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F I N A N C I A L S E R V I C E S , L L C
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November 2018
To Roth, or not to Roth: That is the question
You see what I did there? By way of Shakespeare and his classic play “Hamlet,” I brought a little culture to the financial world. Of course, it is a question a lot of people do ask, and they’re smart to do so. There’s a lot of misinformation about Roth IRAs, and I want to take a few moments to set the record straight. Here’s one I see a lot: If you’re not working, you can’t have a Roth IRA. This is false. If you don’t have an income stream, then sure, you cannot contribute to a Roth IRA. But you can still have one. If you have a traditional IRA, you can convert it to a Roth IRA while not employed if you are willing to pay the tax now. Due to President Trump’s tax reforms, right now might be your best opportunity to take advantage of the conversion process — especially if you want to save on taxes later on. If you have a gross income of $85,000 and you’re a married couple with a standard deduction of $24,000, this brings your adjusted gross income to $61,000, placing you right in the middle of the 12 percent tax rate for joint filers. If you’re adjusted gross income hits $77,401 or more, then you jump up to the 22 percent tax rate — but you’ll only pay the 22 percent rate on anything you earn above $77,401. Income below this threshold will be taxed at the 12 percent rate (and then you’ll pay the 10 percent rate on the first $19,050 of your income). With these rates in mind, if you have a large retirement account (non-Roth IRA) and it won’t be another 10 or more years until you begin withdrawing, you’ll want to consider the conversion. As your income grows, so does your tax burden in retirement. This brings us to the tax time bomb, which we’ve talked about in the past. When you turn 70 1/2, you have to start taking required minimum distributions (RMDs). When you initially start taking RMDs, you start at a rate of about 3.65 percent, but it climbs as you age. (At 80, it’s about 5 percent; at 90, it’s nearly 9 percent.) Couple this income with Social Security and other income streams you may have, and you may
inadvertently bump yourself into the next tax bracket, setting off the tax bomb.
This assumes, however, that you do not convert your retirement funds to a Roth IRA. If you did convert, you could potentially be looking at a tax savings upward of 20–24 percent. You’d pay the tax on your income now when you convert at a lower tax rate, and then that’s it. Once it’s converted, you never have to worry about taxes on that money again. Why is this possible?We all know the government likes their tax dollars, but they also like their tax dollars now . As a result, you benefit from thinking in the long term, which we know the government doesn’t tend to do. The process of converting isn’t always straightforward, so if you do have questions, feel free to call us at 800-536-8907, and we can have a conversion conversation. –Gary Mattson
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SHOULD LAST BEYOND THANKSGIVING AN ATTITUDE OF GRATITUDE
Taking the time to acknowledge who and what you’re grateful for is a Thanksgiving tradition far more important than turkey or football. It’s the cornerstone of the holiday and the reason we feast together in the first place. But when you really think about it, should expressing our gratitude and appreciation for others be limited to one day every year? Of course not! WHY GRATITUDE MATTERS As we get older, it’s easy to succumb to negativity and pessimism— “Kids these days,”“The world isn’t what it used to be,”etc. The crabby grandparent and angry old neighbor are archetypal depictions of later life. But these fictions don’t have to be your reality. Recognizing and acknowledging gratitude will help you take stock of the positive aspects of your life and dwell less on unhappy thoughts.
“Preliminary findings suggest that those who regularly practice grateful thinking do reap emotional, physical, and interpersonal benefits. Adults who keep gratitude journals on a regular basis exercise more regularly, report fewer illness symptoms, feel better about their lives as a whole, and are more optimistic about the future.” HOWTO PRACTICE GRATITUDE In the above quotation fromDr. Emmons, he mentions the practice of keeping a gratitude journal. This activity is a great way to start seeing the world with a more positive, appreciative eye. As often as you can, take a fewminutes to write down the acts, people, and moments that you’re grateful for. Some will be big, others small —but all will have an impact on your mood and bring a smile to your face. Before you know it, you’ll have an entire book full of good memories and warm feelings.
Being grateful has also been linked to significant health benefits. According to gratitude expert and author Dr. Robert A. Emmons,
While keeping a journal is great, there are other ways to go about cultivating and expressing gratitude. The easiest one is simply to say
WHAT MAKES AN 82-YEAR-OLD BUSINESS BOOK RELEVANT? Dale Carnegie’s Classic Offers Timeless Advice
It’s a tall claim to say that a book will change your life, but this one has certainly had a profound impact on many people. Despite having been originally published 82 years ago, Dale Carnegie’s effervescent classic “How to Win Friends and Influence People” is still recommended by everyone who comes across it, and it’s one of the best-selling books of all time. In 2011, the book was No. 19 on Time’s most influential books list. How has it remained relevant in a massively different, technologically advanced world? Fundamentally, Carnegie’s book focuses on people, who may evolve, but whose basic needs don’t change much. We all need to feel valued, appreciated, and respected. By fulfilling these needs for your business associates, you will indeed win friends and influence them. When it comes to business, showing a genuine interest in the other person goes a long way toward building a lasting relationship, something we all know is key to converting leads into sales. With a message based on relationships,
Carnegie’s book hasn’t grown stale with time. Here are three of his suggestions that you can implement today. BE AUTHENTIC Carnegie’s methods for winning people over are, at their core, about authenticity. “Show a genuine interest in others,” he instructs. “Give honest and sincere appreciation” and “Be a good listener.” Adopt this advice by paying extra attention when a client introduces themselves. A person’s name is important, because, according to Carnegie, it may be “the sweetest and most important sound in any language” to that individual. BE NICE Carnegie’s ideas are revolutionary in their simplicity. This is what makes almost anyone who reads the book able to implement them immediately and see results. As Robert Kelsey, author of several business and self-help books himself, points out, Carnegie’s first principle was simply “Be nice.” That point “will always be an important thing to remember in whatever
business you’re in,” Kelsey says. “His advice will always be relevant.”
In the chapter entitled “Six Ways to Make People Like You,” Carnegie’s second suggestion is similarly straightforward: “Smile.” We’ve all read science on the psychological effects of smiling, but it’s still too easy to forget this simple gesture. BE HONEST Be transparent with partners and clients, and as Carnegie suggests, be quick to admit when you’re wrong. When it comes to conflict, being right won’t win you anything — it’s better to avoid that lose-lose scenario and instead listen to your associate’s point of view. Respect their opinions. Even better, begin with something you know they’ll say an enthusiastic “yes” to. Set your relationships up for success by implementing Carnegie’s timeless, genuine advice, and see the results for yourself.
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Commemorating the 100th Anniversary of the End of World War I A HISTORIC VETERANS DAY
“Thanks”whenever you can. It may seem insignificant, but you’d be surprised what a difference it makes. When you approach the world with the perspective that every day is Thanksgiving, it’s only natural to be grateful. We all have moments when we want to curse the world, especially as we get older, and those experiences are perfectly normal. Just as frequently, though, we have moments that are worth celebrating, often with people who are worth appreciating. Which will you think about more?
This year, Veterans Day takes on particular historic significance: Nov. 11, 2018, marks the 100th anniversary of the armistice that ended the First WorldWar. Countries around the world will commemorate the signing of this peace agreement with moments of silence, centennial ceremonies, and historical exhibits. Unlike Memorial Day, Veterans Day is a celebration of life. It’s a day to honor the power of peace and the living veterans across the globe who have served their countries. This November, take a moment to remember the war that helped shape the international community’s dedication to peace and thank the individuals who served to defend it. THE GREATWAR By 1914, a world war had been years in the making, but the assassination of Archduke Franz Ferdinand of the Austro-Hungarian Empire by a Serbian nationalist provided the spark that would eventually burn down much of Europe. A chain reaction of land disputes, pre-emptive attacks, and strategic alliances brought over 30 countries intoWorldWar I. The Great War that ravaged Europe resulted in a devastating loss of life, but from those ashes rose a renewed appreciation for the importance of peace and a global effort to ensure its place in the future. THE RESTORATION OF PEACE In 1918, Germany surrendered unconditionally, and the armistice ended the fighting at the 11th hour on the 11th day of the 11th month in 1918, though the war did not officially end until the signing of the Treaty of Versailles the following July. An estimated 16 million soldiers and civilians died in just four years, making it one of the deadliest conflicts in modern history. VETERANS DAY Originally called Armistice Day, Veterans Day was first observed on Nov. 11, 1919, to honor the one-year anniversary of the armistice, and it became a U.S. holiday in 1938. Today, Veterans Day celebrates veterans who served their country honorably. The U.K., France, Australia, and Canada also commemorate their veterans in November. If you know a veteran, thank them for their service this month.
LAUREL’S SPICY, CREAMY SWEET POTATOES
Inspired byThe NewYorkTimes
Ingredients
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5 pounds sweet potatoes
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1/2 cup dark brown sugar
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1 cup canned coconut milk
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4 tablespoons unsalted butter
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1 tablespoonThai red curry paste
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1 tablespoon kosher salt
Directions
1. Heat oven to 375 F. On a large sheet pan, bake potatoes until very soft, approximately 75 minutes. 2. Let potatoes cool until they are safe to handle, then peel and mash. 3. In a small saucepan over low heat, combine coconut milk and curry paste. Once mixed, add the mixture, salt, half the sugar, and half the butter to potatoes. 4. 30 minutes before serving, heat oven to 425 F. Spread potatoes in a baking dish, cover with foil, and bake for 20 minutes. 5. Uncover potatoes and dot with remaining butter and sugar. Broil until brown, crusty, and delicious. Serve hot.
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To Roth, or Not to Roth ...
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How to Give Thanks Year-Round This Book May Change Your Life
Laurel’s Spicy, Creamy Sweet Potatoes A Historic Veterans Day
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3 Movie Locations to Captivate Your Eyes
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**Reminder: If you have any changes to your financial situation, please notify us as soon as possible.
Investment advisory services are offered through Mattson Financial Services, LLC, a Registered Investment Advisor in the state of Michigan. Insurance products and services are offered through Lakeview Financial Group, LLC. Mattson Financial Services, LLC and Lakeview Financial Group, LLC are affiliated companies.
3 Famous Movie Locations You Need to Visit WHY WATCH THE FILM WHEN YOU CAN SEE IT WITH YOUR OWN EYES?
CHRIST CHURCH CATHEDRAL Harry Potter captured the imagination of the world. There are multiple sites across the United Kingdom where you can get lost in the adventure that shaped a generation, but there is one spot at the top of almost every fan’s list. Hogwarts is a magic castle in J.K. Rowling’s books, but in real life, its film location is a functioning cathedral in Oxford. Take one step onto the grounds of Christ Church Cathedral, and you might begin to wonder when the next Quidditch match will begin. TIKAL NATIONAL PARK When George Lucas witnessed a poster of this famous archeological site, he didn’t see an ancient culture — he saw Yavin IV, the perfect location for the Massassi Outpost, a rebel haven found in the first film of Star Wars. Though the movie paints a futuristic look at the region, walk through Tikal National Park, and you’ll experience it as a trip through history.
Movies captivate audiences partially because of their ability to transport you to a different place. The heart yearns to be taken places, and cinema facilitates that journey. But what if you could immerse yourself in those fantastical worlds by visiting the destinations that you’ve seen on the big screen? Here are three places that are worth the trip. Rings” that is more compelling than the fantastical journey of Frodo is the alluring, untamed countryside and quaint towns that make up Middle Earth. The Green Dragon Inn, Bilbo’s house, and the rolling hills of New Zealand make for a backdrop that will transport you straight into the life of Middle Earth’s smallest people — only these houses aren’t small at all. And you don’t need large, hairy feet to enjoy them. HOBBITON The only aspect of “The Lord of the
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