Gilbert Wealth Articles

From Risk to Resilience: How to Build a Strong Plan for an Uncertain Future

Monte Carlo simulations are a powerful tool for analyzing complex systems and making predictions about uncertain outcomes. Financial Planners use Monte Carlo simulations to model retirement portfolios, income strategies, and investment outcomes. By using a large sample of historical market data, Monte Carlo simulations can generate thousands or even millions of hypothetical scenarios, each with slightly different outcomes and paths. These scenarios can then be used to estimate the probability of varying market outcomes, such as the likelihood of your portfolio being able to meet your retirement goals.This article goes into Monte Carlo simulation in a little more depth. If…
Read More

What the Bible Says about Money

What does the Bible have to say about money? Quite a lot! The Bible has over 2,300 verses that reference money, wealth, or possessions in some form. Of the 39 parables Jesus told, 11 were about money. This shows us how important it is for us to understand the principles and teachings of the Bible when it comes to our relationship with money. The Bible provides valuable guidance on managing our finances, including budgeting, saving, and giving principles. It highlights the importance of maintaining a healthy relationship with money, recognizing that our ultimate source of security and fulfillment comes from…
Read More

How Flipping Coins Helps You Make Better Financial Decisions

A Monte Carlo is a method used to simulate possible outcomes given a set of parameters or assumptions. In a comprehensive financial plan, Monte Carlo can be used to test the strength of your financial plan against adverse market conditions. Monte Carlo analysis is an improvement over the prior method of just using a constant portfolio return for each year in your financial plan. While using a constant return can simplify the charts and give you a basic understanding of what is happening in your plan, it fails to account for a basic fact that returns each year are not…
Read More

Budgeting Part 2: Income and Expenses

With the basic budgeting techniques covered in Part 1, we will now cover your income and expenses in more depth. In this article, I'll cover some common questions about each high-level category and provide tips on navigating, finding, and budgeting for each side of the equation. If you missed Part 1, check it out here: Budgeting Part 1: The Basics – Gilbert Wealth Determining Your Income This is the fun part - how much money you have coming in the door! Your income is the first step in developing a budget because it tells you how much you have to budget.…
Read More

Observations from JP Morgan’s 2023 Guide to Retirement

Planning for retirement is a complex task involving many decisions about an unknown future. Working with a qualified, comprehensive advisor who looks at your entire financial picture and has your best interests in mind can help you navigate and prepare for a fulfilling retirement. As a practitioner in financial planning, I am constantly reviewing financial research to ensure my plans reflect not only my client's unique financial circumstances but also the future economic, tax, and demographic changes. JP Morgan releases an annual Guide to Retirement that summarizes several eye-opening observations regarding retirement longevity, income, healthcare, and expenses. The guide is…
Read More

How to Buy TreasuryDirect Series I Savings Bonds

The following are basic instructions for how to purchase TreasuryDirect Series I Savings Bonds.  Updated as of February 27, 2023. If these steps have changed, please let me know. 1 Log Into TreasuryDirect Link to Login: Log In — TreasuryDirect The Log In process is a 3 step process: 1) Enter your account number 2) Enter the one-time password sent to your email address 3) Manually type password (and by manually, I mean you have to use your mouse to type the password into a digital keyboard. You are not able to copy and paste, use your keyboard, or use a…
Read More

How to Report a Backdoor Roth Conversion

The Backdoor Roth strategy is a great way to get more savings into Roth IRAs if you are high-income and you’ve maxed out your other retirement options. If you have performed a Backdoor Roth or are considering performing one, it is important to understand the proper way to report the transaction, as it requires additional steps to ensure your money is not taxed twice and the IRS is satisfied. The Backdoor Roth Conversion Steps Contribute to a Traditional IRA Convert the Traditional IRA to a Roth IRA Report the transaction on your tax return What Documents You'll Receive While performing…
Read More

How much is your advisor worth?

Are you considering working with a financial advisor, but not sure if it's worth the cost?  The truth is that everyone’s financial situation is different and there is no one-size-fits-all answer. But studies have shown that working with a financial advisor can bring great value to your finances, especially if you are looking for personalized advice and guidance.  As you look through the table, you'll see the benefits are expressed as a percentage. For example, a 1.00% benefit would mean that your overall financial well-being would improve by about 1.00% per year. For example, if your net worth were to…
Read More

Budgeting Part 1: The Basics

Knowing how to budget is essential skill for financial success. It is the first step towards understanding your overall financial picture and planning for your future. Unfortunately, budgeting can be intimidating and overwhelming due to the sheer number of methods and techniques that exist. In this introduction, I will break down the fundamentals of budgeting, discuss some popular approaches, and provide a summary of key takeaways. With a solid understanding of budgeting basics under your belt, you'll be ready to tackle any challenge that comes your way!If you need convincing that you should budget, check out the 8 Benefits of…
Read More

8 Benefits of Budgeting

Budgeting is simply tallying up your income and expenses to ensure you are living within your financial means. I rarely find someone who doesn’t have some positive or negative reaction to putting together a budget. When you hear the word budget, what words for feelings come to mind? Most people fall into two categories: those that cringe and those that get excited.  Regardless of your feelings, a budget is important for people in any financial situation.For those who cringe, you might think of a budget as being restrictive, taking too much time, being too complicated, or not enjoying your hard-earned money. However,…
Read More