THE
119 Old State Rd., Ellisville, MO 63021 CapitalAdvisoryGrp.com
AUG 2018
Back-to-school season is upon us, but I’m still soaking in the last bits of the warm season. It’s time to fit in those last few rounds of golf and enjoy the last of the summer harvest. Peaches are at their best right now. Did you know that Campbell, Missouri is one of the largest producers of peaches in the U.S.? It’s true! So enjoy some of the fresh, local fruit while you can! Even as summer comes to a close, there’s still a lot to look forward to. In addition to peach season, Bellerive Country Club is hosting the 100th PGA Championship this month right here in St. Louis.We haven’t hosted a championship for 17 years, and it’s an honor to have the pros return to St. Louis to play on the beautiful course at Bellerive. In fact, we’ve hosted the championship twice, and the last time, something happened that none of us could have foreseen that changed the country forever. It was in 2001, and shortly after the championship started, the 9/11 BACK TO SCHOOL AND GIVING BACK
attacks happened.The players had played a practice round on Monday and Tuesday, and the pro-am was just starting.Then the tragic series of events we remember all too well took place.The games stopped, and that year’s championship never got off the ground. We’re looking forward to a fresh start this year. With the championship in St. Louis, it will likely draw a crowd and bring the best of the best in golf to our home. I’ll be there for some of the action, but not to play — I’m volunteering! It’s a great way to give back and maybe get a glimpse at a few of the pros. If you’ve been looking to get involved in the community, August is a great time to do so. As schools prepare for the start of the school year, many could use an extra hand in the classrooms. You can also help by donating books, supplies, and other materials that help teachers on a tight budget.
The PTA can be a great option for parents with ideas to improve their kids’ schools. In fact, studies show that kids do better in school when their parents are involved, so it’s a great way to show an interest and have an impact on your child’s education. There are many great opportunities around our area to get involved. From the PTA and food banks to animal shelters and community gardens, you can have a positive impact on your community and feel good while you do it. Pick something that you enjoy — maybe it’s community theater for some and planting trees for others — and find out how you can get involved. -Jeff Zufall P.S. Wondering what to do with all the ripe peaches? Look inside for a great peach cobbler recipe!
(636) 394-5524 1
Published by The Newsletter Pro • www.TheNewsletterPro.com
BOOK A CARIBBEAN CRUISE WHY SMALL
Today’s small businesses are woefully unprepared for digital threats. Cybercrime is at an all-time high in 2018, and yet a frightening number of small-business owners assume that their organization is too small to ever warrant the attention of hackers. From the perspective of cybercriminals, most small and mid- sized businesses (SMBs) represent the low-hanging fruit of the digital world: a modest pile of cash guarded by outdated or easily circumvented barriers.That’s why 71 percent of cyberattacks are directed at SMBs, according to Verizon’s annual Data Breach Investigations Report, and a huge number of those strikes actually succeed. If you’re hoping to protect the business that you’ve built from the ground up, it’s important to be vigilant. Here are three steps you can take right now to drastically improve your chances at scaring off the wolves at your digital door: BACKUP YOURDATA. A large majority of data breaches today come in the form of ransomware, which locks users out of everything on a company’s network. Hackers then threaten to delete the data forever unless the company forks over thousands of dollars. But if you have all of your files automatically backed up to an alternate location (that can’t be accessed on your ordinary network), you can skip paying the ransom, let the criminals wipe your system, and make it through the crisis unscathed. TRAINYOUREMPLOYEES. It’s easy to imagine a team of evil geniuses typing at lightspeed to try to penetrate your business’s defenses, but 60 percent of the time, it’s a simple mistake by one of your employees that leaves the company wide open to attack.To combat this, you need to ensure that every single one of your employees is on board with strong cybersecurity practices.That means building a comprehensive cybersecurity policy that all members of your team must sign (including provisions such as password strength requirements) and supplying extensive training on the biggest digital threats. USE FIREWALL, ANTIVIRUS, ANDENCRYPTION SOFTWARE. Firewalls, which are usually included with your operating system, block unauthorized access to your network. Antivirus software serves as a watchdog, sniffing out malware and spyware before they become a problem. And encryption ensures that the data on your system is unreadable to anyone who doesn’t have the encryption key. All three of these powerful protections are inexpensive, user-friendly, and essential tools for businesses of all sizes seeking to stave off cybercriminals. And What You Can Do to Protect Yourself BUSINESSES ARE CYBERCRIMINALS’ NO. 1 TARGET
Safe Sailing This Hurricane Season
After last year’s devastating storm season, would-be tropical travelers are undoubtedly hesitant about purchasing those discounted plane tickets to the Caribbean Basin. No one wants to face a possible evacuation during their vacation — or worse, be forced to weather a hurricane at a beachfront resort. If you want the most bang for your buck while enjoying the turquoise waters of the Caribbean this fall, consider booking a cruise. Cruise-ship travel is a fun and adventurous way to explore any time of year. After all, what could be more magical than a floating hotel room where you fall asleep in one country and wake up in another? This charming mobility is also what makes cruise travel the safest option for visiting the Caribbean and the coast of Mexico this time of year. SAFETY AND SAVINGS Much like resorts and airfare, cruise lines discount their Caribbean fares significantly during peak hurricane season, from August to October. However, unlike a traditional hotel, these massive ships have the luxury of navigating out of a storm’s path with ease. For all their ferocity, hurricanes move slowly across the Atlantic and have relatively predictable trajectories. Meanwhile, modern cruise ships carry the most sophisticated weather-tracking instruments, allowing them to bypass even small storms and inclement weather. FLEXIBILITY IS AMUST The flipside of this ability to dodge storms is the fact that your ship may not be able to stick to its original itinerary. You may have to anchor at an island you weren’t expecting to or miss out on seeing a port you were supposed to visit. If you have your heart set on seeing a specific location, cruise travel this time of year may not be for you. But if you are simply looking for a safe, affordable vacation to a beautiful region, then it doesn’t much matter which white-sanded beach you wake up to next. While unpredictable
weather will always be a concern for any vacation, the safety and variety cruises offer make them great options for anyone looking for a Caribbean getaway before the holiday season. So if you have a flexible schedule and a healthy sense of adventure, it’s time to call your travel agent, pack your sunscreen and bathing suit, and head to paradise!
2
CapitalAdvisoryGrp.com
THE LONG AND SHORT OF IT Consumer surveys consistently show that
Without getting too technical, here’s how this little sleight of hand worked. (If you’re thinking “sleight of hand” is an unfortunate term to use in the tax-planning context, you’re right.) First, Baldwin put up $1.5 million to buy $22 million worth of “long” options on Mexican and Brazilian currency, betting the value of the currency would go up. Simultaneously, he sold $22 million worth of “short” options on the same currencies, betting the price would go down. Next, he transferred the offsetting positions into a partnership and, relying on an old tax Court opinion, calculated his “basis” in the partnership solely on the “long” position. Finally, the partnership sold all the options for roughly what Baldwin paid for them and reported a tax loss in the vicinity of that long position — even though Baldwin was never at risk for losing anywhere near that much money.
If the whole thing smells like something that comes out the south end of a north- facing horse, that’s because it was. KPMG knew it was.The IRS caught on, of course. They audited everyone in sight and socked Baldwin with over $10 million in tax, interest, and penalties. Prosecutors indicted KPMG and 19 individuals for helping Baldwin and 600 more clients evade $2.5 billion in taxes — and the firm paid $465 million to make it all go away. Years later, some of those 600 customers are still battling KPMG in court. And that brings us back to Baldwin, who sued KPMG for all sorts of nefarious-sounding offenses, like fraud, negligent representation, breach of fiduciary duty, and racketeering. Last September, the Third Circuit ruled that he really just should have known better: “the fact that a prearranged, ‘turnkey’ transaction could generate just the right amount of losses — for an ‘investment’ and fee orders of magnitude smaller — should have also seemed a serendipitous coincidence indeed.”To add insult to injury, even KPMG says that Baldwin never should have trusted them in the first place! Here’s the good news.The tax code offers 70,000 pages of green lights to pay less tax legitimately.The Tax and Jobs Act of 2017 added an additional 500 pages of tax savings that include tax-free education funding for your children or grand- children’s private grade school and high school education expenses. So don’t be afraid to ask us to show our work and cite those green lights — book, chapter, and verse. And don’t keep us a secret. Please pass this on to friends and family members who could benefit from the tax strategy planning work we do.
professional tax advisors are the most trusted financial advisors of all. But what happens in the rare instance when you can’t trust your advisor? Nothing good, that’s for sure! Back in 2001, John Baldwin helped engineer a deal to sell Louisiana’s Delta Downs racetrack for a $74 million profit. Baldwin took a $10 million fee for his work, along with some hefty interest payments on a $17 million loan his company had extended to finance it. But Baldwin didn’t want to share those hard- earned gains with the IRS. So he went to the “Big Four” global accounting firm of KPMG for ways to pay less tax. KPMG dug into their bag of tricks and pulled out a doozy — a “one-time fix” called SOS, or Short Options Strategy.
636.394.5524
529 Plan Basics
Funds Can Be Used for: □ Post-Secondary Trade and Vocational Schools □ Two and Four Year Colleges/Universities □ Post-Graduate Masters and Doctoral Programs □ K-12 Public, Private, and Religious Institutions (Tuition Only). Qualified Education Expenses Include: □ Tuition and Fees □ Books and Supplies □ Computer and Related Equipment □ Room and Board (Enrolled at least half-time.) Qualified Education Expenses Do Not Include: □ Transportation Expenses
□ Invest up to $8000 per year ($16,000 if filing jointly) in Missouri * □ Start Saving Anytime □ Invest Often □ Change beneficiary for excess funds or if beneficiary is not attending approved school. □ Grandparents can contribute up to $15,000 per year tax-free. □ Anyone can contribute to a 529 plan for your child. □ 529 Benefits • Funds Can Be Used to Pay Any Qualified Education Expenses • Federal Tax Advantaged Earnings Growth • Tax-Free Withdrawals • State Tax Deductions or Credits on Contributions • Full Control of All Funds in the Account • No Income Limits on Annual Contributions
□ Healthcare Expenses □ Cell Phone Expenses □ Student Loan Payments
Business Owners - Additional options with even greater benefits are available.
Note: 529 Plan rules are regulated by the sponsoring State. The rules above are for 529 plans in Missouri as of this writing. Please talk to your Capital Advisory Group representative about creating the right strategy for your family. Securities offered through Kestra Investment Services, LLC, (Kestra IS), member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC, (Kestra AS) an affiliate of Kestra IS. Capital Advisory Group, Inc. is not affiliated with Kestra IS or Kestra AS.
EDUCATIONAL CHECKLIST
This is an overview of the 529 plan in Missouri, and these are just some of the benefits that may apply to you. 529 Plan rules are regulated by the sponsoring state.The rules above are for 529 plans in Missouri as of this writing. Please call us at Capital Advisory Group about creating the right strategy for your family. Securities offered through Kestra Investment Services,LLC,(Kestra IS), member FINRA/SIPC.Investment Advisory Services offered through Kestra Advisory Services,LLC,(Kestra AS) an affiliate of Kestra IS. Capital Advisory Group,Inc. is not affiliated with Kestra IS or Kestra AS. There is no guarantee that the plan will grow to cover college expenses. In addition, depending upon the laws of your home state or designated beneficiary, favorable state tax treatment or other benefits offered by such home state for investing in 529 college savings plans may be available only if you invest in the home state’s 529 college savings plan. Any state-based benefit offered with respect to a particular 529 college savings plan should be one of many appropriately weighted factors to be considered in making an investment decision. You should consult with your financial, tax or other adviser to learn more about how state- based benefits (including any limitations) would apply to your specific circumstances and also may wish to contact your home state or any other 529 college savings plan to learn more about the features, benefits and limitations of that state’s 529 college savings plan. You may also go to www.collegesavings.org for more information. Know the 529 Plan Basics
L ast month, we shared some of the changes that the 529 plan has undergone in the last year. As we get closer to the school year and you are thinking about those tuition bills, here’s what you can consider when it comes to starting and using a 529 in Missouri. WHAT CAN IT BE USED FOR? • Any qualified education expense • Post-secondary trade and vocational schools • Two- and four-year colleges and universities • Post-graduate master’s and doctoral programs • K-12 public, private, and religious institutions Qualified education expenses include tuition and fees, books and supplies, room and board (when enrolled at least half time), and computer and related equipment.
WHO CAN CONTRIBUTE? • Anyone can contribute to a 529 plan for a child • Grandparents can contribute up to $15,000 per year tax-free • Invest up to $8,000 per year in the plan • Start saving anytime WHAT ARE POTENTIAL 529 BENEFITS? • Federal tax-advantaged earnings growth • Tax-free withdrawals • State tax deductions or credits on contributions • Full control of all funds in the accounts • No income limits on annual contributions For business owners, there may be additional options with even greater benefits available, so contact us to learn more.
Ingredients TAKE A BREAK HOMEMADE PEACH COBBLER From lilluna.com/peach-cobbler-recipe-tip-deal-video-of-the-week
• 15-ounce can of peaches • 1 cup flour • 1 cup sugar • 1 cup milk • 2 teaspoons baking powder
Directions • 1/2 cup butter • Pinch of salt
1. Preheat oven to 350 F. 2. Melt cube of butter in a 9 x 9 pan in oven. 3. In a medium bowl, mix flour, sugar, milk, baking powder, and salt. Mix well. 4. Take out the pan with the melted butter and pour batter mixture over it. Also pour can of peaches (with the juice) over it. Do not mix. 5. Bake for 30-35 minutes.
3
(636) 394-5524
119 Old State Rd. Ellisville, MO 63021 CapitalAdvisoryGrp.com
PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
page 1
Back to School and Giving Back
page 2
Safe Sailing This Hurricane Season
page 2
3 Easy Cybersecurity Steps for Small Businesses
page 3
Educational Checklist
page 3
Homemade Peach Cobbler
page 4
Local Events
AUGUST LOCAL EVENTS
apart from one another. Spectators can watch the race develop lap after lap and hear commentators announce race strategy, increasing their involvement in the excitement. JAPANESE FESTIVAL Celebrating the history, culture, and people of Japan, the Japanese Festival at the Missouri Botanical Garden is one of the largest and oldest festivals of its kind in the United States. Since 1977, the Missouri Botanical Garden has produced the annual Japanese Festival in conjunction with the Japanese Activities Committee: a coalition of several Japanese-American organizations that provide art, dance, food, and entertainment for thousands of visitors each year. 101ST ANNUAL ST. LOUIS GREEK FESTIVAL Gyros, moussaka, spanakopita, and baklava ... there’s no better way to
spend Labor Day weekend this side of Mykonos than at the 101st Annual St. Louis Greek Festival at St. Nicholas Greek Orthodox Church in the Central West End. Come and experience a taste of Greece, live music, church tours, books, Greek folk dancing, and gift shops daily! The parishioners of St. Nicholas welcome you with hospitality and joy! The fun reigns supreme from 11 a.m. to 9 p.m. Saturday and Sunday and from 11 a.m. to 8 p.m. on Labor Day at the corner of Forest Park and Kings Highway. Start the holiday weekend off right at our kick-off event on Friday, August 31, starting at 11 a.m. ST. LOUIS ARCHMUSEUM After the Grand Opening on July 3, the St. Louis Arch Museum is now welcoming all visitors!
GATEWAY CUP The Gateway Cup is four days of bike racing in four unique St. Louis neighborhoods. Within each of these host communities, the race course is a defined one-mile lap and the race format is known as a “criterium.”This Americanized style of racing appeals to both athletes and spectators alike, as the peloton, or pack of cyclists, passes by every few minutes at impressive speeds, and the racers hold lines only inches
4 CapitalAdvisoryGrp.com
Published by The Newsletter Pro • www.NewsletterPro.com
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6Made with FlippingBook Learn more on our blog