Bridgeriver Advisors LLC - March 2022

Bridgeriver Advisors LLC - March 2022

MARCH 2022

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Don’t Convert Into a Roth IRA! Until You Read This

Hey, friends. Before you begin moving money from your traditional IRA into your Roth IRA, there are a few things you should know first.

convert as much money from your traditional IRA to your Roth IRA as you want. But, since your traditional IRA gains are usually taxed, that’s all taxable money. If converting into a Roth bumps your tax rate into the 32%–37% tax bracket, it starts to make no sense to convert. In that case, it’s best to begin converting when retirement starts. However, another major deciding factor is that when you convert, you’ll likely be in the 24% tax bracket during this process. Taxes owed in part of that bracket go up 9% on Jan. 1, 2026. The more expensive it is to convert, the less it makes sense. It’s also important to consider your current age. When you turn 72, you’ll be forced to withdraw a minimum amount from your traditional IRA (which includes 401k, 403b, etc.). While you can still convert your traditional IRA to a Roth, you’ll need to pay taxes on that required minimum distribution which can also increase conversion taxes. Additionally, when you begin taking Medicare — usually starting at age 65 but could be later — you have to pay a premium, called Part B and sometimes Part D, which is based on your income, and the government looks at your income not from the past year, but from two years prior. If you’re doing Roth conversions within two years of taking Medicare, you might pay higher premiums later. Lastly, as we know, converting a traditional IRA to a Roth requires you to pay taxes; however, you can choose to pay the tax bill from the converted amount itself, meaning that if a converted contribution of 100K were taxed 15%, your Roth IRA would only receive 85K. It can still make sense but requires a little number crunching.

There are key differences between traditional IRAs and Roth IRAs that affect the way your money is taxed and when you can withdraw it. For one, traditional IRAs are fully taxable — usually, all of your withdrawls are taxable when you withdraw the money in retirement. However, when you contribute to Roth IRAs, your money is taxed before it’s added to your account meaning, usually 100% of your withdrawls (including gains) are completely tax-free when you withdraw. There are also different kinds of withdrawals. With a traditional IRA, the IRS forces you to begin pulling money out of your account at age 72, in most cases. If tax rates are going up, this can cause tax issues, such as pulling you into a new tax bracket and increasing taxes on social security. Roth IRAs don’t have a required minimum distribution, meaning you don’t have to pull money out at a certain age.

This is why Roth IRAs are considered the Holy Grail of retirement portfolios. For the most part, this has to do with raising your tax bracket.

Contributions to your IRA’s and ROTH’s are limited because they can only be done if you have W-2 wages — however, conversions are unlimited. You can

This topic can be confusing, but I hope I can make your life a lot easier today — as well as during the many tomorrows ahead. If you have any questions, don’t hesitate to give me a call!

–Dan Casey

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HOW TO ENTERTAIN KIDS DESPITE FATIGUE Running Low on Fuel?

After working all day, it can be tough to keep up with your kids. Sometimes, it can even feel like working a second job. While you still need to be physically and emotionally present, there are ways to exert less energy and still play with kids of all different ages. If your baby is under 1 year old, they are too young to play by themselves, but you can still play while not physically overdoing it. Resting on the floor with your baby and showing them some sensory toys or reading to them is both entertaining and educational. Another great option for your infant is to blow bubbles for them — they will love watching the bubbles float and dance through the air.

If your toddler is on the go and walking, they may require a little more to stay adequately entertained. Try sitting on the floor and singing nursery rhymes. You can also let your child explore objects in the room while you build upon their language by explaining what different items are. Since you’re sleepy, why not pretend your toddler’s stuffed animal is sleepy too? Have your child “put teddy to bed.” If you’re lucky, you may be able to get in a few moments of shut-eye too! If your child is 2–4 years old, they might love using their imagination! Try having a picnic with them in the living room (you can even invite their stuffed animals to join!). Playing doctor is also a fun option and opportunity to be lazy and sleepy if you get to play the part of the sickly patient. You may also get out the building blocks and create with them — this requires little physical exertion and is a great developmentally appropriate activity.

If your child is 4 years or older, they are likely very active. What about hosting an indoor obstacle course where you get to be the timer? All you have to do is gather a few items from around the house and use furniture and pillows to build a course. Think of incorporating activities such as having them crawl under the dining room table, walk across a blanket bridge, or hop over the pillow rocks. If you’re feeling artsy and

would prefer to make something with your child, you can even just sit down at the table and break out some homemade play dough.

The most important thing is to get creative and never feel guilty for needing to scale back a bit after having a long day. With these interactive ideas and tips, you will make it through the tough days and still feel like the super-parent you are!

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DANGER IN THE MAKEUP CASE What Happens if You Don’t Clean Your Makeup Brushes Regularly? It’s not a joke — your makeup brushes can actually make you sick! While the task of cleaning each one individually sounds like a colossal waste of time, you might rethink the tedious task after you find out about the many gross things that can happen if you don’t. Keep in mind that this article is only meant to inform you about what can potentially happen; it’s not meant to freak you out! Regular brush cleanings are worth considering for the following reasons. Your makeup application may suffer. When traces of foundation, contour, and powder get caked up and stuck to the bristles of your makeup brushes, you’re likely to make a mess of your face. On top of that, makeup brushes can become weak and even

break from lingering makeup residue, even your eyelash curler! If mascara accumulates on it, it can end up breaking your lashes.

Dirty brushes can harm your skin. When your skin is exposed to dirty brushes filled with bacteria, it can become stressed out and

congested, leading to collagen loss and premature wrinkles. So, yes, dirty makeup brushes can literally age you! Acne and pimples love bacteria, too, especially when you use wet makeup products such as foundation and creams. Bacteria thrives on the moisture, possibly leading to breakouts. Not washing your brushes may lead to infections and viruses. Bacteria and viruses can enter your body through the pores on your skin, allowing them to infect your system. It can lead to herpes, the flu, pink eye, or even a Staphylococcus infection! Hurry, rush and clean those makeup brushes — twice! It’s important to keep in mind that spot cleaning your makeup brushes here and there does not replace deep-cleaning, which should be done at least once a week to keep them safe for your face!

HAVE A LAUGH

Easy March Madness Chili

Inspired by MyRecipes.com

Ingredients

• 2 lbs ground beef • 2 tbsp chili powder • 1 tbsp Creole seasoning • 1 tsp ground cumin

• 2 16-oz cans diced tomatoes • 2 16-oz cans small red beans • 2 8-oz cans tomato sauce

Directions

1. In a deep pot, brown the beef, stirring often. 2. Once beef is cooked, add chili powder, Creole seasoning, and cumin, cooking for 1 minute. 3. Stir in diced tomatoes, beans, and tomato sauce and bring the mixture to a boil.

4. After the mixture boils, reduce the heat to low and let chili simmer for 15 minutes. 5. Serve with toppings of choice, like cheese, sour cream, or chives.

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INSIDE This Issue

3 Pitfalls of Turning Your Traditional IRA Into a Roth IRA

Interacting With Kids While Running on Empty

Makeup Brushes Can Make You Sick?!

Easy March Madness Chili

Getting Healthy While Spring-Cleaning

It’s More Than Just Tidying Up 4 Health Benefits of Spring-Cleaning

It prevents illnesses. Doorknobs, refrigerator handles, light switches, countertops, and remote controls are all things we touch many times a day. Cleaning anything that’s used often is one way to reduce the spread of germs. By keeping household surfaces clean, we help thwart the spread of viruses and illnesses. Spring-cleaning helps you breathe better. Spring often brings pollen that triggers allergies for many. But pollen isn’t the only thing to blame when people have difficulty breathing. When dust and pet dander build up in your home, your respiratory system is greatly affected too. Deep-cleaning your air filters and vents can make breathing effortless — and it’s truly amazing how this can improve your well-being. It keeps you more active. Off the couch and on your feet! Even just running the vacuum and clearing the clutter from the dining room table will get you up and moving, which is healthy for your heart and body.

Sunday, March 20, is the first day of spring — which means it’s time for some spring- cleaning. Did you know that cleaning is not just about tidying up a physical space?

It’s also about improving overall well-being. Here’s how organization and

cleanliness can help you in more ways than you might expect.

Spring-cleaning reduces stress and depression. Tidiness and mental health are actually connected. Studies have found that having a clean home is directly correlated to happiness and your ability to focus. Anxiety can spike when laundry is piling up, items are strewn everywhere, and papers get scattered on various surfaces within the home. Clearing the clutter is a great way to boost your mood and increase those feel-good hormones.

This spring season, putting some elbow grease into your cleaning will benefit you in more ways than one. Trust me, you’ll thank yourself later!

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