Take a look at the latest edition of the Financial Horizons newsletter!
JANUARY/FEBRUARY 2021
Financial Horizons Your Connection for Wealth, Lifestyle & Legacy
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How the Biggest Lessons of 2020 CAN CREATE HEALING IN 2021
I think we can all agree that the past 12 months were unlike anything we expected as we rang in the new year in 2020. Remember how hopeful we were? It was the start of a new decade, and there was a lot of talk about what this year could be, how perfectly the holidays were lined up on the calendar, and the big changes we were going to see for our next decade. Few had even heard of COVID-19, and the stock market was at a record high. That all changed quickly, and it kept getting worse for many. COVID-19 cases and divisive opinions about our country and politics arose in a perfect storm. Many of us struggled with our day to day, what to say, or what to expect. I was there with so many of you as it happened, and often, I empathized with the struggles you were facing. No one was immune to the turmoil we all faced this year, my family included. In fact, my mom and her husband faced a serious battle with COVID-19 over the summer; it was a long recovery for them both. We supported them in any way we could, but this virus left us all feeling so exposed and helpless. I know many of you felt the same way. I saw the concerns you had, listened to the fears that kept you awake at night, and sympathized with you as you agonized over your finances, your health, and our country. And even this connection felt different, with new barriers in place for protection. Meetings were held over Zoom or by phone, and when we had office visits out of necessity, there were strict protocols in place for everyone’s protection. For me, in those moments, the hardest part was being separated from you. I couldn’t hold your hand or offer a hug in comfort. We couldn’t invite you to social events or even offer freshly baked chocolate chip cookies. We were so excited about this going into 2020. We even researched to find the best recipe and had custom napkins and paper plates made! We were so excited about how this could create a more intimate experience for you, but it just wasn’t possible this year. I’ve missed these interactions with you the most. Yet, with these hardships, we learned some valuable lessons this year. We learned that our perspective shapes the memories we have of each event in our lives. It was a challenging year for many reasons, but
that doesn’t diminish the great things that happened, too. For some, this year included big milestones, and when they look back on it, they will remember those happy memories, even in a time when the world felt like it was falling apart. That can happen in any year. I’ll always remember 2015 as the year I lost my father. It was a terrible time, but for some people, 2015 was the year they were married or their granddaughter was born. Our experiences shape our perspectives and the lessons we learn as a result. We gained valuable ones this year. In particular, I believe many of us learned that money can be replaced. Sometimes the market drops to a level that makes our stomachs fall with it, but with patience, the market has been known to stabilize. We worked hard to minimize the losses, and the market rapidly recovered. As always, through life’s journey, we just have to persevere and be patient. And I also believe the heart and soul of America will overcome this division that seems to have plagued our country. In doing so, my hope is that things don’t just go back to “normal.” I hope we find gratitude for all we took for granted before this year. I hope that we can all be generous in our spirit and live life to the fullest, no matter what comes our way. If 2020 can serve as a reminder for how to live our lives, this is what I believe we should remember most. I’ve shared enough of the hard times, witnessed enough of the fear, and seen your frustrations with the discourse, but we can’t continue to focus on that if we hope to move forward. It’s time we put that behind us. It’s time we shared in happiness, in our health, and our love for one another! I’m looking forward to a year where we can laugh and smile together and celebrate life’s blessings.
Here’s to a happy 2021!
—Krista McBeath
309.808.2224 1
Bananas: The Fastest- Traveling Fruit
INSIDE THE GREAT BANANA SCRAMBLE OF 1899 Is any bowl of oatmeal complete without bananas? What about a hotel breakfast? Or three scoops of ice cream lined up in a row? Here in America, the answer is no. Bananas are as ubiquitous as they are quirky — but how did they get that way?
Warp Speed Bananas Two secrets helped Keith’s bananas cross the 7,175 miles from Limón to Seattle in under seven days. The first was the railroad, which United Fruit operated.
Preparing for the Inevitable The beginning of the year is a great time for reflection. As we begin 2021, I want to encourage you to consider the ways in which you can ensure your legacy and loved ones are protected. Part of this consideration is to look at how you’ll provide your spouse with the support system and financial plan they will need to cope when you are no longer there to look after them. United Fruit’s Banana Empire Once upon a time, there lived a man called the “Banana King.” Actually, it wasn’t once upon a time: It was 1890 in Limón, Costa Rica, and the man’s name was Minor Cooper Keith. Keith traveled to Central America to build railroads, but when he planted 800,000 acres of bananas to feed his workers, he ended up in the banana business, too. In 1899, he co-founded United Fruit. Back then, the U.S. market for bananas was in its infancy. Keith wanted to change that, but one huge obstacle stood in his way. The Problem of Perishability Keith’s conundrum was this: How could he get his bananas to American breakfast tables before they went bad? He had to find a way to transport them from Costa Rica to U.S. supermarkets in less than seven days — with only early 1900s technology! To do it, United Fruit came up with something brand new.
Railroad cars sped the bananas from their plantations to the Port of Limón. There, they were loaded onto the second secret: the first-ever refrigerated ships. Those ships steamed north, where their precious cargo was unloaded, stacked into yet more United Fruit railroad cars, and dispatched across the U.S. to Seattle at warp speed. This mad scramble of plantation workers, conductors, and captains brought us the plethora of bananas we have today. The Next Banana Battle United Fruit is still pulling the levers of the banana machine today under the name Chiquita. But now the company is facing another hurdle. Our everyday banana — the Cavendish — is under threat from a disease that could cause it to disappear from the breakfast table for good. To find out more about the banana crisis, head to Wired. com and dive into Rob Dunn’s story “Humans Made the Banana Perfect — But Soon, It’ll Be Gone.”
How Creating a Financial Plan for a Surviving Spouse Is the Greatest Show of Love
changes and evolves. This is also a great time for each spouse to share their wishes for their partner and legacies. These are factors we can work into a plan that can be utilized by either spouse when necessary. For other couples, sometimes this conversation needs to happen more rapidly. Maybe there has been a diagnosis or there has sadly been a premature death. It is still just as significant that this conversation happens, as the remaining spouse will need help and support in adjusting to life without their partner. Regardless of what phase you are in, many find it helpful to have a financial advisor in the room to begin and guide discussions. I’ve been there to lend perspective, offer guidance, and mitigate any nerves or discomfort. Chances are, we’ve already been through this process together. If so, I’m hoping you found some comfort in the plan. If for some reason things have changed, or if you feel we haven’t covered this adequately, I’m here to help. Just reach out to me!
However, if you’ve been through the process and it’s helped you in any way, I’m going to ask you to share. There are others you care about who may now or someday have the need, financially and emotionally, for my support as an advisor. I would greatly appreciate you sharing this message with someone who needs to hear it. It can be as simple as saving this newsletter to share at the right time or even directing them to my online resources. I have a very helpful blog post to guide couples through numerous stages of financial planning, including those who are just beginning to consider this tough conversation or those facing a more immediate need. You can find it online at McBeathFinancialGroup.com/blog/ financial-planning-for-loss-of-a-spouse . Thank you for sharing this information with others, and please reach out if you need assistance in discussions like this one.
This is never easy to discuss. Death is often a taboo subject, and it can be hard to picture your life without the person with whom you’ve spent many years. However, one of the greatest shows of love I see is during the planning process for such events. There’s a genuine concern for protection. One of the best ways to do this is to create this plan while both spouses are healthy. Without an imminent need, rational decisions can be made, rather than reacting on emotions. Time is also a major advantage at this point in the planning process, and adjustments and considerations can be made as your life
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The Social Security Administration (SSA) estimates that 65 million U.S. citizens will receive Social Security benefits in 2020. That’s an estimated $1 trillion in support. How Social Security Is Adjusting in 2021 and What That Means for You But these benefits are more than big numbers. Social Security provides income to those with disabilities, widowers, retirees, and many, many other diverse groups of people. It offers a livelihood to those who have worked hard to earn retirement after a lucrative career or those who may face obstacles or challenges with their earning capabilities. Yet, like many aspects of government, it’s constantly evolving. If you’re one of those 65 million people relying on Social Security, here are the biggest changes you need to know for 2021. New Year, New Changes
SUDOKU
A Slight Increase
To compensate for inflation, the SSA’s cost-of-living adjustment
is about 1.3% for the new year. This is believed to better place the monthly Social Security payment at the cost needed for standard living expenses. AARP reports that this is an
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extra $20 for the average retired worker and $33 for
retired couples. Widowers may see anywhere from $19–$39 in added benefits, while those with disabilities may see a jump from $16–$29. Supplemental Security Income (SSI) recipients will also see a small increase.
Adjustments for Medicare Those age 65 or older who are enrolled in Medicare Part B coverage will continue to see automatic deductions from their monthly Social Security
benefits. However, many recipients who fall under this category will not see the increase due to considerations brought about by COVID-19, according to AARP.
Earnings Test and Tax Caps Jump Social Security is funded through taxes on employers and employees, but the cap at which an employee can no longer be taxed per year is jumping from $137,700 to $142,800. This increase will also be seen in the earnings test, which is applied to retirees who take Social Security benefits before retirement age. The idea is that for every $2 they earn above a certain amount, about $1 is held back. In 2020, that amount was $18,240 per year, but in 2021, it will increase to $18,960. That number also jumps to $50,520 from $48,600 in the year you hit retirement age.
If you have questions about how these updates will affect your payments, please visit SSA.gov. You can also call 1-800-772-1213.
—Krista McBeath
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I N S I D E
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Let’s Heal Together in 2021
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The Great Banana Scramble of 1899
This Planning Stage Is Uncomfortable, But the Best Way to Show You Care
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Do These Social Security Changes Impact You?
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How Habit Tracking and Daily Resolutions Could Transform Your Life
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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 information 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 2020 McBeath Financial Group.
How Habit Tracking and Daily Resolutions Could Transform Your Life
Yearly resolutions are so last year … if they’re your only resolutions, that is.
Psychology asked people about a simple habit they wanted to form, like drinking water at lunch or taking a walk before dinner. They found that the average amount of time it took before the action became automatic was 66 days! Don’t be too hard on yourself if you miss a day, but know that sticking to a new habit is serious work, so starting small might help you out.
Having long-term goals isn’t a bad thing, but do you have a daily plan to reach them? The huge boost of motivation in January isn’t always enough to sustain you all year long. That’s why there are major benefits to starting new healthy habits, whether you increase your weekly exercise time, eat healthier foods, or work on getting better or more sleep. Luckily, sticking with these habits might be as easy as making daily resolutions to complement your yearly goals. B.J. Fogg, a Stanford University professor and author of “Tiny Habits: The Small Changes That Change Everything,” notes that tiny habits can make a new habit easy to implement into your daily ritual. For example, taking a short daily walk could lead to an exercise habit, or keeping an apple in your bag every day could encourage healthier snacking.
Another important aspect of forming new daily habits is rewarding yourself. Bad habits, like smoking, have an inherent reward. However, healthy habits can have rewards too! Try consuming a bit of dark chocolate after a workout or treating yourself to a fresh beverage or relaxing to a podcast after tackling an important task. Find ways to reward yourself, and you’ll be more likely to stick to your new habit.
Certain daily resolutions don’t have to be related to exercise or diet to majorly improve your life. For example, having a gratitude journal might boost your long-term happiness by 10% and improve your blood pressure. Don’t hesitate to improve your quality of life! Just start small, and you’ll be amazed by how far you’ll go.
It’s important that you stick with it because habits take a long time to create. One study published by the European Journal of Social
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