General Planning

Topic: Cash Flow Management. Why budget?

Summary: Budgeting is a powerful financial tool that puts you in control of your money, helping you reduce wasteful spending, manage bills, pay off debt, save for what truly matters, and prepare for the unexpected.

More than just numbers, a budget is a reflection of your values and goals—it’s how you tell your money where to go instead of wondering where it went.

Five Simple Steps to Create and Use a Budget

1. Estimate your monthly income
   List all income sources conservatively to get a reliable picture of what’s coming in.

2. Identify and estimate your monthly expenses
   Break down fixed and variable expenses, including annual ones, to understand your spending patterns.

3. Compare income and expenses, and align with your goals
   Use any surplus to fund savings or investment goals—or adjust if you’re in deficit.

4. Track your spending and evaluate monthly
   Monitor your actual spending versus planned, then refine your budget as needed.

5. Stick with it and make budgeting a habit
   Create systems that work for you, automate your savings, and adjust as your life evolves.

Use this FREE Nerdwallet Budget Template to get started today! Consider investing in an online tool like Monarch Money to save you time, our most precious asset.

Investment Planning

Topic: 5 Questions to Ask Before You Invest

Summary: Before investing your money, it’s vital to take a step back and ask key questions to protect yourself and make informed decisions.

The U.S. Securities and Exchange Commission (SEC) recommends five foundational questions to guide every investor—whether you're just starting or already on your journey. These questions serve as a compass to help you navigate the risks, responsibilities, and realities of investing:

1. Is the person offering the investment licensed?

2. Is the investment registered with the SEC or my state regulator?

3. What are the risks compared to the potential rewards?

4. Do I understand how this investment works?

5. Where can I turn for help if something goes wrong?

 Read the full article here.

III. Estate Planning

Topic: What it is and why is it Important?

Summary: Estate planning is the process of documenting your healthcare wishes, asset distribution, and decision-making authority so your preferences are honored if you become incapacitated or pass away (freewill.com). It empowers you to:

• Define who will manage your affairs if you can’t, through powers of attorney and healthcare directives in the event of mental or physical disability.

• Specify how your assets are distributed, via wills, trusts, and beneficiary designations.

• Minimize the time, cost, and conflict of probate through tools like revocable living trusts.

• Plan effectively for loved ones, including children, special‑needs family members, and charitable intentions.

• Adapt to life changes such as new assets, relationships, or health events over time.

Download this Estate Planning Checklist from FreeWill.com and schedule time to complete it.

Tax Planning

Topic: When to Check Your W4 Tax Withholdings
Summary:
According to the IRS website you should check your tax withholding every year, especially:

When you have a major life change:

• New job or other paid work

• Major income change

• Marriage

• Child birth or adoption

• Home purchase

OR if you changed your tax withholding mid-year

• Check your tax withholding at year-end, and adjust as needed with a new W-4

If you have more questions about your withholding, ask your employer or tax advisor.

Use this tax withholding estimator to help you make your decision

Watch this video for a step-by-step guide on how to fill out a W-4 form.

General Planning

Topic: Budgeting Through Generations without Shame with Maria Perez (Working Mother & Mexican Immigrant turned Millionaire) - The MindfulMillions Podcast: Episode 2

Key Takeaways:

• Viewing budgeting as an act of self‑care and agency—“what gets measured gets managed.”

• Financial tools don’t have to be fancy or expensive—starting simple is okay.

• Emotional honesty about money can lead to greater financial health and autonomy.

• Aligning spending and saving with values fosters peace of mind and sustainable habits.

 Listen to the full episode on Spotify or Apple! Episode 3 dropping in August. More about the episode in the Tax Planning section below.

Investment Planning

Topic: What is an Investment Portfolio’s Asset Allocation?

Summary: Investment portfolios (group of accounts) should have a target asset allocation that aligns with the investor’s risk tolerance, goals, and time horizon.

By diversifying across stocks, bonds, and cash (i.e. asset classes), these portfolios aim to provide balanced growth, income, and stability tailored to different investment profiles. The portfolios range from 100% fixed income (most conservative) to 100% stock (most aggressive) asset allocations.

Always keep in mind, historical performance is NO GUARANTEE of future performance.

The appropriate investment strategy aka target asset allocation will depend on each individual or household’s risk tolerance, goals and time horizon to be invested. And eventually once you start withdraw, your withdrawal rate.

 Read the full article here: Investment Portfolios: Asset Allocation Models.

 See Vanguard’s 10 and 30 year Forecasts to factor in when deciding on your target asset allocation.

Estate Planning

Topic: Keys to a Successful Estate Plan

Summary: 

1. Estate planning involves decisions and legal documents (trusts, wills, power of attorney, health care proxy) to protect assets and heirs.

2. Choose an executor/trustee, POA, and health care proxy who align with your intent and can act responsibly.

3. Use tools to organize asset information, beneficiary designations, and legal decisions in one place.

4. Fund trusts properly by retitling assets, update beneficiaries, and prepare letters of instruction to align documentation with your wishes.

5. Review your plan every 3–5 years—or after major life events—to avoid outdated fiduciary roles, tax issues, or misdirected transfers.

 Click here to read Fidelity’s full article.

Tax Planning

Topic: Tax Planning Pitfalls for Small Business Owners

Summary:

1. Mixing Business and Personal Finances

Pitfall: Using one bank account or credit card for both personal and business expenses.
Consequence: Makes it harder to track deductions, invites IRS scrutiny, and may compromise legal protections (especially for LLCs and corporations).
Fix: Set up separate business accounts and consistently use them for business-related transactions.

2. Failing to Make Quarterly Estimated Tax Payments (QETP)

Pitfall: Not paying taxes throughout the year on self-employment income.
Consequence: Leads to underpayment penalties and a large unexpected tax bill at year-end.
Fix: Estimate quarterly taxes using IRS Form 1040-ES or work with a tax advisor to stay on schedule.

3. Choosing the Wrong Business Structure

Pitfall: Staying a sole proprietor or LLC when an S-Corp election might offer tax savings.
Consequence: Overpaying self-employment taxes.
Fix: Review your business income annually to evaluate whether an S-Corp or other structure is more tax-efficient.

4. Missing Deductions or Misclassifying Expenses

Pitfall: Overlooking legitimate deductions like home office, mileage, or business meals — or improperly claiming personal costs as business expenses.
Consequence: Higher tax liability or risk of audit.
Fix: Keep detailed records and consult a professional to ensure proper expense categorization.

5. Not Planning for Retirement Contributions

Pitfall: Delaying or ignoring retirement savings options like a SEP IRA, Solo 401(k), or SIMPLE IRA.
Consequence: Missing out on valuable tax deductions and long-term savings.
Fix: Work with a financial advisor to identify the best plan based on your business’s cash flow and income.

Get ready for Episode 3 of The Mindful Millions Podcast—dropping this August! I sit down with Julia Carlos, a savvy accountant helping small business owners master their taxes and plan for growth. You won’t want to miss it! Please, share, like, comment and follow! I would love to hear from listeners what topics they would like to learn more about!

Closing Quote & Reflection

“When speculation is rewarded and discipline is punished, the temptation is to join the recklessness. Resist it.”
— John P. Hussman (Read his latest market commentary here.)

Hussman reminds us that resisting speculative hype can feel lonely or foolish in the short term—especially when everyone else seems to be winning.

But chasing unsustainable gains often leads to deeper regret when the bubble bursts. I encourage clients to reflect on their personal values, define what success truly means to them, and prioritize long-term resilience over short-term applause.

Staying grounded in discipline may not always feel rewarding in the moment, but it’s often the wiser—and more authentic—path.

Thank you for being a part of the Mindful Millions community. Please feel free to reply with your thoughts, questions, or topic suggestions to cover in future editions. 

Be well.

Write soon, 

Cristina

General Planning

Topic: Open enrollment season is here! This is an opportunity to review your benefits. And this is your reminder to be proactive and realize that it matters! The following are key takeaway’s from the article “10 Items for Every Employee’s Open Enrollment Checklist” which you can click the link to read the full article.

Key Takeaways

1. Be Informed: Learn key terms like premium, deductible, copay, coinsurance, in/out-of-network. Ask HR or find the definition if anything is unclear.

2. Evaluate Beyond Cost: Compare last year’s medical expenses to each plan’s total cost (not just the paycheck deduction). Review your supplemental benefits (dental, vision, disability, pet insurance) often offered at lower group rates for employees.

3. Use Resources & Collaborate: Meet with your trusted family or friend, HR dept. and/or a financial planner—don’t choose in isolation. Maximize HSAs/FSAs for pre-tax savings. Coordinate with your spouse’s benefits; check for surcharges. If under 26, confirm staying on a parent’s plan still makes sense

Tip For Employees:

Look beyond the paycheck deduction — calculate your total potential cost of care. Consider premiums, deductibles, copays, coinsurance, and out-of-pocket maximums to choose a plan that truly fits your usage and needs.

Tip For Small Business Employers:

Communicate benefits early, clearly, and simply. Provide side-by-side plan comparisons, plain-language explanations, and opportunities for questions to ensure employees understand and appreciate the value of their benefits.

Investment Planning

Topic: Evaluate upcoming required distributions for RMDs (Required Minimum Distributions).

Key Takeaways:

1. Tax Implications: RMDs are fully taxable as ordinary income, can push you into higher tax brackets (impacting Social Security and Medicare costs), and may be mitigated by strategic Roth conversions before RMD age.

2. First RMD Year: You can delay your first RMD until April 1 of the following year, but that may cause two RMDs in one tax year, potentially increasing taxes.

3. Timing of Withdrawals: Monthly, Quarterly vs. Lump Sum: Some prefer spreading RMDs evenly throughout the year for cash flow; others take it late in the year to allow more tax-deferred growth.

4. Account Type Differences: IRAs vs. 401(k)s: RMDs from IRAs can be aggregated and taken from one account; meanwhile 401(k) RMDs must be taken separately from each plan, though current employees (under 5% ownership) may defer them.

5. Inherited IRAs: Subject to special rules under the SECURE Act (and SECURE 2.0). Most non-spouse beneficiaries must empty the account within 10 years of inheritance (with possible annual RMDs depending on decedent’s age). Spouses have more flexibility (treat as own IRA, or maintain inherited IRA).

6. Coordination With Other Income Sources: RMDs layered on top of pensions, Social Security, or part-time work can cause higher tax liability. Managing distributions in retirement can help smooth taxable income over time.

7. Qualified Charitable Distributions (QCDs): If over 70½, you can direct up to $100,000/year (indexed for inflation) from your IRA directly to charity. Counts toward RMD, but excluded from taxable income. Particularly useful if you don’t itemize deductions.

8. Estate & Legacy Planning: Consider how beneficiaries will be taxed: non-spouse heirs face compressed distribution timelines (10-year rule). If heirs are in higher tax brackets, Roth conversions during your lifetime may leave them better off.

9. Investment Allocation & Withdrawal Coordination: Ensure the portfolio maintains enough liquidity for RMDs (don’t get forced to sell equities during a downturn). Sometimes directing RMDs from bond/cash allocations can maintain long-term equity exposure but would increase volatility if strategy is not rebalanced.

Pro Tip: Read this article to understand what are RMDs?

Estate Planning

Topic: Audit your beneficiary designations. Again. or helps prevent costly mistakes.

Key Takeaways: Keeping beneficiary designations accurate and up to date ensures assets transfer as intended and smoothly, while reviewing them with your advisor helps prevent costly mistakes and ensure your designations align with your wishes.

Pro Tip: View this simple Raymond Jame’s Beneficiary Checklist Templateand use it to do a review of your beneficiaries. Or use it to model your own Google or Excel Sheet that you can continue to expand on!

Tax Planning

Topic: Independent Contractors and Self-Employed individuals, reminder to make your Quarterly Estimated Tax Payments by due date September 15!

Key Takeaways: Step-by-Step Process

1. Calculate How Much to Pay: Use IRS Form 1040-ES to estimate your total tax liability. Divide that annual amount into four equal payments. Adjust if your income is uneven using the Annualized Income Installment Method.

2. Choose Your Payment Method:

• IRS Direct Pay: Directly from your bank account (https://www.irs.gov/payments/direct-pay)

• Electronic Federal Tax Payment System (EFTPS): Schedule payments and view history (https://www.eftps.gov/)

• IRS2Go App: Mobile-friendly payment option

• By Check or Money Order: Mail with Form 1040-ES voucher to the IRS address for your state

3. Know the Due Schedule:

• April 15 - for income earned Jan-Mar

• June 15 - for income earned Apr-May

• September 15 - for income earned Jun-Aug

• January 15 (following year) - for income earned Sep-Dec

Additional Notes

• You must pay if you expect to owe $1,000+ in tax after withholding/credits.

• Avoid underpayment penalties by paying either:

  • 90% of current year tax, or

  • 100% of last year's tax (110% if AGI > $150,000).

Helpful Resources:

• IRS.gov/payments (to pay by bank ACH, card)

• Pay By Mail (Check/Money Order)

• Form 1040-ES: https://www.irs.gov/pub/irs-pdf/f1040es.pdf

• IRS Withholding Estimator: https://www.irs.gov/individuals/tax-withholding-estimator

• EFTPS Payment Portal: https://www.eftps.gov/

Pro Tip: If you need help calculating your QETP amount, contact your CPA or tax professional. If you need a referral, reach out to me.

Thank you for being a part of the Mindful Millions community. This newsletter is meant to nurture your financial journey with intention, insight, and integrity. 

If you found it helpful please forward it to someone and encourage them to subscribe.

And please feel free to reply with your thoughts, questions, or topic suggestions to cover in future editions. 

With gratitude,

Cristina

Special edition… it’s Cristina’s birthday month!

Year-end tax and gift planning special edition.