get really excited about how you would use it. However, there are better ways to use these refunds than spend them all. 1. Emergency Fund – According to experts’ recommendations, it is better to have a rainy-day fund worth three to six months of your expenses. If you have a fund with lower savings than that, it would be best to use your tax refunds and fund your emergency fund. More than 50% of the Americans have less than three months' worth of emergency funds, and a quarter have none. Having a normal savings account can generally help you with your emergency savings and keeping them safe. However, it is always better to have a Certificate of Deposit (CD) as it gives you a better rate of interest. The only point you need to keep in mind before investing in CDs are that you cannot take it out before the date of its maturity. 2. Retirement contributions – You could consider making contributions to your Individual Retirement Account. This would be the best way to save for your retirement. It would be good to consider if you would like to invest in your Roth or Traditional IRA. In case of a traditional IRA, the amount is deducted from your salary, and you end up paying taxes when you take the distributions. In case of a Roth IRA, you pay the taxes on the money before contributing to the IRA. In this way, when you start taking the distributions, you do not need to pay any taxes on them. This would help in saving for your retirement. According to experts, you must have at least 10 times your salary saved for your retirement by the time you turn 67. 3. Credit Card debt payment – You could use your tax refunds to pay your credit card bills. You must make it a point to pay your credit card debts as they charge you a high interest rate and can keep you in debt for years. Credit card debts are also known as ‘bad debt’ because, unlike mortgage and student loans, they do not pay for appreciating assets. 4. Education investments – It would be a great idea to accumulate your funds towards your child’s or your own education. Education helps in improving your salary potential, social mobility, sense of fulfilment, and even health. Additionally, if your tax returns are going into your college savings fund, you might possibly get some tax benefits as well. 5. Home Value Increment – After you have saved enough for your emergency funds and education and paid all your debts, it would be a good idea to renovate your home and invest in it. You could focus on improving the quality of your and your family’s living. 6. Charity Donations – Essentially, you could start donating your tax refunds to charities. This would not only help your tax benefits, but also, make you feel emotionally rewarding. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

Inflation is defined as the soaring of the average prices of goods and services. This generally happens due to changes in the demand and supply for different goods and services on a national or international level. For instance, if there is a boom in a business with low unemployment and an increasing workers’ wages, the customers end up having more income for themselves at their disposal. This increase in the disposable income, leads to an ability to buy more goods and services. Due to an increase in the demand for these goods and services, the average prices are bound to rise. If for example, the economy is in trouble, there will be an increase in the unemployment while the wages would remain constant. In such a scenario, consumers will not be able to buy more goods and services, leading to a reduction in the production. Due to this, there is an increase in the average prices resulting from the reduction in the supply of goods and services. Additionally, inflation also causes currency values to depreciate, in addition to raising the cost of goods and services. As prices rise, your income's purchasing power—dollar for dollar—decreases, requiring more dollars to acquire the same quantity of products and services. In order to stay up with or exceed inflation, your personal savings and investments will have to work harder over time. It's critical to keep inflation in mind while you continue to save for retirement and make large purchases. Reasons for the US Inflation in 2022: If you look at the markets for any decade, on an average, they go up for 7 years and down for the remaining 3 years. For this decade, it feels like the markets are going to get worse, however, they should get better sometime soon. According to the economists, US inflation for the next year should be affected by: The Fed might end up reducing the rates due to a decrease in the consumer expenditure Wages and rents will still increase, however, and there will be a situation of bounded supplies Due to the coronavirus pandemic, people have gotten into the habit of spending more on household items than on travelling and entertainment. Due to the new hybrid work culture, there has been a reduction in using the sources which were being used before the pandemic had hit the world. There's unlikely to be another increase on big-ticket items like there was during the lockdown, which drove up the costs. The Federal Reserve is putting the brakes on monetary policy, and statistical quirks will hopefully bring the inflation down by a few points. According to data produced by industry groups like Zillow and Yardi, the real-estate boom that gathered steam and pushed housing prices to new highs has resulted in a rise in rentals. According to David Wilcox at Bloomberg Economics, the summer of 2022 will see the housing prices to increase to close to about the 6% - 7% range. If this actually occurs, it would be the highest in the past 30 years. Market expectations for US monetary policy are changing dramatically. Several analysts feel that monetary policy is too loose, and that the Federal Reserve will hike interest rates to at least 2.5 percent by mid-2023. If you are concerned about inflation and it's impact on your future plans, speak to one of our financial advisors to find out how they can help you navigate the road ahead. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

If you take care of these 5 things, you might end up saving a lot of money and time. We all make errors, and we learn from them. When it comes to money, though, it is advisable to avoid the trial-and-error method. Perhaps you're making some easy errors that can be corrected with a little effort. Your financial advisor may be able to assist you. Avoid These Five Financial Mistakes Avoiding some of the following financial blunders could save you a lot of money and pain in the long run. 1. Taking money out of a Retirement Account to pay off debt: If you withdraw money from a retirement plan before reaching a particular age, you may face significant income tax penalties. Even if no penalties apply, cashing out a full account at once may place you at a higher tax rate. Early or premature distributions are when money is withdrawn before reaching the age of 59.5. You could face an additional ten percent tax. (As with any rule, there are exceptions, so consult a knowledgeable financial advisor or the Internal Revenue Service.) Many people were obliged to use their retirement funds to pay off rising bills and loans because of the COVID-19 outbreak. This was a last-ditch effort, but the lesson of the story is that if you must take a distribution, you should at the very least be aware of the tax implications and take steps to lessen them. 2. Failure to keep track of retirement account rollover dates: Receiving a check from an eligible retirement account and depositing that money into another qualified retirement account within 60 calendar days allows you to move your wealth around. The IRS counts the sum as a taxable distribution if you miss the deadline. In addition, your 401(k) plan provider deducts 20% of federal income taxes. To avoid any tax penalties, you must add funds from other sources equivalent to the gross pay-out. What is the key takeaway here? When possible, rollover your accounts utilizing a trustee-to-trustee transfer. A direct transfer of funds from your custodian to another custodian may be a preferable approach to performing a rollover. 3. Failing to keep beneficiaries up to date: It's common to forget to delete a former spouse's name from a retirement account or insurance policy's beneficiary list. This could lead to you being unable to provide for your children, a new spouse, or other family members. You must check your beneficiary designations at least once a year and if a major life event occurs, such as a marriage, divorce, or birth. 4. No Will: After your death, your assets are transferred to your beneficiaries according to your will. However, if you pass away without a will, your assets will be inherited according to the law of intestacy. In that case, your assets might not be transferred according to your desire. It is, therefore, advisable to have a will that specifies where you would want to see your money go after you pass. It would be best to review your will every few years or whenever there are any changes in your life. 5. No power of attorney: A power of attorney (POA) is a person whom you choose to make decisions on your behalf, should you be incapacitated to take one. They are generally your spouse or someone whom you trust. This person will then be able to access your bills, finances, and expenses and sign your tax returns for you. In case you do not have a POA, and you are unable to make your decisions, your family will be bound to petition the courts for a conservatorship. This process is undoubtedly, extremely time-consuming and money-drenching. Therefore, it would be best to speak with an attorney and get a POA selected for your account. Your Financial Advisor: Your finances could be the most complicated or the easiest part of your life, it all depends on you having a financial plan and a financial advisor. It would be best to have a financial advisor who knows all about the different retirement accounts and make plans which consider unforeseen circumstances which you might face. Your financial advisor must understand your goals and help you not make decisions after being affected by emotions alone. The smartest way to take care of this is by building a financial plan for yourself with the help of a financial advisor. This would certainly make your life easier and help you have a better and more peaceful life. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

The portfolio which you own is probably designed in the best way possible to achieve your financial goals. However, the market is quite volatile and can have a huge impact on your goals. The volatility of the Market: The market is extremely volatile, getting affected by the latest news as well as the smallest event occurring in a different part of the world. Hence, in order to achieve your goals, you should work towards having a financial plan which does not get affected by the market’s volatility. For instance, if someone aged 55 in 2010 planned on retiring by 2020 must have had a great financial plan in place. You could probably aim at earning a return of about 10% per year for the next decade. However, due to the pandemic in 2020, the financial plan would not have worked as expected, in fact, it was highly unlikely to end up with the amount of money you had started with. Building money over time may appear hopeless, but a well-designed financial strategy can assist you in navigating the market's ever-changing ebbs and flows. A Dynamic Financial Plan is the requirement of the hour: A financial plan can help you figure out how to achieve your objectives. Any smart financial strategy is adaptable. People frequently consider their financial plans to be set in stone. You don't want to stray too far from your objectives, yet objectives evolve. As your objectives change, so must your strategy. Changes in your life might have just as much of an impact on your financial goals as market fluctuations. You could start a new career, change your tax bracket, or buy a house. You might have a child or get divorced. You might get a hot stock tip or a stock warning, on which you want to act. You have the option of filing for Social Security at the minimum age or waiting until you reach the maximum age. The truth is that no one can anticipate what asset mix will return 10% per year for the next decade. However, you may devise a strategy that takes into account the various possibilities that life may throw at you. Your plan of action? The first and foremost thing you should do is to be aware of the market trends at the current time. It would be a good practice to use the resources you have. Additionally, it is advisable to stay in touch with your financial advisor. The risk of your financial plan not working as expected can be mitigated by developing a good financial plan with good financial resources. Your emotions drive a lot of your decisions. You should make it a point to not get distracted by emotions and deviate from your financial goals. It is always better to keep your financial plan in your head and make decisions accordingly. A good financial strategy with the correct financial planner would help you think rationally and make good decisions in case of unplanned situations and emergencies. The security of a Financial Plan: Although there is no way to forecast the future, one thing is certain: markets will always be unpredictable. A financial planner's role is to work with you to create a well-thought-out strategy that accounts for any obstacles that can derail your plans. This gives you the confidence to face the inevitable times which you probably wouldn’t have planned for. So, if you have a strategy in place, adhere to it and make sure it's updated when your objectives change. You're missing out on the sense of security that a good financial plan can provide if you don't have one yet and are just focusing on investing advice. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

Every time you think of Financial Planning, there are probably two basics you get into thinking about: 1. Having a Financial Advisor 2. Acting as a self-directed investor However, it is generally not easy to abide by the latter. Consider the fact that we are talking about your financial condition. The majority of us lack the knowledge and experience that a good financial advisor can provide. Financial Advisors also need Financial Advisors: Financial advisors will argue that financial planning and investing are topics about which everyone should be knowledgeable. Financially advising others, on the other hand, is not the same as being your own advisor. If you work in finance, you may have some of the tools you need to be a self-directed investor, but there is a lot you will not be able to anticipate and act on. As a result, financial advisors, like doctors, require primary care physicians' services. Financial Advisors can help in improving your money habits: A large number of surveys have been carried out to understand and have a count of the number of people who work with financial advisors and how many people have long-term financial plans. The results of these surveys are, however, disappointing. According to a Charles Schwab report, about 60% of the Americans live pay check to pay check. Also, only about 25% of the Americans have a financial plan. According to reports from CNBC, 75% of the Americans manage their finances all by themselves, without consulting any financial advisors. People generally are not open to creating a financial plan because they feel they do not have enough money to get invested. Greater fiscal responsibility and improved money habits are encouraged with a good financial advisor and a well drafted written financial plan. Financial Coaching: The sad truth about financial planning is that a very limited number of people are aware about this method of managing your finances. Of course, it is always better to learn and gain more knowledge with regards to wealth management. However, what really is not a good practice is to believe that you can do it all by yourself. A number of people lack the ability to do this as a solo practice. The more you try to understand about your money, the better you get at making decisions about it. Your Financial Advisor can help you in various ways including: College funding Investments tailored to your needs and requirements Managing Portfolios Avoiding scams Investing in Alternatives Understanding 401(k)s Debt management Strategies to maintain/increase income Mutual funds related decisions Private company investments Discussing about your money with your spouse Making decisions not based on emotions Additionally, a good financial advisor can help you identify your risks and areas of concern. Get in touch with our team of experts to see how they can help you manage your finances and attain your goals. -- DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

One of the most financially significant events in your life is purchasing a home. However, your financial task isn't over even after you've closed. You should take a few additional steps to integrate your home into your overall financial picture. 1. Budget Adjustments Your monthly and annual expenses will vary once you buy a home, especially if you're a first-time homeowner. Even though mortgage payments are often less expensive than rent, homeowners with a mortgage pay an average of $8,609 more per year than renters. It would be best if you could make rapid adjustments to your budget to ensure you stay within your limits. You'll most probably need to budget for your mortgage, property taxes, and homeowner's insurance, as well as utilities and maintenance. Depending on how much your expenses climb, you may need to reduce spending in other areas of your budget, such as dining out and recreational activities. 2. Emergency Fund Rebuild It is extremely common for people to face their savings account being completely drained after paying the down payments, closing costs, mortgage costs and the other expenses. However, building your emergency fund as soon as possible is tremendously important. Despite having a good amount of money as a part of your emergency fund, it is always better to keep increasing your savings. According to experts, an individual must have at least three to six months’ worth of expenses saved in the form of a rain check fund. This obviously considers the more expensive tasks you would have to carry out after moving to a home you own. 3. Insurance Coverage Expansion Your lender will require homeowners' insurance before you can close on your new house. But that is not the end of the insurance changes you would have to make. Homebuyers should review their life and disability insurance policies. If you die, your spouse will be responsible for paying the mortgage and other house-related bills on his or her own. If you're no longer able to work or contribute to home-related bills, changing your coverage will help your family escape an uncomfortable financial position. 4. Tax – Strategy Revisit Once you become a homeowner, a new realm of possible tax deductions is created including deductions associated with mortgage interest, property taxes, mortgage insurance and more. In maximum cases regarding these tax deductions, the advantages are available only if instead of taking the standard deductions, you start itemizing. However, it is not always advisable for you to itemize your expenses. It would be a better idea to consult tax specialists who would be more than happy to help you and give you a tailored solution according to your financial needs. 5. Financial Plan Review You should always keep in mind that after buying the new home, that is not the only priority you have. It is extremely important for you to prioritize your financial planning. This could be related to your child’s education or buying a new car. In such situations, it always advisable to discuss with a financial planner and make decisions accordingly. DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

November brings us Thanksgiving – a day for simply giving thanks. The 11th month also brings us Black Friday and Cyber Monday – two days encouraging us to shop. And since 2012, the Tuesday after Thanksgiving also offers us #GivingTuesday, the Tuesday after Thanksgiving where we can come together for one common purpose: to celebrate generosity and to give back. According to GivingTuesday.org, last year saw $2.47 billion donated in twenty-four hours in the U.S. alone, with “13% of the adult population participating by offering gifts of time, voice, skills, goods, and money, as well as countless acts of kindness inspired by the movement.” While the average online gift last year was a little more than $100, there are other vehicles that can help jump-start your generosity, like donor advised funds. Donor Advised Funds Giving frequent donations to charities is not easy. Paperwork headaches, particularly related to taxes, abound. And while writing separate checks may still be the best option for small gifts, a popular alternative may make a lot of sense: the donor advised fund. A donor advised fund is an account, maintained and operated by an umbrella non-profit group, called a 501(c)(3) organization, set up by sponsoring organizations. You can open an account and give it any name you want, such as the “John and Jane Doe Foundation.” You don’t have the expense and hassle of running a real foundation, which is the province of the wealthy anyway. Then, as the donor to the fund, you make contributions into your account. There is often a minimum contribution amount, such as $10,000, along with a minimum balance requirement. But because the Internal Revenue Service does not audit these accounts as it would a private foundation, they don’t have a separate tax ID or requirement to file a Form 990, as is the case with a private foundation. Since your contributions to these vehicles are irrevocable, the sponsoring organization has legal control of the fund. However, with a donor advised fund, you as the donor advise the sponsoring organization on how to distribute the money and how to invest it in the meantime. The sponsoring organization typically invests the donor advised funds in a pool of mutual funds, and sets the investment asset allocations. It also usually charges a low asset-based fee to cover administration costs. As the fund’s advisor, you may direct the sponsoring organization to make specific donations to charities you favour. There is often a minimum donation amount from your fund, but it is reasonable, and can be as low as $250 per grant. In addition, you may also choose successor advisors who make those recommendations when you can’t because of illness, disability or death. This can be a fantastic tool in teaching your children the value of making gifts. From a tax vantage point, you get the same benefits with a donor advised fund as with writing a check. Because your contribution to your donor advised fund is an irrevocable gift to a 501(c)(3) supporting organization, you get full access to the standard charitable tax deduction. The deduction amount that you claim is limited by the type of asset you contribute and your adjusted gross income. And the charitable deduction is earned in the year you make a contribution to your donor advised fund – not when you advise the sponsoring organization to send money to one of your favourite charities. Benefits of Donor Advised Funds There are many benefits to using a donor advised fund over the traditional “check-book charity” approach: You can separate your grant making from the end-of-year deadline for getting a deduction in. For calendar year tax planning, you need only time your contributions into the fund (along with taking your possibly limited charitable deduction). After that, you make grants at your leisure. You no longer have to track your grant donations, because the sponsoring organization will do that for you – and generally make those grant records available online. As part of your grant making, you can specify whether the grant is anonymous or not. Your sponsoring organization will check if the entity you’d like to donate to is eligible. That further simplifies your responsibilities in making charitable donations. If you are the kind of person who recognizes that your accomplishments rest on the good others have done in this world– and you’d like to “give back” in an efficient and practical way – then a donor advised fund might be your ticket. #DAF #DonorAdvisedFund #Charity #EffectiveAltruism #Charity #CharitableGiving DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.

Investing in US compliant securities and funds is almost always going to be the better option over exotic alternatives, not to mention the lower costs. US expats will want to carefully weigh up their options to see if they are making the right choice. What are PFICs and should I invest in them? Broadly and simply speaking, a Passive Foreign Investment Company (PFIC) is a mutual fund registered outside of the US (1). It can contain mutual or hedge funds, foreign ETFs as well as insurance products. PFICs are disadvantageous to American investors as they can be taxed anywhere between 37% or over 50% dependent on when the investment was declared. In addition, once an investment is classified as a PFIC, it becomes extremely difficult to bring it into a lower tax bracket. As such, it is best for US-based investors to avoid investing in PFICs. Is it worth investing in PFICs and using various techniques to pay less tax? One way to reduce the heavy tax that comes with investing in PFICs is to file under a Qualified Electing Fund (QEF) tax regime. A QEF election will generally bring the PFIC investment into the same tax bracket as American investments. The exception to this being the dividends, which continue to be taxed at a higher rate. If using this method, it is advised to take a QEF election the same year the related investment was made, otherwise it becomes more difficult to take the election. While it may seem like a good option, the reality is that opting for a QEF regime also brings complex tax filings. Form 8621 is mandatory for every asset. This form is considered to be extremely complex, with seasoned tax accountants requiring at least 24 hours of work to complete properly. Consider the additional accounting costs when considering PFICs and QEFs. Another strategy is called Mark-to-Market. This is an even more difficult strategy, as the asset has to be valued in line with current market conditions using complex calculations. It is a lengthy process that can quickly become expensive. In certain jurisdictions, it is also the only option as the QEF election is not available. What about a portfolio without PFICs? Avoiding PFICs altogether is a common approach used by financial planners for American expats. This is also the approach adopted at Dunhill Financial. By avoiding PFICs completely, investors are able to realize gains without having to fall under any such onerous tax regimes. This also aids in simplifying tax filings and removes the need to file complex forms such as 8621. This does not mean that investors are no longer able to invest in European funds. Instead, one can invest in American funds that invest in European funds - thereby holding the same investments but avoiding the PFIC rules. Is a QEF Election or Mark-to-Market approach worth it? It is important to note that, in the table above, not all of the costs are factored in. Filing the necessary forms for a QEF election is very costly and has to be done every year for every asset. Prices for filling this form can vary greatly with more affordable specialists charging $150 USD per form/asset. As such, a QEF can also exacerbate losses by adding extra administrative fees. In addition, a delay in opting for a QEF regime can quickly become costly. The same goes for Mark-to-Market, the expenses incurred by this can quickly go up. The process for it can quickly become extremely complex, with even the IRS occasionally struggling to properly value an asset. Not having any PFICs in a portfolio therefore provides a more accurate figure for returns after tax, requires less paperwork and provides more security in case of error. (1) A mutual fund can also be a company. It is important to note that once an investment is classified as a PFIC, it will nearly always be considered a PFIC. #PFICs #AmericaExpatInvesting #QEF #FinancialPlanning #Investing DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN. Copyright © 2022 Dunhill Financial. All rights reserved.