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NOVEMBER/DECEMBER 2024
Financial Horizons Your Connection for Wealth, Lifestyle & Legacy
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By Julie Karstens Don’t Miss the Boat YEAR-END MOVES TO AVOID LAST-MINUTE SCRAMBLING
your portfolio diversified and minimizes risk exposure.
Here at McBeath Financial Group, we prioritize these strategies for our clients and actively manage and rebalance portfolios to stay on target with financial goals.
waiting too long. As we settled safely on board, I couldn’t help but wonder if anyone was left behind. As a financial planner, it reminds me of those who procrastinate on their year-end tax planning and miss out on valuable opportunities.
Ah, the world of cruising! If you’ve never heard of “pier runners,” let me fill you in: They’re the last-minute, out-of-breath travelers who sprint down the pier just in time to see their ship pulling away.
ROTH CONVERSIONS AND CHARITABLE GIVING
If you’re planning a Roth conversion, it needs to be completed by the end of the year. The same goes for charitable giving and family gifting — these must be done before Dec. 31 to qualify for this year’s tax benefits. For those looking to maximize their charitable contributions, consider strategies like donor-advised funds (DAFs) or bunching, which can help increase your tax efficiency. We specialize in tax strategies like these. Our goal is to ensure your resources go toward your legacy and charitable goals rather than unnecessary tax expenses. LIFE CHANGES AND LIVING EXPENSES Lastly, if you’ve experienced any major life changes or shifts in your living expenses, now’s a great time to sit down with your advisor and update your financial plan. Given the inflation over the past few years, reviewing your spending is essential to ensure your plan meets your current needs. So, as we prepare to close out another great year and welcome a new one, now is the time to be sure you have your financial ducks in a row. After all, procrastination can lead to being a “financial pier runner,” scrambling at the last second and possibly missing the opportunity to capitalize on beneficial financial strategies. –Julie Karstens
This is why it’s so important not to procrastinate on year-end financial and tax planning. Waiting until the last minute can cause stress and missed opportunities. Now is the perfect time to focus on year-end financial and tax planning. Here are some key moves to maximize your benefits and avoid the dangers of last- minute deadlines.
When we went on our first cruise to Alaska in July, I learned about the infamous “pier runners” — the unfortunate souls who arrive late and have to sprint down the pier to catch their ship (I had no idea what pier runners were until this trip). The whole trip, I made sure to avoid being one of them. Our first stop was in Sitka,
and since it was a bit of a trek to the town, we were careful to leave enough time to make it back to the ship without rushing. We took our 4- and 6-year-old daughters on the trip, and while waiting in line to catch the bus back to the ship, my 4-year-old, Grace, fell asleep in my arms. It was pouring rain, but she was so exhausted that she stayed fast asleep. I carried her 40-pound body through the downpour, and even when we finally got on the bus, she didn’t wake up. I was soaked, but Grace remained peacefully asleep! We made it back just in time, right before the ramp to the boat was removed. It happens often — people literally miss the boat by
RETIREMENT CONTRIBUTIONS Maximizing out your 401(k) workplace retirement plan contributions is important, as you can’t contribute to these accounts after Dec. 31 for the current year like you can with IRAs. You may also want to start reviewing your year-to-date income to determine if you will be eligible to make an IRA or Roth IRA contribution. As a reminder, you have until April 15 of the following year (2025) to do so. INVESTMENTS You should also consider tax-loss harvesting and rebalancing your portfolio for optimal diversification. Tax-loss harvesting can help offset any capital gains and reduce your taxable income. Rebalancing keeps
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The Series in Review! 10 Retirement Questions:
Over the last 10 newsletters, we’ve taken a deep dive into the questions that matter most when planning for retirement. In this final installment, we’ll recap the highlights and offer a complete look at the key issues that drive a secure and fulfilling retirement. Let’s review the 10 questions you need to answer for a well-rounded retirement strategy. 1. HOW MUCH WILL YOU SPEND IN RETIREMENT? It’s not just about having enough savings; it’s about understanding and managing your expenses to align with your retirement lifestyle. Regardless of the size of your retirement accounts, careful budgeting ensures your resources are allocated effectively to support your goals. 2. HOW MUCH INCOME WILL YOU HAVE IN RETIREMENT? Retirement income comes from various sources — Social Security, pensions, rentals, annuities — and it’s crucial to determine what each source provides and how reliable it is over time. This is where a professionally prepared financial plan, along with a solid investment strategy, plays a crucial role. 3. HOW CAN YOU COVER THE GAP BETWEEN YOUR INCOME AND EXPENSES? To bridge any gap between your income and expenses, you need a comprehensive distribution plan that incorporates retirement account rollovers, non-retirement savings, and strategic investments. This will help ensure you’re covered throughout retirement. 4. HOW CAN YOU SAFEGUARD YOUR LIFESTYLE FROM INFLATION AND MARKET RISKS? Achieving a comfortable retirement means striking the right balance between growth and safety. A balanced approach— utilizing Exchange Traded Funds (ETFs) — can help provide growth potential based on your individual risk tolerance. ETFs are similar to mutual funds but trade like individual stocks, and they can be tailored to match both conservative and growth-oriented strategies, depending on financial goals. A well-constructed strategy may offer protection from inflation and market swings, along with the ability to capitalize on market growth. 5. HOW MUCH WILL YOU PAY IN TAXES DURING RETIREMENT? Taxes don’t necessarily decrease in retirement; in fact, they can increase depending on your income sources. Effective tax planning ensures that withdrawals from IRAs, 401(k)s, and other accounts don’t lead to unpleasant surprises.
7. WHEN IS THE BEST TIME TO START TAKING SOCIAL SECURITY? The timing of Social Security benefits has a significant impact on your overall retirement income. It’s important to weigh factors like your financial needs, marital status, and life expectancy to make an informed decision about when to start claiming benefits. 8. WHAT HAPPENS WHEN A SPOUSE PASSES AWAY? The financial impact of losing a spouse can be profound. Understanding how this affects income, taxes, and expenses helps ensure the surviving spouse remains financially secure. A trusted financial advisor can guide you through these difficult decisions. 9. SHOULD I ROLL OVER MY 401(K)? Rolling over a 401(k) into an IRA often provides access to more investment options and better fee transparency. It also simplifies account management and aligns with long-term retirement goals by offering personalized financial guidance. 10. WHAT’S YOUR PLAN FOR LEAVING A LEGACY? Legacy planning is a key aspect of retirement, ensuring that your estate is passed on according to your wishes while managing tax liabilities. A comprehensive estate plan incorporates charitable giving, wealth transfer strategies, and tax-efficient planning. CONCLUSION As we wrap up this series, it’s clear that retirement is not a one-size- fits-all journey. It requires careful consideration of many moving parts — expenses, income, taxes, market risks, healthcare, and legacy planning. The answers to these 10 crucial questions provide a roadmap to ensure you’re well-prepared for the years ahead. Whether you’re already retired or still planning, having a comprehensive financial strategy in place, alongside a trusted team of advisors, is key to achieving a secure and fulfilling retirement. Remember, your retirement is a journey, not a destination, and we’re here to support you every step of the way.
For a full, comprehensive guide of our 10 Questions for a Successful
Retirement, request the FREE report using the website below or scan the QR code! https://page.mcbeathfinancialgroup.com/10- questions-for-retirement-report.html
6. HOW WILL YOU COVER MEDICAL AND LONG-TERM CARE EXPENSES?
Even with Medicare, healthcare costs can add up, especially when it comes to long-term care. Incorporating supplemental insurance or long-term care insurance into your plan will help protect your finances from these unexpected costs.
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A Warrior’s Best Friend How a Rescue Dog Changed a Veteran’s Life
SUDOKU
When Marine William “Bill” Lins returned home from deployments in Iraq and Afghanistan, he felt ruined. He wasn’t the same man anymore and felt like he didn’t fit in anywhere. After sustaining multiple injuries and witnessing the horrors of battle, he never thought he would be able to go back to living a normal life.
That is until the nonprofit K-9s For Warriors helped him find his missing link — a rescue dog appropriately named Link.
SOLUTION ON PG. 4
K-9 For Warriors has been pairing highly trained service dogs with military veterans suffering from PTSD, traumatic brain injury, and military sexual trauma since 2011. The free program strives to better the lives of veterans through special canine bonds and ultimately end veteran suicide, which claims the lives of roughly 20 veterans every day. When Bill returned from deployment, he had to recover from two surgeries and realized he had PTSD. He had developed severe alcoholism, drinking every day nonstop as his only coping mechanism. In a hopeless place, the Marine felt like he was losing every piece of his identity and had nothing left. After seeing a friend at the VA bring in his service dog, he noticed a remarkable change in him and decided to apply for the program.
Bill felt an instant connection to the goofy rescue dog Link, who was recovering from his own trauma after living a rough life in a kill shelter. Bill said his canine companion is his 24/7 therapist, providing him with support and safety at all hours. Link doesn’t just impact Bill’s life; he makes a difference with everyone he encounters, from Bill’s children to the youth athletes he coaches. “Together, we kind of make each other whole,” Bill said. “He makes everyone’s world better, and he makes it seem effortless.” Link has inspired Bill to help others and spread a message of awareness that asking for help is not a sign of weakness but a symbol of strength. Bill has since earned his master’s in social work and provides mental health services with his tail-wagging companion by his side for every session.
Together, the pair are showing veterans everywhere that there is hope and that life can get better with a little help from a four-legged friend.
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INSIDE
1
Don’t Be a Financial Pier Runner
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Your 10 Crucial Questions for a Secure Future
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Paws of Hope
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Discover the Fascinating ‘What-Ifs’ of State Names
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.
Names That Almost Were The Bizarre and Creative Titles That Nearly Defined Our States
One of the first things you likely learned was the name of your home state, but what if everything you knew about your state’s namesake could have been different? Prepare for a journey through the quirky and bizarre world of almost-names for states! The early days of American statehood were filled with creative, peculiar, and downright odd suggestions. Let’s look into history and uncover the surprising stories behind the names that could have been. KENTUCKY Kentucky’s famous horse race was almost known as the Transylvania Derby, but it has nothing to do with vampires. In 1775, a businessman named Richard Henderson established the Transylvania Company and signed a treaty with the Cherokee tribe, securing land known as the Transylvania colony. However, Henderson’s treaty failed as
Virginia had already claimed the land. Years later, in 1792, those living on Henderson’s attempted purchase broke away from Virginia to become Kentucky. Despite naming the state themselves, the residents couldn’t decide whether the state’s new name meant “prairie,” “land of tomorrow,” or “river of blood.” UTAH When Brigham Young, the leader of The Church of Jesus Christ of Latter-day Saints (widely known as the Mormon church), moved the congregation west, they settled in the Salt Lake Basin. He petitioned Congress to create a new state for them and settled on Deseret, after a name in the Book of Mormon, one of their scriptural texts. The government declined the request until 1896, granting them statehood in a smaller area than they had originally hoped for. They still
didn’t get their desired name, though; the government named the state Utah after the Ute tribe that called the area home. NEVADA The name Humboldt almost became the name of the state of Nevada. It comes from explorer and naturalist Alexander von Humboldt, who helped popularize scientific exploration. Though he traveled thousands of miles across Central and South America, he never made it to the Western United States. So, when Nevada became a state in 1864, they used the Spanish word for “snow- covered” instead. History is full of “what ifs” and whimsical alternatives that could have shaped our country. These almost-names remind us of the rich tapestry of the past and the imagination that defines our nation.
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