Patriot Wealth - February 2020

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FEBRUARY 2020

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THE SECURE ACT IS NOW LAW HERE’S WHAT YOU NEED TO KNOW

In the final weeks of 2019, the SECURE Act passed through Congress. It was signed into law by President Trump Dec. 20 and became effective Jan. 1. Here’s a quick summary of the changes the SECURE Act brings. First, insurance companies — not employers — now have fiduciary responsibility over the investment options offered through annuities within 401(k) plans. Prior to the SECURE Act, employers were responsible for ensuring suitable investments in annuities. Second, the age at which IRA and 401(k) account owners must take a required minimum distribution (RMD) has been increased from 70 1/2 to 72. If you turned 70 1/2 in 2019, then you’ll still need to take an RMD by April 1, 2020, followed by one no later than Dec. 31, 2020, and by Dec.

This presents a challenge to any IRA that names a trust as a beneficiary because the new 10-year payout rule will still apply. However, certain beneficiaries may still “stretch” the payout of their inherited IRA:

• Spouses

• Minor children, but not grandchildren

• Disabled and chronically ill individuals

• Those who are not more than 10 years younger than the IRA owner

Fifth, part-time workers may now enter into company- sponsored retirement plans. Previously, employers could exclude employees who worked less than 1,000 hours

31 of each subsequent year. However, if you turn 70 1/2 this year, then you don’t need to take your first RMD until April 1 of the year after you turn 72. Third, the age limit for making contributions to traditional IRAs has been eliminated. Previously, no one over the age of 70 1/2 was able to save money in this type of account. Fourth, the so-called “stretch IRA” is no longer. Most beneficiaries of IRAs must now withdraw 100% of those assets within 10 years of inheriting the account.

per year. Now, workers are eligible to participate if they worked 1,000 hours within one year or 500 hours within three consecutive years.

And finally, small businesses can now access multiple employer plans regardless of industry. This is expected to help smaller companies and their employees enjoy features that only large companies previously had in their retirement plans.

–Wes White

These articles are designed to provide general information on the subjects covered. They are not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Patriot Wealth and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney. Investment Advisory Services is offered through Retirement Wealth Advisors (RWA), a Registered Investment Advisor. Patriot Wealth and RWA are not affiliated. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

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DON’T LET SCAMMERS GET YOU DOWN PROTECT YOURSELF AND YOUR MONEY

According to a recent survey by the American International Group (AIG), a majority of Americans over the age of 65 don’t know much about the myriad financial scams circling the globe. Reports show that ignorance of these scams has proven costly for the 65-plus crowd, who are the most frequently targeted demographic. IS IT LOVE? One common shakedown taking seniors and retirees for a ride is the online romance scam. As part of it, a person poses as a potential date or romantic partner and engages in a fake relationship with the victim. The scam usually starts with an online or web-based dating service and progresses to texting or talking over the phone, but it always stops short of an in-person meeting. Instead, after the scammer has gained the trust of their victim, they’ll claim there’s

been some kind of emergency for which they need money fast. The clueless victim usually offers to wire them the money. In many cases, the scammer will continue asking for money for as long as they can get away with it. Then, once the victim figures they’ve been bamboozled and try to retaliate, the scammers vanish — off to find their next target. DID YOU PAY? Another prevalent rip-off is the invoice scam. Again, AIG reports that about 57% of people aged 65-plus aren’t familiar with this sham. In most cases, the victim receives a phone call or email from a representative of a local company, who says they still owe money for a bill or service. For example, the scammer may tell the victim they owe an overdue $50 for their power bill. If the victim says they’ve already paid, the scammer might respond, “Your payment didn’t

process correctly.” The crook’s job is to get the victim to relent and pay up. Then, once they’ve been paid, usually via credit card number or wire transfer, the scammer once again vanishes along with a significant portion of someone’s bank account. Scammers want your money, but if you are aware of today’s hustles, you can better protect yourself and your assets. Luckily, AIG also found that nearly 92% of the 65-plus crowd now ignores phone calls, texts, and emails that request personal information, and 89% of these folks say they avoid clicking links from unknown senders. Be vigilant and remember that if someone calls you and demands personal information over the phone or asks you to wire money, there’s a very good chance it’s a scam.

3 RESTAURANTS TO TRY IN RALEIGH

BREWERY BHAVANA If it’s human connection you’re after, check out Brewery Bhavana. This restaurant has dotted best-of lists for multiple years in a row. Its owners built the restaurant around the goal of providing an eating and drinking establishment that could function as a kind of living room for the city of Raleigh, where people from all walks of life can come together and connect. In addition to selling beer and food, Brewery Bhavana offers a gift shop featuring books and flowers, a choice that the owners explain by pointing back to the dovetail of human connection and gift-giving. Brewery Bhavana offers slow-fermented beer brewed a few blocks down the road and their specialty, house-made dim sum. Reservations are highly recommended and can be made at BreweryBhavana.com/reservations.

CRAWFORD AND SON Raleigh chef Scott Crawford is a five-time James Beard Award finalist who turned the obsessive attention to detail that helped his rise through America’s fine dining kitchens to more casual fare at Crawford and Son. Items on the menu include kale “cesar,” crispy catfish (served with bacon-fennel relish), and smoked beef rib. To reserve a table, call 919.307.4647 or visit CrawfordandSonRestaurant.com. STANBURY Stanbury’s menu features seasonally available ingredients, so expect frequent changes. This restaurant places a premium on incorporating and promoting locally grown produce and strives to provide playful, uncomplicated meals. Menu items include sweet potato bisque; fried oysters served with daikon, carrot, cilantro, and Sriracha mayo; and smoked porkchop. They are known for their cocktails. Reservations can be made on SeatMe or by calling 919.977.4321.

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Do you have a plan in place to pay for your care later in life? A private room in a skilled nursing facility can cost upward of $100,000 a year. Medicare covers only short- term nursing home stays and limited home care during periods of rehabilitation. It doesn’t cover care that includes help with day-to-day tasks. But a study done by the U.S. Department of Health and Human Services found that about half of today’s 65-year-olds will need long-term care services in their lifetime. Failing to have a plan means gambling with your future, and for half of us, that would be a very bad gamble. The two main arguments for getting long-term care insurance are to provide a safeguard against depleting your savings and to ensure access to as many options for care as possible. The more you can afford to spend for long-term care, the better the care you’ll get. In many states, Medicaid doesn’t pay for assisted living at all. Most people who buy long term-care insurance sign up when they are in their 50s and 60s and still healthy. This can be a good strategy to keep your premiums down, as factors like age, health, and gender can have a large impact on cost. Women pay more than men, as they are likely to live longer and make claims, and married people, on average, pay less. In order to access benefits, you’ll need proof that you can no longer do at least two of the six activities of daily, independent living. Depending on the specifics of your plan, you’ll pay for 30–90 days of care independently, then get reimbursed. Understanding when you should purchase long-term care insurance and what type you should get can be a complex and overwhelming process. But at Patriot Wealth, we help people answer these kinds of questions all day, every day. Give us a call so we can help you understand the best options for your specific situation. IS LONG-TERM CARE INSURANCE RIGHT FOR YOU?

VEGAN BANANA PANCAKES

INGREDIENTS

Inspired by My Darling Vegan

• 2 tbsp maple syrup • 2 tbsp coconut oil, melted • 1 tsp vanilla extract • Cooking spray

• 1 1/2 cups flour • 2 1/2 tsp baking powder • 1/2 tsp salt • 2 extra ripe bananas, mashed • 1 cup soy milk

DIRECTIONS

1. In a small bowl, combine flour, baking powder, and salt. 2. In a separate bowl, whisk bananas, soy milk, maple syrup, oil, and vanilla together. 3. Add dry ingredients to wet ingredients and stir. Don’t overmix. Lumps are okay. 4. Spray a heated pancake griddle with cooking spray, and scoop 1/4 cup of the mixture onto the griddle. Repeat until the griddle is filled. 5. After 3 minutes or when bubbles appear, flip each pancake. 6. After each pancake has risen to double its initial height, remove from griddle. Repeat as necessary until batter is gone. 7. Serve with your favorite toppings!

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INSIDE THIS ISSUE

The SECURE Act PAGE 1

Don’t Let These Scammers Steal Your Money PAGE 2

3 Restaurants to Try in Raleigh PAGE 2

Vegan Banana Pancakes PAGE 3

Is Long-Term Care Insurance Right for You? PAGE 3

Your Epic Adventure Awaits PAGE 4

CREATE YOUR OWN ODYSSEY MYTHICAL ADVENTURES AWAIT IN THE MEDITERRANEAN

One of the oldest stories in Western literature is Homer’s “The Odyssey.” This epic poem tells the story of Odysseus and his long journey home after the Trojan War. While Odysseus’ travels were fraught with mythical monsters and magic, many of the places he visited are said to be inspired by real islands in the Mediterranean. Even today, travelers flock to these islands looking for peace, adventure, and epic stories of their own. SICILY, ITALY One of the most popular stories in “The Odyssey” is the tale of Odysseus rescuing his crew from Polyphemus, a man-eating Cyclops. It’s said that Polyphemus made his home on what is now modern-day Sicily. Fortunately, there are no Cyclopes in Sicily today; there are only cultural festivals, world-class golf courses, and delicious food. GOZO, MALTA While Odysseus’ journey was perilous, he did enjoy one peaceful stop. Odysseus spent seven

years on the mythical island of Ogygia, home of the nymph Calypso. Historians suspect that Ogygia was Gaudos, now modern-day Gozo, Malta. Gozo is home to the Ġgantija temples, which are older than the Egyptian pyramids. In addition to exploring its archaeological marvels, Gozo’s visitors can also enjoy snorkeling, horseback riding, and other memorable adventures. ITHACA, GREECE If you want to chart your own odyssey, make your final stop Odysseus’ home, the island of Ithaca. Covered in lush greenery and quaint villages, Ithaca is a wonderful place to relax at the end of your trip. Visitors can enjoy their morning coffee by a seaside cafe before lounging on a secluded beach for the rest of the day. It’s no wonder why Odysseus fought so hard to get back to Ithaca! With dozens of other islands to explore, the Mediterranean is the perfect place to plan your own odyssey — minus the mythical monsters, of course.

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