Why do we do this to ourselves? We have lofty goals for the beginning of the new year, and in order to set yourself up for success, you need to have mental stability and financial support. Many of us struggle to feel like our best selves when we are in survival mode. This could be from stress at work, weight gain, or family needs; these are compounded by financial stress. If we can control our spending habits and set our annual savings for the year, all of the things that seem out of control are relative. So today, we will talk about mindset.

Mindset is very easy to fix—JUST DO IT. If you want to achieve your goals, move forward with them. Don’t ask why you can’t do it; this wastes your energy and time and creates mental fatigue. Yes, you might not want to do it, but that’s not enough of a reason. The top tools I use to get it done are playlists, incentivizing, and discipline.

Playlists exude the energy that you are looking for to complete the task. Do you notice that when you work out there are usually no lyrics, just a steady rhythmic beat above your heart rate? When concentrating on creating, I use a Bach playlist; to organize, I’ll listen to Taylor Swift; and to cook, Frank Sinatra. Find a playlist, podcast, or show that allows you to revert to a trance-like state so that you can get out of your head and push forward.

Incentivizing helps when it comes to one-off goals. My dad used to get us Dairy Queen after we finished a day of yard work. With my brothers and sisters, to get them to clean their rooms, I would say, “You have to pick up five things and organize them, and then you can jump on the bed once,” or you could group them and jump on the bed multiple times. As an adult, I’ve seen people write their goals on champagne bottles, use the “buy now” option from their wish list, and finally treat themselves to something special.

Make your bed. This form of discipline is the least favorite but the best thing you can do. Consistency is the key to keeping long-term goals on track. This week, I want you to start with two times a week, then increase to three, until you get to every day, then go back down. Which days were harder for you? Now, with that information, can you create consistency with your task? This can be specific to a time of day or just checking a box. When the Apple Watch created the “close your rings” reminder for the hour, it wasn’t about doing it every hour; it was about doing more than what you had started with. Slowly, those reminders grew into a subconscious decision to move. Discipline is a growing skill, and it’s fed through consistency.

Changing your mindset will need to start by moving from a state of scarcity to a state of abundance. Look at what you have right now. Why do you need more? If you can’t afford what you have, you’ve probably been trying to live outside your means. Focus on small tasks to achieve your goals passively. Next week, we will start with the $1/day challenge.

Remember, you can do anything in this world, but you might not want to do the things that get you there—and that’s what will set you apart. Text me with questions or go to my Instagram @familyretire.

A side hustle, bonus money, or selling unused items are all ways to benefit from additional income outside of your nine-to-five job. Each offers an opportunity to grow your wealth faster than the average person. However, are you really benefiting from it, or do you find yourself spending more and barely keeping your head above water? Let’s plan for the year by setting your income up for success.

Additional income can be broken into two categories: recurring or one-off. If your income is recurring, such as running a side business or selling items regularly, it becomes easier to manage and amplify. For example, if you accept payments through a bank or app, you can automatically route a percentage of each payment into another account. If you know your expenses average __% per purchase, set up a dedicated spending account. Many people do this using a credit card to maximize points or cash back. You can purchase gift cards with your credit card and use those for expenses to keep spending consistent while earning rewards.

Why use gift cards? One major flaw in many side hustles is the belief that you need to stock up and create surplus inventory for potential demand. Scaling should be relative to how your business is currently operating and measured quarterly or biannually. Using gift cards helps you stay within a budget, and in the early stages of a business, that structure can help you reach the next level. Once you have established a proven track record, you can use leverage to grow further.

Next, let’s plan how to allocate the remaining proceeds. If your profit margins are low, you need to protect more of that income for a rainy day. I suggest allocating 60% to a liquid account that will not fluctuate as much, such as a high-yield savings account, and placing the remaining 40% into an investment account. These percentages can be adjusted depending on your margins.

Invest this money with a one- to four-year plan. That may sound like a long time, but if it only took one year to change your life, most people would commit to it, especially if the process was handled passively on their behalf. You can create this strategy with an advisor or on your own.

When it comes to non-recurring income, it should never be relied upon as a primary source. The goal is to build a system that makes it recurring. Avoid using this income for six to twelve months. When you can grow it into more than its original value, that is an investment. Your priorities should focus on building an audience and creating content so you can begin forecasting trends. Once you can maintain and predict those trends, you have created a sustainable model and can transition it into a recurring income stream.

The difference between you and others is your ability to commit to a process and seek out resources to grow what you already have. This year can be a turning point where you are empowered by your money instead of living paycheck to paycheck. I am happy to be your coach for the year and share tips and strategies to help you succeed. Feel free to reach out via text with any questions at (425) 610-9226.

​When I started my investing journey at 23, I had no options for company-sponsored retirement. The real estate market was “hot,” and the most popular books were Rich Dad Poor Dad. If I was going to get started, real estate would be the place. I had no intent to have kids or get married, so I looked for a property that would make me happy. It’s been almost 20 years since that decision; now I have a highly appreciated asset. Should I take the tax burden on to sell, or should I just hold onto it and pass it on? If you are thinking of a gifting plan, let’s look at all your options!

When assessing your wealth strategy, you have silos of accounts that are taxed separately, and depending on whether you plan on using them in life or at death, there are significant differences in how to utilize them. Traditional retirement accounts are only taxed when you take the money out. Roth is never taxed if requirements are met. After-tax accounts/stock options, collectibles, and real estate are taxed on the cost basis. A quick note about cost basis: that is the “cost” at which you originally purchased the item/stock/property. These have the potential to be highly appreciated assets or golden handcuffs, like company stock options.

When you gift property or stocks, you move the cost basis along with that gift. This is different from if you received it at the time of death. The cost basis would be adjusted to the current market value. If you received a house as part of a wealth transfer, instead of having to pay taxes on the difference between the original value and the current value, it would get a “step-up cost basis.” That’s why many people say to avoid gifting during life and wait until you pass away.

Here’s the catch: you don’t get to see your family members enjoy the gifts. The best thing to do is understand that your needs and wants are different—not right or wrong—from another’s. When you create a plan either while living or after life, you are changing someone’s opportunities for the better. If they have a financial advisor, they are more likely to make stronger decisions with tax implications and future goals in mind.

Starting your first real job is tough. You’ve got expectations that look nothing like college life, and let’s be honest—no one taught you how to handle adult things like onboarding paperwork. Now it’s time to fill out the forms for your health benefits and 401(k), and you’re wondering, “Why didn’t anyone cover this in class?”

Almost everyone I know—whether it’s their first job or their third—struggles with this part. So don’t worry, you’re not alone. Here are three main things you can do to make sure you’re setting yourself up for success (not stress).

1. Set Up a 20% Contribution Right Away
Start off strong and set your 401(k) contribution to 20% right out of the gate. This helps you hit your company’s match—aka free money. The company match usually ranges from 3% to 10%, depending on your employer and how much you contribute.

When you start early, your compound growth works like magic over time. You’ll likely beat the retirement goals of someone who didn’t start until their 30s. Plus, when you automatically prioritize saving, you’re less likely to overspend that first paycheck (no matter how tempting it is).

Here’s a fun little secret: many companies offer automatic annual increases to your 401(k) contributions. That can be good or bad, depending on how your paperwork is set up. If you didn’t plan for it, your take-home pay could shrink without warning. But if you start at 20%, you’re usually at the cap, and those auto-increases won’t affect you. You can also bump your contribution up to $23,500 for 2025. Anything above that either goes into an after-tax account or back into your paycheck.

Pro tip: Front-load your account! This means putting most (or all) of your contributions in early in the year. It takes some planning and saving ahead, but it’s a total game changer if your monthly expenses are low.

2. Know Where Your Money’s Going: Traditional vs. Roth vs. After-Tax
As you fill out your paperwork, make sure you know which account type your contributions are going into.

• Traditional 401(k): Pre-tax contributions. You lower your taxable income now, which is great if you’re earning more. When you take the money out later, you’ll pay taxes based on your retirement income bracket (which is often lower).
• Roth 401(k): After-tax contributions. You pay taxes now, but your account grows tax-free—and when you retire, your withdrawals are totally tax-free, even if you’re making more money then.

If this is your first job, the Roth 401(k) is a powerful tool. Paying taxes now while your income is lower can make a huge difference long-term.

Now, if you ever over-contribute or have “extra” money that doesn’t fit into your 401(k), it might go into an after-tax account. You can roll this into a Roth later (depending on the rules) or keep it where it is. The cool thing about after-tax accounts is that you can access that money before age 59½, unlike retirement accounts. The tradeoff? You’ll owe taxes on the gains when you sell investments, and the rate depends on how long you held them.

3. A 401(k) Isn’t an Investment (But It Holds Them!)
Here’s something most people don’t realize: putting money in a 401(k) doesn’t mean you’ve invested it yet. A 401(k) is just the container—the tax-friendly account that holds your investments.

Inside that container, you get to pick how your money is invested. Most plans offer funds in categories like Large Cap, Mid Cap, Small Cap, International, and Bonds. You’ll also see a default option, usually called a target-date fund or lifestyle fund.

Target-date funds automatically shift your investments to be “safer” as you get older—meaning more bonds, fewer stocks. The idea is that bonds are more stable and protect your money from market dips, but the downside is they don’t keep up with inflation. So no, choosing the 2025 Target Date Fund doesn’t mean you can retire next year (sorry). In fact, picking one too close to today can slow down your growth so much that retiring ever could be tricky.

Instead, look at your equity exposure (how much you have in stocks) and make small adjustments over time. As you get more comfortable with your 401(k), this stuff starts to feel a lot less intimidating.

Wrapping It Up
Here’s the quick recap:

• Start with a big contribution (around 20%) and increase it every year.
• Choose the right account type—Traditional or Roth—based on what makes sense for you right now.
• Don’t just default to a target-date fund without understanding how it works.

You can change your contributions, account types, and investments anytime. I recommend logging in quarterly to see how things are going. And if you get stuck, talk to a professional—someone like me!

My sister was a teacher at a middle school, and over the years, I’ve been invited to speak to her students about money. Here are the best ways I’ve found to convey these concepts:

Compound Interest
One of the most important topics I discuss is compound interest and how it can positively affect you, even with a simple investment like a savings account. We talk about different types of savings accounts and why it’s important to research the institutions you choose to invest with. I introduce three main types of savings accounts: 1-year, 2–5 year, and emergency savings. It’s crucial to build an emergency fund before moving on to short- and long-term savings goals. Each account offers different interest rates, ranging from standard to high yield, depending on the time horizon. As students get older, their savings goals will naturally evolve.

Investing
Once they grasp that concept, I move on to investing and the habits that support compound interest in the market, comparing investing at a young age to starting later as an adult. I show them a graph illustrating the “set it and forget it” model, which demonstrates how money can grow over time without active effort. This visual helps them understand how their contributions accumulate and compound, making them feel empowered by the growth of their savings. I encourage them to begin with index funds, and as they gain familiarity with investing, to ask questions and explore other options. For those who are working, I emphasize the importance of contributing to a Roth IRA and consulting with a financial advisor—much like seeking a tutor for help with investing.

The “Game of Life”
Once they understand the importance of saving, I introduce the concept of “the game of life.” This involves considering various life scenarios that may create setbacks in their plans and learning how to handle those situations emotionally in order to keep moving forward.

Spending Habits and Debt
Finally, I talk about spending and how compound interest also applies to debt, such as mortgages and credit cards. I explain the difference between fixed and variable APRs and connect these concepts to current events that can affect interest rates and monthly payments. This often leads to valuable conversations about managing responsibilities and distinguishing between secured and unsecured debt. I remind them that having debt is not inherently bad, but allowing it to spiral out of control can jeopardize everything they’ve worked to build. A good rule of thumb is to keep credit card balances below 30% of the credit limit.

The key takeaway is that financial education is constantly evolving. Staying informed through podcasts, books, or advice from a financial advisor can help create long-term stability.

I’ve been a licensed insurance agent in the State of Washington for nine years, helping people understand the value of universal life insurance as a vehicle for future income. While it’s not right for everyone, those who are in good health, have maxed out other retirement options, and are looking for additional tax-advantaged strategies can benefit from this little-known tax code.

Loans
It’s important to understand that terms like withdrawal or distribution come with taxable implications. However, when you take a loan against the cash value of a policy, you create an agreement that is recognized as tax-free under IRS Section 7702. The loan amount and term are determined based on the current cash value of the policy. The loan will be subject to interest, which is set by the policy provider. Depending on the policy and crediting strategy, you may be able to offset that interest with gains.

Pros and Cons
You can use these loans however you choose! For example, if you want to pay for a child’s college education for four years, you can take loans during that time and then stop. If you want lifetime income, you can request a hypothetical projection on when to withdraw income and tailor that to your retirement plan or a self-driven sabbatical. When structured properly, each of these strategies remains tax-free. Misunderstanding the product or failing to work closely with your agent to align the policy with your financial goals can lead to issues down the road.

Modified Endowment Contract (MEC) Considerations
Everyone should be aware of the risk of unintentionally converting their policy into a Modified Endowment Contract (MEC), which eliminates key tax benefits. When setting up a life insurance policy, the amount of coverage is based on a premium schedule—how much you plan to pay and for how long. If the cash value exceeds the limit applied for insurance coverage, the policy becomes a MEC, causing you to lose those tax advantages.

While avoiding MEC status is crucial, other factors like your crediting method and additional policy riders could also limit your growth potential. Comparing multiple providers allows you to find the best product for your needs.

Working with the Right Agent
When shopping for life insurance, consider working with an independent agent. Unlike agents affiliated with a single company, independent agents can compare multiple providers to find the best quotes that match your needs and health profile. Agents tied to larger companies often experience high turnover, meaning you may not continue working with the person who originally set up your plan.

An agent should always disclose their commission for each product. This transparency helps you determine whether they are recommending a policy based on your best interests or their financial gain. As a fiduciary, I believe this is the best way to build trust and confidence with my clients and prospects.

Disclosure:
KJ Dykema of Family Retirement LLC is licensed to sell insurance only in Washington. For clients in other states, like Texas or California, we refer to licensed professionals. You are not required to follow our recommendations or use our services and may choose any provider.

Little-known fact: There are several months throughout the year when people on a biweekly pay system receive an extra paycheck. This year, it happened in January (a great way to start the new year) and August. It would be easy to splurge on that new (fill in the blank) because, why not treat yourself? But I want to make sure you're actually building wealth. Let’s use that third paycheck to jumpstart your finances—not as a get-rich-quick scheme, but as a strategic step forward. First, make sure you've addressed these key financial hurdles:

Are you caught up on your finances?
Bringing your finances up to date can eliminate mental barriers you may not even realize are holding you back. Emotional hurdles are often the biggest obstacles to financial growth. Think of it like your house—if it’s cluttered and overwhelming, you may hesitate to clean because you don’t know where to start or fear what you’ll uncover. The same goes for your finances. Start by reviewing your accounts, catching up on overdue payments, and reaching out to creditors. When you do, you gain the power to negotiate your debt—whether by lowering interest rates, setting up payment plans, or consolidating loans. Imagine how empowered you’ll feel after that first step!

Have you maxed out contributions to your retirement?
It’s all about compounding interest. You don’t need a side hustle—you need to invest what you already have so your money works for you while you’re working. Even better, if your company contributes to your retirement account, those contributions compound as well, accelerating your long-term wealth.

Get a life coach, mentor, or financial advisor
Investing in yourself is one of the best ways to ensure accountability, discover new ideas, and stay on track toward financial success. If you lack the structure or knowledge to create a clear financial path, there are professionals who can guide you toward your goals.

If you've checked those boxes, it’s time to start looking at outside investments. The most common options are real estate and brokerage investing. If you're considering real estate, you could use this extra income toward a rental property down payment or start saving for one. Before diving in, it's a good idea to assess your financial standing—understand how much you need to save and what you prequalify for. This will help smooth the lending process and get you into a property sooner.

If you're looking to invest in the stock market, the process is simple: open an account, fund it, and start investing. As a general guideline, your initial investments should focus on funds that align with your growth goals and timeline for withdrawal.

Both of these investment strategies require having a professional in your corner. As a Master Registered Financial Consultant, it’s my job to ensure that the goals you have for your future come with a flexible plan and measurable progress along the way.

​Generational wealth is often built through real estate, as it provides a relatively accessible path for adult children who struggle to save money. Many view real estate as a valuable asset rather than an expense. However, qualifying for a mortgage or saving for a down payment can be nearly impossible without financial assistance. When parents help with this process early on, they set their children up for long-term success. The challenge, however, is that not everyone is in a position to do so, and it’s important to assess how this could impact your income—especially if you are nearing retirement.

For parents in a strong financial position, it’s best to avoid tapping into their IRA accounts. Withdrawing from an IRA could create a significant tax burden for both parties. IRA withdrawals are taxed as ordinary income, so if parents rely on their IRA for retirement, taking out more than needed could push them into a higher tax bracket. Additionally, Medicare premiums are based on income from the previous two years, meaning a large withdrawal could increase insurance costs during that time.

A more tax-efficient strategy may involve using after-tax accounts. These accounts can be ideal for funding a home purchase, and if managed correctly, they may have minimal tax implications for the parents. It’s also important to consider the Tax Cuts and Jobs Act (TCJA) of 2017, which doubled the lifetime gift exemption for beneficiaries to $13.99 million starting in 2025. If a child receives more than the gift limit, they could face tax consequences. Consulting with a tax professional is essential to ensure proper planning for your child’s future.

If you plan to buy the house yourself and have your adult child make payments, it’s crucial to ensure the home is titled in a way that benefits them. In cases where there are multiple children and the parents have passed away, an improperly titled estate—without a transfer-on-death designation—could leave the asset’s distribution to the discretion of the estate's guardian, potentially leading to complications.

When making major financial decisions, it’s essential to assemble a team of financial advisors, tax preparers, and estate attorneys to ensure the best outcomes for both the present and the future.