Take a look at our September newsletter!
119 Old State Rd., Ellisville, MO 63021 THE WEALTH ZONE REFLECTIONS ON THE GREAT RECESSION The Power of Resilience During Adversity CapitalAdvisoryGrp.com September 2023
About 15 years ago, our world changed in the blink of an eye. Over 8 million jobs were lost, investment portfolios were destroyed, and $19.2 trillion in household wealth disintegrated. The 2008 Great Recession was a traumatic economic destruction that many of us lived through. The recession left a massive crater in our lives, and it was heartbreaking to witness the financial hardships our country was facing. And the wound only seems to cut deeper as talk of another recession looms around us. For the past year or so, media outlets and businesses have mentioned a potential recession in the future — I’m sure you’ve seen articles about it. On top of the chatter, the rise of inflation and unemployment and the unstable housing market have many people questioning if these instances are warning us of what’s to come. I wish I had an answer to whether or not we will endure another recession. Life is full of uncertainties — even if you prepare
and study our economic situation for years, anything can happen that you never considered. Now, I’m not saying that you shouldn’t prepare and practice habits that help you keep more of your wealth. But I am saying that we have to expect the unexpected. In other words, don’t spend your energy trying to understand uncertainties. Instead, do what you can to get ready to weather the potential storm. While I don’t have a definite answer on what the future holds, I do know one thing for sure: You will overcome anything that stands in your way. I have faith in you and your abilities, regardless of what our economy will look like. I’ve seen many of you prevail over the hardships you experienced during the 2008 recession. Look at how far you’ve come since then! Your past economic struggles seemed unbearable, and you may have felt anger, resentment, despair, stress, and many other emotions during this time. But you
also persevered and showed strength while the world seemed to crumble around you.
The emotional impact of the Great Recession was predominately negative, which is understandable and valid — millions of people lost their livelihoods instantly. Others worked overtime and picked up various odd jobs to make ends meet. However, many individuals, families, organizations, and communities displayed resilience during the recession. They found ways to adapt, support each other, and capitalize on opportunities as they came face to face with adversity. Even with the mountain of obstacles blocking your path, your remarkable strength was inspiring. The Great Recession wasn’t easy for anyone to deal with, but if you look past the pain, you’ll notice the incredible traits, habits, work ethics, and other characteristics you developed along the way. You’re much stronger than you give yourself credit for — don’t sell yourself short. While the threat of a recession will always be nerve-wracking, believe in yourself and your abilities. You have overcome dozens of obstacles, so don’t allow a roadblock to limit your skills and what you can do. And never forget, you’re not alone during your journey. I will travel alongside you and help you make financial decisions that fit your needs. I’m only one phone call away!
HAVE YOU HEARD US ON THE RADIO YET? Tune in to KTRS 550 AM radio every Saturday from 3–4 p.m. as Jeff Zufall and Josh Gilbert discuss all things taxes and financial planning. From innovative strategies to optimize your benefits to breaking down proposed and current legislative measures, Jeff and Josh guide you through today's most pressing topics in the financial world.
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In the years leading up to your golden years, you’ll receive plenty of financial advice on preparing for retirement. You want to ensure you have enough money to last the duration of your retirement and maybe still have something left in your estate. This is incredibly important, but there’s more to retirement than simply saving your money and waiting. Author and speaker Dr. Riley Moynes has contemplated the psychological challenges that retirees face and determined that there are four distinct phases of retirement. Understanding these phases and preparing for their challenges will help you maximize your retirement. Vacation This phase is exactly what it sounds like. You’ll feel like you’re on vacation 24/7. You wake up when you want, sleep when you want, and do whatever your heart desires throughout each day. We’re free from responsibilities and can enjoy each moment as it comes, but many people grow bored of this stage after the first year of retirement. We begin to miss our routine and question if there’s anything more to retirement. Loss This second stage begins when we start to feel like we’ve lost who we are. We lose our routine, our identity, many of the relationships we’ve built, a sense of purpose, and for some, a feeling of power. This is also the stage where retirees can face divorce, depression, and physical and mental decline. It can be traumatic when you don’t see these losses coming, but this phase doesn’t last forever. Trial and Error This phase is all about trying to make your life more meaningful. Often, the best path forward is to invest more time into your favorite activities. Be warned that many of these activities will have lost their luster, causing you to experience some trial and error. Don’t give up! Something will click to give you purpose, propelling you into phase four. UNDERSTAND THE 4 PHASES OF RETIREMENT Maximize Your Golden Years
Traveling alone can be a memorable and adventurous experience — it’s a great way to step outside your comfort zone and continue learning about yourself. While solo travel is chock-full of exciting perks, staying alone in a hotel can be dangerous if you aren’t careful to take certain safety precautions. The next time you take a trip by yourself, keep these tips in mind! Check in the smart way. When you check in to your hotel, always ask for two room keys — this way, hotel staff and anyone else in earshot will automatically assume someone else is traveling with you. If they ask how many guests will be staying with you, don’t admit you are alone. If you have the option, request a room that isn’t on the ground floor, as research shows they are the easiest to break into! Inspect your room. As soon as you enter the room, make a quick sweep to ensure no one is present in closets, in the shower, or under the bed and that nothing appears to be amiss. It’s always best to be safe rather than sorry! Keep your eyes peeled. Any time you leave your room, even if it’s just to scope out the vending machines, be alert for anyone watching or following you, and always keep your room number discreet. If you ever feel like someone is following you, get off on a different floor and avoid going to your room. Use the deadbolt. If the door in your room comes equipped with a deadbolt, use it! This extra safety measure keeps even those with a key from entering your room without your knowing! Share the hotel information. Let your family and friends know where you are staying! Provide them with the hotel name, address, and phone number in case an emergency arises! Traveling solo is a thrilling experience, but it comes with some extra steps to stay safe! Trust your instincts and use these tips to ensure your trip goes down in the memory books as safe and exciting! KEEP YOURSELF SAFE WHILE TRAVELING ALONE
Reinvention Not everyone will make it to this stage. To get here, you must ask yourself, “What’s my mission in retirement?” Maybe you want to serve others by volunteering with a charity, or perhaps you simply want to improve your golf game. Finding that purpose and reinventing yourself around it will bring you more happiness during your golden years.
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DON’T RUN OUT OF MONEY IN RETIREMENT!
You didn’t consider high-value items. Creating a post-retirement budget is vital because it can help you estimate your expenses, manage your spending habits, and help you save the money you need to fulfill your lifestyle. However, you may realize you’re spending more than expected during retirement. Perhaps you had to purchase a new car, make home or vehicle repairs, or buy another big-ticket item. Regardless of how easy it is to overlook these items, leaving them out of your post- retirement budget would be costly. Always consider every little detail and list the potential repairs or expensive purchases you may have to make. It’s better to over-save rather than under-save! If your financial accounts need to be reviewed, we will gladly assist you! Our team can help you reach your retirement goals and ensure you’re prepared for anything that comes your way.
A common fear that runs through the heads of many is the concern of running out of money during retirement. Regardless of how much you’ve prepared, you’ll quickly discover that retirement will cost more than you anticipated and planned for. Today, we wanted to highlight the three factors that cause people to question their financial stability during retirement and how you can overcome them. You underestimate your life expectancy. You don’t want to be 20 years into retirement and realize you only have enough funds for one or two more years. Many advisors recommend saving enough money to last 25–30 years. One of the best tools to help you accumulate wealth is having more than one stream of income. Consider creating a portfolio of diversified investments and withdrawing money from it over time. An advisor can also help you calculate how much you may
spend during retirement and provide other strategies to amass more funds. You didn’t plan for high medical fees and expenses. After reviewing the Fidelity Retiree Health Care Cost Estimate, retired couples may need to save more than they expect for long- term health costs. If you remember from our last newsletter, we stated that single people should save $157,500 and married couples should save $315,000, as emergencies and unexpected health issues can occur anytime. Furthermore, with inflation and constant changes to Medicare drug plan coverage, the price of medications, treatments, and services could vary in the future. When preparing your retirement accounts for medical costs, don’t overlook small items like prescription co-pays, service fees, and other minuscule expenses. It’s also beneficial to note how much you typically spend on over- the-counter medications.
HONEY-PECAN CHICKEN BREASTS
We Would Love to Hear From YOU!
Inspired by TasteOfHome.com
With summer over and fall here, pecan and honey reign supreme in this sweet chicken recipe. The honey provides a perfect caramelization while pecans pack on the crunch factor!
Ingredients
• 2 6-oz boneless, skinless chicken breast halves • 1/4 tsp salt • 1/4 tsp garlic powder • 1/8 tsp black pepper • 1/8 tsp cayenne pepper • 1 tbsp butter • 3 tbsp honey • 2 tbsp finely chopped pecans
If you have questions you would like answered in our upcoming newsletter, please submit all inquiries to Ellen@CapitalAdvisoryGrp.com . We would also love to highlight your experience with Capital Advisory Group. If you have success stories or instances you would like to share, please send those submissions to the email above.
1. Pound chicken with a meat mallet to 1/2-inch thickness. Sprinkle with salt, garlic powder, black pepper, and cayenne pepper. 2. In a large nonstick skillet, heat butter over medium heat; brown chicken on both sides. Cook covered until chicken is no longer pink, about 6–8 minutes, turning once. 3. Drizzle with honey and sprinkle with pecans. Cook covered until chicken is glazed, about 2–3 minutes. Directions
Thank you for your continued support!
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119 Old State Rd. Ellisville, MO 63021 CapitalAdvisoryGrp.com
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ISSUE INSIDE THIS
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It’s Been 15 Years ...
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Maximize Your Golden Years
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Keep Yourself Safe While Traveling Alone
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Don’t Overlook These Retirement
Financial Threats!
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Honey-Pecan Chicken Breasts
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Take Advantage of This Tax Deduction!
CREATE A BETTER FUTURE BY DONATING!
How do you claim charitable donations on your tax returns? You must itemize your deductions by filing Schedule A of IRS Form 1040. If your standard deduction is more than your itemized deductions, many advisors suggest simply collecting the standard deduction instead. Below is an outline of the standard deduction amounts by filing status for the upcoming filing season.
One of the best ways to strengthen your community and help create a better future is by giving back to those in need and supporting organizations committed to assisting others. If you decide to donate or volunteer as a token of appreciation for your considerable contributions and time, you could receive a tax deduction! Generally, you can deduct various donations you make as long as they’re equal to or less than 60% of your adjusted gross income. However, you may be limited to a lesser percentage depending on the type of contribution you provided and the organization to which you donated. During the 2020 and 2021 tax years, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) allowed taxpayers to claim up to $600 in cash donations to qualified charitable organizations on their taxes without itemizing them. However, the CARES Act has since expired and is no longer available.
1. Donate to a tax-exempt organization or nonprofit. Be sure to ask the charity how much of your contribution will be tax‑deductible! 2. Document your contributions. Collect all bank and credit card statements and receipts from the charities you donated to. If you contributed through your employer, keep copies of your W-2 as evidence. 3. Don’t forget about volunteer work. The IRS can’t deduct the value of your time or service. But if you had any volunteering- related expenses, they can be deductible!
Single: $13,850
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Married filing jointly: $27,700 Married filing separately: $13,850
Head of household: $20,800
Consider donating this month in honor of International Day of Charity on Sept. 5. Please let us know if you have any questions about charitable contributions and how they can impact your taxes!
What are the rules for charitable tax deductions? To receive a deductible, your donation must meet specific guidelines.
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Securities offered through Kestra Investment Services, LLC, (Kestra IS), member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC, (Kestra AS) an affiliate of Kestra IS. Capital Advisory Group, Inc. is not affiliated with Kestra IS or Kestra AS. Neither Kestra IS or Kestra AS provide legal or tax advice and are not certified public accounting firms. KestraFinancial.com/disclosures
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