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119 Old State Rd., Ellisville, MO 63021 CapitalAdvisoryGrp.com
OCT 2018
Financial Planning Month WHAT COULD BE MORE IMPORTANT THAN HALLOWEEN?
members, a new home? All of these could impact the way you plan for the coming year.Work with us to see what’s shifted and where you might want to make a similar change in your plans. Remember, financial planning doesn’t have an offseason. It’s always a good time to assess where you are and where you’re headed. If you have questions about what you can do now to make life easier (and more fun) down the road, give us a call. No matter the season, we’re here for you. Find a great do-it-yourself costume. Okay, this isn’t related to Financial Planning, but we have to have some fun, too, right? My wife mentioned that Martha Stewart and Oprah have some fun holiday ideas on their websites, and if you’d rather not bother with an elaborate costume, they have treat ideas as well. Even if we no longer go trick-or-treating, it’s fun to get together with friends for some spooky movies and Halloween- themed treats. Enjoy! You also don’t have to break the bank to find a great Halloween costume for you or your little ones. Be original and create your own by visiting local thrift stores or Goodwill. -Jeff and John Zufall
Hi there! I hope this cozy season full of fall colors and all things pumpkin pie is treating you well. I remember going to a pumpkin patch surrounded by farms as a kid in Chesterfield. It was so beautiful! It was a rite of passage every year to pick out your pumpkin and take it home for carving. While October brings us fully into fall and Halloween, around our office, we have something else on our minds. October is designated as Financial Planning Month, and with the end of the year approaching (yes, it really will be here before you know it) you still have time to make some changes and evaluate where you want to be. Before the holiday season kicks into full swing, take advantage of Financial Planning Month. Here are a few ways you can incorporate Financial Planning Month into your fall season, by checking some of these tasks off your list: Designate what (and to whom) you want to give. As we move into the holiday season, giving is in the air, and it’s an opportunity for you to clean out your home while contributing to causes that are important to you. Go through those summer clothes, winter clothes that you no longer wear, and items that are sitting in a closet or keep getting in
the way, and take them to your local charity store or shelter. You’ll get a tax deduction, plus a clearer home and headspace. Depending on your priorities for this year, you may want to make a few more contributions, whether to an organization or family member. If you’re struggling to come up with the right cause, consider what you’re passionate about.Which charities or organizations represent your values?Think about what might be meaningful to you. Think about your tax strategy. Look at your income tax picture with us at Capital Advisory to see if you might be able to reduce your tax burden. It’ll be a good time to do this because even small changes before the end of the year can have an impact on your taxes. Create an emergency fund. The unexpected is just that — something you can’t predict, but you can have a safety cushion for it. Setting aside three to six months’ of living expenses can help make these circumstances less of a shell shock and help you recover more easily in the months to follow. Set goals for the coming year. What does the coming year have in store for you? Vacations, travel, new family
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The most powerful employee recruitment and retention tools a business has are the pay and the benefits package it offers.While a killer company culture and creative amenities look great in a magazine spread, they aren’t enough to convince top talent that their future lies with your business.The right benefits package, though, could persuade a prospective employee to choose a position at your company over another that offers a similar salary. According to a study conducted by Harvard Business Review, these five benefits are considerably more desirable than others. No. 1:Health,Dental, andVision Insurance. As the cost of health care has skyrocketed in recent decades, so too has the demand for employers to provide comprehensive coverage. Unsurprisingly, it’s the most expensive benefit to provide. Weighing how much coverage your company is willing to offer may be a delicate balancing act, but the rewards can completely change your business for the better. Companies like Patagonia, with its best-in-class maternity policy, retain employees at a significantly higher rate than average. No. 2: FlexibleHours. Our lives are busier than ever before, and scheduling conflicts crop up all the time. Employees don’t like having to decide between working and attending their child’s soccer games. Offering some flexibility in terms of when somebody can work, therefore, is extremely desirable. No. 3:More VacationTime. In the European Union, companies are required to offer at least 20 days of paid vacation to employees. In the U.S., that number falls to a whopping 0. In fact, 1 in 4 American employees doesn’t get paid time off at all. The more you offer, the more appealing you’ll be. No. 4:Work-From-HomeOptions. Technology has made it so that many employees don’t need to be in the office all the time. Because of this, many employees actively seek out jobs that provide flexible work options. Even offering one or two work- from-home days per week can be a huge draw for candidates. No. 5: UnlimitedVacation. This policy might sound crazy on first read, but admired companies like Hubspot, Dropbox, and Netflix all offer unlimited vacation. Each company structures their policy a little differently, but they all stress the importance of work-life balance to support happy, productive, and fulfilled employees. If you’ve found yourself wondering why you can’t attract the candidates you want, take a look at your benefits policy.When you can’t compete on that front, you’ll find it mighty difficult to get and keep the best people. A Powerful Recruitment and Retention Tool THE TOP 5 EMPLOYEE BENEFITS
As Halloween looms and you load up your grocery cart with candy, you may ask yourself, “Why do I provide these spooky gremlins with a sugar high every Oct. 31, anyway?”Well, when your doorbell starts ringing around 6 p.m. this All Hallows’ Eve, you can thank the Celts for this tradition of candy and costumes. Halloween itself is a kind of mishmash of four different cultural festivals of old: two Roman fêtes, which commemorated the dead and the goddess of fruit and trees (not at the same time); the Celtic Samuin or Samhain, a new year’s party thrown at the end of our summer; and the Catholic All Saint’s Day, designed to replace Samuin and divorce it from its pagan origins. Long before there were young’uns on your porch dressed as Thanos with candy-filled pillowcases in hand, the Celts believed that Samuin marked an overlapping of the realms of the living and the dead. To trick the spirits leaking into our world, young men donned flowing white costumes and black masks — a great disguise when ghosts were about. The Catholic Church was never a big fan of these pagan traditions, so they renamed it “All Saints’ Day” and gussied it up in religious garb. By the 11th century, people were dressing up as saints, angels, and the occasional demon instead of spirits. Eventually, costumed children started tearing through town begging for food and money and singing a song or prayer in return — a practice called “souling.” But when did they start dressing WHY THERE ARE KIDS ON YOUR PORCH ASKING FOR CANDY The History of Trick-or-Treating
up as Minions? Starting in the 19th century, souling turned to “guising,” which gave way to trick-or-treating in mid- 20th-century America, and the costumes diversified. So put on some clown
makeup and a big smile, scoop up a handful of sweets, and scare the living daylights out of ‘em — ‘tis the season!
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HERE’S TO YOUR HEALTH! When Congress raises the hood on the tax code, they’re usually working to raise money to pay for government expenses. But sometimes they’re more interested in nudging us to behave in ways they can’t legislate directly. Take the mortgage interest deduction, for example, which “cost” the Treasury $69.7 billion in 2013.That
deduction encourages millions of Americans to spend billions of dollars buying homes, building homes, renovating money pits, and keeping their homes looking spiffy — all of which returns billions more through our overall economy. Last week, the House Ways and Means Committee passed another one of those “we-know-we-can’t-make-you-do-this-but- we-can-still-give-you-a-tax-break-for-it” laws.The Personal Health Investment Today (PHIT) Act would let you take medical deductions for general fitness expenses: gym memberships, exercise classes, personal trainers, sports and fitness equipment, and even pay-to-play school sports fees and race registration fees. (That’s right, your local Thanksgiving “Turkey Trot” 10K will be deductible!) The bill caps the new deduction at $500 for individuals and $1,000 for joint filers. Here’s the catch: Everyone knows that medical and dental expenses are deductible. But look a little closer and you’ll see that code section 213 lets you deduct them only if you itemize, which leaves about 90% of Americans sitting on the bench. And even if you itemize, you can only deduct the amount of expenses over 7.5% of your adjusted gross income. So, on its face, the new deduction won’t mean much. It turns out, however, that millions of Americans who can’t itemize can still benefit from tax-advantaged flexible spending accounts, medical expense reimbursement plans, and health savings accounts.The bill lets you reimburse PHIT expenses from those accounts.The Congressional Budget Office estimates the bill would cost the Treasury and save taxpayers $3.5 billion over the next decade. That’s enough to get special interests interested.The Wall Street Journal reports that “Fitbit, Inc., the American Heart Association, and the American Sports and
Fitness Association have all lobbied for the bill.” And Planet Fitness stock climbed more than 4% the day the bill passed. Of course it wouldn’t be a tax law without a few, ah, provisos, and a couple of quid pro quos. Sorry, golfers ... hitting the links doesn’t count as exercise. Same for hunting, sailing, and horseback riding. And couch potatoes need not apply: “Qualified sports and fitness expenses” won’t include instructional videos, books, or similar materials. You’d think a bill attacking America’s expanding waistline would be universally popular. Even potato chip companies can back a law designed to work off calories after they’re eaten. But not everyone is enthusiastic. Leonard Burnham, a former Clinton administration tax official and (apparently) a world-class buzzkill, told the Journal that the benefit would mostly go to high-income families
who are already buying gym memberships anyway, and “Every principle of tax policy is violated by this.” Fortunately for the rest of us, you don’t need to be taking advantage of good policy to save money on taxes. You just need a trainer and a strategy plan. So find some time between trips to the gym to give us a call and put your tax bill on an exercise plan! And don’t keep us a secret! We appreciate your referrals. So please pass this on to friends and family who can benefit from the work we do.
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ITEMIZED TAX DEDUCTION CHANGES FOR 2018 Deduction 2017 (Old Rules)
2018 (New Tax Law)
Medical Expenses*
Fully Deductible subject to the extent they exceed 10% of AGI. State and Local Property Taxes Fully Deductible
Fully Deductible to the extent they exceed 7.5% of AGI. Deductible up to $10,000 when combined with the deduction for state income taxes Deductible up to $10,000 when combined with real estate taxes Deductible up to $750,000 of acquisition debt. Home equity debt limited to renovation and significant improvements to primary residence.
Real Estate Taxes
State Income Taxes
State and Local Income Taxes Fully Deductible
Mortgage Interest
Deductible up to $1,000,000 of acquisition debt and $100,000 of home equity debt. Can have two homes. Allowed for tax preparation fees, unreimbursed employee expenses, investment advisory fees, etc. Limited to 2% of adjusted gross income Deductible if the qualified casualty exceeded 10% of adjusted gross income In general, a deduction can be claimed for wagering losses to the extent of wagering winnings Contributions are deductible with 50% limitation based on AGI. 80% of contributions made to colleges for atheltic seating rights. Could claim a deduction if the move was related to starting a new job and the new workplace was at least 50 miles further from the taxpayer's former residence than the former place of work. Itemized duductions limited by phase-out beginning at $266,700 (single) and $320,000 (married)
Miscellaneous Itemized Deductions
Miscellaneous Itemized Deductions Eliminated
Personal Casualty Losses
Eliminated with the exception of losses incurred in Federally-declared disaster area
Gambling Losses
In addition to wagering losses, you can also include expenses related to wagering such as transportation and admission fees Increses deducible limitation to 60% of AGI. Elimates contributions related to athetic seating rights. The deduction is suspended with an exception for members of the Armed Forces
Charitable Contributions
Moving Expenses
Income Phase-out for Itemizing Dedcutions
No longer any phase-out for itemizing deductions.
Business Related
Meals provided to employee for the convenience of the employer Company holiday parties, recreational or social activities for employees Business Entertainment (tickets to sporting events, golf, etc.)
Fully Deductible
50% Deductible
Fully Deductible
Fully Deductible (assuming for the benefit of non-highly compensated employees)
50% Deduction (tickets-face value), 100% for qualified charitable events
Deduction Eliminated for All Business Entertainment
Employee Business Travel Meals 50% Deduction
50% Deduction
Business Client Meals (where business is dicussed)
50% Deduction
50% Deduction
SETTING AND EVALUATING YOUR GOALS
Take Advantage of Financial Planning Month, and Plan!
A s we mentioned on the cover, When was the last time you considered your financial goals? If you’re not sure, then set aside a few hours this Saturday and take some time to consider where you want to go. Look into the future. We’re not asking you to consult a crystal ball, but it is time to seriously consider where you want to be. Are you hoping to retire in 10 years? 5 years? When you think about yourself 15 years from now, what do you see? Have you spoken with your advisor about any of these aspirations? If not, how can they help you align them we’re pretty into Financial Planning Month.This is the perfect season to take stock of where you are, see what needs to change, and decide where you want to go and how you’ll get there.
with reality? It’s good to have dreams, but without a concrete plan, they’re not going to come true. If you haven’t already, set an appointment with your advisor this month (before holidays make it impossible) to check in about your goals. Have deeper conversations with your family. Do your children rely on you for money or as a source of income? You might be planning for your retirement,
independence and feel good about getting there might be a key part of enjoying your post-work life. Consider where you want to spend and where you can cut back. If your retirement goals aren’t quite lining up to reality, it might be time to rethink your budget and where you can cut back on it. Where can you budget a bit to not feel the pinch when you retire? Are there discretionary expenses you can cut back on? Would that cup of coffee taste just
but if you haven’t talked about it with your kids, they might not be. Having some of those tough conversations now will help ease the transition. If you’re looking to retire soon, helping your kids achieve their own financial
as good if you made it at home? Little expenses do add up, and if you consider how your conscience will benefit from small changes, the peace of mind might be worth the cut back.
Ingredients TAKE A BREAK HOMEMADE MARSHMALLOWS Inspired by foodnetwork.com
• 3 packages unflavored gelatin • 1 1/2 cups granulated sugar • 1 cup light corn syrup • 1/4 teaspoon kosher salt • 1 tablespoon pure vanilla extract • Powdered sugar, to coat
Directions
1. In a mixing bowl, combine gelatin and 1/2 cup cold water. Let sit while you make the syrup. 2. In a small saucepan over medium heat, combine sugar, syrup, salt, and 1/2 cup water until the sugar dissolves. 3. Raise heat to high and bring syrup up to 240 F, using a candy thermometer to check for temperature. 4. With an electric whisk on low speed, slowly whisk syrup into gelatin mixture. Switch speed to high and whip for 15 minutes, until very thick. Fold in vanilla after whipping. 5. Dust a nonmetal baking dish with powdered sugar and spoon mixture into dish. Smooth mixture, top with more powdered sugar, and let stand uncovered overnight. 6. Cut into squares, decorate, and serve.
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Fall Holidays
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The Surprising Origins of Trick-or-Treating
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The Most Sought-After Employee Benefits
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It’s Time to Set Goals
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Homemade Marshmallows
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St. Louis Local Events
Enjoy It WithThese Autumnal Events FALL IN ST. LOUIS October in St. Louis is filled with fun family events that celebrate fall, from the flavors and aromas to the spookiness of All Hallow’s Eve. Here are a few to check out! Apple Butter Festival Oct. 27 and 28 Kimmswick, Missouri
Mississippi, this event will be a great time. Additionally, Hermann Oktoberfest will bring visitors to the small town of Hermann to enjoy polka music, German food, and local wines. Haunted Houses Open through Halloween Multiple Locations If you’re looking for a fright near Halloween, choose from one of the haunted houses in the area. In Soulard,The Darkness Haunted House has become legendary, earning accolades as one of the best in the country. For folks in Fenton, Creepyworld is located there, and it’s put on by the same people who produce The Darkness.
Both sound like a frightfully good time. For the action- oriented, fight off zombies and vampires at the Haunted Paintball Park in Millstadt. Fall Colors Of course, this season wouldn’t be what it is without the spectacular transformation our trees undergo. Enjoy the yellow, red, and orange hues of the changing leaves with a drive along Highway 94 or up the Great River Road. Both offer great views of the bluffs. (Don’t forget the cider donuts and pumpkin spice lattes.) Across Missouri Throughout Fall
Oktoberfest Multiple Dates Multiple Locations in St. Louis There are no less than seven Oktoberfest events happening around St. Louis in late September and October, and that doesn’t even include Zootoberfest (a kid-friendly event put on by the St. Louis Zoo). On Oct. 12 and 13, the Soulard Oktoberfest takes place, which will include a beer hall, wine garden, and live music. Held at the Soulard Farmers Market, the oldest farmers market west of the
On Friday, Oct. 26, members of the Kimmswick Historical Society will meet to prepare for the festival.That morning, they’ll peel and prep apples to make the delicious apple butter that will flavor the next few days and fill the streets of Kimmswick. Come enjoy the entertainment and wares of musicians, vendors, and, of course, apple butter. The festival goes from 10 a.m. to 5 p.m. each day.
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