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October 2024
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to compare your current portfolio to what it would have looked like in 2008 or 2002 and tell you how it would perform in a down market. The key to the About You form is to articulate your concerns and address them because once you alleviate all those fears, you can enter retirement with full confidence — that’s the key. As I mentioned, the form is two-sided. The right side lists all the things you want to do. Once you’re confident in your retirement planning, you can shift your focus to enjoying your retirement to the fullest. This is the time to make travel plans, check off bucket list items like learning a new language or playing an instrument, and truly embrace new experiences. You might even plan a big family trip, like my father-in-law did five times when he took the entire family, including kids, spouses, and grandkids, to Disney. We will cherish those unforgettable memories forever. So, your planning process is your key to success, but very few people participate in it. If you’re a client of Campbell Wealth Management, I know you have a financial plan that we review each year because that’s just what we do. But if you have family or friends who may be worried about their retirement, let them know we can help them out. We’d be more than happy to talk to them. If they are important to you, they are important to us. Now, let me take this a step further. If you are a client, and you have any concerns about your retirement, call your wealth manager and set up a meeting. Let’s take a look at those concerns and see if we can help you feel more confidence. That confidence, again, is your key to retirement success.
FROM WORRY TO CONFIDENCE How Proper Planning Can Transform Your Retirement Outlook
October is National Financial Planning Month, so I figured I’d talk about why we create a plan for every client and review it with them each year. Recently, I taught a retirement planning class, and I asked the students why they were there. One of the students said they were there because they were afraid they would run out of money in retirement. My response? I said, “Well, then you probably shouldn’t retire.” Everyone looked at me in amazement. The key takeaway is that if you’re genuinely concerned about not having enough, it’s important to hold onto your income sources, like your job, until you’re certain. The truth is, you probably do have enough money, but gaining confidence in that comes through proper financial planning. Getting ready for retirement is all about gaining confidence. Before you go into retirement and let go of your well-paying job you’ve held for years, you need to gain confidence that you’ll be able to support yourself in retirement with all of your income sources and assets. Remember, in retirement, you typically have three main sources of income: your pension (if applicable), Social Security, and your personal assets. If you’re still earning income from working, you’re not truly retired yet. Retirement begins when you’re fully relying on these three income streams. With proper financial planning, you should never have to worry about going back to work. That being said, let’s talk about something I developed a few years ago called the About You form. I put this together and I’ve given it out at
all of my classes, so many of you have seen it. On the left side of the page, it talks about all of the potential concerns you might have about retirement — things like running out of money, paying too much in taxes, or having a portfolio that’s too aggressive or even too conservative. All of these factors can create uncertainty and undermine your confidence in your retirement future. However, the key benefit of writing them down is that it allows you to identify which concerns truly matter to you. In other words, you can clearly articulate your fears simply by checking a box. Once you’ve identified your concerns, you can take steps to address them. For instance, if you’re worried about running out of money in retirement, you can conduct a financial planning forecast. By considering your current income sources, assets, spending habits, and factoring in inflation, taxes, and returns, you can project your finances 10, 30, or even 40 years into the future. If the forecast shows you’re at risk of running out of money, you can take action now — whether that means reducing spending or adjusting your portfolio for higher returns. This way, you can alleviate the fear by proving, with solid numbers, you have enough. If you are concerned you’re paying too much in taxes and have articulated that by checking that box on the form, the next step would be to put together a tax plan to look at whether or not you are taking advantage of all of the possible tax rules. If you are concerned your portfolio is too aggressive, you can use portfolio analysis software
Kelly Campbell
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Hidden Health Risks in Your Neighborhood HOW YOUR ENVIRONMENT SHAPES YOUR WELL-BEING
Have you ever wondered if your neighborhood might be impacting your health? According to
The Dangers of ‘Food Deserts’ Now, let’s talk about food. If your neighborhood has limited access to fresh produce and healthy food options, you might be living in what’s known as a food desert. Research shows that people in food deserts are at a higher risk of obesity, diabetes, and cardiovascular disease. Our environment influences our health, including the availability of nutritious food. So, having a farmers market or a store with fresh produce nearby can make a huge difference. Steppin’ Up and Out Well-constructed and maintained sidewalks encourage walking, which is essential for maintaining heart health and overall fitness. A safe and walkable neighborhood can significantly impact your daily exercise routine. If your sidewalks are in bad shape, staying active and getting your steps in is harder, so reach out to local leaders or groups to advocate for their repair. Next time you step outside, take a moment to consider your surroundings. Does your neighborhood have plenty of green spaces, easy access to fresh food, and good walkability? These factors might seem small, but they significantly affect your health. Your neighborhood is more than just where you live — it’s vital to your overall well-being.
a recent study published in the Journal of the American Heart Association, where you live can significantly influence your risk of developing heart disease and stroke. Let’s examine how your
surroundings might play a more significant role in your well-being than you think!
Nature’s Medicine — Green Spaces Imagine waking up and taking a stroll through a lush park. Sounds nice, right? Well, it turns out that having green spaces nearby is more than just pleasant — it’s good for your health! Dr. Sarju Ganatra from Beth Israel
Lahey Hospital in Massachusetts shared with AARP that exposure to green spaces is linked to lower stress levels, better moods, and improved overall well-being. Parks also promote social interaction and community bonding, which are great for your emotional health!
WHAT TRIGGERS AN IRS AUDIT? 6 COMMON RED FLAGS
No one wants to face an IRS audit, but the reality is that the IRS can’t possibly audit each tax return. Instead, they use certain guidelines to flag returns that warrant closer scrutiny. Let’s take a look at six potential red flags that could increase the likelihood of an IRS audit: Deviations From the Norm The IRS uses a scoring system known as the Discriminant Information Function (DIF), which compares deductions, credits, and exemptions to those of other taxpayers in similar income brackets. Though the IRS doesn’t reveal its exact formula, returns that deviate significantly from the norm for your income level are more likely to raise suspicion. Business or Hobby? Taxpayers who consistently report business losses may face increased audit risk. To avoid being labeled a hobby instead of a business by the IRS, your business needs to show a profit in at least three of the last five years.
This distinction can make a big difference in how the IRS treats your losses. Higher Income While the IRS audits less than 1% of individual tax returns overall, audit rates increase as income rises. For taxpayers earning between $1 million and $10 million, the audit rate jumps to 1.3%, and for those earning over $10 million, it climbs to 8.7%. The higher your income, the more likely you are to attract attention. Failure to Report Income The IRS receives income information from employers and financial institutions, so failing to report income is a surefire way to trigger an audit. If your reported income doesn’t match what the IRS already knows, you can expect heightened scrutiny. Claiming Rental Losses The IRS pays close attention to taxpayers claiming rental property losses. Passive loss
rules generally prevent individuals from deducting rental losses unless they are actively involved in managing the property. Real estate professionals who spend more than 50% of their working hours and at least 750 hours annually in real estate may be eligible for these deductions, but the IRS keeps a close eye on these claims. Discrepancies Between Ex-Spouses When divorced couples file individual tax returns, the IRS often compares them for discrepancies, particularly in cases involving alimony. If one spouse claims an alimony deduction while the other fails to report the alimony as income, it can lead to an audit.
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From Rescue to Rescuer Poncho’s Inspiring Story
In a heartwarming story of canine courage, a rescue dog named Poncho has emerged as a hero after putting his life on the line to defend his family during a home invasion. The events unfolded on a fateful night in early June when an intruder broke into Poncho’s home in northern New Mexico. Poncho, an 8-year-old rescue pup, sprang into action the moment the intruder entered the home. Without hesitation, the brave dog leaped at the would-be criminal, determined to protect his family at all costs. In the ensuing struggle, Poncho suffered a deep neck wound that miraculously missed his vital organs. But the attack didn’t stop there — the intruder then proceeded to kick Poncho repeatedly. Undeterred by his injuries, Poncho managed to hold the intruder at bay until others could intervene and restrain the criminal. Poncho’s family then embarked on a desperate two-hour journey to Albuquerque, searching for emergency veterinary care. Remarkably, the family ended up at the doorstep of Española Humane, the same rescue organization where they had adopted Poncho. The dedicated staff immediately sprang into action, performing extensive surgery to clean and repair Poncho’s traumatic
neck wound. The brave pup stopped breathing at one point, but the veterinary team successfully revived him. Despite his severe injuries, Poncho has steadily regained his strength. His tail never stops wagging, and he responds enthusiastically whenever he hears the words “good boy.” Poncho’s dad promised him a lifetime of rib-eye steaks to reward his heroic actions. Poncho’s story is a powerful reminder of the unwavering loyalty and bravery rescue animals can possess. If you’re considering adding a furry friend to your family, consider visiting your local animal shelter or rescue organization. You never know — you might just find your very own guardian angel, just like Poncho’s family did.
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CampbellWealth.com | (703) 535-5300 330 John Carlyle St., Suite 400 Alexandria, Virginia 22314
INSIDE Confidence Is Your Key to a Successful Retirement
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Is Your Neighborhood Affecting Your Health?
IRS Audit Red Flags You Shouldn’t Ignore
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Loyal Pup Risks Life to Protect Loved Ones
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Vienna: A Timeless Tapestry of Music and the Macabre
Securities offered only by duly registered individuals through Madison Avenue Securities, LLC (MAS), member FINRA/SIPC. Advisory services offered only by duly registered individuals through Campbell Wealth Management, LLC (CWM), a Registered Investment Advisor. MAS and CWM are not affiliated entities. Our firm does not offer tax or legal advice. Consult your tax or legal advisor regarding your situation.
DISCOVER VIENNA City of Dreams: From Sublime Music to Museums of Death
If you yearn to visit a European city rich in imperial grandeur, music history, and macabre memorials to death, Vienna is for you. And that odd mix of attractions reflects only a small part of the city’s diversity. This former frontier city of the Roman Empire expanded to become the glittering capital of a great empire for centuries. The Habsburg dynasty’s sponsorship of the arts made Vienna a global center of classical music. Home to Beethoven, Vivaldi, Mozart, Mahler, and Strauss, Vienna hosts frequent performances of classics by these and other composers. The city’s museums, churches, and charnel houses offer macabre tributes to death. Piled on the floor and lining the walls of a charnel house beneath St. Stephen’s Cathedral are the skulls
and other bones of 11,000 people, according to Atlas Obscura. The Habsburgs created elaborate containers to preserve their embalmed entrails after death. The city’s Crime Museum houses relics of famous murders, including the mummified head of a known killer. Fortunately, the Habsburgs were readers, too. The Austrian National Library, a baroque masterpiece, is home to 2.5 million books. In a Gothic twist, library employees may slip silently in and out of hidden passageways behind the stacks if you watch closely. The city is also noted for its intellectual history. Sigmund Freud lived and worked in Vienna, which led to its nickname, “City of Dreams.” The philosopher Ludwig Wittgenstein also worked in Vienna, where
he made many contributions to logic in mathematics and language. On the lighter side, Vienna’s Spanish Riding School offers a unique opportunity to see its famous Lippizaner horses perform dressage. The Imperial Butterfly House is a tropical oasis housing about 400 beautiful insects. Visitors to the “lost garden,” a vast topiary maze at the Habsburgs’ summer palace, can enjoy tales of courtiers frolicking among the web of manicured hedges — not only for playful exploration but also for illicit romance. Taken together, these diverse attractions promise travelers to Vienna a visit to remember!
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