ICON in the News




Matt McKellar and David Moretsky have once again been named to Seattle Magazine's list of "Five Star Wealth Managers: Best in Client Satisfaction" for the April 2010 edition. Seattle magazine formed a partnership with Crescendo Business Services, an independent research firm, to identify the “best in client satisfaction” wealth managers serving the Seattle area. The resulting list of 2010 FIVE STAR Wealth Managers is an elite group, representing less than 4 percent of the wealth managers in the Seattle area.  Thanks to our clients for nominating us, once again!  For the full details of ICON's listing description, please visit here.

  


 





David Moretsky and ICON Consulting were recently featured in a personal financial planning article on the front page of the Seattle Times' Sunday Business section on personal finance titled

"Financial makeover: Family faces tough time with hope and a plan - A Bellevue family is struck by serious illnesses, old debts and the possible end to their only job." 

The Times was doing a "Financial Makeover" series and was looking to feature a financial planner with the CERTIFIED FINANCIAL PLANNER TM designation.  They profiled one of ICON's Founders (David Moretsky, ChFC, CFP®) during the initial stages of a financial planning and wealth management relationship with a local couple. For the full article, please visit here.  To visit the article on the Seattle Times Site, visit here.

 

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One of ICON's Founders, Matt McKellar, ChFC, CFP has recently published an article titled "Ways to Afford Your Retirement Account Catch Up Contributions".  To view the full article, please visit here.  


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Matt McKellar has once again been named to Seattle Magazine's 2009 list of "Five Star Wealth Managers: Best in Client Satisfaction" for the April edition. Seattle magazine formed a partnership with Crescendo Business Services, an independent research firm, to identify the “best in client satisfaction” wealth managers serving the Seattle area. In September, Crescendo surveyed, by mail and phone 40,000 high-net-worth residents in the Seattle area and subscribers of Seattle magazine. An additional 6,900 surveys were sent to leaders of financial service industry companies. On the surveys, recipients were asked to select only wealth managers whom they knew through personal experience, and to evaluate them based upon nine criteria: customer service, integrity, knowledge/expertise, communication, value for fee charged, meeting of financial objectives, post-sale-service, quality of recommendations and overall satisfaction.  Both positive and negative evaluations were included in the scoring, and only wealth managers with five years of experience in the financial services industry were considered. Next, each wealth manager was reviewed for regulatory actions, civil judicial actions and customer complaints as reported by FINRA (the Financial Industry Regulatory Authority) and other regulatory agencies.  Then, before finalizing the list, wealth managers were reviewed by a blue-ribbon panel comprised of knowledgeable individuals from within the financial services industry.  The resulting list of 2009 FIVE STAR Wealth Managers is an elite group, representing less than 4 percent of the wealth managers in the Seattle area.  Thanks to our clients for nominating us, once again!

 



  • ICON's Co-Founder, Matt McKellar, CFP® and ICON Consulting were recently featured in the November issue of Seattle Business Monthly, as receipients of the Five Star Wealth Manager award.  For additional information, please visit their publication online at:  www.seattlebusinessmonthly.com.
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In case you missed the article in Fortune Small Business, Bellevue was ranked as the #1 place in the United States to live and launch a business.  We chose to start ICON in Bellevue for a variety of reasons, many of which are listed in the article.  It has been an excellent community for ICON and our clients, and we plan on remaining here for years to come.  Here is an excerpt from the piece:


Are job worries tempting you to start your own company? We canvassed the country to find towns with the best mix of business advantages and lifestyle appeal.  The No. 1 champion: Bellevue, WA.  Like many of the places on our list, Bellevue is a city in transition: no longer a bedroom community, but not yet a crowded, expensive metropolitan hub. Bellevue has grown with unusual grace in recent years. Huge corporations exist symbiotically with startups, a booming downtown abuts healthy residential neighborhoods, and the rising skyline is tempered by an abundance of parks, as well as lakeside and mountain views. Flash retailers such as Neiman Marcus draw regional shoppers, but Bellevue's excellent healthcare and schools are key attractions for relocating families. While local businesses must pay the statewide Business and Occupations tax on their gross receipts, there's no corporate income tax. Businesses with less than $135,000 in taxable revenues (the highest threshold in the area) don't have to pay the B&O tax. Easy airport access and a highly skilled workforce make Bellevue an attractive option for startups looking to break big.

For the full article, please visit here



ICON's Co-Founder, Matt McKellar, CFP®  has
been chosen to receive the "2008 Five Star Wealth Manager: Best in Client Satisfaction” award that will be featured in Seattle Magazine.  The award is given to Seattle area financial planners who have been evaluated on nine different levels of service.  He will be listed in the Bellevue "Financial Planner" or "Financial Planning" section of the piece, and it will run in Seattle Magazine's April 2008 issue highlighting the area's "Best Wealth Managers".  For more information, view the publication at www.SeattleMagazine.com.

 

   


Matt McKellar and ICON Consulting were recently featured in a personal financial planning article on the front page of the Seattle Times' Sunday Business section on personal finance titled "Can you have your cake and retire too?"  The Times was doing a "Financial Makeover" series and was looking to feature a financial planner with the CERTIFIED FINANCIAL PLANNER TM designation.  They profiled one of ICON's Founders (Matt McKellar, CFP®) during the initial stages of a financial planning and wealth management relationship with a local couple.  Here are a few excerpts from the interview series:



"Saving is important to this young couple, but they also dream of traveling to South America next year.  Smart planning can help them enjoy life now while providing for the future.  ‘Lauren likes to travel, and I like to do things that make her happy’ . . . Would it be wiser to invest that amount in a retirement plan, put the money toward home renovation projects, or save it in case they decide to have children?"

"Certified financial planner Matt McKellar analyzed what he called (their) financial DNA.  McKellar, who is President and Co-Founder of ICON Consulting in Bellevue, said Joe and Lauren are underfunding their retirement savings . . . 'Planning is a process of trying to bring the future into the present so we can do something about it,' McKellar said.  'They are doing great with short and midrange financial goals.  Now they need to focus on long-term investments."

"The biggest asset they have right now is their ability to earn a paycheck,' McKellar said.  'If that goes away for an extended period of time, all their hard work saving money is undone and they might never recover."

"Both were surprised McKellar was supportive of their Argentina plans . . . 'He kept telling us life doesn't start at 55 or 60 and we've worked hard for our money so we should take a vacation and have fun,' Joe added.  'That was unexpected.  I'm kind of getting excited about going."

For the full article in PDF reprint format, please click here.  For an archived link to the Seattle Times website, you will want to click here.


Matt McKellar and ICON Consulting were also featured in a related article in the Seattle Times about personal financial planning titled "Love, marriage and baking: 1 account or 2?"  Here are a few excerpts from the piece:

"I shouldn't have to ask for permission to get my hair done,' she said.  (They) are like a growing number of couples who keep their finances separate . . . Are separate savings and checking accounts a good idea?  Matt McKellar, President of ICON Consulting in Bellevue and a member of the Financial Planning Association, recommends a joint account."  

"From what I've seen through working with hundreds of families, it's more efficient to run all income and expenses from one account,' McKellar said.  'The most common problem with separate accounts is that one partner doesn't know what the other is spending or saving.'  Another advantage is many banks and brokerages offer better interest rates for higher balances, which are easier to maintain through a joint account."

For the full article, please click here.  Also, featured on Bride.net.  For an archived link to the Seattle Times website, you will want to click here.




WiserAdvisor announces that Matt McKellar, CFP® of ICON Consulting has been awarded admittance as a member of its directory of financial advisors.  Financial advisors are granted admission into WiserAdvisor based on their credentials and qualifications. All members offer their services to investors with a fee rather than solely with commissions, allowing them to assist investors with a variety of different investment options. All members are also properly registered with the SEC, FINRA or other regulatory organizations. Because of the strict standards that a financial professional must meet in order to become a member, WiserAdvisor only admits a select few high-quality financial advisors and financial planners. More than 600,000 professionals can provide insurance and financial advice. Less than 1% have been granted membership into WiserAdvisor. 

 
For additional information, please visit here for a demo of ICON's offerings.  For inquiries, questions, or to schedule a complimentary review, please click here.

Tell a friend, click here

 

 



Ways to Afford Your Retirement Account Catch-Up Contributions 

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Turning 50 might not be everyone’s idea of excitement, but when it comes to saving for retirement, 50 is when things start getting a lot more interesting.

That’s because people age 50 and over can make what are known as “catch-up” contributions to IRAs and most workplace-based retirement plans. These special contributions are in addition to regular contribution limits and allow individuals to maximize the amount of tax-advantaged retirement savings they can stash away.

The catch-up phenomenon has never been more important as American workers attempt to rebuild retirement savings devastated by recent market losses. Taxpayers 50 or older are permitted to make additional contributions beyond standard limits. For calendar year 2010, here are the standard contribution limits with their catch-up amount:

1. Traditional and Roth IRAs have a standard contribution limit of $5,000 with an over-50 catch-up contribution of $1,000 for a total contribution limit of $6,000.
2. SIMPLE IRAs have a standard contribution limit of $11,500 with an over-50 catch-up contribution of $2,500 for a total contribution limit of $14,000.
3. 401(k), 403(b), 457(b), Roth 401(k) and Roth 403(b) plans have a standard contribution limit of $16,500 with a catch-up contribution of $5,500 for a total contribution limit of $22,000.

So, where to find the money? Here are some suggestions to make it happen:

Earn more: Yes, a tall order in a tough economy. But if you can take on extra freelance work or a part-time job that you enjoy, you can work to extinguish debt and maximize your savings.

Cut out the extras: Either on paper or on the computer, write down every dollar you spend in the average week (and cut off credit card use during that week). At the end of that week, start marking out non-essential items just to see how much you could live without. Start with gourmet coffee and restaurant or carryout meals and work backward from there. And don’t forget those regular monthly expenditures that can really add up. Do you really need premium cable? Can you surrender your landline in favor of a cell phone that’s matched to the exact number of minutes you’ll need? Can you afford a higher deductible on your health, home or auto insurance to save on premiums?

Set a budget: Once you’ve established how your income covers the essential expenses you must plan for and a few inexpensive treats that should stay in, build a budget that includes specific amounts you can allocate toward debt. Going forward, keep a running total of your spending and revisit how that budget is working on a monthly basis until you start to see some positive results, and then you can review the performance of that budget a little less frequently.

If you can do it safely, take over home and auto maintenance yourself: The do-it-yourself movement is in a new phase with the economic downturn. For any home or auto maintenance chores you may have during the year, learn as much as you can about those tasks and estimate the cost of materials and your time before doing them yourself. Previous generations made do-it-yourself a necessity. See if that option is right for you and you might save considerable money doing it. Also, for bigger jobs, pair up with friends and family and you can help each other save money.

Turn down the thermostat and park the car: Don’t underestimate the value of energy savings in your budget. Keep the temperature down at home and opt for public transit, biking and walking where you need to go. For a look at how much public transit can save you, go to the American Public Transit Association’s gas savings calculator (http://www.publictransportation.org/contact/stories/calculator_08.asp). And if you’re going to walk or bike, that’s not only going to save your money, it’ll do wonders for your health.

Go debit: Debit cards wearing a bankcard logo are typically welcome at most stores where credit cards are accepted. This way, you pay cash without carrying cash. If you don’t have such a card, you can probably get one from your bank to replace your traditional ATM card, but remember to tell them to limit your buying power on the card to only what you have in your account. And use overdraft protection to avoid fees.

Buy used for yourself: If you need clothing, a car or a new watch to replace the old one that’s past fixing, it might be worthwhile to buy second-hand at shops or on the Internet. Plenty of people have unloaded items in relatively good shape to bring in cash during the recent downturn. Get in the habit of saving money on everything.

 

Matt McKellar, ChFC, CFP®
President & Co-Founder, ICON Consulting


This column is provided by Matt McKellar, CFP® with assistance from the Financial Planning Association. Matt is a Certified Financial Planner TM Practitioner, President of ICON Consulting in Bellevue, and a local member of the Financial Planning Association of Puget Sound. He is also the recipient of the 2008, 2009, and 2010 “Five Star Wealth Manager: Best in Client Satisfaction” award featured in Seattle Magazine. Matt can be reached at (425) 462-ICON or www.ICONconsultingllc.com.

 

Money Makeover

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Financial makeover: Family faces tough time with hope and a plan
A Bellevue family is struck by serious illnesses, old debts and the possible end to their only job.

By Michelle Archer

Special to The Seattle Times
When it comes to personal-finance matters, Matthew Lang says he and his family try to follow three rules.

"The first rule is to live within our means," says Lang, a 51-year-old instructional designer from Bellevue.

To that end, Lang and his wife, Leona, have stopped using credit cards, though they do have old balances on three different cards they are having trouble paying off. This ties in with the next tenet.

"Rule No. 2 is to pay down debt," Lang continues.

Along with the couple thousand they owe on the three cards, the Langs are saddled with more than $40,000 in student-loan debts. Some of the loans are more than 20 years old and one recently went into default.

The third rule, Lang says, is to save.

"We never get to rule No. 3," he said.

Progress on this goal has been stymied by what Matthew calls an endless stream of Job-like calamities over the years.

The Langs' 18-year-old son, Aaron, was diagnosed with leukemia in 1995. At the time, they didn't have health insurance, but received help through their church.

Though Aaron has been in remission for years, Leona, 56, has faced health issues as well.

Five years ago, she fell at work and injured her back. Through treatment, she learned she had arthritis in her hip and spinal stenosis.

Though Matthew's health insurance through his job at the time covered Leona's subsequent back surgery, they were responsible for more than $5,000 in deductibles and out-of-pocket costs.

Since Leona has been unable to return to work as a para-educator helping handicapped students, her husband has been the sole provider.

After a series of permanent and contract jobs, he was laid off in 2008. In June of last year, Matthew Lang secured a yearlong contract position at Microsoft, making $44 an hour without benefits, a position he says he's glad to have.

But what happens when his contract is up this summer is a big question mark.

"We have no buffer when calamity strikes," he said.

Adding to the discouragement was a spate of car trouble late last year. The Langs spent $1,200 on motor mounts for their car, which had a lot of miles on it but was paid for, only to have the transmission go out shortly after.

With not enough money to replace it and a poor credit rating, the Langs were forced to take a high-interest loan for a used car.

"Currently, I and my family have no health or dental insurance," Matthew Lang said. "We own no home and have no particular assets."

Matthew Lang said he'd welcome financial counseling that would help them be rid of debt once and for all and prepare for retirement.

David Moretsky, president and co-founder of ICON Consulting, in Bellevue, sat down with the Langs to review their financial situation.

Moretsky, who's also a member of the Financial Planning Association — Puget Sound Chapter, cautioned the Langs that they are financially on the brink and agreed they must face their debts.

"They can elect to simply ignore (student-loan) debt, but this will ultimately result in a very challenging lifestyle," Moretsky said, adding that lenders could take measures such as wage garnishment that would reduce their income, destroy their credit rating and wipe out their ability to ever own a house.

Moretsky developed a number of short-term action items for the Langs, as well as a projected financial plan that incorporated a proposed schedule for paying off their debts and putting aside money for an emergency fund, a deposit on a home and for retirement.

Among the immediate recommendations, Moretsky suggested:

• Debt counseling: Moretsky referred the Langs to the National Foundation for Credit Counseling, a consortium of low-cost or free certified agencies that would work with the Langs and their creditors to try to get all fees (such as late, past due or over-limit charges) forgiven and work out lower interest rates and a payment plan.

At least one of the Langs' credit cards has such a high interest rate that making the minimum payment each month does nothing to lower the balance on the card.

"As part of the process, all the accounts in question are closed, which can have an initial 'ding' on your credit (score), but this is necessary to make progress," Moretsky told the Langs.

Matthew Lang says he's already called a credit counselor and set up an appointment for next week.

"When we went into this, we were really looking for real help," he said. "If someone recommends something that can help us, we're going to work on it."

• Contact student-loan lenders: Moretsky discovered that the Langs' student loans are all federally backed and therefore, out of the credit counselor's scope.

Moretsky advised Matthew Lang to call the lenders directly to discuss deferment (where loans are put on hold for a period of time with interest paid by the government) or forbearance (where loans are also deferred for a period of time, but interest continues to accrue).

Lang said he's followed through with that advice and is working with the lender to get the student loan that has defaulted back into rehabilitation.

"Basically, we need to lay out some money here in the short term to get it back into normal status" before seeking deferment or a forbearance, Lang said.

• Get health insurance: It's critically important that the Langs obtain coverage, Moretsky said.

He found an individual plan that provides family coverage for $760 a month and recommended that type of policy unless or until the Langs can get on a plan that is sponsored by an employer.

Though it's a hefty sum, Moretsky calculated that it's within their budget at Matthew Lang's current income.

Since Leona Lang has been unable to work, Moretsky suggested she check into her eligibility to receive disability benefits from Social Security.

Matthew Lang says his wife already has filled out all the paperwork and had a phone interview regarding her eligibility. They'll know within four to six weeks whether she qualifies, he said.

Also on the horizon is the question of Lang's employment contract. When his year with Microsoft is up this June, he says he'll have to leave for 100 days before returning as a contractor.

Ideally, the Redmond-based software giant would hire him or he'd find a permanent position elsewhere.

Lang said his earning potential is his financial bright spot, and Moretsky agreed.

"I believe their best bet would be to leverage Matthew's expertise and ability to work and earn a good living," Moretsky said. "If he can move his contract work to something more permanent, even if it requires a reduction in pay, this could be quite beneficial to their overall situation."

Moretsky said it would allow Lang to obtain many benefits, such as health insurance, an employer-sponsored retirement account, and life and disability insurance, at little to no cost.

"This could further free up money to put towards debt reduction and earlier retirement," Moretsky said.

For his part, Lang says the plan Moretsky created for them seems a little overwhelming, but it could work if positive things happen.

"We've taken more than our share of hard knocks," Lang said. "My struggle is in having faith that the positive things will happen."

Lang said that he and his family are thankful to have a plan laid out for them, and that Moretsky couched it in terms they could understand.

"And now we take the first steps and hope they work," Lang said. "And take us to the next step."

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  A Locally Owned Firm Focused On Helping Our Clients Create, Grow and Protect Their Wealth 

* Comprehensive Wealth Management and Fee-Based Financial Planning
* Private investment management strategies to help minimize portfolio risk, taxes and fees
* Unbiased risk management and asset protection planning / personalized estate preservation strategies

Specializing in: Independent investment consulting, personalized tax planning and retirement income distribution strategies

Matt and David are ICON Co-Founders, Certified Financial Planners (CFP) and Chartered Financial Consultants (ChFC)

With over 25 years of experience, Matt and David have positioned ICON Consulting as one of the industry’s leading independent wealth management and financial planning firms. Their ability to solidify numerous strategic alliances provides ICON the resources of a much larger company while allowing them to maintain their independence and boutique feel. This allows them to deliver more personalized attention to clients and has enabled them to emerge as a leader in the field with respect to strategic, knowledge based consulting. Growing and maintaining wealth requires education, and it is extremely difficult to navigate the financial world without the help of someone you can fully trust to guide you. As their clients’ “Personal CFO”, ICON provides the vision, direction and intellectual capital needed to help clients meet their goals. What is your ICONworth? Find out at www.ICONworth.com.