by Jac M. Arbour CFP®, ChFC®
President, J.M. Arbour Wealth Management

Many people have heard of Bitcoin. It is the most popular crypto on the planet. However, it is one of only many. How many may you ask? Around 7,000 as I write this. Alternative coins, also known as altcoins, such as Ripple, Litecoin, and Ethereum, are also highly popular and in strong demand.

Ethereum is one of the altcoins that is having a banner year due mostly to the hype around DeFi, a term used to describe Decentralized Finance, which has resulted in systems that are typically built on Ethereum’s blockchain technology. What is this, and why is it important? Here is my thought on that.

For years, people have been asking me about cryptocurrencies and my thoughts on Bitcoin. My answer has always been the same: do not focus only on the market value of the coins, but also on the technology that supports those coins and gives those coins life and longevity, or the lack thereof.

More specifically, pay attention, and more important, study the underlying blockchain technology that makes any specific cryptocurrency all that it is. Once you understand the power and infinite capacity of the blockchain, you will realize that the value is not only in the fluctuations of the market price of the coins or in the coins themselves, but in how the underlying technology will change the world, in every sector and every industry, within ten years. Maybe less.

Decentralized Finance is blockchain technology in motion, aimed at creating decentralized instruments and platforms that allow for trading options, lending capital, exchanging currencies, and doing it in a way where there is no third-party intermediary, it is completely anonymous and essentially, instantaneous.

Blockchain technology will change how people buy everything and anything. It will change how we buy homes and our need for attorneys, closings, title insurance, etc. It will change how we prove what we own. It will change the need for a registry of deeds, as the blockchain can instantly prove, and transfer when needed, ownership of anything: a home, a business, a vehicle, an heirloom.

It will change how we are prescribed medication, how we order it, pay for it, and how it is delivered. It will compound the effects of artificial intelligence and team up with it to create AI that becomes, and is already known, as super AI. The applications are endless.

Pay attention to some of the altcoins. As DeFi ramps us, and as bitcoin is more universally adopted, these other coins could follow suit. In all cases, do not pay attention to only the coins, but also to the universal applications of the underlying technology: blockchain. It is the lifeblood of these coins and so much more to come.

Here is what I promise: Learn more about blockchain, and you will uncover more opportunities than just cryptocurrencies.

See you all next month.

Jac Arbour CFP®, ChFC®

Jac Arbour is the President of J.M. Arbour Wealth Management. He can be reached at 207-248-6767.

Investment advisory services are offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser.

John Auer joins J. M. Arbour

John Auer

J.M. Arbour welcomes John Auer to the team. John is a current student at Bowdoin College (Class of 2023) and joins the JMA team as a Relationship De­velopment Assistant. John has an in­her­ent in­terest in financial planning and private wealth management, and found alignment with JMA’s unique level of client commitment and our investment in ending childhood hunger in Maine. Welcome to the team, John. We are honored to have you.

See also: TECH TALK: Virtual Money – The next evolution in commerce

by Jac M. Arbour CFP®, ChFC®
President, J.M. Arbour Wealth Management

It’s a great question. And the answer is usually straight forward.

For an employee, the idea of not going to work anymore after a certain age, yet still receiving an income to live life on their terms, is the specific purpose of a retirement plan. Solo Ks, SIMPLE IRAs, SEP IRAs, Traditional and Roth IRAs, 403(b)s, and 401(k)s are all designed to do just that. Each of these plans has its differences, and in this month’s column I will share some key considerations to help you decide which type of plan may be best for your employees and your company.

Contribution amounts: Each of the aforementioned plans allows a different total amount of deferrals, or contributions, annually. IRAs have a maximum contribution of $6,000, SIMPLE IRAs are limited to $12,500, and 401(k)s and 403(b)s allow up to $19,500 annually. In addition to these elective deferral totals, each plan also offers “catch-up” provisions that allow people ages 50 and over to contribute a little extra. When deciding which plan type is best for your company, it is important to know how much you and other highly compensated employees would like to contribute each year. The answer to the question, “How much would you like to contribute?” is a great place to start.

Employer match: Do you want to help your employees save for retirement and incentivize them to grow within their position at your company? If so, an employer match can serve the purpose. It is widely known that benefits in general, including 401(k)s with or without employer matches, increase attraction and retention rates of employees. When companies help their employees get to where they want to go, everyone wins.

Profit sharing: Not all retirement plans offer this feature, so choosing the right type of plan design is important if you want to institute profit sharing. This can be a great way to say an additional “thank you” to your employees. Furthermore, when the philosophy of your company is “the better we do, the better you do,” more often than not, you will see enhanced camaraderie amongst your workforce. In business, there are not many things stronger than a solid team, aimed at a single vision, firing on all cylinders.

Company size: How many employees do you have? If you have 100 or less, a SIMPLE IRA might do the trick, as long as you plan to contribute less than the max, mentioned above. If you have more than 100 employees, you cannot start a SIMPLE IRA. Basic rules like this can narrow down your choices quickly. Once you know the right plan type, you can dive into the weeds to build out the inner workings of your plan.

These ideas are just a few of the many things to consider. To explore all the factors and derive specific answers to which plan is best for your company, reach out to an advisor or firm that guides people through these decisions. It is a lot simpler than you might think, if you have the right people on your team.

See you next month.

Jac Arbour CFP®, ChFC®

Jac Arbour is the President of J.M. Arbour Wealth Management. He can be reached at 207-248-6767.
Investment advisory services are offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser.

by Jac M. Arbour CFP®, ChFC®, President
J.M. Arbour Wealth Management

Summers in Maine are special, and I am blessed to call this state my home. I wake each morning and travel across Lake Cobbosseecontee in a 14-foot, 1956 Richline aluminum boat with my grandfather’s 1973 6 horsepower Evinrude. I watch mist rise from the water, eagles and ospreys grab their morning catch, and listen to loons call their friends from miles away. It’s quite the skip across the lake.

I then hop in my truck and head to the office here on Water Street, in historic downtown Hallowell. For anyone that hasn’t been here, it is a small, but buzzing little town that has a strong sense of community. The bakery, the juice shop, and the coffee shop are some of my favorite stops here in the mornings.

It is however, what happens between the lake and the office that I want to share this month.

The largest room in the world is the room for improvement. Big or small, there are things we can do to improve ourselves, the world around us, and therefore, the experience of others. Mark Johnston, former President of Kennebec Savings Bank, in Augusta, knows this all so well.

The Granite Hill Road, in Manchester, is the route I take each day to get to Hallowell, and it is on this road that I (and every other car and passenger who takes that road) am greeted with a daily smile and a wave by Mark himself.

Mark always wears a bright shirt for safety reasons; to make sure he is seen (it’s a narrow road and vehicles drive fast). This is the usual attire he wears as he completes his morning routine of walking, smiling, waving, and picking up trash.

Yes. Every day I see Mark walking, getting some exercise, taking care of his body, stopping only to smile and wave at each and every car that goes by, and to bend over and pick up any and all pieces of trash he discovers. He carries a bag with him, and surprisingly, even though the road was spotless after his yesterday’s walk, there is always more to pick up.

I wonder what that road would look like if Mark didn’t walk it every day. Would there be more trash? Would there be less people who could say a stranger (or old friend) has already smiled and waved to him or her by the time 8 a.m. rolled around? I believe so.

It may sound trivial, but in my opinion, what Mark does each say is symbolic of the power we each carry within us and that we can share through simple acts of kindness and respect.

Mark, please keep smiling and waving. It’s more powerful than you know. And, thank you for all that you still do for our local communities.

Jac Arbour CFP®, ChFC®

Jac Arbour is the President of J.M. Arbour Wealth Management. He can be reached at 207-248-6767.

Investment advisory services are offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser.
Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

by Jac M. Arbour CFP®, ChFC®, President
J.M. Arbour Wealth Management

A 401(k) (or a 403(b), 457 Deferred Compensation Plan, Thrift Savings Plan, Profit Sharing Plan, SEP IRA, SIMPLE IRA, etc.) is a retirement account that is sponsored by an employer and offered to the employees, also known as the participants in the plan. These types of plans are known as defined contribution plans and are often attractive to people as they can offer cost-effective ways to invest, receive investment advice, and oftentimes, receive an employer match. Regardless of the plan you have, here are some things to consider.

• You have four choices when considering a rollover: You can leave the plan where it is (under certain criteria), rollover to an IRA (Traditional or Roth, including self-directed), rollover to the plan at your new employer (if accepted), or cash it out (tax withholdings are mandatory).
• Direct vs. Indirect Rollovers: A rollover is considered a direct rollover when the money is moved from one qualified account to another (tax-free event). A rollover is considered indirect when the money is transferred from the retirement account to you personally (taxes will be due if not placed into a qualified account within 60 days and only one per twelve-month period is allowed).
• Consider working with an advisor: An advisor that is comprehensive in their approach gives advice relative to everything going on in a person’s life. Savings, investments, insurances, debt, cash flows, family structure and dynamics, upcoming capital expenses, short- and long-term financial goals, college plans, travel, personal preferences, etc.
• Open investment architecture: Be sure to understand what you will have access to for investment options regardless of the rollover option you choose.
• Systematic withdrawals: One, if not THE, most important uses of a 401(k) or retirement plan is to supplement other sources of retirement income, such as Social Security or pensions. Not all plans allow for these withdrawals once retired or no longer employed. Check with your plan administrator.
• Creditor Protection: Creditor protection in an IRA is not always the same as that of an ERISA governed retirement plan. Be sure to know the differences in your state before making the change.
• Loans: A qualified plan may, but is not required, to permit loans. IRAs do not offer loans. This is important to note as loans can be a great way to access money in times of need.
• Consolidate: Many people have several “old” retirement plans at former employers. It can be easier to manage the money when it is all in one place.
• Required Minimum Distributions: Be sure not to miss these. They begin at age 70.5 (now 72 if you turned 70.5 after January 1, 2020). Consolidation is also useful when calculating these distributions.

Here is what I promise: If you do your homework before making any rollover decisions, it will likely pay dividends (no pun).

See you all next month.

Jac Arbour CFP®, ChFC®

Jac Arbour is the President of J.M. Arbour Wealth Management. He can be reached at 207-248-6767.
Investment advisory services are offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser.

by Jac M. Arbour CFP®, ChFC®
President, J.M. Arbour Wealth Management

It’s an interesting business that I’m in and there is an interesting perspective amongst the public about what we do as wealth managers. Most people think our careers have to do only with money. The truth is, our duties stretch far beyond the realm of money; at least here at J.M. Arbour they do.

Yes, we manage money. However, we also swim in the sea of human hopes, desires and goals, both short and long term. We experience various family dynamics, legal structures, life altering events, and the unforeseen. We experience weddings, divorces, babies being born, businesses rising and falling, and people at all mile markers on the journey of life.

There are many forms of wealth: I believe happiness ranks at the top of the list. Intelligence, musical ability, athleticism, artistic creativity, and ingenuity are some other examples. Health, in my book, most certainly makes the cut as well.

As a wealth manager, a person’s mental and physical well being are important to me. I ask myself, “what is the purpose of building monetary wealth (or helping a person do it) if the person who owns the wealth is not here to enjoy it or is not deriving happiness from it in some way?” I can’t think of any sold answers.

Health is a state of physical, mental, and social well being in which disease and infirmity are absent. What are you doing while building your career, while raising your family, while being a spouse or significant other, to take care of you and your health? When is the last time you scheduled time for you to realign with what brings you independent joy? For some people, the answer is, “too long ago.”

As a wealth manager, I hear about the most personal details of people lives as the human veil comes down behind closed doors and trust paves the way for open conversation. I am 35, but over the course of the past 13 years, I have conversed with over 2,500 individuals or couples, all being over the age of 60. All of them, each having their own views on life, and more life experience than myself, have shared where “wealth” for them truly lies. It is always in a feeling, and one rooted in happiness.

Here is what I promise: When you strive for happiness, the rest falls into place, including wealth in different forms.

See you all next month.

Jac Arbour CFP®, ChFC®

Jac Arbour is the President of J.M. Arbour Wealth Management. He can be reached at 207-248-6767.
Investment advisory services are offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser.