Bartholomew & Company, Inc.Thomas J. Bartholomew, AIF®President, CEO370 Main Street, Suite 1000Worcester, MA 01608508-753-8807800-440-8807info@bartandco.comwww.bartandco.com

November 2019Tips for Managing Your HolidaySpending

Real Estate Investing 101

Should parents "go for broke" on youthsports?

Cartoon: Higher Education

Do Millennials Need Life Insurance?

See disclaimer on final page

DREAM BIG.

START SMALL.

BUT MOST OF ALL, START.

Simon Sinek

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If you are struggling to get startedwith your financial plan or if you areconsidering changes to your existingone, please give us a call at508-753-8807.

We are here to help you create afinancial plan that makes sense foryour future.

All the best,

Tom

The financial challengesmillennials face can beoverwhelming. Manyyoung adults have tofigure out how to pay offcollege loans, save tobuy a home or start afamily, and sock awaymoney for retirement.

Given these hurdles, it's no wonder that lifeinsurance as a financial asset gets little to noattention. But it should. There are manyreasons to have life insurance at a relativelyyoung age, but here are some common ones.

Leaving your debts for others to payAs a young adult, you become moreindependent and self-sufficient. While you nolonger depend on others for your financialwell-being, your death might still create afinancial hardship for those you leave behind.

You may have debts such as a mortgage orstudent loans that are jointly held with anotherperson. Or you may be paying your parents forloans they took out (e.g., PLUS loans) to helppay for your education. Your untimely deathwould leave others responsible for some or allof these debts. You might consider purchasingenough life insurance to cover your financialobligations so others don't have to.

Funeral expenses can also be a burden forthose you leave behind. Life insurance couldease the financial burden of paying for youruninsured medical bills (if any) and for costsassociated with your funeral and burial.

It's less expensivePremiums for life insurance are based on manyfactors, including age and health. Certainly, theyounger and presumably healthier you are, theless your coverage will cost. This is especiallytrue if you are at a high risk for developing amedical condition later in life.

Replacing lost incomeSomeone may be relying on your income forfinancial support. For instance, you may beproviding for a family member such as a parent,grandparent, or sibling. In each of theseinstances, how would your income be replaced

if you died? The death benefit from lifeinsurance can help replace your income afteryou're gone.

Providing for your familyAs your family grows, so do your financialresponsibilities. There is likely a hefty mortgageto pay. And there are costs associated withyoung children. If you died without lifeinsurance, how would the mortgage get paid?Could your surviving spouse or partner coverthe costs of day care and housekeeping?

And there are events you should plan for nowthat won't happen until several years in thefuture. Maybe you'll begin saving for your kids'college education while trying to save as muchas you can for your retirement. Over the nextseveral decades, think about how much youcould set aside for these expenses. If you areno longer around to make these contributions,life insurance can help fund these futureaccumulations.

Work coverage may not be enoughYou may have a job with an employer thatsponsors group life insurance. Hopefully, youtake advantage of that program, but is itenough coverage to meet your needs now andin the future? Your insurance needs maychange with time, although your employer'scoverage may not. Also, mostemployer-sponsored life insurance programsare effective only while you remain anemployee. If you change jobs or are unable towork due to illness or disability, you may loseyour employer's coverage. That's why it's agood idea to consider buying your own lifeinsurance.

The cost and availability of life insurancedepend on factors such as age, health, and thetype and amount of insurance purchased. Aswith most financial decisions, there areexpenses associated with the purchase of lifeinsurance. Policies commonly have mortalityand expense charges. In addition, if a policy issurrendered prematurely, there may besurrender charges and income tax implications.

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Tips for Managing Your Holiday SpendingLike almost everything else these days, theholidays have become a barrage of options andchoices, with nearly limitless opportunities tooverspend. Here are some tips to help youmake sure your family's spending remains incheck this holiday season.

Develop a spending strategyFirst and foremost, develop a budget.Involving family members will help youestablish and maintain realistic expectations atthe outset. Remember to include not just gifts,but also holiday meals and parties, travel,greeting cards and stamps, gift wrap,decorations, and any other category you deemnecessary. This is also a good time to committo using cash or charging no more than you canpay off in one month.

Next, devise a method of tracking all yourpurchases, receipts, gift recipients, and thelocations of hidden gifts that you mightotherwise forget about. This will make lifeeasier as the chaos ramps up.

Review your credit cards to see if you haveany perks. Could you use earned points fortravel, or cash-back and gift card rewards tohelp defray costs?

Track down old gift cards and put them touse now. If you think you'll never use them,trade them in for cash on a discounted gift cardwebsite. There, you can sell your old cards andeven buy new e-gift cards at a discounted rate,which you can then give as gifts or use for yourown purchases.

Put technology to work for you. You can findapps that offer cash back if you shop online;alert you to online coupons available at nearbystores; round up your purchases to the nearestdollar and put the difference into a savingsaccount; and track your online purchases, scanother stores for better prices, and thenautomatically email the original stores on yourbehalf to take advantage of the price-matchguarantees. There are myriad options available,so be sure to check reviews andprivacy/security measures before downloading.

Think creativelyGifts. Take time to carefully scan allpromotional materials before you head out thedoor or open a browser, because great dealsare often available for limited periods of time.For example, some stores have offeredgenerous gift cards in exchange for buyingcertain products on Black Friday.

Consider giving experiences rather than gifts,which happiness experts say could lead tomore sustained levels of well-being. In fact, you

may find that you'll spend less overall by givingone or two memorable experiences instead ofthe usual pile of items.

Create meaningful yet inexpensive gifts, suchas photo books, calendars, and family recipebooks, using online apps and services. Thisidea is especially appropriate for gifts fromchildren to older family members.

For larger or extended families, make a gameout of gift giving. Consider a "Yankee swap," orimplement a gift exchange, where everyone israndomly assigned a person for whom they buyone special gift. Or consider having the entirefamily chip in a certain amount per person anddonating to a favorite charity or sponsoringanother family in need.

Food. Nonperishable holiday-related goodstypically go on sale in late fall, so plan aheadand stock up. Also keep an eye out for specials;for example, some grocery stores offer a freeturkey around Thanksgiving when you spend acertain amount on groceries.

Party planning, decorations, gift wrap.Consider buying the bulk of these supplies atdeep-discount stores and splurging on a fewspecial highlight items, such as napkins with anelaborate design, centerpieces of fresh flowers,or fancy bows. If you live in an area whereevergreens, autumn berries, and pine conesare plentiful, take advantage of this potentiallysophisticated, yet completely free, decor. Orcreate even more memories by hosting anornament-making party. Use old costumejewelry or other items to make ornaments anddecorations with sentimental value.

Travel. During one of the busiest travel times ofthe year, deals can be hard to find. Here aresome tips:

• Be flexible. If you can postpone yourcelebration until after the holidays, you maybe able to save substantially on travel costs.(You can also shop the post-holiday sales forgifts!)

• Avoid airline baggage fees by using carry-onluggage.

• Use fare-tracking apps to find the best deals.• Cost-compare alternative modes of travel,

such as train and ridesharing.

It's never too early to start savingFinally, get a jump on next year's festivities bystocking up on supplies during post-holidaysales, opening a savings account with a goal ofsaving at least as much as you spend this year,and shopping as early as possible to spreadspending throughout the year.

How much will you spendthis year?

In October 2018, the NationalRetail Federation projected thatconsumers were planning tospend more than $1,000 onholiday-related purchases overthe entire season, which was a4% increase over 2017. For2019 figures, typically releasedin late October, please visit theorganization's website.

There's an app for that, too?

You can even find an app thatwill help you locate your car inthe shopping mall parking lot.

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Real Estate Investing 101Historically low mortgage interest rates andrising home values are just a couple of reasonswhy investors may be drawn to real estateinvesting. Not only does real estate have thepotential to provide a steady income stream,but it can help diversify an investment portfolioand act as a hedge against inflation.

If you are new to investing in real estate, thereare a number of questions you should askyourself to choose the best real estateinvestments for your needs.

Do you want to be an active or passiveowner?When choosing a real estate investment, youfirst need to decide how much you want to beinvolved. Are you interested in investing in asingle-family dwelling, multi-unit property, orvacation property for rental income? Buyingrental property and managing it yourself willinvolve time and effort unless you hire someoneto manage it for you. If you've never been alandlord, be sure to talk with other landlords toget a sense of the potential rewards and pitfalls.

Other real estate investments, such as realestate limited partnerships and raw/unimprovedland, demand less day-to-day involvement. Ifyou're investing simply to diversify aninvestment portfolio, these types of real estateinvestments may satisfy your needs without thechallenges of managing a property.

Are you investing for tax benefits?There are a number of tax benefits associatedwith investing in certain types of real estate. Forexample, operating expenses for a rentalproperty are typically tax deductible, and youmay be entitled to deductions for depreciation.In addition, any profit from the sale of realestate is generally taxed at favorable capitalgains rates. You may also be able to postponeyour tax liability with other tax planningstrategies, depending on the type of real estateinvestment.

If tax benefits are your primary reason forinvesting in real estate, be sure to consult a taxprofessional to see what specific tax benefitsyou may be entitled to based on the real estateinvestment you choose.

Are you investing for income, capitalappreciation, personal use, or acombination?Real estate investments offer the potential forall three, but there is often a trade-off amongthem. For example, raw land may havedevelopment potential, but it likely will notprovide any return until it is fully developed.You may be able to earn income from rental

property that has the potential to increase invalue over time, but your ability to use theproperty yourself will be limited if you want toenjoy a rental's tax benefits. Ranking yourpriorities can be useful.

Are you looking for a quick return or along-term investment?Real estate speculators have been known toearn high profits from buying distressedproperty, fixing it up, and reselling it at a profit,especially in a buyers' market. However, thereal estate market is notoriously cyclical, andthere are no guarantees. If you're speculating,hoping for a quick return on your capital, theliquidity of a real estate investment will beimportant to you; so will making sure you don'toverpay to begin with. If you have a longer timeframe, you may have a wider range of investingoptions.

Is real estate investing going to be afull-time job for you or a hobby?Some real estate investors find that what theyintended as a hobby or retirement diversionquickly becomes more than they can handle.Think about how much time and capital you'reprepared to devote to your real estateinvestments, and how much of a cushion youhave in case things don't work out as youexpected.

Diversification is a method used to help manageinvestment risk; it does not guarantee a profit orprotect against investment loss. There are inherentrisks associated with real estate investments and thereal estate industry that could have an adverse effecton the financial performance and value of a realestate investment. Some of these risks include: adeterioration in national, regional, and localeconomies; tenant defaults; local real estateconditions, such as an oversupply of, or a reduction indemand for, rental space; property mismanagement;changes in operating costs and expenses, includingincreasing insurance costs, energy prices, real estatetaxes, and the costs of compliance with laws,regulations, and government policies. Real estateinvestments may not be appropriate for all investors.

Limited partnerships are subject to special risks suchas illiquidity and the risks inherent in the underlyinginvestments. There are no assurances that the statedinvestment objectives will be reached. At redemption,the investor may receive back less than the originalinvestment. Individuals must meet specific incomeand net worth suitability standards, which vary bystate. These standards, along with the risks and otherinformation concerning the partnership, are set forthin the prospectus, which can be obtained from yourfinancial professional.

Page 3 of 4, see disclaimer on final page

Bartholomew &Company, Inc.Thomas J. Bartholomew, AIF®President, CEO370 Main Street, Suite 1000Worcester, MA 01608508-753-8807800-440-8807info@bartandco.comwww.bartandco.com

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2019

Securities and Advisory Services offered throughCommonwealth Financial Network® , MemberFINRA/SIPC, a Registered Investment Adviser.Fixed insurance products and services offeredthrough CES Insurance Agency.

The accompanying pages have been developedby an independent third party. CommonwealthFinancial Network is not responsible for theircontent and does not guarantee their accuracy orcompleteness, and they should not be reliedupon as such. These materials are general innature and do not address your specific situation.For your specific investment needs, pleasediscuss your individual circumstances with yourrepresentative. Commonwealth does not providetax or legal advice, and nothing in theaccompanying pages should be construed asspecific tax or legal advice.

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Should parents "go for broke" on youth sports?Many parents encourage theirkids to play organized sportsbecause they believe theexperience will be good fortheir physical and mental

well-being. Athletic participation often providesan opportunity to instill discipline and developsocial skills that could have a positive impact ontheir children's futures.

But kids play has morphed into big business. In2018, the size of the U.S. youth sports marketwas estimated to be about $17 billion.1

The costs can really add up at morecompetitive levels, when payments forprofessional instruction, specialty equipment,and travel kick into high gear. On average,families with children who competed on eliteteams spent an average of $3,167 per player in2018, up from $1,976 in 2013.2

Lofty hopes and dreams might inspire someparents to overspend on youth sports. In fact,surveys suggest that many parents are willingto make big financial sacrifices to cover athleticcosts, possibly even taking on credit card debtor delaying retirement.3 Unfortunately, someparents may have unrealistic expectations,such as those who are confident their children

will become professional athletes, despite thevery long odds against it.

Parents who assume that investing in athleticswill pay off with college scholarships are alsolikely to end up disappointed. Only about 2% ofhigh school athletes benefit from athleticawards, and few of them are "full rides."Coaches often have more roster spots to fillthan available scholarships, so many athletesreceive partial awards that may cover only asmall fraction of tuition costs.4

Although most parents have good intentions,there may be some unhealthy side effects.According to a 2016 research study, youngathletes whose families devoted a large portionof their household income to sports felt morepressure to succeed and were less likely toenjoy the experience.5 And even if their kidslove to play, parents should attempt to keep thecosts in an affordable range so that otherimportant financial goals (such as saving forcollege and retirement) are not neglected.1 WinterGreen Research, 2018

2-4 The Wall Street Journal, April 21, 2019

5 Family Relations, April 2016

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