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FINANCIAL SERVICES, LLC
616-514-3831
www.MattsonFinancial.com
OCTOBER 2023
The Power of Tax- Deferred Investments
HOW SHORT-TERM ANNUITIES CAN MAXIMIZE RETURNS
October is a very common month when certificates of deposit (CDs) mature. What should you do with those dollars if your CDs are among them — or if you have other cash sitting in money market or savings accounts? With uncertain markets and an approaching election year, many investors are unsure of how to get a good return while protecting their dollars from potential losses. When making these decisions, I encourage clients to think about their tax strategy. There are three tax buckets for your investments. First is taxable, which we dislike but accept. Second, tax-free makes us much happier but usually comes with many restrictions. Finally, tax-deferred where you don't pay taxes until you withdraw funds. We’re all somewhat familiar with tax-deferred accounts in the form of 401(k), 403(b), and IRA accounts. However, some other products and stocks offer tax-deferred interest. Depending on your needs and how much risk you’re willing to take, you might consider repositioning assets from your CDs or other savings into a short-term annuity. A multi-year growth annuity will guarantee a particular rate of return over three, five, or seven years. Every year, the annuity pays interest, which compounds over the term of the annuity. The interest is tax- deferred until you withdraw the money. By comparison, the IRS always takes the first bite out of your money’s growth on a savings account. They send you a 1099 yearly, and you pay tax on that interest. But with a short-term annuity, you get a triple compounding return. You earn interest on your principal investment, interest on the interest, and interest on the taxes you would have otherwise paid to the government.
Many people with maturing CDs intend to roll them over; they’re a popular investment. Years ago, when CDs paid 5%–6%, we had clients who withdrew money from their retirement accounts, paid taxes on it, and reinvested in CDs. Rates are inching in that direction again, making them look like a compelling investment. But the problem for our clients is they were paying taxes on money they didn’t use. We often repositioned those same dollars into annuities that had tax-deferred growth, which helped clients save money in taxes. I fully understand how attractive it is to have guaranteed acceptance on your investment, ensuring you can never lose the principal. But I also encourage clients to look at their tax position. If you have CDs coming up for renewal, it may be time to consider tax-deferred investments over taxable options. We’d love to talk about your assets and whether your priorities match tax-deferred investments. To make the best investment choices, we want to meet you personally to choose the products that best correspond with your goals and portfolio. We’ll also be happy to review any outside products you’ve found to ensure they fit your goals and desires. Please feel free to call us with questions about the market and what it means for you and your portfolio.
–Gary Mattson
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COOK WITH YOUR KIDS TO MAKE MEALT
As a parent, it can be incredibly challenging to nail down the perfect weeknight dinner menu that makes every hungry mouth in your home happy. This is especially true when you have picky little ones who demand waffles for dinner or dinosaur chicken nuggets seven nights a week. You may feel like your days as a short-order cook are endless, but we're here to tell you about a simple trick to making healthier meals everyone in your family will enjoy. The trick is quite simple: Have your kids cook with you! Cooking with your kids has multiple benefits that stretch far beyond the kitchen table, but the immediate reward is that you won’t cook alone anymore! Next time dinner time rolls around, grab your little sous-chefs to lend a hand so they can enjoy these three benefits. No. 1: Cooking teaches life skills. It may seem far off, but one day, your child will have to cook for themselves and eventually their own children, too. By teaching
them the basics of cooking now, you're providing them with a skill they’ll need to be capable adults.
No. 2: Cooking creates an adventurous eater. Imagine seeing something like asparagus or artichoke on the plate in front of you for the first time and being told you must eat that weird-looking thing. That's how many children experience food for the first time, which can feel like a scary experience.
Kids who help cook in the kitchen are much more likely to try new and
A GREENER FUTURE FOR ALL EXCITING ADVANCES IN THE WORLD OF SUSTAINABLE ENERGY
The hunt for sustainable energy sources continues! Throughout the past two decades, we have seen countless efforts around the globe to develop more environmentally friendly energy practices. You may have noticed solar panels appearing on roofs around your community or watched news reports about wind turbines offshore. These are far from the only efforts organizations, governments, and individuals are making. Two large-scale sustainability projects were announced that could lead to a more sustainable future. Solar Railways In many areas of Europe, the best way to get from point A to point B is by train. Switzerland alone has a national railway network that
stretches over 2,000 miles. A startup called Sun-Ways recently announced a plan to outfit Swiss railway lines with solar panels to generate additional power. Sun-Ways developed a specialized train car to lay down solar panels between the rails of the track using minimal labor. The company estimates that its solar panels can generate 2% of Switzerland’s annual energy consumption. At the time of writing this article, Sun-Ways is still waiting for a sign-off from the Federal Office of Transport to proceed, as concerns have been raised regarding the durability and reflectivity of the panels. New Wind Turbines Offshore wind farms are nothing new. They first appeared in 1991, but
the technology has evolved immensely. The Spain- based startup X1 Wind has created a new floating wind turbine prototype that could change the entire industry. Located off the Canary Islands, the X1 floating turbine is more efficient and environmentally friendly than other turbines. The best news? In March, it generated its first kilowatt-hour of power, opening the door for further manufacturing. These are just a couple of the many sustainability projects recently introduced. As long as we continue to develop and discover environmentally friendly practices, we can look forward to a greener future for all.
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TIME MEANINGFUL!
Upcoming Events November First Friday Event: Vendor & Preferred Provider Market Nov. 3, 12–3 p.m. 3226 28th St. SE, Kentwood, MI 49512 This is your chance to connect with our preferred providers and shop a small vendor market in our lower level. Interested in being a vendor? Call us at 616-514-3831 to reserve your table. Market update release via email at 2 p.m. November Health Solutions Walk-In Event Nov. 13–Nov. 17, 9:30 a.m.–4 p.m. 3226 28th St. SE, Kentwood, MI 49512 Join us for our FIRST Health Solutions walk-in event! Complimentary 45-minute meetings to assist those who are seeking information about 2024 Marketplace and Medicare options. No scheduling required. Questions? Call the team at 616-514-3831! December Virtual Event: Market Update Release Dec. 8, 12 p.m. From the comfort of your own home! No in-person First Friday event. A market update from one of our advisors and a Gradient Investments portfolio manager will be released via email at 12 p.m.
adventurous foods because they're exposed to them and other ingredients over a period of time. They touch, slice, smell, crush, and season the foods before they ever eat them. So, by the time it hits their plate, it's not so scary!
No. 3: Cooking promotes healthy development. Time spent in the kitchen isn't all about eating, either. While cooking, children stir, mix, measure, roll,
squeeze, spread, observe, learn, and count. These activities all help develop fine motor, hand-eye coordination, math, and science skills, not to mention creativity!
Sarah's
JALAPEÑO POPPER MAC AND CHEESE
Inspired by TheModernProper.com
Ingredients
• • • • •
2 sticks butter, divided
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2 tsp garlic powder
1/3 cup flour 5 cups milk
1/2 tsp pepper
1 lb bacon, chopped and cooked 8 jalapeños, seeded and chopped 1 lb macaroni, cooked 1 cup panko breadcrumbs
8 oz cream cheese
3 cups shredded white cheddar cheese, divided 4 cups shredded pepper jack cheese, divided
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•
• •
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2 tsp salt
Directions
1. Preheat oven to 375 F. 2. In a large saucepan, melt 1 stick butter over medium heat. Add flour and whisk until fully absorbed in butter. Whisk in milk slowly. 3. Once sauce thickens, stir in cream cheese and shredded cheese until melted, reserving 1 cup of each shredded cheese. Add seasonings, bacon, and jalapeños before removing from heat, then combine pasta and sauce. 4. In a small skillet, melt remaining butter and stir in panko. 5. In a greased baking dish or skillet, add macaroni and top with panko and remaining cheese. Bake for 30–40 minutes and serve warm.
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FINANCIAL SERVICES, LLC
3226 28th Street SE Kentwood, MI 49512
INSIDE THIS ISSUE
CDs vs. Annuities: A Tax-Deferred Strategy for Better Returns
1
Kids in the Kitchen: Wholesome Family Bonding All Aboard the Green Energy Revolution
2
3
Jalapeño Popper Mac and Cheese Upcoming Events and Seminars
Use Your Garden's Fall Bounty for Home Decor!
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**Reminder: If you have any changes to your financial situation, please notify us as soon as possible.
Investment advisory services offered through Mattson Financial Services, LLC, an SEC-Registered Investment Advisor. Insurance and annuities offered through Lakeview Financial Group, LLC. Mattson Financial Services, LLC and Lakeview Financial Group, LLC are affiliated companies.
A Natural Wreath
If you have a backyard garden, you may find yourself looking for new ways to use all the crops you’ve grown. After all, there are only so many pumpkins you can carve, seeds you can roast, or squash you can spaghetti. So, instead of looking up "squash recipes" for the hundredth time this week, consider these indoor decor tips that utilize your garden's bountiful harvest! A Centerpiece Fall fruits and vegetables make great centerpiece arrangements because they have both seasonal colors and unique textures. Consider arranging a few squash or pumpkins in a bowl or basket and topping them with a bouquet of festive flowers. You can also mix herbs like basil, parsley, thyme, or rosemary into the bouquet for fragrance and a fuller appearance. Play with the different shapes and sizes of your gourds. Have them lean against each other or stack them for variation and depth in your display. TRANSFORM YOUR FALL HARVEST INTO STUNNING INDOOR DECORATIONS!
Fresh herbs, flowers, or leaves from your fall harvest are
perfect for an autumn wreath. All you need is a wreath form, which you can buy from your local craft store or online, and some floral U-pins. Use large leaves as a base (pumpkin leaves are great), then layer on smaller seasonal herbs such as
sage, rosemary, or oregano. Finally, attach some flowers to it! Squash or pumpkin blossoms work beautifully, but you can use any
seasonal flower you have growing.
An Autumnal Herb Swag A "door swag" is a traditional holiday decoration, and it's an easy way to add some color to your door without creating an entire wreath. To make a swag, grab a few bundles of your favorite herbs, secure the stems with a rubber band, wrap them with twine, and tie them off, leaving a few inches of twine on both sides. Then, tie those ends together to form a loop and hang the swag on your door!
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