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JULY/AUGUST 2025
Financial Horizons Your Connection for Wealth, Lifestyle & Legacy
McBeathFinancialGroup.com
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Finding Your Way MAPS, MARRIAGE, AND MONEY
THE FINANCIAL PLANNING PARALLEL Looking back, those early trips were a test of patience and problem- solving — a lot like navigating financial decisions as a couple. We’ve seen it time and again: One spouse prefers to have a solid plan in place, while the other is more comfortable figuring things out along the way. That can work — for a while. But as with road trips, the longer you go without checking your map, the more likely you are to veer off course. That’s where we come in. Think of us as the GPS for your financial future. We help both spouses feel confident in the path ahead, helping them make informed decisions while
“We Thought We Knew the Way … Until We Didn’t.”
A Lesson in Road Trips, Marriage, and Money
For over 20 years, my husband and I have taken a summer trip to a remote lake in northern Minnesota. It’s a tradition we cherish, but in the early days of our marriage, getting there was often an adventure — sometimes the wrong kind!
You probably remember those days before GPS, when road trips required an actual road atlas or, if you were really prepared, printed
directions from MapQuest. The problem? Those maps weren’t always up to date, they didn’t account for detours, and apparently, the copilot’s frantic directions were somehow “unclear.” Worst of all, if you suddenly discovered you were off course, you had no simple way to reroute. That’s how my husband and I found ourselves, more than once, in the middle of nowhere with no landmarks and no clue which way to go. I remember sitting in the passenger seat, knowing full well that stopping at a gas station
maintaining control. We don’t take over the steering wheel — we simply advise, recommend, and project potential outcomes based on the direction you’re headed. For many of our clients, our regularly scheduled meetings are a great opportunity to check in and make sure both spouses feel aligned with their financial goals. And if an unexpected detour ever comes up, that’s exactly what we’re here for: to help you assess the situation and get back on track smoothly.
for directions would get us back on track, but my husband? He was convinced we could figure it out on our own. And of course, that meant we’d wander even further off course before finally pulling up to a dusty little gas station, where a local would set us straight. One time, my husband confidently asked the attendant, “I don’t want to backtrack. Why can’t we just keep going straight? We’ll hit a highway eventually, right?” To which the guy chuckled and said, “Sure, if you want to spend the night in Nebraska instead of at your destination!”
Just like that gas station attendant helped us avoid an unexpected detour into Nebraska, we help our clients avoid costly financial wrong turns. With the right guidance, your financial journey can be as smooth and stress-free as possible. Wherever your summer travels take you, we hope you enjoy the ride. And if you ever feel like you’re navigating without a map, just remember: We’re always here to help you stay on the right path. –Krista McBeath
Eventually, GPS came along and eliminated all the drama. Now, we type in our destination and follow the route without any heated debates.
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The 5 Retirement Tax Traps That Could Drain Your Wealth
Retirement is supposed to be about enjoying the fruits of your labor — travel, family time, and perhaps a bit of well-earned relaxation. But many don’t realize that the retirement tax landscape differs significantly from their working years. Without careful planning, taxes can take a bigger bite of your retirement income than expected.
for the entire year. Proactive tax planning, including using Roth accounts, strategic withdrawals, and tax-efficient investments, can help keep income below these thresholds. 4. THE WIDOW’S TAX PENALTY When one spouse passes away, the surviving spouse faces a double financial hit — not only does one Social Security check disappear, but the survivor also moves from married tax brackets to single tax brackets, which can lead to significantly higher taxes on the same income. Many couples don’t plan for this transition, but there are ways to mitigate it. Roth conversions, life insurance, and properly structured investment withdrawals can all help protect the surviving spouse from unexpected tax burdens. 5. THE ESTATE TAX AND INHERITANCE MISTAKE Many retirees assume their heirs will inherit their assets tax- free. While that’s true for after-tax investments, it’s not the case for traditional retirement accounts. The SECURE Act eliminated the “stretch IRA” for most non-spouse beneficiaries, meaning heirs must now withdraw and pay taxes on inherited IRAs within 10 years. For those with large retirement accounts, this can create an unintended tax problem for heirs, pushing them into high tax brackets at the peak of their earning years. A combination of tax diversification, strategic giving, and trusts can help manage this impact. Important Note: While federal taxes are a significant concern, don’t overlook state taxes — some states tax Social Security benefits and retirement distributions differently. Depending on where you live, state tax laws could impact your overall retirement tax strategy. SMART PLANNING CAN REDUCE RETIREMENT TAX RISK While these tax traps can create unexpected financial burdens, proactive planning can help retirees keep more of what they’ve worked hard to build. Strategies such as Roth conversions, charitable giving, tax-efficient withdrawals, and proper estate planning can all help reduce unnecessary taxation. Retirement is too important to leave to chance. A well-structured financial plan can help you enjoy your wealth without unnecessary surprises from the IRS.
Here are five key tax traps that retirees, especially those with substantial 401(k) and investment assets, should watch out for.
1. THE REQUIRED MINIMUM DISTRIBUTION (RMD) SURPRISE Many retirees think of their 401(k)s and IRAs as their own money, but the IRS sees it differently. Once you hit age 73 (or 75 for some under the SECURE 2.0 Act), you’re required to start withdrawing a portion of your tax-deferred savings every year, whether you need the money or not. These withdrawals are fully taxable, and if you’re not careful, they can push you into a higher tax bracket, increasing the tax on your Social Security benefits and even triggering higher Medicare premiums. Strategic planning, including Roth conversions and charitable giving strategies, can help reduce the long-term impact of RMDs. 2. SOCIAL SECURITY’S HIDDEN TAX BITE Most retirees don’t realize that up to 85% of their Social Security benefits can be taxed. The taxability of Social Security is based on a formula that includes your income from pensions, investments, and even tax-free municipal bonds. Many are shocked to realize that extra income, whether it’s from an IRA withdrawal, a side business, or selling investments, can cause their Social Security to be taxed at higher levels. Managing income streams carefully can help avoid unnecessary taxation on benefits.
3. THE MEDICARE SURCHARGE (IRMAA) PENALTY High-income retirees face another hidden tax — the
Income-Related Monthly Adjustment Amount (IRMAA). This surcharge increases Medicare Part B and Part D premiums for those with higher incomes, based on a two-year lookback at your tax return.
For example, a retiree with taxable income just a dollar over the threshold could pay significantly higher Medicare premiums
2 McBeathFinancialGroup.com
Ready to steep yourself in the healing power of herbal drinks? We’re reading all the tea leaves on, well, tea! Whether you need a morning boost from a bold black tea, a stress-melting sip of chamomile, or a green tea glow-up for your immune system, there’s a brew for every mood. Let’s sip through the world of teas and explore the different varieties, their benefits, and why your kettle might be your new best friend on your health and wellness journey. GREEN TEA People have turned to green tea for centuries for its health benefits, hosting powerful antioxidants to support your immune system. The natural catechins in these leaves protect cells in the body from damage and can even reduce inflammation. Green tea can also aid in weight loss, support healthy brain function, and reduce the risk of severe conditions like heart disease. Studies have found that this brew can also improve your oral health, manage blood sugar, and could add years to your life! The Tea on the Benefits of Tea Why Your Mug Might Be the Key to Feeling Great
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BLACK TEA If you want an energy boost, black tea might replace your morning cup of coffee. Robust and flavorful, this variety has high amounts of antioxidants called theaflavins and thearubigins, which support healthy cholesterol levels and the heart. Black tea can also reduce the risk of strokes, lower blood sugar levels, and provide focus without all the jitters. CHAMOMILE TEA Sleep is crucial for your health, and you can sip your way to better z’s with a cup of chamomile tea. This popular drink’s calming effects are thanks to its antioxidant properties — natural stress and inflammation reducers. Along with its well- known calming benefits, chamomile can soothe upset stomachs, protect against certain cancers, strengthen your immune system, and even improve your skin. (That’s what we call beauty sleep in a cup!) So, whether you’re brewing up energy, relaxation, or a health boost, tea has you covered, one sip at a time. Go ahead and grab your favorite mug, steep your favorite brew, and let the stress melt away!
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203 Landmark Dr., Unit A - Normal, IL 61761 - 309.808.2224
INSIDE
1
What Getting Lost on a Road Trip Taught Us About Financial Planning
2
Costly Retirement Tax Surprises (And How to Avoid Them)
3
Sip Your Way to Better Health
4
The Most Dangerous Game of Monopoly Ever Played
SOLUTION
When Monopoly Helped Win a War Advisory services are offered through Landmark Wealth Management Inc, dba McBeath Financial Group, an SEC 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. © 2025 McBeath Financial Group. Allied Powers Outwitted the Enemy, One Game at a Time
You know Monopoly as the game that ruins friendships and sparks hourlong battles over Park Place. But during World War II, it played a much more significant and far braver role: helping Allied soldiers escape from German POW camps. Yes, really .
Each game was marked with a secret red dot on the Free Parking space — an insider’s clue for captured soldiers to look out for.
Thanks to a clever partnership with the Red Cross, these “games” were slipped into POW camps as humanitarian aid packages. The guards thought they were passing along innocent entertainment. Meanwhile, inside the box were the tools to freedom. By the end of the war, over 35,000 POWs had escaped German camps — many with the help of these customized Monopoly sets. Though exact numbers are lost to history, Monopoly’s role in those escapes is one of the war’s clever secrets.
In one of the most brilliant covert ops of the war, the British Secret Service turned Monopoly into a top-secret escape kit. Before this tactic, smuggling noisy paper maps without tipping off the guards was too risky, and getting caught could be fatal for prisoners. Enter silk — strong, weather-resistant, and, most importantly, silent. The British turned to John Waddington Ltd., the licensed Monopoly manufacturer in the UK, who also happened to be an expert in printing on silk. It was a match made in espionage heaven.
The mission was kept quiet for decades to preserve the strategy for future use. Today, the story reminds us that the simplest tools can sometimes carry out extraordinary missions. Next time you pass “Go,” just remember Monopoly once helped people pass barbed wire.
Waddington didn’t just tuck maps into game boxes, though. In a locked room most employees didn’t know existed, craftsmen rigged Monopoly sets with tiny metal files, magnetic compasses, and even real currency hidden beneath the play money.
4 McBeathFinancialGroup.com
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