Dollar Wise Podcast HFM Investment Advisors, LLC

Jason Gabrieli and Tyler Reedman, both CERTIFIED FINANCIAL PLANNERS at HFM Investment Advisors, dispel common misconceptions about 401(k) contributions. They dissect the difference between matching the employer’s contribution and maxing out a 401(k). They discuss contribution limits and strategies to increase contributions incrementally so you can optimize your savings. This episode is a must-listen for anyone looking to take full advantage of their 401(k) potential.
Tune into this episode to also learn:The real meaning of 'maxing out' your 401(k) and common misconceptions.How automatic escalation can effortlessly boost your 401(k) savings.The impact of choosing between Roth and pre-tax contributions on your take-home pay.
What we discussed[00:01:22] Misconceptions about maxing out 401(k) contributions and the actual limits.[00:06:09] Insights from Vanguard's 'How America Saves' report and average saving rates.[00:08:41] The concept of reverse budgeting and its impact on savings habits.[00:11:00] The benefits of automatic escalation in 401(k) contributions.[00:13:32] The importance of focusing on contribution rates over market performance.

3 Things To RememberMaxing out your 401(k) involves understanding and utilizing the actual dollar limits, not just the employer match.Incremental increases in contributions can significantly impact your retirement savings without overwhelming your current finances.Understanding the nuances between Roth and pre-tax contributions can optimize your long-term savings and tax benefits.

Useful Links
Connect with Jason Gabrieli: jgabrieli@HFMadvisors.com | LinkedIn

Like what you’ve heard…
Learn more about HFM HERE
Schedule time to speak with us HERE
Check out our Financial Wellness Program – HFM Ignite

When you retire, do you want to stay in New Jersey? Jason delves into the common concerns about retiring in New Jersey, such as the state’s reputation for high taxes and living costs. He also covers recent changes and programs like the Senior Tax Freeze and the Stay NJ program that make New Jersey a more appealing retirement destination. Lastly, he discusses the nuances of property and income taxes, providing valuable insights for those considering retirement in the Garden State.
Tune into this episode to also learn:How recent tax reforms in New Jersey benefit retirees, particularly concerning property taxes.The implications of the Senior Tax Freeze and Stay NJ program for property tax relief.Key facts about New Jersey's income tax exclusions for retirement income.

What we discussed[00:01:00] Debunking myths about retiring in New Jersey due to high costs.[00:02:15] Understanding the Senior Tax Freeze program benefits for retirees.[00:04:23] Introduction to the Stay NJ program and its potential for senior citizens.[00:06:28] Insights into New Jersey's income tax benefits for retirement income.[00:10:02] The significant shift in New Jersey’s estate tax laws and its impact.

3 Things To RememberNew Jersey has made significant strides in becoming a more retirement-friendly state through various tax benefits.Programs like the Senior Tax Freeze and Stay NJ aim to alleviate the property tax burden for seniors.Understanding New Jersey’s unique tax exclusions and laws can benefit retirees financially.

Useful Links
Connect with Jason Gabrieli: jgabrieli@HFMadvisors.com | LinkedIn

Like what you’ve heard…
Learn more about HFM HERE
Schedule time to speak with us HERE
Check out our Financial Wellness Program – HFM Ignite

Home improvements, purchasing electric vehicles, and installing a qualified vehicle refueling and recharging apparatus at your home could entitle you to a tax credit. Jason reviews the different types of credits, their requirements, and the importance of consulting a tax advisor to optimize these opportunities to integrate them into your financial plan.
Tune into this episode to also learn:Specifics of energy-efficient home improvement credits for installations like doors, windows, and HVAC systems.Details of the residential clean energy credit for adding renewable energy sources to your home.Insights into tax credits for purchasing new and used clean vehicles, including EVs and hybrids.Understanding the alternative fuel refueling property tax credit for installing EV charging stations.
What we discussed[00:00:24] Introduction to clean energy tax credits[00:01:39] Home energy improvements and applicable tax credits[00:03:15] Residential clean energy credits for renewable energy installations[00:05:07] Tax credits for purchasing new and used clean vehicles[00:09:26] Credits for installing vehicle refueling and recharging stations
3 Things To RememberClean energy tax credits offer financial incentives for eco-friendly home improvements and vehicle purchases.Understanding the specifics of these credits is crucial for maximizing benefits.Consultation with a tax advisor is essential for integrating these credits into your financial strategy.

Useful Links
Connect with Jason Gabrieli: jgabrieli@HFMadvisors.com | LinkedIn
Like what you’ve heard…
Learn more about HFM HERE
Schedule time to speak with us HERE
Check out our Financial Wellness Program – HFM Ignite

Are you enrolled in a Health Savings Account? (HSA) In addition to being used for immediate medical expenses, it provides tax advantages and can be used as an additional retirement tool. Jason reviews the requirements for an HSA, such as enrolling in a high-deductible health plan and the potential to invest contributions for long-term growth. He also introduces the concept of a Limited Purpose Flexible Spending Account (FSA), which can complement an HSA by covering specific health expenses like dental and vision care.
Tune into this episode to also learn:How HSAs can be strategically used for both immediate and long-term health expensesThe criteria and benefits of enrolling in a high-deductible health plan to qualify for an HSAThe advantages of investing in HSA contributions to build additional retirement savingsUnderstanding the role and benefits of limited-purpose FSAs in conjunction with HSAs, specifically for dental and vision expenses
What we discussed[00:01:14] Eligibility criteria for HSAs[00:02:12] Using HSAs as an investment tool for retirement.[00:03:16] Strategy for utilizing HSAs for future health expenses.[00:05:07] Eligibility and usage of Limited Purpose FSAs
3 Things To RememberHSAs offer tax advantages and can be used for immediate and future health expenses.Investing in HSA contributions can provide additional retirement savings.Limited Purpose FSAs are valuable for covering specific health costs, complementing HSAs.
Useful Links
Connect with Jason Gabrieli: jgabrieli@HFMadvisors.com | LinkedIn
Like what you’ve heard…
Learn more about HFM HERE
Schedule time to speak with us HERE
Check out our Financial Wellness Program – HFM Ignite

This year, students and their families will notice significant changes to the Free Application for Federal Student Aid (FAFSA) process. We'll review these changes and how they can impact families navigating college funding. Key topics include the reporting of student income, business and farm assets, retirement plan contributions, and the implications of having multiple children in college. Jason also touches on the impact of grandparent-owned 529 college savings plans on FAFSA results.
Tune into this episode to also learn:How the new FAFSA rules in 2024 differ from previous years.The importance of understanding the nuances of reporting student income and parental assets.Strategies for maximizing college funding and financial aid opportunities.
What we discussed[00:01:16] New criteria for reporting student income on FAFSA.[00:05:29] Inclusion of business value as an asset in the FAFSA.[00:07:51] Understanding the role of 529 college savings plans in financial aid.
3 Things To RememberFAFSA changes in 2024 bring significant implications for students and parents.Detailed understanding and strategic planning can lead to better financial aid outcomes.Seeking advice from financial and tax advisors is crucial in navigating these changes.
Memorable moments:
(07:51) "You could put contributions into there and it grows tax-free and then you take the money out for educational purposes and you don't get taxed on the growth. That's what a 529 college savings plan is."
(08:47) "So now that obstacle to the grandparent owning the 529 account is no longer as big of an issue as it was before."
(09:38) "Retirement plan contributions that you make out of your paycheck to employer 401k plans, 403b plans are no longer added back to your income."
Useful Links
Connect with Jason Gabrieli: jgabrieli@HFMadvisors.com | LinkedIn
Like what you’ve heard…
Learn more about HFM HERE
Schedule time to speak with us HERE
Check out our Financial Wellness Program – HFM Ignite

Bitcoin has made a comeback in the last few weeks with the SEC's recent approval of Bitcoin ETFs. So, what does this mean for investors? Jason explains the implications of the Bitcoin ETFs, their accessibility for average investors, and the impact of this development on the value of Bitcoin while evaluating the risks regarding your investment strategy. He also discusses the broader context of investing in volatile assets like Bitcoin and offers guidance on approaching them within a diversified investment portfolio.
Tune into this episode to also learn:The fundamentals of Bitcoin ETFs and their role in the financial market.Key differences between investing in Bitcoin directly versus through an ETF.The potential risks and rewards of including Bitcoin in your investment portfolio.Practical tips for investors considering Bitcoin as part of their investment strategy.
What we discussed[00:00:51] Introduction to Bitcoin ETFs and its significance.[00:02:15] Risks associated with cryptocurrency exchanges.[00:03:15] Explanation of ETFs and their comparison to mutual funds.[00:06:35] Integrating Bitcoin into your overall investment strategy.[00:09:04] Where Bitcoin and cryptocurrencies fit in a portfolio.[00:11:47] Skepticism about market predictions and forecasts.
3 Things To RememberBitcoin ETFs make cryptocurrency more accessible to mainstream investors, but they come with inherent risks and volatility.Investments should ideally create value, and while cryptocurrencies can store value, they don't inherently create it like stocks or bonds.It's crucial to approach investments like Bitcoin with caution and integrate them wisely into a diversified portfolio, avoiding overexposure.
Memorable moments:
(01:33) “For the average person, buying cryptocurrencies meant opening an account on an app and purchasing through an exchange.”
(07:25) “A true investment should create value, like stocks or bonds. Cryptocurrencies, like gold, are more about storing value.”
(10:56) “Be cautious with investments that are merely stores of value and subject to market whims.”
Useful Links
Connect with Jason Gabrieli: jgabrieli@HFMadvisors.com | LinkedIn
Like what you’ve heard…
Learn more about HFM HERE
Schedule time to speak with us HERE
Check out our Financial Wellness Program – HFM Ignite