KFA Blog

We Value our Relationship with You

You are a Young Professional with unlimited potential and more earning power than any generation before you. You’re part of a successful group of individuals that are in trainingb2ap3_thumbnail_Young-Professional-Group-Photo.jpg
to be future leaders. We, here at Kabarec Financial Advisors, Ltd., are very excited about the recent addition of our Young Professional offering!  We understand that people of all ages need financial advice and guidance from a professional advisor who keeps up with the financial industry.  Young Professionals who are entering into and continuing in their careers have to make decisions about employer benefits, insurance, taxes as well as how much to save.  In your primary or secondary education there may not have been any required financial classes that taught you specifically about these topics.  

Young Professionals are in a continual state of transition: from being single to married, married to starting a family, and then meeting the needs of your growing family. As the pace of your lives increase, your ability to make clear, long-term financial decisions is often deferred by other immediate priorities.  This is why an objective, experienced Financial Advisor can help you successfully plan for your financial future.  It is critical for Young Professionals to begin a relationship today with a Financial Advisor.  It is never too early to begin!  You will be able to work with the same team through each life transition.  We will provide you with strategies and solutions for your specific needs. You can have peace of mind knowing we area looking out for your best interest and are happy to help guide you through the necessary decisions.  

Every decision you make either leads you toward achieving your goals or further away from living your dream. Take advantage of the time that’s on your side!  If you or someone you know needs a Financial Advisor, please contact us today at 847-934-7777 for your free consultation!

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The Rollover IRA - Taking It With You

b2ap3_thumbnail_Rollover-IRA.jpgMany generations before us found jobs they kept for 20-40 years before retiring.  But in our generation, we might have a job for a few years then find new employment to further our career or to find a better opportunity.  Did you know you can take your Employer Retirement account with you when you leave?  Your 401(k) or Roth 401(k) can be rolled into a Rollover IRA (Individual Retirement Account) or a Roth IRA, in your name.  This is not a taxable event as long as you roll the funds directly into your IRA.  You can find substantially more investment options outside of your Retirement plan.  You will also have control of your own money.  Leaving your retirement account adds one more account to keep track of.  You can consolidate old Retirement plans together.  There are many investment options you have to match your risk tolerance and time horizon.

Kabarec Financial Advisors Ltd. welcomes the opportunity to help you make sure any old IRA’s are invested with your future in mind.  Call us today to schedule your free consultation at 847-934-7777.

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How Much to Save?

Everyone earns a different income.  They also have different financial obligations.  One set dollar amount is not going to answer everyone’s question of “How much should I be saving?”.  Below are some basic guidelines you can follow to determine how much to save:

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1. The first rule of thumb is to set aside 3-6 months of living expenses as an emergency fund.  (3 months if your 

household has two wage earners and 6 months if you have a single income.)  You want to be sure that your long-term savings you begin building are not hindered by short-term, unexpected expenses. 

In the next 10-20 years there will be unforeseen expenses, but if you have the proper emergency fund you can allow your long-term savings to continue accumulating even if you have to temporarily stop adding to the account.  A savings account is a good vehicle to use for emergency funds, as the money stays liquid and available when you need it.

2. Now that you have established an emergency fund you can begin saving for longer-term goals, like retirement.  First take advantage of your Employer’s Retirement Plan if this option is available to you. Often you will receive a matching contribution.  That’s free money!

A general rule of thumb is to save 10-15% from each paycheck.  These plans are designed for long-term retirement goals.  If you remove funds before 59 1/2, you could incur penalties and income tax. 

3. Once you have an emergency fund and are setting money aside in your Employer’s Retirement Plan, you can further build additional savings.  

Popular accounts that people use are taxable investment accounts in addition to traditional and Roth IRAs.  Due to various eligibility requirements, working with a Financial Advisor can help you decide what the most appropriate type of account is for your needs and the goals you are trying to achieve. 

Tax implications today and in the future are important to consider.  Your time horizon and risk tolerance will also make a large impact on the type of account you use and where you invest contributions.  Your Financial Advisor can help you choose the most appropriate funds in your Employer’s Retirement Account and other savings accounts, whether it is an interest-bearing account or one with investment options. 

The sooner you adopt a habit of saving, the longer your money can work to achieve your goals!

Kabarec Financial Advisors, Ltd. welcomes the opportunity to speak with you about your savings plan.  Schedule your free consultation today at 847-934-7777.

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Keeping Up with the Joneses?

b2ap3_thumbnail_keeping-up-with-the-joneses-image1.jpgWhen was the last time you found yourself looking in your neighbor’s direction and thinking you needed to do something they just did?  Or did you hear your neighbor talk about the things he’s been told from someone about his finances and you think you need to do the same?  Are you buying a boat, but afraid of the water?  

There is a popular phrase, “Keeping up with the Joneses”, you have likely heard at one time or another.  It is great to be motivated or encouraged by others positive actions that can help us move forward in a positive direction for ourselves.  However, many times we hear advice or ideas we probably shouldn’t act on because it is specifically for them, not us. 

Unless you have been provided with all of the source documents and the knowledge or information which accompanies, you really don’t know as much as you think you do about your friend’s situation.  We like to think we know what is going on with someone’s life from one piece of information we hear or see.  But the reality is, we don’t.  And how different is the real story or truth from what we think and build up in our own mind all because of what we think.

This is such an important reason for families and individuals to seek professional, consistent, financial advice and guidance.  You need to work with someone who knows your entire picture and is aware of all the moving pieces and parts.  Your advisor will discuss important topics when the appropriate time comes.  Just like a dentist recommends braces or a cavity be filled, you wouldn’t do these things if you didn’t need them.  Are you able to trust your financial professional to guide you in the right direction?

We welcome an opportunity to show you what a financial advisor should be doing for you.  Please call us today at
847-934-7777 to schedule a free consultation that will ensure you’re on the right path for you!

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We’ll wash your windows, check your oil, tire pressure, and fill ‘er up…

Many people remember the Full-Service Gas Station experience.  As you pull on to the gas station lot and drive over the rope, the bell rings prompting a smiling b2ap3_thumbnail_Gas-Station_20140408-155801_1.jpgattendant to serve you.  The attendant would wash the windows, check the oil level and tire pressure, and pump gas into your car.  Many of the old commercials on television from companies like Texaco or Sinclair used language like “keeping your trust” and “trust is everything”.  Even the uniforms of a grey button up shirt, tie and hat showed pride in the service provided.  Now fast forward to today’s gas station experience… it is anything BUT full-service. 

Would you use the words “Full-Service” to describe your current Financial Advisor?

If you have ever contemplated working with a financial advisor, we would like to restore your trust and faith that there are still companies that show pride in the service they provide by the manner in which they work.  You may even be happy to hear that a financial advisor SHOULD be described as Full-Service.  There is a common misunderstanding that a Financial Advisor can only help you with your investments just like today’s gas station mainly provides fuel for your car. On the contrary, a Financial Advisor can provide many services that you may not be aware of.

Below is a short list of services a Full-Service Financial Advisory Firm like KFA offers:

  1. The ability to develop a financial plan, put the plan into motion, and monitor the plan so you can enjoy living life without worrying about tomorrow
  2. A network of professionals who can assist with very complex situations such as income tax, estate planning, property, life, health insurance, and banking
  3. Provide investment management based on your goals and objectives and tolerance for risk
  4. Show a willingness to answer any question that impacts your financial goals
  5. Share an excitement about reaching your goals and seeing you become successful
  6. Share a genuine concern about your situation without passing any judgment
  7. Have a desire to assist you in leaving a legacy to your next generation of heirs
  8. Look at your overall picture to make sure you have the right type and amount of insurance, beneficiaries, and informed individuals in place should a life changing event take place
  9. The willingness to help complete paperwork and make necessary phone calls due to an unexpected loss or change in circumstances
  10. Organize your financial life for you
  11. Extended family; You truly become part of our family

Maybe the most important quality is that you feel comfortable working with your advisor and will not hesitate to call or become anxious when it is time to schedule your checkup. 

Come visit our Full-Service firm to see how our services can help you.  If you or someone you know needs guidance from our professional team, please contact us at 847-934-7777 to schedule a free consultation today.

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