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MAY/JUNE 2024
Financial Horizons Your Connection for Wealth, Lifestyle & Legacy
McBeathFinancialGroup.com
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Facing Life’s Twists With a Plan THE CRUCIAL ROLE OF FINANCIAL ADAPTABILITY
Let’s hear it for the dads and grads! This time of year, we recognize two significant celebrations: Father’s Day and graduations. Both occasions are a reason to celebrate, but personally, I’ll never forget the year that both of these events converged in a life-altering way.
with creating a financial plan — it evolves, reflecting personal circumstances, economic conditions, and unforeseen events. After all, life loves to throw us curveballs, and our success depends on how adept we are at pivoting and adapting.
But you don’t ever have to navigate the turbulence alone. We are here to help you weather these changes. Whether it’s adjusting to unexpected expenses, shifting economic landscapes, or changing goals, our team is committed to ensuring your financial strategy
I had taken my last final of what I like to call my first senior year at ISU. Initially, I’d anticipated this date as the culmination of my schoolwork after years of hard work. It seemed I’d paid the price for an easier road ahead. Although I had enough credits to graduate, I instead had decided to stay one more semester and finish a few credits in order to graduate with a double major. But life is full of twists. A few hours after completing my last exam, I learned my father was suddenly hospitalized with serious heart complications.
adjusts with you. This approach allows us to support you not just at major life milestones but throughout all the stages of your life’s journey.
Retirement planning starts with a detailed road map. This comprehensive plan encompasses cash flow needs, budgeting, investment forecasting, detailed tax planning, and much more. This is our essential starting point.
This unforeseen challenge not only tested my resilience but also deepened my commitment to helping others navigate their financial futures. Witnessing the physical and financial strain of this unforeseen health crisis opened my eyes to the importance of proper planning and preparation for life’s unexpected challenges. Just as I once mistakenly saw my graduation as a conclusion, many view retirement similarly — a final destination after decades of dedication and effort. However, life’s reality is different. It’s not a series of destinations but rather a journey. Retirement, like any other phase, is not a static state but a dynamic part of life’s ongoing journey, filled with its own challenges and changes. At McBeath Financial Group, we understand that while having a financial plan is crucial, the ability to adapt that plan in response to life’s changes is equally important. The journey does not end
From there, our clients benefit from regular meetings to review progress and investments, discuss any changes, and update plans as needed. Adapting to shifting needs and circumstances is a fundamental part of our service to clients. It’s just what we do. As we celebrate Father’s Day and honor new graduates, it’s essential to recognize both occasions as not only milestones but also as crucial transition points in life. At McBeath Financial Group, we are dedicated to helping you develop a financial strategy that serves you today and evolves with you into tomorrow. –Krista McBeath
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What Happens When a Spouse Passes Away? Retirement Question No. 8
Embarking on the path to retirement frequently involves bracing for the unknown, including the likelihood that one partner may outlive the other. This unfortunate event can impact not just emotional well-being but also the financial comfort of the surviving spouse. Here are some crucial aspects to consider.
to ensure they meet the ever-changing financial needs of the surviving spouse.
TAX FILING STATUS CHANGES After the loss of a spouse, the tax filing status options evolve with time, presenting different implications for the surviving spouse’s tax situation. In the year of the spouse’s passing, one can typically file as “Married Filing Jointly.” This filing status provides the benefit of a higher standard deduction and potentially lower tax rates compared to filing as single, which can offer some financial relief in a challenging year.
ESTATE STRATEGY: THE BLUEPRINT FOR ASSET TRANSITION A comprehensive estate plan not only guides the surviving spouse through the complexities of asset management but also minimizes legal complications. This involves an array of legal documents like wills, trusts, and a Transfer on Death Instruments (TODI), which allows your home to bypass the probate process of your will and go directly to named beneficiaries. Keeping beneficiary designations current on retirement accounts and insurance policies is vital. Collectively, these elements form a strategic blueprint for the seamless asset transition and safeguarding of both spouses’ financial intentions. THE ROLE OF A FINANCIAL ADVISOR: MORE THAN JUST FINANCES A financial advisor plays a significant role in managing your assets and providing emotional support during the tumultuous times that follow a spouse’s passing. With so many complex decisions to be made — from immediate funeral costs to long-term investment reallocations — a trusted advisor can serve as an emotional anchor. An advisor who knows your financials and designs your comprehensive plan will provide significant value in your time of need. This relationship can be particularly vital for a surviving spouse who may be navigating financial matters alone for the first time. Ensuring both spouses are financially comfortable in retirement, particularly after the loss of one, is a complex yet essential aspect of retirement planning. It involves a multipronged approach, covering everything from income and expenses to taxes, insurance, and estate planning. The unique role of a financial advisor as both a financial guide and an emotional support system adds an additional layer of security and comfort. Regular consultations with this trusted advisor can make a difference in preparing for and navigating this sensitive life event.
INCOME STREAMS In preparing for life’s unknowns, you should consider all retirement income streams, such as Social Security, pensions, and investment portfolios. Understand how the cessation or reduction of one spouse’s income could potentially alter the financial landscape for the other. As previously
If the surviving spouse meets specific requirements, such as not
remarrying and having a dependent child for whom they pay more than half the household costs, they may file as a “Qualifying Widow(er)” for the two subsequent tax years. This status maintains the same standard deduction as “Married Filing Jointly,” doubling what would be available if filing as single. However, the situation changes again in the years following. If the surviving spouse does not qualify as a “Qualifying Widow(er)” — perhaps due to the dependent being a foster child or remarriage — they will file as “Single” or potentially “Head of Household” if they support a dependent. This change can significantly alter the tax brackets and standard deductions, potentially increasing the tax liability. FINANCIAL SAFETY NETS: INSURANCE OPTIONS Insurance is a critical financial buffer for the surviving spouse, safeguarding them from unexpected financial hardships. Life insurance policies and specific types of annuities with “survivorship” features can provide ongoing income streams or lump-sum payments. If you are married, it’s essential to test your plan against the premature death of a spouse and then determine if your coverage is sufficient based on various stress tests. Periodically review and adjust these policies
stated, household Social Security benefits will typically reduce upon
losing a spouse. Often, pension income is also reduced. Testing your plan for these scenarios and carefully considering your filing strategies is crucial. EXPENSES: ROUTINE AND DISCRETIONARY Assess both routine and discretionary expenses. While some expenses like housing and utilities are likely to remain constant (other than inflation), discretionary spending could vary. Knowing your cost of living in detail can inform better planning so you can understand how your expenses would be affected in the event of your spouse’s death. HEALTH CARE PLANS: ADJUSTING TO NEW REALITIES The passing of a spouse can change your health care needs and costs. For example, if you lose medical coverage or a premium offset that an employer once paid, or if paid caregiving becomes necessary for yourself because your spouse was your primary caregiver, these new circumstances can impact your financial stability. Therefore, it’s crucial to understand how your health care plans operate and to test the strength of your financial plan against such scenarios.
2 McBeathFinancialGroup.com
Are you tired of visiting hyped-up vacation destinations or getting lost in a big city or crowded national park? If so, consider a holiday at a less congested, more laid-back locale. These hidden gems offer beautiful views and exciting excursions — all without the headaches that come with vacationing to big-name destinations! PINNACLES NATIONAL PARK Make an excursion to Pinnacles in California to enjoy the splendor of nature without having to share space with millions of tourists. With over 30 miles of hiking trails crisscrossing rocky hills and river-strewn caverns, you’ll find plenty of opportunities for memorable adventure. Despite its wondrous views, Pinnacles was named the 15th least-visited national park in 2023, with just over 340,000 annual visitors. Off the Radar Hidden Gem Vacation Destinations
SUDOKU
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CRATER LAKE NATIONAL PARK Make your way to Oregon and dive into the deepest lake in the country! Crater Lake National Park’s namesake was formed when a volcanic eruption triggered a mountain to come apart in spectacular fashion.
You can stay at plenty of campsites and find excellent fishing in the lake’s pristine and seemingly bottomless water. If you are a fan of hiking, fishing, or breathtaking views, then Crater Lake is for you.
CRATER OF DIAMONDS STATE PARK
If you have ever felt envious of the prospectors who made their riches during the California Gold Rush, then pay a visit to Crater of Diamonds State Park in Arkansas, where you can discover your own hidden gems! You can discover rare rocks and minerals in a massive field birthed by volcanic activity, including diamonds, amethysts, garnets, and quartz. The best part? Anything you find, you can
keep! Seekers have found more than 35,000 diamonds at the park since it opened in 1972, and with some luck, you could add a few more to that tally!
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INSIDE
1
The Importance of Dynamic Financial Planning
2
The Impact of a Spouse’s Passing on Retirement Planning
3
Perfect Spots for a Laid-Back Holiday
4
Food History Facts That Will Amaze You
SOLUTION
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.
4 Fascinating Historical Food Facts
Food is central to every culture. The what, why, and hows of culinary history are diverse and fascinating. From the forgotten Roman condiment to the short-lived hot soda, there’s no end to the depth of interesting food facts. NO. 1: DOUBLE-DIP FAUX PAS The nobility of the Ottoman Empire followed a complex but rational code of culinary conduct. After washing with soap and water, they ate primarily with their hands. Once the meal began, they followed rules much like ours. Double dipping and lip-smacking were frowned upon, and eating more than one bite of a dish was rude, too. Luckily, meals had dozens of unique dishes. NO. 2: THE LOST CONDIMENT The Romans left behind a vibrant legacy. Aqueducts are still used throughout Europe, while their language is the basis of many other languages. One thing that hasn’t stood
the test of time is garum. They poured this condiment on almost everything they ate. Made from fermented fish, garum’s salty, fishy flavor no longer appeals to the average Westerner’s palate.
NO. 4: ROAMING RAMEN Ramen is one of Japan’s most iconic dishes, but it doesn’t actually originate from Japan. The noodle soup comes from China, where
it is known as shina soba . It became popular in Japan after World War II. The country had undergone a food shortage for years but had finally started importing supplies. Chinese food was believed to be nourishing and filling, so street vendors offering cheap but delicious ramen became a mainstay.
NO. 3: HOT BEVERAGE FAIL Dr. Pepper, like most sodas, is best enjoyed
cold. This means there are fewer soda sales during the winter when people opt for comforting, warm beverages. To remedy
Once instant ramen was invented, the noodle soup became associated with Japan worldwide. Whenever you sit down for dinner, consider how you eat and the odd traditions you unconsciously observe. We’re all part of a marvelous culinary culture and should celebrate what makes us unique.
this, the soda company tried to push hot Dr. Pepper in the 1960s. Meant to be served warm with lemon, they marketed it to magazines, television, and radio. The campaign was unsurprisingly unsuccessful.
4 McBeathFinancialGroup.com
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