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JANUARY/FEBRUARY 2024
Financial Horizons Your Connection for Wealth, Lifestyle & Legacy
McBeathFinancialGroup.com
309.808.2224
She Stopped Believing in Santa Claus
This was the Christmas I watched a chapter of childhood innocence close for my daughter, Jillian. With a mix of disappointment and growing understanding, she stopped believing in Santa
learning to find joy in the holiday without Santa, our clients learn to find security and success in their investments through a balanced and well-informed approach.
Claus. Despite her desire to hold onto the enchanting stories and the anticipation of Christmas morning, she could no longer ignore the glaring truth. It was a stark
In crafting our clients’ financial narrative, we acknowledge that while we cannot promise a risk- free journey with a market that only climbs, we focus on a partnership that prioritizes our clients’ interest, and aligns with their
reminder of the tension between belief and reality that each of us faces at various stages in life. We can draw a parallel between Jillian’s realization and the way we approach our investments. There’s a human tendency to cling to what we want to
lifelong aspirations. You deserve a clear understanding of where your hard-earned money is going, how it’s working for you, and what
costs are involved. Transparency, after all, is the bedrock of trust.
believe, to choose the comfort of ‘ignorance is bliss.’ It’s not uncommon to see people harbor fantasies about investments spun from tales by well-intentioned friends, family, or even from the boundless realms of the internet. And unfortunately, sometimes, these misconceptions are reinforced by financial advisors whose self-interests or lack of expertise might ‘mis-guide’ investors.
It’s not about donning rose- tinted glasses to gaze at your portfolio but equipping you with the insights to view your investments with clarity and confidence. Our role is to help you discern the fine balance
between the necessary risks and the strategic avoidance of unnecessary ones, between robust growth and prudent security. It’s about tailoring your financial plan so you can enjoy the dessert of retirement
I get it, ignorance might seem like bliss when presented the seductive myth of the perfect investment: vast returns with negligible risk, no fees to whittle away at our earnings, and the ever-appealing promise of bulletproof strategies against market volatility. Who wouldn’t want to believe that our investments will defy the gravity of financial principles, much like a child wants to believe in Santa’s sleigh soaring across the sky? But here at McBeath Financial Group, we don’t peddle in myths. We face the facts with the knowledge that, while investing is no fairy tale, it doesn’t have to be a grim story either. Just as Jillian is
without fear of it slipping away unexpectedly.
Jillian may have left Santa Claus in the realm of fond memories, but her joy for the season is as vibrant as ever. Similarly, we strive to ensure your financial journey is one of empowerment and satisfaction—grounded in reality, yet full of potential. And just like the holiday spirit that endures, we believe the spirit of a secure financial future can thrive with the right guidance and a well-crafted plan. –Krista McBeath
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How Will You Cover Medical and Long-term Care Expenses? Retirement Question No. 6
While we all envision a tranquil and fulfilling retirement involving travel, hobbies, and quality time with loved ones, there is another vital aspect to consider. Our increased life expectancy is both a blessing and a challenge; it brings about the potential need for prolonged medical care and assisted living services. Addressing health care and potential assisted living costs is essential for a successful retirement. MEDICARE: THE FOUNDATION AT 65 Medicare serves as the primary health coverage for numerous retirees, generally becoming available when they reach the age of 65. Those considering early retirement could face unique challenges when it comes to bridging the gap between employer-sponsored
of extended care, a domain often outside of Medicare’s coverage. Here, long-term care insurance emerges as a crucial buffer. Although older individuals may grapple with higher premiums, the consequent benefits can safeguard retirement savings from being rapidly eroded when extensive care becomes essential. HYBRID INSURANCE SOLUTIONS Hybrid policies weave together the advantages of life insurance with protection for long-term care by utilizing Long Term Care Riders or Accelerated Death Benefit Riders for Chronic Illness. These types of policies are subject to premiums and underwriting just
like traditional long-term care insurance, but your premium is often guaranteed, and you have the advantage of tax-free death benefits for your heirs if you do not need the benefits while you are living. Another option available to
coverage and Medicare. If you plan to retire before turning 65, your employer may offer retiree coverage and share in some of the expenses. Either way, you’ll need to account for insurance costs until Medicare becomes accessible as well as the expense of Medicare Part B once you turn 65.
those who have the ability to set a sum aside is an annuity that has a chronic illness rider. This option may provide an additional benefit for chronic illness and is not subject to underwriting.
UNDERSTANDING MEDICARE’S LIMITATIONS While Medicare provides essential health care services, beneficiaries should be aware of its inherent limitations. Deductibles and co-payments often accompany these services, leading to potential out-of-pocket expenses. As a response, many retirees explore supplemental coverage options. Medigap plans, for instance, are designed to offset the deficiencies of standard Medicare Parts A and B. Another option is a Medicare Advantage plan. A successful retirement plan will also need to account for your supplemental or Medicare Advantage premiums. NAVIGATING PRESCRIPTION DRUG COSTS Prescription medications are a significant concern for many retirees. Basic Medicare does not cover these costs, making Medicare Part D an essential addition for those requiring regular medications. This program offers various plans, each with its own pricing structure, allowing retirees to find a fit for their unique needs. This is another expense that needs to be incorporated into your plan. THE LONG-TERM CARE GAP Perhaps one of the most significant oversights in Medicare is its lack of long-term care coverage. While Medicare will provide some coverage for a nursing home stay, but only if it is following a hospital stay — and there is a time limit. Planning for this potential need is crucial. Whether it’s insurance or personal savings, ensuring you have a strategy to cover possible long-term care expenses is a vital component of a comprehensive retirement health care plan. LONG-TERM CARE INSURANCE Long-term care needs can emerge without warning. Conditions such as dementia or physical disabilities might thrust one into the realm
SELF-FUNDING THROUGH INVESTMENT For those averse to leaning entirely on insurance or for those pondering a diversified strategy, self- funding presents an enticing avenue. By considering
medical expenditures as part of an investment and financial plan, retirees can access capital reserves if and when it’s required. Such a portfolio could embrace a variety of assets. Periodic reviews, stress tests, and adjustments, keeping in sync with market trends and personal health trajectories, are paramount. THE MEDICAID WARNING The allure of Medicaid, especially a long-term care provision, might be tempting, but it bears a weighty stipulation. Eligibility typically mandates the exhaustion of most personal assets. Serving as a lifeline for many, an exclusive reliance on Medicaid for long-term care might signify a drastic forfeiture of financial autonomy. HEALTH CARE COST INFLATION Historical data underscores that health care expenses have consistently outpaced general inflation. Factoring in the spiraling costs of medical services, drugs, and therapies is indispensable in any forward-thinking plan. Today’s sufficient buffer might be tomorrow’s shortfall. The labyrinth of medical and long-term care costs can seem overwhelming. Comprehensive planning that can stress test for these events can help alleviate concerns and help determine how much coverage is necessary to protect against these potential health care threats.
2 McBeathFinancialGroup.com
Winter Wonderland Hazards: How to Stay Safe and Avoid Common Cold-Weather Injuries
SUDOKU
While we may get a good laugh from viral videos of people fumbling on ice, the injuries that come from these falls can be dangerous. Increased ice and snowfall in winter means everyone should be cautious when treading through this rugged weather, especially those traveling to winter wonderlands this season! BE AWARE OF COMMON WINTER INJURIES AND CAUSES. With increased risk for injuries during the winter, be aware of the most common types of accidents. The most typical situations leading to severe injury during winter include:
ensure you have your cellphone with you in case of an emergency. DRIVE SAFELY IN WINTER CONDITIONS. We should always be driving with the utmost caution, but traveling in
winter conditions requires you to be even more alert and prepared. Slick roads and snow-covered streets are a recipe for disaster, but there are a few ways to prevent a collision and keep yourself safe.
SOLUTION ON PG. 4
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Slipping and falling on ice
First, installing winter-grade tires is always a good idea as the season begins in full force. These tires are designed to handle slippery roads, icy conditions, and freezing temperatures. Next, inspect your brakes and your entire vehicle to ensure it can safely drive through winter weather. Finally, use good judgment; if you don’t have to go outside in severe weather, don’t! PLAY WINTER SPORTS WITH CAUTION. For many, winter means the best sports and activities, including snowboarding, skiing, ice hockey, and much more. However, because these sports occur on slippery ice and snow, you’re more prone to injuries. To stay safe, take some extra precautions:
Getting into a car accident caused by icy roads and snowstorms Participating in winter sports and activities
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KNOW WHAT TO DO IF YOU EXPERIENCE AN INJURY. Injuries happen, and it’s essential to assess the severity of the damage as soon as you can. If pain is recurring, seek help from a medical professional. Undergoing treatment as soon as possible is the best way to ensure a speedy and complete recovery. With these wintertime safety tips, you can stay happy and healthy this season! Have fun!
The resulting injury from any of these situations can occur anywhere throughout the body and range in severity. Shoulder pain, wrist strains, back injuries, head injuries, hip fractures, and ankle sprains are just a few common examples. The best way to prevent an injury is to take safety precautions, especially when facing the season’s harsh elements. STAY SAFE ON THE ICE. Falling on ice can be painful and even lead to severe injuries for older adults. Salting your driveways and sidewalks is one of the best ways to keep them slip-free so you can avoid a disastrous fall. Another critical way to prevent falls is wearing proper footwear for icy conditions. If you know you’ll be outdoors, put on winter boots or sneakers with good traction! Lastly, take it slow. When walking on ice, be sure not to rush. Slow, short steps are much safer than quick, long strides. Also,
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Do some warmup exercises. Wear protective gear, including helmets, gloves, padding, and goggles. Always stay informed of the weather conditions and heed any storm warnings. Have fun with a friend in case of an emergency.
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Stay hydrated to prevent exhaustion.
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203 Landmark Dr., Unit A - Normal, IL 61761 - 309.808.2224
INSIDE
1
The Year She Stopped Believing
2
Long-Term Care Planning: Protecting Your Health and Wealth
3
Your Guide to Winter Injury Prevention and Safety
4
Take Charge of Your Finances With Reverse Budgeting
SOLUTION
Master Your Money With Reverse Budgeting 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.
A NEW APPROACH TO FINANCIAL FREEDOM
Managing your personal finances can be a daunting task, and traditional budgeting methods don’t work for everyone. However, “reverse budgeting,” a unique approach that empowers you to take control of your finances and achieve your goals more efficiently, may work for you. In a typical budgeting process, you track your income, expenses, and savings goals in a forward-facing manner, allocating your earnings to various expenses and saving whatever is left over. Reverse budgeting flips this process. Instead of allocating money to expenses first, you focus on saving and investing a predetermined amount before covering your expenditures. Here’s how it works. SET YOUR SAVINGS GOAL Start by determining your financial goals, whether saving for emergencies, retirement,
a vacation, or a down payment on a house. Consider creating separate savings accounts for different goals to track your progress.
ADJUST YOUR LIFESTYLE If your expenses exceed your remaining income after savings, it’s time to make lifestyle adjustments. Look
for areas where you can cut back without compromising your essential needs.
AUTOMATE YOUR SAVINGS Arrange for automated transfers from your income to your
TRACK YOUR SPENDING Keep an eye on your spending habits by reviewing your bank and credit card statements, using budgeting apps, or maintaining a spending journal. This helps you identify areas
savings accounts on payday. By doing this, you treat savings as a non-negotiable expense, similar to rent or utility bills.
where you can make further financial improvements and adjustments.
COVER YOUR EXPENSES After setting aside your savings, use the remaining money to cover your monthly expenses and discretionary spending. This process forces you to be mindful of your spending and live within your means.
Whether saving for a specific goal or simply building a stronger financial foundation, reverse budgeting can be a valuable tool in your financial toolkit. Give it a try!
4 McBeathFinancialGroup.com
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