Check out the latest edition of our newsletter!
JULY/AUGUST 2023
Financial Horizons Your Connection for Wealth, Lifestyle & Legacy
McBeathFinancialGroup.com
309.808.2224
‘That’s It — No More Vacations!’ JULIE’S FAMILY PUT TRAVEL ON PAUSE
Back in October 2021, my husband and I packed up the kids for a big family vacation in Fort Myers, Florida. When I say big, I mean big — we had two kids at the time (3 1/2-year-old Stella and 1 1/2-year-old Grace), I was
even care that Grace was sitting between my feet, eating food
off the plane floor — at least she wasn’t crying!
“I couldn’t even care that Grace was sitting
between my feet, eating food off the plane floor — at least she wasn’t crying!”
Even touching down in Bloomington didn’t bring much relief. The airline had lost all of our luggage, including our car
pregnant with our third, and we were meeting my parents, my four siblings, and their eight children at the beach!
family vacations with my parents and siblings growing up that I’d love to recreate for my kids when they’re older — but it’s perfect for now. Reflecting on this change today, I realized that some of the clients I see as a financial advisor at McBeath Financial Group are in the same boat. Many of you have paused travel or set strict vacation budgets as you save for retirement. If you’re doing this and feel like the odd one out among your friends, don’t worry: It’s perfectly normal! Our budgets change along with the phases of our lives. Sure, you’re saving now, but when you finish working, you’ll have the funds to snowbird in Arizona, spend an entire month on the beach in Florida, or travel the country for a year in your RV. That is the beauty of ongoing financial planning. When you work with us, our team can change your plan as your lifestyle and situation change. Like mine, your vacation break doesn’t need to last forever — and
seats! Luckily, a very sweet airport worker found two abandoned
car seats to get us home.
I’m proud of how well we handled the trip down. COVID-19 restrictions were still in place, so we all masked up in the airport, and I was very conscious about what the kids were touching. I swear, I had a hand sanitizer bottle in my hand the whole time! The beach was fantastic, too — but on the way home, disaster struck. Adam, the kids, and I were traveling with my sister, her husband, and their two little ones. We had four kids under 4 to wrangle as we made our way through the airport, on and off two planes, and back home. At first, I was on top of my game with the hand sanitizer, but then, everything that could go wrong did. The kids were cranky and wouldn’t stop crying. Then, our flight home from our layover in Georgia was delayed by two hours. That meant we’d get into Bloomington at midnight — five hours after the kids’ bedtimes. It was pitch dark when we boarded the last flight, and my hand sanitizer was long forgotten. I couldn’t
Adam and I were stressed, exhausted, and at our breaking point. We turned to each other and said: “That’s it — no more vacations!”
Our family has been on a “vacation break” ever since, and I think it was one of the best decisions we’ve made to date. After we had our third baby, Braxton, our travel budget became our outdoor home improvement
budget. We’ve landscaped, put in a pergola, and added a fence, grill station, and swing set to turn the backyard into our family oasis. The kids love it! In the summer, they would rather run around in the backyard, play in the sprinklers, and climb all over their swing set. Skipping vacations for the last two years has allowed us to make precious memories at home instead. I’m sure we won’t stay in this stage forever — I have wonderful memories of
when you’re ready to get back on the plane, we’ll be here to help you adjust.
—Julie Karstens, CTFA
309.808.2224 1
How Can You Cover the Gap Between Your Income and Expenses? Retirement Question No. 3
2. Retirement Accounts and Withdrawal Strategies — Most people hold the majority of their retirement savings in an employee IRA or a 401(k). These accounts can be accessed regularly during retirement, subject to specific rules. Typically, employer-sponsored retirement plans contain a mix of equities and fixed-income options that align with an individual’s risk tolerance or growth objectives. These investment options are usually offered as mutual funds within the employer’s retirement plan. You can further develop your strategic withdrawal plan by rolling over your 401(k) or IRA. This conversion process allows you to access a broader range of financial vehicles better suited to achieving your objectives. While the assets remain in a retirement account, you can hold them in various financial products, such as Exchange Traded Funds (ETFs). ETFs offer a diversity of mutual funds and are typically based on equity markets but generally have lower associated fees When you reach the age of 59 1/2, you can begin penalty-free withdrawals from your retirement accounts. However, under certain circumstances, you can access these accounts penalty-free even earlier. If you turn 55 during the calendar year in which you lose or leave your job, you can start taking distributions from your 401(k) without incurring the early withdrawal penalty. Although you can access these funds at any time and in any increments, we recommend establishing a consistent, regular disbursement plan to cover any expense shortfalls. 3. Non-Retirement Savings and Investments — Besides retirement accounts, you may have other savings and investments. A well- rounded distribution plan should also take this into account. You should tap into these accounts at various points in your retirement as part of a strategic tax plan. DEVELOP A GROWTH STRATEGY With a predictable income plan in place, you can focus on developing a growth strategy for the remainder of your portfolio assets. This approach will help ensure your savings and investments continue to grow and provide you with financial security and peace of mind throughout your retirement. If you consider your retirement account withdrawal strategies and create a stress-tested income plan, you can bridge the gap between your monthly expenses and guaranteed income. Working with our team to do this ensures your post-work years will be comfortable and financially secure.
In the first two parts of our “10 Questions for a Successful Retirement” series, we discussed estimating your monthly expenses in retirement and identifying your guaranteed income sources. If you did those calculations along with us, you might have noticed a gap between your expenses and income sources. Don’t worry — there’s a solution. In this third part of our series, we’ll explore how you can use your retirement accounts and savings to bridge this gap and maintain your desired standard of living.
CREATE A DISTRIBUTION PLAN To cover the gap between your monthly expenses and guaranteed income, it’s essential to establish a distribution plan. This plan will help you convert your assets into a regular income stream to replace the paychecks you were accustomed to during your working years. There are several ways to achieve this, depending on your individual needs and financial goals. 1. Bucket Planning — A common approach to building an income plan is to utilize a “bucket planning” strategy, which involves allocating your assets into different financial vehicles based on your immediate, short-term, and long-term needs. The more immediate your needs, the more conservative your approach should be. Assets designated for future income can then focus on growth. It’s crucial to balance these financial vehicles while considering factors such as inflation, taxes, market fluctuations, potential long-term health care costs, changes to income after a spouse passes away, and other unknowns.
2 McBeathFinancialGroup.com
I Spent How Much Money?!
SUDOKU
Break Your Habit of Overspending
When you go to the supermarket, you may find something you love. So, you put it in your cart without a second thought. When you shop online, you do the same thing. Later, when you check your bank account, you’re shocked you spent more money than anticipated. It’s time to ask: Do you often make impulsive purchases? If you feel your money is burning a hole in your pocket, you can change that and be more in control of your spending! HOW DO PEOPLE DEVELOP THE HABIT OF OVERSPENDING? Money is personal — everyone has a different relationship with it. Therefore, it’s essential to understand the emotional needs and habits that play a role in your spending habits. We are all bombarded by advertisements and social media pressure. Businesses use strategies that give a sense of urgency to their consumers — some even provide a one-click checkout option. Additionally, influencers often film themselves shopping with full carts and link their products to an Amazon wish list or “store” so you can easily buy the same things. HOW DO YOU BREAK THE OVERSPENDING HABIT? Becoming aware of your spending is the first step, and several online banking apps allow you to track it. They can calculate how much
SOLUTION ON PG. 4
money you spend at certain stores and how often you use businesses and services. When you see the actual amount you’re spending, it can put things in perspective! Furthermore, if you’re at the store and see something you want, stop and ask yourself, “Do I need this?” “Will this purchase help me reach my goals?” “Can I wait to buy this at a later date?” Taking a moment to distinguish between “want” and “need” will help you practice self-control. It’s also beneficial to create a budget and outline your monthly expenses so you know how much disposable income you actually have after you meet your financial obligations (bills). Creating a budget and prioritizing needs over your wants will help you cut ties with your overspending habit and avoid unnecessary consumer debt and stress.
Everyone’s financial situation and goals are different, and budgeting can be difficult. However, a financially
savvy friend or financial advisor can help you outline steps to maximize your financial resources. Smart spending habits are at the core of financial success, so don’t wait to get started!
309.808.2224 3
Published by Newsletter Pro • www.NewsletterPro.com
PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
203 Landmark Dr., Unit A - Normal, IL 61761 - 309.808.2224
INSIDE
1
A Vacation Note From Julie
2
The Secret to Successful Retirement Budgeting!
3
Do You Know How Much Money You’re Spending?
4
A Comedian’s Heartwarming Will
SOLUTION
Comedian Jack Benny Made a Romantic Request 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.
HOW HE ENSURED HIS WIFE’S HAPPINESS
The idea of creating a will can seem grim for many. We don’t want to ponder our passing and the effect it will have on our loved ones. Our distaste for estate planning is evident, too — only 33% of U.S. adults have a will. Yet, what if we saw estate planning as an opportunity to send a final affectionate message after our departure? That’s exactly what Jack Benny, an iconic radio and television comedian, did for his wife after he passed away. Both starred in the quintessential radio program “The Jack
mourning the loss of her husband, she was shocked to discover one final romantic gesture from Benny. Livingstone shared the loving gift with the world in a magazine article dedicated to his life and legacy. “Every day since Jack has gone, the florist has delivered one long-stemmed red rose to my home,” Mary Livingstone wrote. “I learned Jack actually had included a provision for the flowers in his will. One red rose to be delivered to me every day for the rest of my life.” Rain or shine, Livingstone was delivered a red rose sent from her late husband until her death nine years later. The loving husband and famous entertainer proves that wills don’t have to be daunting documents; they can be one last way to leave a kind gesture behind. You could also shock your family by leaving your estate to your favorite furry friend! Whatever route you take, a will is sure to maintain your spirit and estate.
Benny Program” from 1932 to 1965, and the couple was known for their comical disputes and banter. However, his wife, Mary Livingstone,
would later confirm that her kind husband was far different from the penny-pinching naysayer he played in his show. For decades, the duo became a must-listen act on countless home radios. Sadly, Benny passed away in 1974 at the age of 80. While his wife was
4 McBeathFinancialGroup.com
Published by Newsletter Pro • www.NewsletterPro.com
Page 1 Page 2 Page 3 Page 4Made with FlippingBook Ebook Creator