Bridgeriver LLC May 2019

THE

Egg

The Devil Is in the Details

A Cheat Sheet for Knowing Your Tax Status and Mastering It

It doesn’t matter how old or young you are; life never stops throwing you curveballs. This is especially true given the seemingly endless stream of tax reforms that take place every few years. Whether you’re retired or still working, the good news is you don’t have to be left in the dark on your tax status. That’s where Bridgeriver comes in. With years of experience and industry accolades, we offer our clients the best insight into how they can take advantage of their tax levels. The first step is realizing what these advantages are. The problem with the usual tax preparation model is most of the time, investors visit their tax preparer after their tax year is already over, when it’s too late to do most planning. Not to mention, tax preparers have a looming deadline and not much time to review strategies. Two main factors affect taxed individuals: regular income and tax-free income. Each comes with its own unique set of tax rates and, thus, its own unique set of advantages. Regular income taxed at your regular income tax rates includes your retirement accounts and pensions, which may be partially or fully tax- free in some states. Another important income is your Social Security. Of your total Social Security, a maximum of 85 percent could be taxed at your regular income tax rates. Then, you have your short-term capital gains, interest, and nonqualified dividends, which all contribute to the government’s final say regarding your tax bracket. If you have any of these, they will be lumped under regular tax rates, which could be the highest. Then, you have your tax-free income, like any money you get that comes directly from a Roth individual retirement account (IRA) or a life insurance policy. In a more specific bracket, your capital gains won’t be taxed if you’re in the 10–12 percent income rate. Funds from a reverse mortgage are also tax-free. If you’re 62 or older and have equity in your home, you may be

able to take this money out tax-free, as it’s technically considered to be a loan with no payments. Finally, as we discussed previously, the other 15 percent of your Social Security benefits is tax-free. It’s important to note that a middle ground does exist with certain types of income. Annuities are taxed differently depending if they’re inside a traditional IRA or not. Whether or not these annuities are deferred or immediate is also considered. For more on the complicated world of annuity taxation, head over to my YouTube channel where I explain this in a recent video. When it comes to strategies to stretch your income, you’ll want to stay at or below the 12 percent tax. That way, your qualified dividends and capital gains are tax-free, and your Social Security will most likely be tax free. Then, if you need more income, take it from the tax-free income. Qualified dividends and capital gains will remain tax-free. This is one of the most powerful tax strategies, and we’re just getting started. You don’t have to worry about keeping all these numbers handy. With the specialized knowledge that has seen countless Bridgeriver clients save money over the years, you will get the best possible strategies for your tax bracket. To learn more, give us a call at 248.785.3734 or visit our website anytime at www.BridgeriverLLC.com, where you’ll have access to a series of YouTube videos that put these tips into a visual medium.

-Dan Casey

1

248.785.3734

PROM SAFETY

Seeing gorgeous dresses, fancy suits, corsages, and boutonnieres pop up in advertisements can only mean one thing: Prom season is here! This time of year, teens are busy choosing the perfect dress or suit

if they find themselves in trouble.

Driving You and your teen should also have a plan about the modes of transportation, who’s driving, and how many people your teen is going with. Trusting the driver is important. If you’re hesitant about letting your child be driven to prom, find another way. If your teen is driving the family car, confirm that they will be the only person driving the vehicle. Dress Safety Make sure your teen is dressed comfortably and appropriately to ensure they have a fun night without any accidents. Encourage them to wear comfortable shoes that they can walk and dance in without pain. High heels are fashionable, but they shouldn’t wear heels so high that they may fall and hurt themselves. Whatever your teen decides to wear should be comfortable and hemmed to the appropriate length based on their height.

to wear, finding a date, making dinner reservations, and preparing for an evening of fun and dance. During this exciting time, give your teens a little encouragement and guidance to ensure they have a safe and memorable evening. Create a Plan Create a plan for prom night, and make sure everyone knows what it is. Your teen should know and communicate with you what time the dance starts, what time it ends, if they’re going anywhere after, and when they’ll be coming home. Phones Make sure your teen’s phone is completely charged in case they need to reach out to you sometime during the night. Encourage your teen to check in once every few hours, and establish an emergency code to use Long before the invention of radios and cellphones, homing pigeons were used to send messages as early as the sixth century. During World War I, war pigeons carried lifesaving messages past enemy lines for the American and French armies, often being wounded in the process. In 1918, Cher Ami, a black check hen used by the U.S. Signal Corps, became the most famous of them all. On Oct. 2, the United States 77th Infantry Division was trapped behind enemy lines in the Argonne Forest during the Meuse- Argonne Offensive, a three-month push by the Allies during the final throes of World War I to force the Germans to surrender. It became the bloodiest battle in U.S. history. For six days, the encircled division endured relentless attacks and suffered heavy casualties, but their orders were clear: Don’t retreat and don’t surrender. The division dispatched two homing pigeons with requests for help, but both birds were shot down. When friendly fire began raining down on the 77th, Major Charles White Whittlesey felt he had no choice but to send the last pigeon, Cher Ami. The pigeon’s desperate note read:

By keeping these safety measures in mind, your teen will have a wonderful and safe evening!

BRAVE LITTLE CHER AMI

As Cher Ami rose from the brush, she was shot down, to the despair of the watching soldiers. However, after a few seconds, she fought her way back into the air, flew through a torrent of gunfire, and made it to division headquarters 25 miles away. She had been shot in the breast, the eye, and the leg. Because of Cher Ami’s brave flight, 194 of the original 554 men of the 77th Infantry Division survived the battle. One month later, World War I came to an end. Cher Ami survived the war as well, thanks to the surgeons who performed emergency surgery on her. One soldier even carved her a little wooden leg. She became a well-known hero to both soldiers and children in the States. For her service in Verdun, the French Army awarded her the Croix de Guerre, and she was inducted into the Racing Pigeon Hall of Fame. Cher Ami finally succumbed to her wounds in June of 1919 and is now on display in the Smithsonian alongside Sergeant Stubby, a terrier who served 18 months on the Western Front.

“We are along the road parallel to 276.4. Our own artillery is dropping a barrage directly on us. For heaven’s sake, stop it.”

2 www.BridgeriverLLC.com

Ways to Help Children Appreciate Their Teachers

A Homemade Meal

Teacher Appreciation Week runs from May 6–10 this year, and there are plenty of ways students of all ages can thank their educators for everything they do. Being a teacher isn’t an easy job, and the people who make it

Making a homemade meal (or dessert) shows teachers that you went the extra mile to appreciate their hard work. You could make a favorite dish of yours or try to find a new recipe online. Either way, encourage your child to help you with the process so that the meal is truly a gift from both of you. Donating School Supplies Many teachers use their own money to buy school supplies for their classroom. This is just one of the ways teachers go above and beyond on a daily basis, and buying some extra school supplies can help ease that cost. Take your child shopping with you and help them pick out supplies that you know their teacher will appreciate. Your children spend several hours a day with their teachers, so fostering relationships with them is vital. Use this day to help your children understand the importance of teachers, to teach them the power of gratitude, and to encourage them to show respect for everyone who helps them in life.

their profession are passionate about helping kids learn. Depending on how old your child is, they may need a parent’s help in showing their appreciation. Here are a few ways parents and children can appreciate teachers together. Thank-You Notes This gesture is simple and sweet and can be very thoughtful. Telling a teacher what makes them outstanding can often be just as valuable as a gift. Help your child write an appreciative note and then write one yourself. Teachers often have to maintain the happiness of students, administrators, and parents. Your card could relieve some of the stress of that balancing act and let them know that you acknowledge their efforts.

LEARNING TO BE GRATEFUL

SUDOKU

Classic French Omelet

Ingredients

• • •

3 large eggs

Kosher salt and freshly ground pepper

1 tablespoon unsalted butter

Inspired by SeriousEats.com.

Directions

1. In medium bowl, beat eggs with plastic fork until last traces of white are just mixed in. Season with salt and pepper. 2. In an 8-inch nonstick skillet, melt butter, swirling over medium heat until foamy but not browned. Add eggs, stirring rapidly with fork, while moving skillet to agitate eggs. Break up all curds by scraping bottom of skillet as they form. Stop stirring when eggs are softly scrambled and creamy (but loose enough to come together into a single mass), 1–2 minutes. 3. Using fork, gently spread egg in an even layer around skillet and scrape down

any wispy bits around the edges. The top surface should be loose and creamy, but if still liquid, swirl skillet to bring raw egg to the edge where it will set faster. 4. Remove from heat. Tilt skillet up by handle. Using fork, gently roll omelet down over itself until nearly folded in half. Using fork, push omelet to edge of skillet so that the lower edge of egg just begins to overhang. Use fork to fold overhanging edge of egg back over, closing omelet. 5. Turn omelet out onto plate. It should have the seam on bottom. 3 248.785.3734

Solution

PRST STD US POSTAGE PAID BOISE, ID PERMIT 411

74 WEST LONG LAKE STE.203 BLOOMFIELD HILLS, MI 48304

248.785.3734 WWW.BRIDGERIVERLLC.COM

INSIDE This Issue How to Determine Your Tax Bracket

Prom Safety Tips

The War Pigeon Who Saved the ‘Lost Battalion’

Teacher Appreciation Week Is Here!

Classic French Omelet

Black Gold

Why Do We Compost? Besides giving gardens and lawns significant nutrients, composting also reduces landfills. According to the United States EPA, “Food scraps and yard waste together currently make up about 30 percent of what we throw away.” Organic material often takes longer to decompose in a landfill due to being wrapped in plastic. The more organic material that is composted, the quicker it can deteriorate. Learn About Composting Day The best way to recognize this holiday is to learn as much as you can about composting. When you dive in, you’ll discover you can compost materials you never knew you could, including latex balloons and cardboard egg cartons. Once you do your research, you can start your very own compost by dedicating a part of your backyard to disposing of organic matter or by purchasing a compost bin. This article covers the basics of composting, but there’s still plenty more to learn! Head to your local farmers market or botanical garden and talk to the experts about any questions you have — they’ll be sure to give you some great tips.

Most people have heard of composting one way or another. Your mom might have kept a bin in the backyard for overripe Halloween pumpkins, yard clippings, and egg shells. You might even have a coworker who boasts about the giant compost pile they use to fertilize their garden and lawn. Whatever your level of composting knowledge may be, there is always more to learn about this popular and extremely beneficial method for handling organic food waste. Luckily, May 29 is National Learn About Composting Day! This day provides a great opportunity to introduce yourself to and begin the conversation about composting if you haven’t already. Below are a few answers to your basic composting questions to get you started. What Is Compost? Compost is decomposed organic matter, which is especially good for people who have gardens or aspire to live a sustainable lifestyle. People put coffee grounds; vegetable scraps; paper products, including receipts, paper towels, and tissues; and wood chips, leaves, and other types of waste that are not categorized as processed food, meats, or fish products in their compost bin. Compost can stabilize gardening soil, keep the soil from contracting diseases, and help the ground retain moisture.

Black Gold for Your Garden Soil

4

www.BridgeriverLLC.com

Page 1 Page 2 Page 3 Page 4

www.bridgeriverllc.com

Made with FlippingBook - Online magazine maker