2020 First Quarter Newsletter

With Knowledge Comes Confidence

NEWSLETTER
FIRST QUARTER 2020

2020 Market Briefing Workshop

After a disappointing 2018, both stock and bond markets rewarded investors by
year-end 2019. In 2020, we can expect the presidential election to be a source
for volatility. To put last year into historical perspective and set expectations for
the year to come, join us at our annual Market Briefing.

At this workshop, we will cover the history of investing, putting 2019 into the
context of long-term investing, then look forward into 2020 and beyond. At the
end, we will wrap up with a question–and–answer period.

If you would like to learn more about investing so you can feel more confident
about your financial future, bring a friend and join us at this workshop.

Refreshments will be served. Space is limited. RSVP today!

WORKSHOP DETAILS: Mark your calendars! We are offering two new
workshops this year. For more details or to
WHEN: Wednesday, April 22, 6–7:30 p.m. WHO: Anyone! Whether you’re a client sign up, visit our website or Facebook.
of the firm or not, we encourage you to
WHERE: The Pyramids, Pyramid Three, attend and bring a friend. July 22, 2020, 6–7:30 p.m.
Lower Level, Conference Room A & B iPhoneography Workshop
(3500 DePauw Blvd, Indianapolis, IN 46268) RSVP: By Friday, April 17 by emailing
[email protected], by October 21, 2020, 6–7:30 p.m.
COST: None, but space is limited calling 317-872-5090, or Eventbrite Women, Divorce, and Finances
Workshop

July 1, 2020, marks the 20th Anniversary of Worley Erhart-Graves
Financial Advisors. We want to express our appreciation to the
many clients, colleagues, friends, and family members who have
contributed to our success and good fortune.

Stay Worley Erhart-Graves provides solutions—giving you peace of mind in your /wefinancialadvisors @worleyEG
Connected! financial life. We are here to help you reach your financial goals, and part of @worleyerhartgraves
that includes educational opportunities. So, connect with us on social media. Worley Erhart-Graves
Tag a friend who may enjoy or relate to the content we provide. Bring a friend Financial Advisors, Inc.
to our quarterly workshops. Follow us to see what we are up to!

Worley Erhart-Graves Financial Advisors is a Registered Investment Advisor. Registration as an investment advisor is not an endorsement of the firm by
securities regulators and does not mean the advisor has attained a particular level of skill or ability. All expressions of opinion reflect the judgment of
the authors as of the date of publication and should not be construed as personalized investment advice. Different types of investments involve varying
degrees of risk, and there can be no assurance that any investment will either be suitable or profitable for a client’s portfolio. Worley Erhart-Graves Financial
Advisors is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Worley Erhart-Graves Financial Advisors, Inc., is affiliated with Smitson Erhart-Graves Tax Advisors, LLC, through common control and ownership. Smitson
Erhart-Graves Tax Advisors provides accounting and tax preparation services. If you require such services, we may recommend you use Smitson Erhart-
Graves Tax Advisors, although you are under no obligation to do so. Fees for financial planning and investment advisory services are separate and distinct
from the fees Smitson Erhart-Graves Tax Advisors charges for their services.

Cheers to 20 Years and 20 More

Juli Erhart-Graves, CFP®

I’m in the midst of several milestones: I turned 50 in avoid getting run over! Therefore, we look forward to adding
November, February 29th marks the 12-year anniversary of talented staff–watch our newsletter for more on that front.
my purchasing the company, and on July 1 we will celebrate We are also in the process of developing electronic reports
the firm’s 20th year in existence. I am filled with gratitude for and authorizations for our investment management clients
each of these milestones—although turning 50 has been a and look forward to offering that option over the coming
little hard.  months.

With all the events, now is a great time to contemplate how I also want to take this opportunity to thank all the
we want to influence the future of the company. What we wonderful clients we get to work with and those who
put into place now–the people, processes, and technology– recommend us to their family, friends, and coworkers. We
will help us better serve our clients, continue to grow and appreciate the trust you have placed with us, and we will
maintain work/life balance for happy employees in the continue to do our very best to take good care of you and
future. As we all know, we have to keep moving forward to those you send our way.

Long Term Care Insurance:
3 Product Choices, 3 Pools of Money

Gail Gill, CFP®

Long term care (LTC) insurance policies provide a “pool expenses. They don’t consider the range of care options or
of money” to help you pay for the cost of long term care benefits to be covered. Instead, it’s up to you to decide what
services. Benefits are usually triggered when you need help type of care you can afford based on the monthly checks
with two or more of the “Activities of Daily Living” or have the insurance company sends you, which is dependent on
a cognitive impairment. With nursing home costs hovering the pool of money in your hybrid policy. The good news is
around $80,000-$150,000 annually ($6,666-$12,500 per that hybrid policies do offer a cash value settlement. These
month) for a semi-private or private nursing home, LTC policies can vary greatly in price and come with many caveats.
insurance can help mitigate this cost so your retirement plan So much so that sometimes it’s difficult to understand
remains intact. exactly how much you’ll have to use toward LTC or how the
insurance company determines the cash value amount.
This pool of money is offered through three major types of
LTC products. Purchasing a hybrid annuity insurance policy (and later
triggering the LTC benefits) can provide you with a higher
1. Traditional (or stand alone) LTC policy monthly check than the annuity check you would have
received. In fact, your monthly check may be double or even
2. Hybrid annuity insurance policy (an annuity with LTC rider) triple the amount. Unfortunately, this amount may not be
sufficient to cover all of your LTC expenses.
3. Hybrid life insurance policy (life insurance with LTC rider or
accelerated death benefit) Purchasing a hybrid life insurance policy that has an
“accelerated death benefit” or LTC rider can provide you with
When you purchase a traditional LTC policy, you will select a monthly check based on a percentage of your death benefit.
the range of care options and benefits to be covered, as well Some insurance companies cap the percentage of your death
as the daily or monthly maximum benefit and the benefit pool benefits that can be used toward LTC, resulting in insufficient
amount. Care options may include home health care, adult funds to cover your LTC expenses. Keep in mind that your
day care, assisted living, and nursing home. This policy is the life insurance death benefit will be reduced accordingly once
most straightforward when it comes to price and coverage. your LTC benefits begin.
It’s also the most expensive. Once you sign up, premiums are
due for the rest of your life, so make sure you can afford it. With that being said, everyone should consider LTC coverage
Some people call this type of policy a “use it or lose it” policy for their future. To best understand the policy that is right for
since there is no cash value if the coverage goes unused. you, set an appointment with a knowledgeable independent
agent who can explain which policy best fits your budget and
The hybrid annuity and/or hybrid life insurance policies long term care needs.
generally only offer a pool of money to use toward LTC

There’s a New Kid in Town

Pam Smitson, CPA, CGMA

“A long, long time ago, I can still remember how that music everybody’s watching you. People you meet, they all seem
used to make me smile. And I knew if I had my chance that I to know you. Even your old friends treat you like you’re
could make those people dance; and maybe they’d be happy something new” (New Kid in Town by The Eagles). This new kid
for a while” (American Pie by Don McLean). Are you singing in town I’m referring to is the revised Form W-4, Employees
with me yet? Withholding Certificate.

I remember when most federal income tax filings I prepared It isn’t required to file a new form with your employer; your
had enough, or maybe even far more, federal taxes withheld old one will continue with the standard tables. However, this
than was required so the taxpayer would get a refund when fresh new form assists in determining how much your federal
they filed their return. Many taxpayers even used their tax withholdings should be. Rather than “allowances,” you now
withholdings as a pseudo savings account. And, yes, they answer how many children and “other” dependents you have,
would dance and be happy for a while. Now, February makes then multiply the number by the amount of the federal tax
me shiver, with every tax return I deliver. Bad news on the credit. Tax filers can also simply check one box if they work
doorstep. I, sometimes, can’t take one more step. two jobs or have a spouse that works. If you don’t want your
employer privy to that information, you can always fill out the
The tax withholding tables issued in 2018 wreaked havoc worksheet to determine how much extra you should have
for American taxpayers, as many were under-withheld on withheld. Note, you aren’t required to answer every question
their federal return. I’m hoping this tax filing season will find on the form, but you may like to report to your tax preparer,
withholdings were adjusted and are now near normal without “I just dropped in to see what condition my condition was in”
major surprises, even though, for many taxpayers, federal (Just Dropped In by Mickey Newbury).
withholdings will still need to be “tweaked.”
Oh, come on! I know a few of you were singing with me!
You may be wondering how we do that. Well, “there’s talk Happy filing!
on the street; it sounds so familiar. Great expectations,

A SUMMARY OF MATERIAL CHANGES FOR OUR DISCLOSURE BROCHURE AND OUR PRIVACY POLICY NOTICE ARE ENCLOSED

Should I Put My Savings in a Money Market Fund?

Margaret Gooley, CFP®

Idle cash can bring the benefit of a safety net and the headache trade at $1.00 per share, and the monthly interest payments are
of feeling like your money’s not growing. We often hear clients automatically reinvested in the fund for compound returns.
concerned that they’ve stashed away money over the years but
haven’t really seen any growth. Usually, this means they’ve put There are three different types of money market mutual funds:
their savings into a safe place, like a savings account at a bank, prime, government, and tax-free. A prime money market fund
but they’re not earning much, if any, interest on the funds. We’ve is typically invested in extremely short-term corporate or bank
been in a historically low interest rate environment for over debt securities. Government money market funds are invested
a decade now, so finding a safe place to stash your cash that primarily in government-backed securities, usually making
actually earns a decent rate of interest has been difficult. them the safest option. A tax-free money market fund is usually
invested in debt obligations that are issued by municipalities, so
Depending on what your plans are for the cash you’ve been the interest will be federally tax-exempt. There are even some of
saving and your tolerance for risk, keeping cash in a money these municipal funds concentrated in states with high tax rates
market mutual fund may be a good alternative to a savings (like California, New York, New Jersey, and Massachusetts) that
account. A money market mutual fund is an investment that will offer federal and state tax-free income for residents of those
typically pays more than the default cash options at most states.
brokerage firms. Keep in mind, because it is an investment, it is
not guaranteed against loss. Money market mutual funds are also For those who may not need to use their cash right away but still
not as liquid as keeping funds in cash, because they trade like want to keep it relatively safe, a money market mutual fund can
any other mutual fund. This means when you need cash, you’ll be a good option for investment. If you’re not sure if it’s right for
need to sell shares of the fund, then wait one business day for the you, ask your Certified Financial Planner™ professional for their
trade to settle before your cash is available. These investments opinion.

STANDARD PRESORT
US POSTAGE
PAID

INDIANAPOLIS, IN
PERMIT NO. 937

3500 DePauw Blvd. | Suite 1035
Pyramid One, Third Floor
Indianapolis, IN 46268

317.872.5090 Phone
855.872.5090 Toll Free
317.872.5095 Fax

wefinancialadvisors.com

For the second year in a row, Worley Erhart-Graves Financial Advisors New Decade. . .
is excited to be the named sponsor of Brunch & Blingo benefiting the New Year. . .
Ronald McDonald House of Central Indiana. New Faces

Join us Saturday, March 14 at the Indiana Landmarks Center. Doors We are pleased to
open at 9:30 a.m. The event will feature attendee favorites, such as an introduce Madison
amazing brunch, a mimosa bar, an opportunity to shop Kendra Scott Wagner who has
jewelry, and, of course, play bingo! recently joined our firm
as Administrative Assistant.
Tickets are available online at www.rmhccin.org/event/blingo20,
or check out Worley Erhart-Graves on Facebook for details. Madison graduated from Indiana University
with a bachelor’s degree in fine arts in digital
art. She comes to Worley Erhart-Graves with
experience in office management in the
insurance industry and IT management.

Madison enjoys working on her digital art
projects. When she is not making art, she
likes to spend time relaxing with her dogs
and drinking wine with friends. She is also an
avid podcast listener, including topics such as
supernatural, murder, Bravo TV/Reality Shows
and pop culture.

Please join us in welcoming Madison!!

In addition to the new decade, new year, and new faces at Worley Erhart-Graves Financial Advisors, we are excited to
reveal our newly designed website! Our website is still accessible through wefinancialadvisors.com, but the site has been
redesigned to reflect a fresh start into this next chapter of our business.