Bell Wealth Q4 2023

2023

Q4

BELL WEALTH SPECIAL BELL INVESTMENTS ISSUE

Meet the Women of Bell Investments At Bell Investments, women make up a third of the team’s wealth advisors. With decades of experience, they come from different backgrounds, bring different perspectives, but share one common objective – helping their clients meet their financial goals. Get to know some of the women of Bell Investments and their approach to wealth management.

At Bell Investments, Women Advisors Help Lead the Way

Tammy Wood, CFP®, Wealth Advisor Tammy Wood never expected to work in the financial services industry, but she quickly learned it was where she belonged.

In 1997, after becoming unhappy with a job in the health and fitness industry, she was encouraged to apply for a position at a wealth management firm as an assistant to financial advisors.

It didn’t take long for her to realize that helping clients with their financial goals was truly what she wanted to be doing.

“Being able to work with people to make a difference in their future was important to me,” said Tammy, a Bell Investments wealth advisor in Fargo, N.D., who joined the firm in 2005. “I want the best for my clients. I find it rewarding to get to know them, learn about their lives and then help find the solution that’s best for them.”

Tammy is one of six women wealth advisors at Bell, compared to twelve men. That representation is unique for the financial services industry, where women make up only around 20% of financial advisors across the country, according to research by Cerulli Associates.

Bell’s women advisors bring decades of experience serving clients, and they have achieved a variety of professional designations, including CERTIFIED FINANCIAL PLANNER™ (CFP®), Chartered Financial Consultant® (ChFC®) and Certified Retirement

Lisa Moe, CFP®, Wealth Advisor Counselor® (CRC®). The women all come from different backgrounds and bring different perspectives, but they share the same passion as every employee at Bell Investments – to serve their clients.

While such a large number of women advisors might be unusual for the industry overall, at Bell it simply demonstrates the firm’s dedication to employees who care about doing the right thing, said Tammy.

“Everyone at Bell, from wealth advisors to personal bankers, wants to do what’s right for our clients,” she said.

A HOLISTIC APPROACH TO WEALTH MANAGEMENT Lisa Moe also joined Bell Investments as a wealth advisor in 2005, after spending five years in a solo practice with a large financial services firm (where she was the only woman financial advisor in the Fargo-Moorhead market).

She joined Bell partly because she wanted to be part of something bigger, she said, and immediately appreciated the varied resources she’s able to offer her clients.

“At Bell, I have the ability to refer to our mortgage division or to the bank side for CDs if that makes sense for my client’s situation,” she said. “I love being able to refer back and forth.”

In part because of those options, Lisa, like other advisors at Bell Investments,

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Paula Swanson, CRC®, Wealth Advisor takes a holistic approach to wealth planning when working with her clients.

“If someone wants to come in and open a college account, or maybe just invest some of their money, I’ll usually tell them I want to hear more about their story first,” she said. “Having a better understanding of their situation is important to be able to help them plan for their financial goals.”

BUILDING RELATIONSHIPS AND TRUST When Paula Swanson joined Bell Investments in 2011, she brought more than 10 years of experience in the investment industry working with two other strong women advisors.

While transitioning to Fargo, she was encouraged to see the success of other women with the Bell Investments team.

“There aren’t many places you can go and get the same support that Bell offers its employees,” Paula said.

As with Tammy, Lisa and other Bell advisors, Paula said it’s important for her to take the time and effort to get to know her clients on a personal level as part of the planning process.

“Getting to know my clients and understanding their goals is crucial to showing them you’re looking out for their best interest,” she said. “This business is about building relationships and building trust. Working together as a team, we help our clients reach their goals.”

The Quest for Financial Independence WOMEN FACE MORE FINANCIAL ROADBLOCKS AND STRIVE HARDER TO OVERCOME THEM

Missy Hexum, ChFC® Wealth Advisor

Hanna Kettelhut Associate Wealth Advisor

Throughout history, the barriers to financial independence for women have been especially tough—if not impossible.

For example, it was technically legal for banks to refuse credit and loans to unmarried women—and to require married women to get their husband’s permission for credit and loans—until 1974, when the Equal Credit Opportunity Act was passed.

Kristin Montgomery, CFP® Wealth Advisor

Disease Control, the average lifespan for an American male is 76, while the average woman in America will live to be 81.

HOW WOMEN DEFINE FINANCIAL INDEPENDENCE Bank of America surveyed more than 3,500 women ages 22 and older about their thoughts on financial independence.

The top three indicators of financial independence, based on that survey, included:

Fortunately, things are improving. But there are still obstacles to overcome—including the struggle for equality in finances.

For example, the latest earnings comparisons available from the U.S. Bureau of Labor Statistics reveal that full-time female workers earn only 82 percent of what their male counterparts earn.

• Being debt-free: Paying down debt provides more financial flexibility.

• Having an emergency fund: Being able to access savings when you’re in dire need provides peace of mind.

Other obstacles to financial independence for women include: • Motherhood. Women are more likely than men to take time away from work or reduce their work hours because of caregiving responsibilities. The American Association of University Women (AAUW) contends that this creates “the Motherhood Penalty,” causing mothers to make “only 58 cents for every dollar paid to fathers.”

• The ability to support yourself without any financial help: Inflation, stagnating wages and debt can make it tough to keep up with everyday expenses.

It’s important to cut back on spending, rather than asking family members or friends to help out.

Despite the obstacles women have faced—or maybe because of them—the number of women investors is growing rapidly. Based on a 2021 study by Fidelity, 67 percent of women are now investing outside of their retirement accounts, compared to 44 percent in 2019.

• Financial literacy. Men are twice as likely to take courses that lead to careers in finance.

• Life expectancy. According to the U.S. Centers for

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Many Workers Wonder When (and if) They’ll Retire INFLATION, MARKET FLUCTUATIONS, AND UNCERTAINTIES ABOUT SOCIAL SECURITY RAISE CONCERNS Retirement is supposed to be our “golden years,” but many Americans worry there will be nothing “golden” about it—and they might even have to cut back and scrape by to pay their bills (or keep working). NerdWallet reported in 2023 that 27% of Americans saved less than they normally would for retirement in the previous 12 months due to inflation. Stock market downturns and higher taxes have also challenged retirement finances for both retirees and those who are nearing retirement.

FALLING BEHIND INSTEAD OF ACHIEVING GOALS More than half of Americans report they’re behind on their retirement savings— with 35% saying they’re “significantly behind,” and 20% saying they’re “somewhat behind” on their goals. This “retirement gap,” as it’s often called, has been a common problem for generations, but it appears to be getting wider. Baby boomers— the largest generation retiring now—are currently the furthest behind in retirement savings, with only 7% ahead of their goals and 71% behind. This is concerning, because 10,000 baby boomers a day will hit retirement age between now and 2030.

David Cole Wealth Consultant

Nick Peterson Wealth Advisor

TAKE STEPS TO BE PREPARED The earlier you start to prepare for retirement, the better off you’ll be. The average American spends about 20 years in retirement, and it’s unlikely you’ll be able to depend upon your Social Security alone to get you through. The average amount of Social Security income paid to beneficiaries in December 2022 was $1,637.71 for females, and $2020.38 for males, according to the Social Security Administration.

To boost your retirement income, take these steps as soon as possible: • Start saving.

• Contribute to your employer’s retirement savings plan, if available.

• If your employer has a pension plan, check to see if you are covered, learn all you can about it and take advantage of it if possible.

• Put money into an IRA. • Make catch-up contributions to your retirement savings, if possible.

• Eliminate unnecessary expenses.

• Talk to a financial professional about creating an investment plan that fits your needs and goals.

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Michael Bale Associate Wealth Advisor

What Happens to Your Retirement Plan When You Switch Jobs

Andrew Holte Wealth Advisor

Greg Johnson Wealth Consultant

Brad Bakken, CRC®, BFA™ Wealth Advisor

Congratulations on your new job! As you navigate through a new onboarding process, you stop suddenly when you get to the discussion of retirement plans. Then you think: What about my plan at my previous employer? What do I do with the money in that account?

Good question.

You have four options for the money you’ve saved in your existing retirement account. Let’s take a look:

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STAY

CASH OUT

Your previous employer may allow you to keep the money in your plan, an attractive option that keeps things undisturbed while allowing you to accumulate tax-deferred earnings potential. If you like the plan’s options and benefits, consider leaving things as-is. However, make sure that you won’t incur special fees to participate or have restrictions on withdrawing money at a future date.

You may elect to withdraw your money in cash, though you’ll face tax consequences: Distributions incur a 20% federal withholding as well as standard income tax. If you’re under age 59.5, you’ll pay an additional 10% federal tax. State and local taxes may also apply, which collectively could sharply reduce the amount you retain.

DIRECT TRANSFER INTO AN IRA

LET ‘ER ROLL

You can transfer the money into your new employer’s plan, which continues your tax-deferred growth potential.

However, there may be rules associated with rolling over your money. Review your new plan and restrictions carefully before selecting this option.

You can also directly roll all or part of your money into an Individual Retirement Account (IRA). By rolling over all, you’ll avoid both penalties and withholding taxes. An IRA offers continued tax deferral for retirement, though check whether fees or commissions will be assessed.

Depending upon your circumstances, the money that you accumulate in an employer’s plan may be a major source of retirement income. How you choose to manage it can have a profound impact on your savings.

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John Kuhn Wealth Advisor

Ryan Johnson, AIF® Wealth Advisor

Tyler Swanson, CFP® Wealth Advisor

Financial Traps to Avoid There’s a reason why even athletes, entertainers and business people with seven-figure (and higher) incomes suddenly find themselves filing for bankruptcy.

Money mismanagement can eat through even the biggest bankrolls. Here are some specific threats to financial stability that people can avoid to help effectively manage their wealth.

NO BUDGET In 2022, a survey by Debt.com revealed that 90.24% of respondents believed everyone should have a budget (though only 85.6% of the respondents said they used one).

Budgeting does not have to mean skipping coffee and driving a jalopy for the rest of your life. It does mean paying close attention to how much money comes in and where it all goes. Use your financial goals to guide you in steering your money in the right direction.

TOO MUCH DEBT If you have a lot of debt to pay off, a budget is even more important. It helps reduce the likelihood of relying on more credit to fill the gaps. A budget also helps you to collect all those extra dollars and cents that you could put toward paying more than the bare minimum on debt. When paying off debt, start with the higher-interest accounts first and work your way through to save money.

NO RETIREMENT PLANNING A recent survey by Clever estimates that nearly 30% of Americans have nothing saved for retirement. The survey also revealed that retirees who have saved have, on average, only $191,659 saved for retirement, which is far less than the $514,800 recommended by experts.

It is never too early to start planning for retirement, no matter how small your contributions are. Remember to take advantage of matched contributions from employers whenever possible.

TOO MUCH RISK Taking on too much risk at the wrong time can lead to big financial problems.

Taking on high levels of risk is appropriate for young people who have more time to recover and is not advised for people nearing retirement.

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Budgeting does not have to mean skipping coffee and driving a jalopy for the rest of your life.

Kelly Hubrig, CFP® Wealth Advisor

Keith Burck, CFP®, CLU®, ChFC® Wealth Advisor

Shehan Navarathne Associate Wealth Advisor

Planning Your Financial Future WANT FINANCIAL SECURITY IN YOUR FUTURE? START PLANNING NOW

Creating a road map of financial goals should include short-term, intermediate and long-term goals.

Do you have a financial plan that will help you send your kids to college, take the trips you’ve dreamed about and enjoy your golden years? If not, you may want to start planning now.

Creating a financial plan may help you avoid the financial insecurity experienced by more than 15 million Americans aged 65 and older (approximately one-third of America’s older adults) who rely on incomes of $27,180 a year or less, according to The National Council on Aging (NCOA). They struggle with rising healthcare bills and housing costs, poor nutrition, lack of access to transportation and more. Even older adults who aren’t considered financially insecure may have difficulties meeting their monthly expenses—especially if they suffer a major adverse life event.

Creating a road map of financial goals should include short-term, intermediate and long-term goals. While a lot of people think about what they’d like to have at different stages of life, not many of them have an actual plan to reach those goals.

Getting started on a financial plan doesn’t necessarily take a lot of time or money, though. You can start with

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small steps, which add up and can get you closer to your goals. Recommendations include: • Review your spending and create a budget. By looking more closely at your credit card and bank statements, you may discover that you’re over- spending in some categories that don’t matter as much to you as they once did.

• Make reducing debt a priority. Interest charges can add up quickly, so do what you can to decrease what you owe.

• Create an emergency fund. If you don’t already have funds set aside for emergencies, try to contribute a set amount every week to a savings account so you can be better prepared. A $20-per-week contribution, for example, will add up to $1,040 per year (not including interest).

• Work with a financial professional. Saving money and cutting back expenses are a great start, but a financial advisor can help you determine if you’re saving enough—and what might be the best investments to help you address your financial goals.

Inside this issue: s Meet the Women of Bell Investments

www.bell.bank

15 Broadway | Fargo, ND 58102

s Women Face Obstacles in Planning for Financial Independence s How Workers Can Prepare for Retirement s New Job? Here’s What to Do with Your Retirement Plan s Key Financial Pitfalls and How to Avoid Them s Tips for Planning Your Financial Future

701.451.3000 | 800.709.5781 This newsletter has been written for the general information of clients and friends of Bell Bank. It is not intended, nor may it be relied upon, as tax or legal advice with respect to any matter. This newsletter also cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by the Internal Revenue Service or other taxing authority.

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