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MAY/JUNE 2023
Financial Horizons Your Connection for Wealth, Lifestyle & Legacy
McBeathFinancialGroup.com
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When Is Your Independence Day? RETIREMENT ADVICE FROM ‘CINCO DE MAYO’ HISTORY
Are you familiar with the real history of Cinco de Mayo? Many people assume we celebrate May 5th with mariachi music and pozole because it’s Mexican Independence Day, but that’s far from the truth. Cinco de Mayo is actually the anniversary of the Battle of Puebla. On May 5th, 1862, Napoleon III sent 6,000 French soldiers to the city of Puebla in hopes of installing himself as their king. The local forces resisted. Incredibly, 2,000 Mexicans fought off an army three times their size! According to an article I read on the topic, “When Napoleon III later returned with more forces and installed Arch Duke Maximillian to rule, ‘Cinco de Mayo’ became the rallying cry for the fight against the French occupation. They celebrated each year with song, dance, and food to remain focused on regaining the country and retaining their heritage.”
old. She loves celebrating the holiday by eating traditional Mexican food, singing along to Spanish songs, and learning about
otherwise — without the security that financial freedom offers. Illnesses, bad luck, and other hardships can befall even the best people, and I think we can all agree Social Security does not
Mexican culture. She’s also a big fan of mariachi music — just like her father. We’ve
“When you’re retired and financially free, that’s a true independence day!”
been lucky enough to visit Mexico as a family four times, and hearing the local bands was a highlight for her.
stretch far enough to support the lifestyle most of us are used to.
I’m fortunate to help people in both camps. I assist people who are already financially independent to successfully manage their wealth and leave a legacy for their loved ones with our Lifestyle & Legacy Wealth Management Process. I also help those still striving for financial freedom. Ultimately, I want each of my clients to feel comfortable, confident, and free by the time they retire — and holistic financial planning is the best way to get there. You need to have a solid financial plan in place on or before your retirement date. When you’re retired and financially free, that’s a true independence day! Hopefully, you are well on your way to this celebratory moment. If not, my team and I are here to help. We can provide you, your friends, and your family members with the insights, strategies, and support you need to achieve your financial goals stress-free.
Jillian learned the true story of Cinco de Mayo at an early age. If you quizzed her, she could probably also tell you the actual Mexican Independence Day: Sept. 16th. She’s quite savvy! The common mixup between Cinco de Mayo and Mexican Independence Day reminds me of a similar confusion I run into at work. When consulting with new clients, I often meet people who conflate the date of their retirement with the date they will reach financial freedom (aka the moment they
As I write this, Robert and I are planning our family’s annual Cinco de Mayo celebration.
Robert first participated in the festivities while living in California. We’ve kept up the practice ever since — though we’ve swapped the tequila of his 20s for history lessons, singing, and traditional costumes. Somehow, those activities seemed more appropriate for our daughter to enjoy with us!
no longer need to rely on a paycheck to cover their monthly expenses). But those two days are rarely the same. Many people reach financial independence well before they retire. They simply choose to keep working because they enjoy their jobs or want to stay active and busy as they age. Others retire — voluntarily or
¡Feliz Cinco de Mayo!
–Krista McBeath
We started our tradition when Jillian was just 1 year
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Meet Lauren, Our Financial Services Assistant! The Mystery Voice at the End of Our Phone Line
“I love to see the ways people have changed over the years. It’s wonderful when a client comes in and shows me baby pictures of their granddaughter, for example. I really enjoy sharing that excitement or the thrill of one of their kids moving or getting married,” Lauren says. Lauren was born and raised in Normal, and her husband, Trevor, works at the nearby LKM Mowing & Landscaping office. As a local, she knows many of our clients outside of work — some are even her friends and neighbors! When Lauren isn’t busy here, you can find her and Trevor at the park wrangling their three dogs (Smokey, Murfy, and Lou) or taking their daughters to the zoo, summer camp, or day care. “Our 9-year-old, Adelyn, is currently doing the Junior Gamma Phi Circus at her school. She is big into theater and the arts! She’s not quite old enough to do the musicals at her school yet — you have to be in fourth grade — but she’s happy doing the circus,” Lauren says. “Our 4-year-old, Leighton, is obsessed with her sister. If she’s not playing outside, she wants to do whatever sissy is doing!” Lauren has thrived in our office since day one, and her organizational skills are the glue that keeps us together. We applaud her hard work and can’t wait to see what the next few years bring for her and her family!
If you’ve called our office or come in to visit, you’ve probably spoken to the whip-smart, hardworking woman behind our front desk. You may not remember her name, but we’re about to change that! It’s time for you to truly meet Lauren Dennewitz — our financial services assistant and the “mystery” voice at the end of our phone line. Lauren has worked at McBeath Financial Group since 2019. In addition to covering our front desk and answering the phone, she handles organizing and submitting the paperwork Krista and Julie need to meet with clients like you. She also manages their calendars, sets up phone consultations, and keeps our office organized. “Lauren is a critical part of our team,” Krista says. “She continues to grow in responsibility, continually pursuing educational growth and looking for ways to enhance the client relationship experience.”
When asked, Lauren says her favorite part of the job is getting to know our clients.
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Last month, we explained how to calculate the money you’ll spend in retirement. Our step-by-step guide walked you through tallying your current spending and using your projected expenses to create a budget. But to truly design a budget that works, you need to understand more than your spending. You must also answer this question: “How much income will you have in retirement?” If you have worked with us, we have likely helped you solve this problem already! But if you are not a financial planning client, or perhaps you have friends or family members worried about their looming retirement years, this analysis can help. Retirement Question No. 2 How Much Income Will You Have in Retirement?
SUDOKU
To determine how much income you’ll have in retirement, start by adding the monthly total from these sources:
1. Social Security Benefits - The amount of Social Security benefits you receive will depend on your work history, contributions, and the age at which you begin to receive benefits. You can estimate your Social Security benefits at SSA.gov/OACT/quickcalc . However, it’s important to remember that Social Security payments can increase over time due to cost-of-living adjustments and may also be affected by changes to government policy or funding. In addition, the death of a spouse can result in a reduction of overall household Social Security benefits.
SOLUTION ON PG. 4
2. Pension Plans - If you have a pension plan, this can be a significant source of retirement income. A pension plan provides a set monthly income based on factors such as years of service and salary history. However, it’s important to carefully analyze your pension plan to understand any potential changes to your benefits over time. For example, many pension plans reduce or stop payments in the event of the death of a spouse. 3. Rentals and Royalties - If you own rental properties or other investments that provide rental income, this can be a valuable source of retirement income. However, it’s important to remember that rental income can be subject to fluctuations in the real estate market and may also be affected by expenses such as property taxes, repairs, and maintenance. 4. Fixed Income Investments, Such as Annuities - An annuity is a financial product that provides a guaranteed stream of income in exchange for a lump-sum payment or a series of payments. Annuities can be a useful tool for providing a reliable source of retirement income. However, it’s important to carefully review the terms of your annuity to understand any potential changes to your payments over time. Annuities are guaranteed by the issuing insurance agency, but it’s important to know all the details of your payments. These income streams are likely not as reliable as you might believe. You should expect them to change over time. However, you should still calculate your likely expected income from these sources— just plan for potential fluctuations in the future. Other sources of income, which are typically withdrawals, can help supplement and provide a cushion for unexpected variations to these “fixed income” sources. We’ll factor retirement accounts, investment and savings accounts, bonds, and certificates of deposit (CDs) in a future article. With all of these potential variables and the length of time for retirement, detailed projections may be difficult without the assistance of a financial professional with experience in such matters. By carefully considering your retirement income sources and creating a stress-tested plan, you can help ensure that you have the financial resources you need to enjoy a comfortable retirement.
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203 Landmark Dr., Unit A - Normal, IL 61761 - 309.808.2224
INSIDE
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How to Achieve Financial Independence
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A Company Mystery — Solved!
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How to Calculate Your Retirement Income
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The Mysteriously Missing Metric System
SOLUTION
Pirates Stole Our Metric System Advisory services are offered through Landmark Wealth Management Inc, dba McBeath Financial Group, an Illinois Registered Investment Advisor firm. Insurance products and services are offered through McBeath Tax and Financial Services, LLC. McBeath Financial Group and McBeath Tax and Financial Services, LLC are affiliated. All content of this newsletter is for informational purposes only. Opinions expressed herein are solely those of McBeath Financial Group and our editorial staff. Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual financial professional prior to implementation. Copyright 2021 McBeath Financial Group. WHY AMERICA NEVER CHANGED TO KILOS AND GRAMS
Pirates, that’s right, pirates stopped America from changing to the metric system. While they can’t take all the blame, they steal a good chunk of it. There was a specific time in history when America did consider taking up the metric system. But pirates intercepted the standards, and America has refused to change its measuring system ever since. Way back when America was still a new country, there was no regulated measuring system throughout the states. Each territory was using some bizarre system that stayed only within state lines. For example, people were using Roman measurements, Dutch systems, and British systems dating back to King Henry VII. In 1789, Thomas Jefferson decided that some order needed to be in place. A lover of all things French, Jefferson admired the metric system’s logic and principle. He asked the French to help the U.S. transition to the metric system, and they were kind enough to send scientist Joseph Dombey. Dombey boarded a ship and set sail for America with two items pivotal to our measuring system change. The first gadget was a copper cylinder 3 inches in height and width, weighing precisely 1 kilogram. The second was another copper object, but this time a rod
estimated to be a meter in length. These simple trinkets would have eased us into the metric system. Except, we never received them. In fact, Dombey never set foot in America.
Unfortunately, storm winds blew his ship off course and into the pirate-filled Caribbean. The pirates hijacked his boat and held him captive, hoping to
use him for ransom. In a tragic turn of events, Dombey died in that pirate prison before any ransom money could be sent. The pirates then auctioned off everything Dombey had on his boat, metric measuring tools included.
So, you can thank the pirates for all the painstaking work we have to go through when using metric-based recipes. Why Americans never swapped systems after 1789 is still a mystery!
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