Take a look at our newsletter this month.
APRIL 2020
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REMEMBERING CLINTON AND HIS CHICKY
A Throwback to Easter of 1993
Easter is coming up this month, and that means it’s time to start planning a family dinner with my brothers and sister. Now that our kids are grown up, we make it a point to get together every Easter and share good food and laughter at the same table. It’s a great tradition, but every time I see Easter bunnies and pastel eggs start popping up, I can’t help but get a little nostalgic for the time when my kids were little, toddling over to their Easter baskets full of candy and gifts. There’s one Easter in particular I’ll never forget. The year was 1993, and my oldest son Clinton was about 5 months old. He was a bit young for an Easter basket, but my mom gave him a little stuffed chicky as a gift. He absolutely adored that fluffy chick — it turned out to be his best buddy of all time! He took it everywhere and would go into a panic if we left the house without it. If we got into the car and started driving before he could grab it, he’d scream, “Wait! I don’t have my chicky!” until we turned the car around and went back for it. It was the same story when Clinton was trying to go to sleep at night. Sometimes he’d just start yelling, and my former wife and I would run in to check on him, thinking he was sick. When we got to his room, he’d scream, “I can’t find my chicky!” I can’t count the number of times I tore his whole bed apart looking for that thing. Usually I’d find it jammed down between the bed and the wall. Clutching it, Clinton would finally feel safe enough to go back to sleep. Over the years, he rubbed the stuffed animal for comfort so often that all its fluffy feathers came off, and by the time he was 4 or 5, it was pretty much bald. At that point, it started leaking stuffing from little holes. Whenever a hole appeared, we’d call my mom “for surgery” and she’d sew it up. There must have been about 2,000 sutures all over that chicken by the time Clinton finally stopped carrying it around! Clinton still has that chicky to this day. His wife got a real kick out of this story the first time I told it, and I hope you do, too! Really, I think most parents have a story like that about their kids — every kid has a favorite stuffed animal or blanket that they drag around until it dies. But for me, Easter definitely brings up those old memories!
documents or fill a client in on the progress of their case, I end up meeting their spouses, kids, and pets and hearing stories like the one I just told about Clinton and his chicky. I’d honestly call most of my clients good friends, and that makes me feel like the luckiest man in the world. We trust one another, and that’s confirmed whenever they send a friend, coworker, or family member my way for help with a tax problem. If you know someone who could use my help, please don’t hesitate to do the same. You can rest assured knowing your loved one will be in great hands (and we might even end up swapping Easter stories). Paul Francetic
One of my favorite things about my business is getting to know my clients and their families, too. Because I often make house calls to drop off
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READY TO TAKE UP THE NOMADIC LIFESTYLE AFTER RETIREMENT?
HERE’S HOW TO PLAN FOR IT
DO YOUR RESEARCH If you have a specific place in mind for your retirement, like Hawaii or Texas, look at rental costs and other lifestyle changes that can affect your budget. For example, Hawaii’s cost of living is cheaper than other popular retirement states, like Florida, but basic commodities may be more expensive. If a boat or RV is more your style, be sure to add repair and fuel costs into your budget. As you go about researching and planning, be sure to consult with your financial advisor so they can help you look at your current situation and make adjustments. With the proper planning, you’ll be living your nomadic dream in no time.
You’ve worked hard for years to arrive at this moment: retirement. Now that you’re free of your 9-to-5 job, you have a lot more time for activities you enjoy. That extra time is what leads many people to turn to a nomadic lifestyle after retirement. Touring in an RV, sailing around the world, or even just retiring to a cabin in a remote locale are all popular options for new retirees. If the spirit of adventure is calling you, here are some financial tips to set you on the right path. DOWNSIZE BEFORE YOU GO Some folks choose to sell their home and use the income to fund their travels, staying in apartments and rentals as they go. If that seems too drastic, downsizing to a smaller home is also a good option, especially if you plan to travel in intervals
but want a home base to return to. This also gives you the option of renting your home while you’re away and using the money to continue traveling. ASK OTHER NOMADS Crowdsource advice from friends and family members who’ve taken the leap. Lots of other people have shared your dream and made it a reality. Many have turned their experience into books or blogs, like Lynne Martin, who’s been traveling around the world with her husband, Tim, for the last three years. The Martins used the sale of their home to finance their travels. They also take cruises to cut down on travel costs and often dine in to save money.
IT’S TIME TO SPRING-CLEAN YOUR FINANCES!
3 Tips for Organizing Your Assets
Sweep out that extra paperwork. If you still have financial records from the 1990s taking up space in your drawers and file cabinets, it’s time for a shred fest. The IRS recommends keeping most records for a maximum of seven years, with some exceptions for things like unfiled or fraudulent returns. Many records can be safely shredded after just three years! For a full breakdown of the various timelines, visit IRS.gov and search “How long should I keep records?” Once you’ve shredded anything you no longer need, go paperless where you can. Credit card and bank account statements, for example, can be sent digitally, saving drawer space and trees. Scrub away unnecessary spending and forgotten subscriptions. Spring is the perfect time to pull out your old bank and credit card statements and go over them with a fine-toothed comb. Pay particularly close attention to any automatic charges. Do you still use those services and subscriptions? If not, cancel them and save yourself some dough.
Dust off underutilized accounts and consolidate them. While you’re looking into your spending, check on your accounts, too. If you have a checking account you rarely use or are banking with multiple institutions and have trouble keeping up with them all, it might be smart to consolidate your accounts and simplify your life. Once you’ve done these things, it’s time to do a final spot-check with your tax resolution specialist. If you’ve struggled with a tax problem in the last year or two, schedule a consultation to double-check that you’re back on track and remind yourself of lessons learned. If these tips have been helpful for you, please pass them (and this newsletter) on to a friend who could use some spring-cleaning inspiration. I would love to keep as many people as possible out of financial trouble this coming year!
If you’ve already filed your 2019 tax return, you’re on a financial roll — now keep going! Instead of shoving your documents back into a drawer until next tax season, take this opportunity to spring- clean your finances. Here are just a few steps you can take to Marie Kondo your money:
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MAXIMIZE YOUR EDUCATION TAX SAVINGS FTR TAX TIP OF THE MONTH
If you have children in college, you are already aware of the IRS education tax credits that are available, specifically the American Opportunity Credit, where you can receive up to a $2,500 tax credit per child per year for the first four years of college. The nice feature of this credit is up to $1,000 can be used as a refundable tax credit, depending on the amount of tax you owe. An IRS refundable tax credit is money you will get back even if you do not owe any tax. The American Opportunity Credit (AOC) only requires the student to have $4,000 of education expenses to qualify for the maximum $2,500. So, if you have a 529 plan for your child and you have significant money accumulated in this account to pay education expenses, then you want to save $4,000 of education expenses to pay with “regular money.” For example, let’s say your child has $20,000 of education expenses in a calendar year. The strategy is to pay $16,000 of the expenses with 529 money, which has grown tax free over the years and is a tax-free distribution as long as it used for education expenses. Then pay the remaining $4,000 of expenses with personal money, so the AOC can be maximized as well. You cannot pay education expenses with 529 money and claim the AOC for the same expenses. The main limitation of the AOC is the income range where you qualify for the full credit. As long as your adjusted gross income is $160,000 or less for a married filing jointly ($80,000 for single) tax return, you can qualify for the full $2,500 AOC. Between income of $160,000 and $180,000 married filing jointly ($80,000 to $90,000 single), the credit is reduced per $1,000 of incremental income. It is completely phased out at incomes above $180,000 (MFJ) and $90,000 (single).
EASY DEVILED EGGS
Inspired by TasteOfHome.com
INGREDIENTS
• • • • • •
1/2 cup mayonnaise
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Salt, paprika, garlic powder, and pepper, to taste 12 large eggs, hard-boiled Fresh parsley, minced, and paprika for garnish
2 tbsp milk
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1 tsp dried parsley flakes
Please contact me if you have any questions about the different education credits and the expenses that qualify for the credits.
1/2 tsp dill weed
1/2 tsp fresh chives, minced
1/2 tsp ground mustard
DIRECTIONS
1. In a large bowl, combine mayonnaise, milk, parsley flakes, dill, chives, mustard, salt, paprika, garlic powder, and pepper. Mix well and set aside.
2. Cut eggs lengthwise and remove yolks carefully to preserve egg whites.
3. In a small bowl, mash yolks.
4. Mix mashed yolks with mayonnaise mixture.
5. Spoon or pipe the mixture back into the egg whites.
6. Garnish with fresh parsley and paprika. Refrigerate before serving.
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Remembering Clinton and His Chicky How to Make the Most of a Nomadic Lifestyle After Retirement 3 Ways to Spring-Clean Your Finances Maximize Your Education Tax Savings Easy Deviled Eggs Keep America Beautiful
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DO YOUR PART TO KEEP AMERICA BEAUTIFUL
START PLOGGING. If you’re passionate about staying active and cleaning up your neighborhood, then this is the perfect activity for you! Plogging combines jogging and picking up litter, which takes care of your health and keeps your community clean. Anybody can do it: Just throw on your running shoes, grab a bag, head out the door, and pick up any stray bits of trash you see on your morning jog or evening walk. IMPROVE RECYCLING THROUGH EDUCATION. An important goal during Keep America Beautiful Month is to spread awareness about recycling. There are various ways to educate those around you about recycling and encourage them to do their part. At work, for example, you can volunteer to lead a recycling initiative by printing off guides and fostering discussions on why recycling is so essential. At home, you can make a commitment with your family to fulfill the three R’s of recycling: reduce, reuse, recycle. To discover more ways to participate in Keep America Beautiful Month, visit their website at KAB. org today!
Have you ever walked through a park and seen a plastic bottle or wrapper lying on the ground? If so, did you pick it up and properly dispose of it? You might not have realized it, but in that moment, you took a small step toward keeping your community — and, by extension, America — beautiful! April is Keep America Beautiful Month, and folks who celebrate aim to help each community in every state stay clean and green. Created by the nonprofit organization Keep America Beautiful, this holiday offers a perfect opportunity to roll up your sleeves and work to better the place you live in. Here are three ways to show your appreciation for a green America this month. TAKE ACTION ONLINE. With the current COVID-19 pandemic sweeping the world, it might be difficult to get outside and participate in a few community cleanup programs. But that doesn’t mean the public still can’t participate in Keep America Beautiful Month. April 22 marks the 50th anniversary of Earth Day, and to celebrate, Earth Day Network is providing digital events for everyone around the world to take part in. Follow Earth Day Network’s social media accounts and stay updated on efforts to keep the Earth green or participate in an event yourself! For more information, visit EarthDay.org.
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