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April 2023
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NEVER BE A DAY LATE OR A DOLLAR SHORT Top 10 Retirement Financial Tips
April is Financial Literacy Month, a fantastic opportunity to check in on your financial wellness. It doesn’t matter if you just started earning, you’ve been earning for many years, or you’ve already entered retirement — gaining a full understanding of your financial health is crucial! To give you some guidelines, I’ve compiled a list of my top 10 tips for those in retirement or close to it. These are basic concepts, not in any particular order — please share them with your children and grandchildren, too! 1. Largest Expenses Your three largest expenses in retirement are housing, health care, and taxes. 2. The Rule of 72 This is a simple rule of thumb to keep in mind that will help you double your money. By taking your rate of return and dividing it into the number 72, this is the number of years it will take for your money to double. For example, if you have a 7.2% rate of return, divide that into 72 and you get 10 — it will take 10 years for your money to double. 3. The 80% Rule It’s often said that you will need 80% of your retirement income to live off once you hit your golden years. While this is statistically true, it’s not as accurate in an inflationary environment. 4. 401(k) Max-Out Maxing out your 401(k) is a great way to invest for retirement, and if you utilize your Roth within the 401(k), it’s even better! If you aren’t able to max it out, be sure to at least put in enough to maximize your employer’s matching contribution.
5. Secure Act 2.0 New Required Minimum Distribution (RMD) Rules
Date of Birth 7/1/1949–12/31/1950 1951–1959 1960–present
New RMD Age 72 73 75
6. New Catch-Up Provision Rule We have more changes to come in 2024 and 2025, but as of now, the new 401(k) catch-up provision rule for those over the age of 50 is $7,500. While you can now put your catch-up and your match into a Roth, if your income exceeded $145,000 in the previous year, your catch-up contribution must go into the Roth. 7. RMD Penalties The old RMD rule stated that for any funds you didn’t take out for your RMD but were supposed to take out, you were penalized at a 50% rate. Now, the penalty has decreased to 25%.
However, even though that penalty is cut in half, it’s still a hefty penalty, so don’t make that mistake!
8. The 25x Rule or 4% Rule These two are the same rule, just said differently. No matter what amount you would like to take out of your accounts in retirement, you will need to ensure that you have 25 times (25x) that amount! For example, if you calculate that you’ll need $100,000 to live off of, you will actually need $2.5 million in retirement savings. Continued on Page 2 ...
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INTRODUCING ‘INFLADATING’
... continued from Cover
Looking at this example from the 4% rule side of things, if you multiply $2.5 million by 4%, you end up with $100,000.
around for decades and others were just overhauled in December 2022, but each plays a vital role.
9. Power of a Plan The reason that we put together a financial plan for every client is because it’s the best way to mathematically prove that someone will be okay once they leave their employer. The financial plan is a forecast of your entire retirement, letting you know if you have enough money, if you’ll ever run out, how much money you can take out on an annual basis, and what kind of rate of return you will need on that money to be able to provide the income required.
Earth Month April is also Earth Month, and Earth Day also falls on April 22. In honor of our glorious planet, I have a tip to offer to ensure that you get the most out of the countless benefits of our beautiful world. Nowadays, our shoes all have either rubber or plastic soles, insulating electrical charges. However, when you stand on the ground barefoot (known as grounding), you let go of all electrical charges and you are now neutralized. This direct skin contact with the Earth provides many benefits including reducing inflammation, improving sleep, and minimizing stress.
10. High-Level Social Security Planning When planning out your Social Security, everything is based on your full retirement age (FRA). If your FRA is sixty-six, you will get 100% of your benefit if you are taking it at 66 years of age. If you take it as early as 62, you will only get 25% of your benefit. If you wait until you are 70, you will get an extra 32% of the FRA amount. While some of these rules are simple and some are intricate, all are essential pieces of your retirement planning. Some have been
If you know someone you think
While this isn’t always the easiest thing to do in the winter months, now that it’s warming up, it can deliver some great health benefits.
would benefit from this newsletter, please let us know. Give your friends the gift of knowledge!
Friends and Family Just a reminder, if you have a friend or family member
who has questions about anything related to their retirement, we have a friends and family program! Please let us know — they don’t even need to become a client. We just want to help. If they are important to you, they’re important to us!
LET’S GET SOCIAL A Guide to Finding Friends After Retirement
Retirement comes along with a whirlwind of emotions: excitement, thrill, and maybe loneliness. While you worked your entire life for these years of not having any commitments, once they roll around, you no longer have your coworkers or baristas at your favorite coffee shop near the office to talk to every day. Especially in retirement, it’s important to prioritize your relationships and social interaction. To boost your social well-being and continue making friends and building relationships well into your golden years, here are some things you can do! Check in with your local senior center. If you belong to or have access to a senior center nearby, there are often a wide variety
of featured activities that help keep you busy and social. From bingo nights to computer classes, there is something for everyone. Some of these centers even offer transportation to and from these events! Join an exercise class (or two). What’s better than getting in a good workout and bonding with others with similar interests at the same time? Find a few classes that interest you. There’s such a wide variety of activities out there including yoga, golf lessons, tai chi classes, swimming, water aerobics, tennis, or racquetball. Organize your own game night. To keep in touch with all your friends, consider setting up a game night at your
house or a local center. You can round up some neighbors and friends and break out the cards or board games to catch up and get in a few good laughs. Volunteer your time. Volunteering is not only a great way to get out of the house, but it’s a fantastic way to give back and help others, too! Whether you put in a few hours helping out at a humane society, thrift store, library, hospital, or soup kitchen, you’ll feel great knowing that you’re teaming up for the benefit of your community. With so many ways to stay social, it’s time to engage in some new opportunities and explore some new hobbies. What activities are on your list to try out?
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Stop Snoring With … Mouth Tape?
The Problem With This TikTok Trend
only does it reduce the quality of your sleep, but it also disrupts the balance of your oral microbiome and makes you more prone to tooth decay.” Burhenne has legitimate concerns in regard to mouth breathing, but does that mean mouth taping is the answer? The Cleveland Clinic sheds some light on this topic by saying that nose breathing while you sleep is vital for preventing dry mouth and sore throat, lowering blood pressure, keeping airborne allergens out of your body, and avoiding bad breath. Unfortunately, the Cleveland Clinic also explains that only a few small studies of 10–36 patients each have explored the effectiveness of mouth taping, and those studies had mixed results. The clinic quoted a sleep medicine specialist, Dr. Cinthya Pena Orbea. “Most of the evidence is anecdotal,” she said. “There is not strong
In 2019, the founders of a company called SomniFix strolled onto the screen of the reality TV show “Shark Tank” — and a TikTok trend was born. SomniFix makes a product called “Mouth Strips,” which the company describes as a skin-safe adhesive that holds your mouth shut while you sleep. According to the company’s website, the product is supposed to reduce snoring, help people with sleep apnea use their continuous positive airway pressure (CPAP) machines correctly, boost sleep quality, and encourage breathing through the nose instead of just the mouth. Mark Burhenne, D.D.S., wrote about this on Ask the Dentist. “If you’re breathing through your mouth while you sleep at night, it’s a big deal,” he explained. “Not
enough evidence to support that mouth tape is beneficial. Mouth taping is not part of our current practice to treat any sleep disorder. Nonetheless, in patients with sleep apnea, we may recommend mouth taping or to wear a chin strap to decrease an air leak while you’re using a CPAP machine at night.” If you’re struggling with mouth breathing, sleep apnea, or snoring while you slumber, don’t jump straight to a mouth tape like SomniFix or Hostage Tape (yes, that’s really the name) as a quick fix. Instead of trusting TikTok, visit your dentist or doctor to share your concerns. They can help you identify the actual cause of your issue and address it instead of taping over it.
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Please Accept Our Apologies! In the March newsletter, a typo appeared in the article surrounding RMDs on page 2. Please see the updated RMD information in this month’s cover article for the correct data to reference!
All you have to do is refer a friend. Do you know someone who: • Wants to be better prepared for retirement?
• Is looking for a second opinion regarding their portfolio? • Has gone through a major life event (death of a spouse, retirement, etc.)? Call us at (703) 535-5300 to set up an introduction! If they are important to you, they are important to us.
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CampbellWealth.com (703) 535-5300 330 John Carlyle St., Suite 400 Alexandria, Virginia 22314
Inside
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Our Best Financial Retirement Tips
2
Your Social Well-Being in Retirement
3
Does Mouth Taping Work?
Corrections Corner
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Roger to the Rescue
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.
Never Doubt a Canine’s Senses One Sniff Can Save a Life
believe Roger had heard the man’s calls for help), and once Roger found the elderly man, he didn’t leave his side for the rest of the day. After a couple of hours, Frances Wall, Roger’s owner, began calling for Roger. When he didn’t immediately come home when she called, she started looking for him, and that’s when she found Roger and Cohen. She immediately called emergency services, and three firefighters came by the home to free Cohen. They quickly took him to the hospital because they worried about hypothermia. Over a week later, medical staff released Cohen from the hospital, and now he gives Roger treats whenever he sees him. “I owe my life to that dog. They [health care professionals] said that if I would’ve been there for a few more hours, I would have been a goner,” Cohen told Bournemouth Daily Echo. Fortunately for Cohen, Roger’s amazing canine senses saved the day. It’s always great to have a furry friend around — you never know when their incredible skills will come in handy!
Dogs are known for their keen sense of smell — on TV, you will often see dogs that can find missing people or even search for drugs and bombs. When dogs use their extraordinary senses for a particular job, they’re often trained for that one purpose, but even without training, dogs do seem to know something is wrong.
Unfortunately, that’s what happened to 94-year- old Morris Cohen, and he almost died.
Cohen just got home and parked his car in the garage when he found himself in a spot of trouble. As he tried to exit his vehicle, his walking stick suddenly snapped in half. Unable to keep his balance, Cohen fell and became wedged under his car’s brake and clutch pedals. The man
Roger, the Jack Russell terrier-poodle mix, is a great example.
called for help several times, but unfortunately, no one could hear his pleas, and he remained stuck overnight.
Our story takes place in Ringwood, England, in December 2022. Winter was in full swing, with temperatures below freezing. No one wanted to find themselves outside in the cold for too long because it could be dangerous.
The next day, Roger’s owners let him roam around outside. Roger began sniffing around Cohen’s home (some
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