Jake Johnson CFP

02/02/2024

The SECURE Act 2.0, officially known as the Setting Every Community Up for Retirement Enhancement Act 2.0, is a legislative package aimed at further enhancing the retirement security of Americans. Building on the original SECURE Act passed in 2019, this iteration, signed into law as part of the broader Consolidated Appropriations Act in late 2021, introduces several key provisions:

1. **Increased Age for Required Minimum Distributions (RMDs)**: The age at which retirees must start taking withdrawals from their retirement accounts is raised from 72 to 73, eventually increasing to 75 by 2033.

2. **Expanded Automatic Enrollment**: New 401(k) and 403(b) plans are required to automatically enroll employees, though employees can opt out. This aims to increase participation rates in employer-sponsored retirement plans.

3. **Catch-Up Contribution Adjustments**: The Act allows for higher catch-up contributions to retirement accounts for individuals aged 50 and above, with further increased limits for those aged 60 through 63.

4. **Student Loan Payments as Retirement Contributions**: Employers can make matching contributions to retirement plans based on employees' student loan payments, effectively treating these loan payments as contributions for the purpose of matching.

5. **Penalty-Free Withdrawals for Emergencies**: The Act permits limited penalty-free withdrawals from retirement accounts for certain emergencies and life events, such as births or adoptions, without the usual 10% penalty for early withdrawal.

6. **Improved Access for Part-Time Workers**: The law reduces the eligibility requirements for long-term, part-time workers to participate in employer retirement plans, making it easier for these workers to save for retirement.

7. **Enhanced Tax Incentives**: It includes tax credits and other incentives aimed at both employers, to encourage them to offer retirement plans, and individuals, to make it easier and more beneficial to save.

SECURE Act 2.0 represents a significant step towards addressing the retirement savings gap faced by many Americans, offering a variety of measures designed to encourage retirement saving, simplify retirement plan administration, and make retirement plans more accessible and flexible.

01/31/2024

Understanding the Long-Term Value of Home Ownership in 2024

Hey Homebuyers and Investors! In today's market, where inflation and rising interest rates are real concerns, it's crucial to think long-term when purchasing a home.

1. Inflation Impact: With inflation on the rise, the cost of homes, along with maintenance and property taxes, is climbing. This means your investment needs time to appreciate to outpace inflation.

2. Higher Interest Rates: The recent spike in interest rates has made borrowing more expensive. Securing a mortgage now means higher monthly payments compared to previous years.

3. Building Equity Takes Time: With these economic factors, building substantial equity in your home will take longer than it might have a few years ago. Patience is key!

4. Market Fluctuations: Real estate markets are dynamic. A minimum 5-year ownership plan allows you to ride out short-term fluctuations and benefit from longer-term market growth.

5. Long-Term Financial Planning: Committing to a home for at least five years makes financial sense. It allows you to amortize upfront costs like closing fees over a longer period, ultimately reducing the impact on your wallet.

6. Potential Rental Income: If your circumstances change, owning the property for a longer duration gives you the flexibility to turn it into a rental income source, adding to its financial viability.

7. Personal Stability and Growth: Beyond finances, owning a home for a longer term offers personal and emotional stability, and the chance to grow deep community roots.

In the 2024 housing market, embracing a long-term mindset is more important than ever. Home ownership is still a valuable investment, but it's one that requires patience and strategic planning in these times of economic change.

10/04/2023

Northwestern Mutual announced their 2024 dividend payout— an expected $7.3 billion. The largest-ever. I’m proud to be part of a company that shares their success with clients, and whose financial strength allows us to be there for them through all economic conditions. Get more details: http://spr.ly/6187uzC4h

09/12/2023

Hi everyone-
I'm Jake and I wanted to share a little bit about myself and my "why" for those of you who don't know me.

I grew up in Austin, and after high school I decided to try something new and attend Texas Tech (a betrayal to my hometown, I know). While I loved my time at Texas Tech, I quickly realized that Austin is more of the place for me. In my search for a way home, I took the first offer that materialized, which happened to be a Northwestern Mutual Internship. What I didn't expect was that a seemingly fun little internship ended up being the place I would build my career. Knowing that I could help answer the financial questions for people that I always wanted answered, It felt like the easiest calling to ever say yes to.

Throughout my career, I've grown into what I think of as a "lifestyle" financial advisor. As my work has evolved, I've realized that everyone deserves to understand the full financial planning options that are available to them, and that their wildest dreams are not wild.

By taking a holistic approach to financial health, I believe we can all find a way to create the kind of life we want to live.

Feel free to DM or email me if you have any questions! *We are currently accepting new clients

08/31/2023

Studies show we’re living longer these days. And spending more years in retirement. Think of all the things you’ll do. But you’ll need a strong financial plan. Reach out and let’s make sure your plan has you prepared to do all the things you want for all the years ahead. http://spr.ly/6185PtxJV

08/29/2023

A look at some of the financial lessons learned during COVID.

If you could go back, what would you do differently during COVID? Here, we look at the question through the lens of financial planning and investing.

08/28/2023

I believe in lending a hand in our communities however I can. In response to the devastating wildfires in Lahaina, Hawaii, I’m proud that the Northwestern Mutual Foundation is committed to matching donations from financial advisors, their teams, and employees to the American Red Cross.

You can help make a difference, too. Please consider contributing now. http://spr.ly/6185PS0eD

08/24/2023

The answer is personal and depends on several variables.

Figuring out how much money you’ll need on a monthly basis will depend on your lifestyle, goals and unique retirement vision. These prompts can help you get started.

08/17/2023

For affluent families looking to leave a legacy of multigenerational wealth, a dynasty trust is one of the most powerful tools in your estate planner’s toolkit. Connect with me today if you’re ready to begin your legacy planning journey.

The key difference between dynasty trusts and other types of irrevocable trusts is duration. While other types of trusts terminate at a predetermined point in time (such as when children reach a certain age), dynasty trusts can exist for an exceptionally long time or even forever, providing financia...

08/16/2023

Set the future of your business up for success with the right succession plan. I’ll help you think of your next move before you even have to make it. Here’s what else you need to know:

Building a business succession plan is one of the most critical things you can do for your business. Here are some key steps to consider.