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Financial Horizons Your Connection for Wealth, Lifestyle & Legacy
McBeathFinancialGroup.com
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The Value of a Day’s Work LESSONS FROM A HIGH SCHOOL SUMMER JOB
As we reach the middle of summer, many teenagers are knee-deep in their first experiences with employment. A summer job is a well-worn tradition — an opportunity for young adults to learn responsibility and gain a sense of independence. Summer work serves as a training ground for what’s to come and gives us humble roots we later appreciate. I had several such jobs, and I remember this as an exciting time when it seemed like the sky was the limit. One of my first employment experiences was for Guzzardo’s Italian Villa. Growing up in Lincoln, Illinois, the restaurant was considered a legendary establishment, known for its authentic Italian cuisine and generations-old recipes. They’d already been a fixture in the community for over 30 years when I became a teenager. Fortunately for me, my family knew the owners as church friends. When I needed money to buy my first car, they graciously hired me to work their food stands at the state fair. I thought it sounded like a pretty good gig. The owners, John and Frankie, were great people. They also offered good pay, and I’d get to be outside. Since my friends attended the fair, I figured I’d probably even get to see them while I worked! If you’ve ever worked in the food industry, you probably already know the reality was less glamorous than I’d imagined. It was hot and cramped, and the work was non-stop, with lines a mile long. I definitely did not get to hang out with my friends, and considering how sweaty and greasy I looked — not to mention how frizzy my hair became in the humidity — I was grateful not to see them at all. There was hardly even enough time for bathroom breaks, and the days were long and hard. But I’d taken the job for the money, and the pay was pretty good. I got my car — and better yet, I’d earned it myself. At the time, I would have preferred that my parents just gave me a car. But as I look back, I’m grateful they didn’t. I learned a great deal over those weeks about the value of hard work. I sacrificed my summer vacation to earn it, and that was worth it. I felt proud.
Those lessons stayed with me throughout college and as I began a career. They were also present when I decided to start my own business and had to face up to what it took to make it successful. My knowledge of what hard work looked like and how good the outcome would feel kept me motivated to succeed. I often see my clients going through similar journeys. They have also started at the bottom and had to put in a great deal of effort to succeed. Building wealth is a process, and it takes years of sacrifice. They deserve to reap the benefits of decades of hard work. But financial comfort comes with its own set of difficult decisions for our children and grandchildren. Many people want their family’s future generations to have a better life than they did — but at the same time, they also want the young people they love to learn the same lessons about the importance of hard work and the value of a dollar. I address this topic in my new book, “The Generational Wealth System: A Holistic Approach to Preserving Your Wealth and Legacy,” and you can learn more at www.Wealth-Book.com. There’s an interesting coda to my summer working for Guzzardo’s. As I said, our families were friends. Decades later, my father passed away, and several years later Frankie passed away. John and my mother married a few years ago, and now we’re family! He’s a great man, and I’m glad to have him as a part of the family. But who would have thought I’d be spending holidays with one of my first bosses? I imagined a relatively easy summer job, and I got far more than I bargained for — in all the best ways possible.
–Krista McBeath
309.808.2224 1
‘Test-Drive’ Your Retirement Spot THE PROS AND CONS OF LONG-TERM STAYS
Have you heard? There’s a new trend for pre-retirees: test-driving retirement destinations, just like new cars! Thanks to remote work, many folks in their 50s and 60s can spend weeks or months immersing themselves in potential retirement destinations. With a long-term rental or RV (and good Wi-Fi), you can soak up a place’s culture, weather, and way of life. This strategy worked perfectly for Rutgers professor Barbara O’Neill. According to AARP, O’Neill left her home in New Jersey to test-drive the community of Ocala, Florida, several times over three years. She spent nine months there on sabbatical and working remotely before falling in love with Florida and buying a home. Of course, that doesn’t mean test-driving retirement is right for you.
lifestyle than when you’re on vacation.” You’ll build confidence. You’ll find out for sure if your retirement spot is right for you.
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THE CONS
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Test-driving is expensive. Airline tickets and gas can be pricey and so can testing all of the
“experiences” of a new place like restaurants and excursions. If travel isn’t in your budget, this strategy may not be for you — yet. • Not everyone has work flexibility. If you or your spouse has a career where remote work isn’t an option, test driving may not be feasible. Instead, consider waiting for retirement, then using an RV to visit multiple locations before buying a home. If you think test-driving your retirement is for you, schedule several extended stays in different seasons (Airbnb and Vrbo are your best friends). Consider your spouse’s reaction, the weather, cost of living, tax situation, health care options, and distance from family. Ultimately, getting ready for retirement should be fun, not stressful!
THE PROS
• You’ll experience the perks and pitfalls of your retirement spot. A Google search of “Palm Beach, Florida” can give you a bulleted list of the city’s pros and cons, but it can’t let you experience them. Is the coffee actually good? Is the humidity annoying or just downright unbearable? You’ll only know if you make the trip yourself. • You’ll see past the “vacation bubble.” As one wealth manager told AARP, “When you’re living there full time, it’s a different
Don’t Wait to Protect Your Generational Wealth Tomorrow Isn’t Guaranteed
Some people approach their finances with the attitude “you can’t take it with you.” Though it’s true that we only live once, such an approach neglects those you’ll leave behind someday. Most people want to leave the next generation better off than the one that came before, but creating a legacy doesn’t just happen. Krista discusses building family wealth without sacrificing your present in her new book, “The Generational Wealth System: A Holistic Approach to Preserving Your Wealth and Legacy.” She wrote it because so many families make the same mistakes. Over the next several newsletters, we will discuss some of the most common blunders associated with accumulating and passing on wealth. We hope they will help spark relevant conversations with us and any of your other legal, financial, and tax experts. One of the most common and potentially devastating mistakes comes down to something we’re all guilty of at one time or another — procrastination. The future often feels like a long way off, and it’s easy to fall into the trap of thinking we’ll always have more time. But when the unexpected happens, family members can be blindsided by both grief and a confusing financial puzzle.
Consider your savings accounts with designated beneficiaries. Are they up to date? You’d be surprised how many aren’t. Divorce, death, estrangement, and other factors can require a beneficiary change. But people often don’t consider it in a time of upheaval, or the process may appear too inconvenient. When an outdated beneficiary is still alive, your assets may go to someone you don’t intend. And when they are deceased, your heirs might face the potentially costly and time- consuming probate process. Further, procrastination tends to snowball, and between your investment, retirement accounts, real estate holdings, and other assets, it could take years for your family to sort out the mess. In the meantime, they may lose wealth, and their relationships may become estranged. Don’t leave your family’s future up to chance. No matter how inconvenient, staying on top of your financial and estate planning as issues arise will pay off in the long run. And when you have a team of advisors, the process doesn’t have to be stressful. Keep them updated on changes so you and your loved ones can enjoy peace of mind.
2 McBeathFinancialGroup.com
Nothing But a Number? Legally, Your Age Means a Lot More
SUDOKU
With my August birthday approaching, I’ve been thinking about some of the milestones in our lives. I’m not receiving offers to join AARP yet, but I know they’re not as far off as I wish. I remember when my husband, Robert, started receiving offers in the mail. He would complain about how old they made him feel. So, imagine my embarrassment when he not only joined the organization but also started wearing their fanny pack in public! That’s also the age most start getting those “free dinner” offers to great local restaurants like Baxter’s, Rob Dob’s, Biaggi’s, and Jim’s Steakhouse. Those offers remind me a lot of attending a timeshare pitch in exchange for a “freebie” resort stay or event tickets. I’ve met so many people who accidentally got strong-armed into an investment at one of them. Diner beware! (Full Disclosure: they aren’t all bad, but I’ve heard my share of stories.) My upcoming birthday is unlikely to trigger free tote bags or steak dinner offers, but yours might be a milestone, even if you don’t realize it. Your age matters — at least, financially speaking. Here’s how. When you turn 50, you can begin making catch-up contributions to your IRAs and 401(k)s. Currently, those over 50 can annually contribute an additional $6,500 to their 401(k) and $1,000 more to their IRAs than when they were 49. Taking advantage of this ability gets you the benefits of both saving and deferred taxes. *Income limitations do apply for IRAs. It might take a little math to figure out when your half birthday is, but at 59-1/2 you become eligible to start withdrawing from your retirement accounts without incurring a 10% penalty. Just remember that this choice isn’t wise for everyone. Similarly, you become eligible to receive Social Security at 62, but taking advantage will result in lower benefits. When turning 66 or 67 (depending on when you were born), you reach retirement age and can receive your full benefit. If you wait even longer, you can enjoy the maximum benefit at age 70. And don’t forget about your tax-deferred retirement accounts; by law, you need to start withdrawing from them by age 72 if you were born after 7/1/1949, or you’ll incur penalties. If any of these birthdays are on the horizon for you, we would love the opportunity to answer any questions you may have about how your age will affect your financial plan. Simply put, it isn’t as simple as delaying Social Security to receive a higher benefit. Depending on your unique situation, that strategy can cost you big! And that is just one strategy. Give our office a call so we can help you understand how to make the most of your wealth and future.
SOLUTION ON PG. 4
–Krista McBeath
309.808.2224 3
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INSIDE
1
What a High School Job Taught Krista
2
Should You ‘Test-Drive’ Your Retirement?
How Procrastination Risks Family Wealth
3
Is Your Birthday a Milestone Year?
4
Remove the Smell of Campfire Smoke
SOLUTION
Keep the Smoke at Bay Advisory services are offered through Landmark Wealth Management Inc, dba McBeath Financial Group, an Illinois Registered Investment Advisor firm. Insurance products and services are offered through McBeath Tax and Financial Services, LLC. McBeath Financial Group and McBeath Tax and Financial Services, LLC are affiliated. All content of this newsletter is for informational purposes only. Opinions expressed herein are solely those of McBeath Financial Group and our editorial staff. Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual financial professional prior to implementation. Copyright 2021 McBeath Financial Group.
REMOVE THE SMELL OF CAMPFIRE SMOKE
TRY ADDING A LITTLE H2O. Water is actually a very harsh compound. In a heated form, it has the power to kill bacteria and eliminate gnarly smells. So, if you have strong, lingering campfire smoke smells, try washing your clothes in very hot water. This will pull the smoke from your
There’s only one way to make the great outdoors even greater — the campfire. But if your campfire smell lingers on your clothes for days after you enjoy the fire, it can be anything but “great.” Kill the smell with this go-to guide.
BUT FIRST — WHY DOES THIS HAPPEN? Fabrics cling to whatever it comes in contact with, and some fabrics, like cotton, tend to cling harder than others. Smoke is light and small, so it can easily penetrate fibers of your fabric, and wood may contain chemicals and compounds that can be very damaging to clothing. Thus, not removing the smoke smell could permanently alter your clothes. GO BITTER OR GO HOME! Lemon juice and white vinegar are strong enough to cut through stains and smelly particles, but they’re gentle enough to keep your clothing in good condition. There are a few ways you can do this. You can soak your
fabric. However, don’t use this method all the time. As mentioned, water can be harsh — even to the very item you’re cleaning.
IT’S TIME TO KEEP IT ORGANIC. Rather than relying on solutions or water to clean your garments, hang your smoky clothes outside. This is a useful solution for those who have items that cannot be washed at home, but it may not be completely effective. If that’s the case, try rubbing your clothes with dryer sheets to lift the smell, too!
Try It: Don’t trust a home remedy with your favorite clothing item. Instead, place a few T-shirts you don’t care about near your next campfire. The following day, try a remedy on that shirt! If you run into any difficulties, consult with a trusted dry-cleaning expert.
clothes in vinegar and cold water prior to washing. Alternatively, add a splash of lemon juice to your washing machine before washing any smoky clothes.
4 McBeathFinancialGroup.com
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