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THE WEALTH ZONE
August 2021
119 Old State Rd., Ellisville, MO 63021
CapitalAdvisoryGrp.com
What Do Summertime and Retirement Have in Common?
They say that retirement is really just six Saturdays and one Sunday. After all, what’s the difference in each day? It’s like a perpetual summer — total freedom and maybe a little boredom, too.
Interestingly, summertime and retirement are not all that different.
Remember when you were a kid, and school was let out for the summer? Nothing compared to that feeling! Three full months without school felt like an eternity of free time, and even if you had a summer job or other chores, just not having to be in school always felt a little sweet. It’s hard to not feel a piece of that excitement each summer — even if it’s infinitely less exciting as an adult. As we enter the final month of summer, we encourage you to think about your retirement, using summertime as the backdrop. Follow us through this exercise: If money, time, and distance were no issue, what would your ideal summer day look like? Would it involve family or travel? Would you spend it outside, living life to the fullest, or would you take it easy at home, maybe reading your favorite book or just enjoying some quiet time? I proposed this question this month, and I have three things in mind for my ideal summer day. All I would need is to play golf, enjoy some lunch, and then take a nap. It’s an easy, no-fuss kind of day that is hard not to do during the summer (especially since August is National Golf Month). Have You Heard Us on the Radio Yet? Tune in to KTRS 550 AM radio every Saturday from 3–4 p.m. as Jeff Zufall and Josh Gilbert discuss all things taxes and financial planning. From innovative strategies to optimize your benefits to breaking down proposed and current legislative measures, Jeff and Josh guide you through the most pressing topics in the financial world today.
Once you have your answer, compare that to retirement, which is, as we said, your perpetual summer. Is that what you want to do in retirement? Could you see yourself doing that for days on end, year after year — or do you want to add a few plans? If anything, it couldn’t hurt to try it out! Take some time off from work this August and try your “ideal summer day” or a retirement test run. You may find that the plans you thought you had all along need some work, or it could make retirement seem that much sweeter. There’s nothing wrong with adapting your retirement plans to craft that true “perfect” retirement for you. Your retirement should feel like summertime! It should be exciting and exactly what you want it to look like. While we recognize there will be a few boring days in retirement, ultimately, you can craft a retirement that fits your lifestyle and your ideal summer. The ideal summer day may not be achievable right now — like I have time for a nap! — but it’s the best way to visualize true retirement. Try it out, take it for a spin, see what works, and adapt what doesn’t.
After all, it’s all yours.
-Jeff and John Zufall
(636) 394-5524 1
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LINCOLN’S LAW The Revenue Act and the History of the Federal Income Tax Even with the extended May deadline, we’re well past tax season, so why talk tax history now? As it turns out, it was in August way back in 1861 that the Revenue Act was passed, which imposed the first federal income tax. If you’re trying to recall your American history lessons, you may have already figured out that it was President Abraham Lincoln who signed this bill into law. A Look at the First Tax The Revenue Act called for a 3% income tax on Americans making over $800 a year. That’s almost $26,000 in today’s dollars. The tax was levied primarily to fund the Civil War. While federal income tax dollars are spent in myriad ways today, defense remains a major category. About 16% of taxes collected for the 2019 tax year were spent on U.S. military and defense. Changes Over Time About a decade after the Revenue Act was passed, it was repealed. While it was possible to coax income taxes out of Americans during wartime, there was significant opposition to taxation following the end of the Civil War. It wasn’t until the 16th Amendment was ratified in 1913 that the federal government once again got the power to tax individuals on their income and to spend the money how government officials saw fit, rather than in proportion to state populations. Since then, taxes have been used in three main ways: mandatory spending on programs like Social Security, Medicare, and veterans’ benefits; discretionary spending on defense, education, transportation, and health; and finally, interest on the national debt.
Is Your Home Office Missing Something?
Everyone loves back-to-school season because of the shopping spree! Students can get tools they’ll actually use for the entire year while they’re on sale while saving a few extra dollars in the process. But you can get that very same feeling as an entrepreneur, too. Here's how you can make the most of back- to-school deals this year for your home office. Upgrade your home office’s amenities. Are you a seltzer water fan? Every year, Amazon almost always has an “Off to College” sale, featuring various products that make dorm life a little bit easier and more convenient. If you want to do the same for your home office, look into a tabletop fridge — or an electric tea kettle, if tea is more your style. Some affordable decor, like wall art or small potted succulents, can spruce up your office without making a mess. If you’re looking to organize your space, consider buying desktop shelves to free up clutter. Then, you won’t have to leave your desk to stay in the zone! Look out for Apple and PC sales! Replacing your current technology can be expensive, but back- to-school sales are the perfect way to spare your wallet. Have an amazing computer already? You can still benefit majorly from staying tuned! During last year’s back-to-school sale, Apple offered 20% off their AppleCare+ service, which gives you two incidents of accidental damage protection every 12 months. Dropped your laptop or spilled coffee on it? They’ll fix it, no questions asked. Invest in the new office chair you’ve been wanting. Don’t sacrifice your posture just because you’re working from home. Whether remote working has turned into a permanent or a part-time solution for your job, you deserve an office chair that can help keep your back straight, preventing pain and slouching. Many big-box stores will be offering sales on office chairs, so take the opportunity to sit in a healthier way today — before the expensive holiday season rolls around! Just because you’re an adult doesn’t mean you can’t have the joy of back-to-school shopping too. We hope you treat yourself to something that’ll make your remote routine even better. TOP 3 TIPS TO TAKE ADVANTAGE OF BACK-TO-SCHOOL DEALS
As the old saying goes, two things are certain: death and taxes. However begrudging Americans are
about paying taxes these days, income tax has become a given.
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What to DoWith the Monthly Child Tax Credit
Could the monthly payments fund a trip to a summer program within the science, technology, engineering, and mathematics field — aka space camp? Could you use the monthly payments to fund another passion, like music lessons, or give them tools they need for school? Regardless of how you choose to use the tax credit, it’s important to understand that this “free money” can be very useful for your family and your children. Ultimately, it’s up to you, but we believe using the money for personal gain — like to buy a new TV — is a waste. Instead, look at the ways in which you can help your family and provide your child with the best possible future. If you have questions about this most recent child tax credit, please call us today at 636-394-5524. Here’s Our Take
The New York Times estimated that by mid-July as many as 39 million households received as much as $300 per child from the government as a tax credit. These non- taxable payments will continue through December as part of the new child tax credit program, designed to help families struggling with pandemic-induced expenses. If you’re among those families who received this credit, then this advice is for you: Don’t waste it. It can be tempting to spend all of the monthly payment. After all, it feels like free money, and you won't be taxed on it. And there are some families who will need to use the money to pay down bills, cover child care-related expenses, or pay for other costs that were compounded as a result of the COVID-19 pandemic. TAKE A BREAK
But, if you are able to do so, we recommend putting that money to use for your child. What this looks like for your child could vary depending on your family’s situation. Perhaps you could open a 529 education plan for your child. These savings plans are designed to help families and students save tax-free for potential higher education opportunities. The money does have to be used on education spending, and whatever money is withdrawn for non-school purposes is taxed at 10%. If the money is used for school, such as covering tuition, then it’s not taxed. This can be a beneficial way to help your child expand their schooling options. Another possibility is to use that money to fund opportunities for your child. Let’s say you have a child who loves space.
Summer Vegetable Greek Salad
Ingredients For the vinaigrette: • 2 tbsp red wine vinegar
For the salad: • 1 head romaine lettuce, chopped • 1 cup grape tomatoes, halved • 1 small cucumber, seeded and chopped
• 1 tsp Dijon mustard • 1 garlic clove, minced • 1 tsp dried oregano • 1/2 tsp honey • 1/2 tsp salt • 1/4 cup extra-virgin olive oil
• 1 cup yellow bell pepper, chopped • 1/4 cup red onion, finely chopped • 1/4 cup fresh parsley, chopped • 1/4 cup Kalamata olives, pitted and halved • 1/2 cup feta cheese, crumbled • Optional protein choices: 1 cup cooked chickpeas or 6 oz Genoa salami
Directions
1. In a medium bowl, whisk together vinegar, mustard, garlic, oregano, honey, and salt. Slowly drizzle in the olive oil, whisking until well combined. 2. In a large serving bowl, toss together the romaine lettuce, tomatoes, cucumber, bell pepper, red onion, parsley, olives, and feta (as well as the chickpeas or salami, if desired). 3. If you plan to serve all the salad at once, drizzle the dressing over the salad to lightly coat, then toss to combine. Otherwise, store the vinaigrette and salad separately, then dress each portion before serving.
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Inspired by CookieAndKate.com
(636) 394-5524
119 Old State Rd. Ellisville, MO 63021 CapitalAdvisoryGrp.com
PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
page 1
What Summer Can Teach Us
About Retirement
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Do You KnowWhich President Imposed
the Federal Income Tax?
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Go Back-to-School Shopping for Your
Home Office!
page 3
Our Take on How to Spend That
Child Tax Credit
page 3
Summer Vegetable Greek Salad
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3 Steps to a Better Golf Swing
Improve Your Golf Swing in 3 Steps Happy National Golf Month! August can be a great month to hit the links, and whether you’re looking to improve your score or just enjoy getting out on the course, we all want to play a great game. To do so, there’s nothing more important than perfecting your swing, but achieving this feat has very little to do with the swing itself!
If you want to play better and have a smoother swing, check out these three steps to better form from our friends at Golf Digest.
Have Your Eyes Checked It may seem unrelated, but your vision can be just as much a part of golf as a strong core, solid knees, and a fluid swing can be. If you want to improve your golf game, you may need to correct your vision for proper aim and depth perception. Think about it this way: If you can’t clearly see your target, much less the distance from your body to the ball, how can you accurately time and measure your swing to get the distance and curvature you want?
Stretch — Before and After! Golf is a great activity for any age, but it can send your body through the wringer. If your hamstrings, shoulders, biceps, and quads are tight, this can limit your mobility and cause you to use the wrong form. This could lead to further joint and muscle pain or damage. Combat this by stretching before and after every game of golf. Your pre-golf stretches should be active, like arm swings or a light walk. Then stretch your hamstrings and shoulder and neck muscles after the game wraps up to help your body enter repair mode.
Practice Off the Course Here’s a secret: Many pro athletes don’t spend all their free time on the field or course they play. Instead, they spend hours and hours perfecting their balance and form with exercises and routines at home. When you play golf, you’re an athlete — so you have to do the same! Start practicing off the golf course by just swinging your club each day at home. Hold your pose and examine your form, correcting your mistakes. If you need to improve one aspect of your swing, zero in on it, and develop routines to improve it.
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