Capital Advisory Group - October 2020

Take a look at this month's edition of The Wealth Zone!

THE WEALTH ZONE

OCT 2020

119 Old State Rd., Ellisville, MO 63021

CapitalAdvisoryGrp.com

Don’t Let Old Documents Send a Chill Down Your Spine GET ORGANIZED FOR THE COMING TAX YEAR

Most of us associate cleaning and organizing with spring. After all, they call it “spring cleaning” for a reason. Winter is over, and it’s time to revitalize our homes. But what about fall cleaning? Believe it or not, the first week of October is Get Organized Week. It’s a good reminder that staying organized is important, no matter what time of the year it is. In fact, right now is a good time to start getting organized for the 2020 tax season. It may be October, but the 2020 season will be here before you know it. You want to make sure your tax documents and any related paperwork, such as receipts, are all in one place and accounted for. At the same time, you can start getting rid of old documents that may be cluttering up your desk or filing cabinets. The IRS recommends that you get rid of tax documents that are more than three years old. Some states have different guidelines, however. While Missouri falls in line with the IRS guidelines of three years, Illinois recommends keeping tax documents for at least nine years. Similar guidelines apply to other financial documents, such as bank statements. It’s always a good idea to keep them on file for about three years. After that, you can safely get rid of them and free up space for all the tax and financial documentation yet to come!

I can assure you, nothing bad happens when you get rid of old documents. Some folks can get superstitious when it comes to throwing out any paperwork that has any personal or financial details on it. This is a lot like the superstition of the “black cat.” Some people believe black cats represent

bad omens, and that if you see one, you’ll be cursed! But there are others who believe black cats represent good omens, and if you see one, you’ll be blessed. October, of course, is the month of superstition thanks to Halloween (and it also happens that National Black Cat Day lands just before Halloween). But don’t let superstition get in the way of getting rid of these old documents. Follow IRS guidelines, and you’ll be safe. But don’t just throw away documents straight into the trash — that is a bad omen. When you get rid of old documents, you want to dispose of them as securely as possible. The most secure way? Paper shredders! These devices are a great way to get rid of any sensitive documents. If you don’t own a paper shredder, no worries. Capital Advisory Group has their annual shred event usually after the April 15 tax

season. We will let you know when our 2021 will be held.

On top of dusting off old documents, think about dusting off old accounts. Do you have any accounts you are no longer using or money you can consolidate into current accounts? If you are sitting on old accounts (and this applies to old credit cards), consider closing them. You certainly don’t want to have an old savings account just sitting there unless you’re collecting higher interest on that account. That might be a different story. This month, as we celebrate all things spooky, take a day to clean out your old documents and prepare for the coming tax year. The more organized you can get now, the easier it will be to stay organized as tax season approaches. And don’t let any black cats fill you with dread! They deserve pats on the head just like any cat. -Jeff and John Zufall

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Published by The Newsletter Pro • www.TheNewsletterPro.com

Business is competitive by nature. If competitors didn’t push our favorite brands to be better, they may not even exist. Our technology options would be limited without Apple’s ingenuity. Shipping options would be limited without UPS or FedEx. And access to our favorite athletic gear would be more limited if no one was pushing the top brands like Nike to innovate. Competition fuels our greatest inventions, but behind every great leader or business is a core network of like-minded people and innovators supporting them. Professional associations connect business leaders to fellow innovators in their industry without competition from local rivals. These organizations offer many benefits and little risk to business leaders looking to grow. If you haven’t yet joined a professional association, these three benefits just might get you to change your mind. Education and Resources Google is great for a quick answer, but when you need to learn something more nuanced, a simple internet search won’t cut it. Professional associations offer tailored, more in-depth help and resources like industry-specific training and webinars, how-to guides, and coaching. From peer advice and education to scholarly studies and reviews, associations act as a library of information for your industry. Networking and Mentorship Why reinvent the wheel when you can adapt it with a mentor? Associations connect you to leaders who have stood where you are standing and succeeded. You can learn a lot from their failures, wisdom, and guidance. You can also connect with peers in your position and bounce ideas off of them. You won’t have to worry about competitors “stealing” your processes, and you have an honest, go-to support team to help you refine them before presenting them to your team. Personal Development and Growth A business is only as good as the leader managing it, and all business leaders have room for improvement. An association can give you the tools to get there. And as you continue to learn, you’ll discover personal and professional areas that can be further refined. This personal development only makes you and your business stronger. Are you still not convinced you should join an association? Think of it this way: Your competitors could be growing through their involvement in an association while you remain stagnant. Push forward and connect with your peers today. You’re Not Alone LEARN AND GROWWITH A PROFESSIONAL ASSOCIATION

ORSONWELLES RECOUNTS ‘THE WAR OF THE WORLDS’ The Night Martians Invaded New Jersey

On the evening of Oct. 30, 1938, an eloquent voice graced the airwaves in New Jersey:

“We now know in the early years of the 20th century, this world was being watched closely by intelligences greater than man’s, and yet as mortal as his own. We now know as human beings busied themselves about their various concerns, they were scrutinized and studied, perhaps almost as narrowly as a man with a microscope might scrutinize the transient creatures that swarm and multiply in a drop of water …” And so began Orson Welles’ classic radio broadcast, a retelling of H.G. Wells’ “The War of the Worlds.” Peppered in the retelling were fictional news bulletins informing the public of an alien invasion. Martians had arrived in New Jersey! Some listeners, who had missed the fact that this was a retelling of “The War of the Worlds,” assumed the news bulletins were the real thing. Frenzied, they called local police, newspapers, and radio stations hoping for more information about the invasion. What were they supposed to do?

Higher-ups at the CBS radio studio where Welles delivered the live reading called and told him he needed to stop and remind listeners that this was a work of fiction. The panic, it seemed, was growing as the Martians “approached” New York. A little later that night, police showed up at the studio with the intent of shutting the whole thing down.

The next day, the story broke across the country — newspapers reported on mass hysteria and stories poured out that the nation had erupted in panic. However, as we now know, the extent of the panic was exaggerated. In fact, the program didn’t even have very many listeners that night, and most who had tuned in were aware they were listening to a radio play rather than a news broadcast. American University media historian W. Joseph Campbell, who researched the broadcast in the 2000s, found that while there had been some panic, most listeners simply enjoyed the show. It turns out the person who was the most frightened was Welles himself who thought his career had come to an end.

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Working After Retirement FACING THE CHALLENGES OF WORKING AFTER AGE 65

Many retirees enjoy working part-time after retirement. It’s a great way to stay mentally and physically active within the community. Plus, it brings in supplemental income retirees can use for discretionary spending rather than dipping into retirement or investment accounts. In the 2019 Transamerica Retirement Survey of Workers, 55% of current workers intend to pursue part-time work post-retirement (with about 14% pursuing full-time work). However, the survey noted issues with the strategy. While 55% of workers intend to work part- time in the future, fewer actually accomplish this goal. One of the biggest reasons post-retirement work doesn’t happen has to do with a skill mismatch. Industries change and businesses change. As we age, we have to be extra proactive in keeping our skill sets up to date. Fall behind, and you give employers a legitimate reason to skip over your résumé. Another challenge faced by retirees (and all workers, in general) is simply a reduced number of jobs due to automation and a shrinking economy.

65. However, Transamerica Center for Retirement Studies (TCRS) President Catherine Collinson says reality is very different. “Look at the labor-force participation rate, and you see a very steep decline after age 65.” Employers may be supportive, but many retirees are not sticking around. The problem is that there aren’t many employers that have the ability to shift full-time workers into part-time positions. All too often, it leads to productivity and workflow issues within the business. Many businesses need full-time workers to make up the difference, and it doesn’t make logistical sense to keep part-time workers on for the sake of keeping those specific individuals. If you want to work post-retirement, Collinson gives this crucial piece of advice: “It’s important to have a plan but also to be mindful that things can happen along the way. You should have a Plan B and maybe even a Plan C. That way, if one pathway doesn’t work out, you’ll have others to follow.” Basically, don’t be discouraged if you want to work post-retirement. It may take some work, but chances are you’ll find something you enjoy doing — and that’s what counts.

The Transamerica survey also showed that a majority of workers have the support of their current employer to continue working after age

TAKE A BREAK

CLASSIC PUMPKIN SOUP

Pumpkins aren’t just for pie — they make delicious soup, too! This fall, try your hand at this healthy soup recipe and warm up with a bowl.

Ingredients

Directions

• 1 tbsp olive oil • 2 shallots, diced • 3 cloves garlic, minced • 2 1/4 cups pumpkin purée (homemade or canned) • 2 cups vegetable broth • 1 cup canned light coconut milk

1. In a large saucepan over medium heat, sauté olive oil, shallots, and garlic for 2–3 minutes. 2. Add the remaining ingredients and bring to a simmer. 3. Transfer the soup to a blender and purée. Pour the blended soup back into the pan. 4. Cook over medium-low heat for 5–10

• 2 tbsp honey • 1/4 tsp sea salt • 1/4 tsp pepper • 1/4 tsp cinnamon • 1/4 tsp nutmeg

minutes. Taste and add additional seasoning as desired, then serve!

Inspired by MinimalistBaker.com

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119 Old State Rd. Ellisville, MO 63021 CapitalAdvisoryGrp.com

PRST STD US POSTAGE PAID BOISE, ID PERMIT 411

Are You Organized for the Coming Tax Year?

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What Really Happened the Night Martians Invaded New Jersey?

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Join a Professional Association and

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See Your Business Grow

The Challenges of Working After Retirement — Planning is Everything

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Classic Pumpkin Soup

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Don’t Let the IRS Haunt You

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PUT THE GHOST OF THE IRS IN ITS PLACE 3 Tips for Year-Round Tax Planning

Sometimes, it can feel like the specter of the IRS is constantly looking right over your shoulder. When one tax season ends, it seems the next has already begun. This Halloween, don’t let them put the scare on you. Instead, take your tax planning to the next level and say goodbye to the ghouls of tax season. Here are three tax planning tips that will give you a leg up several months before the 2020 season rears its ghastly head! ( And don’t forget to read this month’s cover article for even more! ) Check on your withholding. Things change. People get married, divorced, have kids, and so on. Major life events such as these directly impact your taxes. Every year, it’s a good idea to check up on your withholding. This way, there are no surprises the next time you file your taxes, such as owing much more than you

expected. If updates are needed, fill out Form W-4 to change any withholding and return it to your employer. You can find a link to Form W-4, along with many others on our website at CapAdvGrp.com/tools/ tax-resources/tax-forms . Check on tax credits and deductions. Most people opt for the standard deduction and call it a day. However, depending on your situation, it may make sense to itemize your deductions in order to lower your tax burden. If you find that you do qualify for a number of deductions, go for it. If not, you can stick with the standard deduction. At the same time, it’s always a good idea to check available tax credits to see what you may be eligible for. Common tax credits include the child tax credit and the lifetime learning credit.

Check on retirement savings. The IRS rewards taxpayers who save. If you currently contribute to a retirement plan, such as a 401(k) or IRA, those contributions have the potential to lower your adjusted gross income, and thus, your taxes. There are many different types of retirement accounts that qualify, including those for self-employed business owners. Keep track of your savings and have that information ready to go come tax time.