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You Can’t Take It With You
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March 2024
The Merits of Optimism
Positive Thinking Has Positive Results
To wear a cheerful countenance at all times, and give every living creature you meet a smile. To give so much time to the improvement of yourself that you have no time to criticize others. To be too large for worry, too noble for anger, too strong for fear, and too happy to permit the presence of trouble. When you’re a kid — and especially a teenager — messages of optimism and positivity often don’t resonate fully. I now recognize the wisdom of the club’s creed and my mom’s words of encouragement, even though they often annoyed me as a child. When I returned to my hometown after graduating from law school, current members of the Optimists Club, whom I grew up with, were now active community members, organizing events for their kids or grandkids. The group asked me to come back and speak at a big annual event, and it was wonderful to do that. When I went to give that speech, my eyes were drawn to the wall, and that same fabric, adorned with that timeless creed, was still hanging there. Everyone turned and still recited that creed at the meeting, bringing back happy memories of my time in the club. I know a lot of people poke fun at positive thinking. It might be because they think of it as pie-in-the-sky, hopelessly wishful thinking. But I will tell you the same thing I tell my kids: “Irrational optimism is still better than rational pessimism.” Optimists are more successful and have more fun. Even if the positivity isn’t always realistic, it’s much better than the alternative. Regardless of our circumstances, I find it rewarding and fulfilling to always
Growing up, we always had a copy of “The Power of Positive Thinking” by Dr. Norman Vincent Peale on our bookshelf. It’s been in the family for a long time now — my grandmother passed it on to my mother, and my mother passed it on to me. I’ve reread it many times over the years, and its message that faith, positive thinking, and optimism can be the guiding light to a better life resonated with me. March is National Optimism Month, making it the best time to reflect on how positive thinking can help us accomplish our goals and achieve our dreams. When I was a kid, I joined the Optimists Club, a local group that did a lot of public service for the community, like hosting dinners or sponsoring youth sports leagues. I remember the group had a creed embroidered on a large tapestry inside the clubhouse. The club’s members would recite this creed like you would the Pledge of Allegiance in school. The creed went like this: To be so strong that nothing can disturb your peace of mind. To talk health, happiness, and prosperity to every person you meet. To make all your friends feel that there is something in them. To look at the sunny side of everything and make your optimism come true. To think only of the best, to work only for the best, and to expect only the best. To be just as enthusiastic about the success of others as you are about your own. To forget the mistakes of the past and press on to the greater achievements of the future. A Question to Ask (or Answer for) a Loved One Asking and answering important questions helps preserve your family’s values and life lessons for generations to come. What clubs or groups did you belong to and why?
strive for happiness by having a positive attitude and visualizing the future we want for ourselves.
“God comforts us so that we may comfort others.” – 2 Corinthians 1:4
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DON’T MISS OUT ON THIS 401(K) GROWTH OPPORTUNITY
expense ratio, while the tax-cost ratio is whatever capital gains taxes are triggered if the fund is outside of a tax-advantaged account like a 401(k). In this case, as we’re exploring how to grow your 401(k), you would only have to worry about the expense ratio. You should research which index funds have the lowest expense ratios and their investment strategies — what type of industries (energy, technology, etc.) they invest in. Small-, mid-, and large- cap indexes track small, medium, and large companies. Figuring out which sector you want to invest in within these categories is also crucial. Also, consider foreign, domestic, or a combination within emerging markets. You’ll find many choices, but ultimately, you just need to choose one that best suits your needs. Okay, I’m convinced. What’s next? Once you decide, you can invest in the fund that suits your needs. Consider convenience, costs, commission-free options, and whether you want your investment to reflect your ethics. After investing, review the fund regularly to ensure it still measures up by looking at your mutual fund’s quote page. If fees start climbing or your fund isn’t doing its job (rate of return), you can always switch to another. Also, consider diversifying your portfolio by investing in multiple index funds. We know this is a lot of information, but we hope this 101 on low- cost index funds has given you a new option to consider. It’s one of the safest, low-cost ways to boost your 401(k). Your options are broad, and we welcome your questions. We’re here to help; reach out to our office to schedule an appointment.
Planning for retirement can be exciting — deciding where you’ll travel, what hobbies to pick up, or how to otherwise fill your time in your golden years. The hardest part is planning with the optimal financial tools. The goal is for your investments (combined with Social Security) to take care of you in retirement, not to wonder why the investments you put your hard-earned money into didn’t pan out. And as with all financial decisions, you must carefully weigh your options for growing your 401(k). This article will explore one tool specifically, the low-cost index fund, which can effectively grow your 401(k) with minimal expense.
“The goal is for your investments (combined with Social Security) to take care of you in retirement, not to wonder why the investments you put your hard-earned money into didn’t pan out.”
What is a low-cost index fund? Low-cost index funds can diversify your investments without a huge price tag. This pre-set index of stocks is often either a mutual fund or an exchange-traded fund (ETF). These funds follow popular indexes, which frequently point to the overall economy. The Standard and Poor’s 500 index is one example. The Dow Jones Industrial Average is another. They’re staples of investing and offer security and stability for many investors. Index funds aim to mirror the performance of a specific index. So, no real management is necessary for this fund since they don’t try to outsmart the market or beat its averages. That’s what keeps costs low within the index. Because the fund is not actively managed, the costs are usually lower. Why choose a low-cost index fund? Comparatively, a low-cost index fund only requires an investment minimum (many times as low as $500–$1,000 initial investment) and an account minimum. Both of these can be as low as zero, especially for those with a Roth or Traditional IRA. The main cost is the expense and tax-cost ratios. The fees subtracted from any returns is the
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ASSET DISTRIBUTION DONE RIGHT Know Your Options to Help Protect Beneficiaries Discussions about inheritances are often delicate. However, the goal is to consider the unique circumstances of your children or other beneficiaries. You want to provide for loved ones without offending anyone in the process, yet some are more responsible with money than others, and you want to help them make the most of their inheritance. Here are a few suggestions to set your family up for success after you pass. No-Contest Clauses Employing a no-contest clause
TAKE A BREAK
AQUAMARINE BASKETBALL BUTTERFLY CLOVER DAFFODIL GREEN IDES LEPRECHAUN MADNESS SPRING TANGERINE WOMEN
in your will can eliminate any potential in-fighting or contention to break away from your wishes. It automatically disinherits any contentious family members. If you know your kids enjoy bickering, then adding this no-contest clause puts them on notice to leave their
BELL PEPPER SANDWICH
bickering aside, especially in court. Preventing a long, drawn-out court mess is a surefire way to take care of your family. It’s an easily added clause; you just have to choose to include it. A Living Trust Establishing a living trust is one way to delineate how you want your assets to be distributed after you pass, and you can revoke or change it at any time while you’re still around. You can set up a few different ways for the successor trustee to distribute assets from the trust, depending on your family circumstances: outright distributions, staggered, or discretionary. An outright distribution means beneficiaries receive assets without any protections — but an irresponsible recipient might squander the inheritance very quickly. The staggered distribution allows you to set the rules about how and when funds will be distributed or if any triggering events will play a role (turning 18, marriage, etc.). The last option is to give your successor trustee discretionary power to distribute assets — they will decide when and what a beneficiary will receive. Choosing the Right Trustee Whichever distribution option you choose, selecting the right person or entity to be your trustee (an individual, a private fiduciary, or a bank) is crucial. They should be trustworthy and fair, especially if you grant them discretionary power. They’ll be in charge of making sure your assets are distributed according to your wishes — and their best judgment. Being firm in your care for others won’t make you the villain. Thankfully, you can share your legacy and assets according to your best judgment and discretion. You have several options and tools — just remember, you know your children best.
Inspired by TheSpruceEats.com
Ingredients
• 1 1/2 oz Swiss cheese, thinly sliced • 1/2 small cucumber, cut into 6–8 thin slices • 2 tbsp guacamole or a few slices of avocado • Dash of salt and pepper
• 1 medium bell pepper, any color • 2–3 tbsp cream cheese • 1 tsp whole-grain mustard • 2 oz ham (or other deli meat), thinly sliced
Directions 1. On a cutting board, remove the stem of the bell pepper with a sharp knife. Cut the pepper in half lengthwise and remove the ribs and seeds. 2. Lay the pepper halves on the cutting board and spread cream cheese inside each half. Spread whole-grain mustard on top of the cream cheese. 3. Layer your deli meat, cheese, cucumbers, and guacamole on each bell pepper half. Add a dash of salt and pepper, then combine both halves and serve!
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INSIDE THIS ISSUE
You Can Accomplish Anything With Positive Thinking
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How Low-Cost Index Funds Can Maximize Your 401(k)
Bell Pepper Sandwich
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Ensure Your Assets Are Distributed Wisely
Embrace the Empty Nest
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HOW TO ENJOY THE EMPTY NEST
and share your own. Arranging in-person visits can turn into new traditions for your family. Allow yourself to enjoy this different but equally rewarding aspect of parenthood. Now, let’s turn the spotlight on you. This is your time, a golden opportunity to focus on self-care and personal growth. Remember those hobbies you shelved when parenting took center stage? Dust them off and give them
Welcome to the new phase of life every parent faces, the empty nest. It’s that bittersweet time when the last child packs up and leaves only echoes in their once bustling rooms. Suddenly, the soundtrack of your life has shifted from a lively chorus to silence. For 18 years or more, school runs, sports practices, and the ever- present hum of family life framed most of your days. Now, your home feels a tad too spacious.
a whirl! Painting, hiking, learning a musical instrument, or even skydiving — there’s no better time to explore old or new interests.
It’s normal to miss the commotion and the constant interaction with your children. But you are entering an exciting new chapter in your life, just like your children are. Your role as a parent is simply evolving. You’ve been their guide, teacher, and protector for years, and those roles don’t just disappear — they transform. Your children will still look to you for support and guidance; this is your chance to be there for them in a new way. There’s no reason to be cut off from your children. Stay connected through texts, FaceTime calls, and good old-fashioned phone conversations. Discuss their new experiences
With fewer responsibilities at home, you can pack your bags and explore. Whether across the globe or the state, travel refreshes your spirit and broadens your horizons, offering perspectives that can only come from stepping out of your comfort zone.
Life doesn’t stop teaching, and we never stop learning. Your nest might be empty, but your life is full of opportunities waiting for you to seize.
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