Bridgeriver LLC - August 2021

Bridgeriver LLC - August 2021

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AUGUST 2021

Don’t Face an Uphill Battle After Retirement Why ‘Sequence of Returns’ Matters

I noticed that Aug. 1 is National Mountain Climbing Day, and it reminded me of a common saying that we have in the financial industry: The real danger is in the “descent” of the “mountain” of retirement. Many climbers will tell you the dangers of descending peaks. Even if you make it to the summit of Mount Everest, there’s a 1 in 20 chance that you won’t make it back down again. It might seem like the hardest part of the journey is over, but the truth is that some of the most difficult, risky parts of the journey have just begun. This applies to your retirement as well. As you plan for the future, “ascending the mountain” can seem like the longest, most daunting part of your journey. And, to be fair, it is. Saving a significant portion of your income for decades to provide for your future livelihood and potential future health complications isn’t easy. However, it isn’t ascending the mountain that’s actually the most dangerous, fragile part of the journey. It’s the descent from the mountain as you begin to use your savings with a heavily reduced or halted income. The mistakes you make can have life-changing consequences that may be near impossible to compensate for without working again. For example, one of the most important aspects to your retirement money that you should understand is the sequence of returns. There’s a myth out there that as long as you keep all your money in the market and take out only 4% a year, you’ll be set for the rest of your life. The problem is that not everyone understands how much bad timing can affect your portfolio. Let’s say you want to withdraw 4% of your market share values — as you know, inherently, its value isn’t indiscriminate. Its value is based on when you withdraw. The timing of withdrawals from your retirement account, especially

Increasing Income and Decreasing Taxes in Retirement Seminar

Aug. 10, 12, 17, 19 — 6:30 P.M. Maggiano’s (Troy) Aug. 31, Sept. 2 — 6:30 P.M. Camp Ticonderoga (Troy)

The Secrets of Wills and Trusts Seminar Aug. 24, 26 — 6:30 P.M Filippa’s (Utica) Register today at BridgeriverLLC.com! Free dinner provided.

in the beginning of an investor’s life, is referred to as “sequence of returns” or “sequence risk.” The risk is that timing can have a negative impact on your overall rate of return. During a really bad market, many retirees may experience a poor sequence of returns when they try to withdraw money from their retirement accounts. Typically, if there’s a bear market or recession in your 20s or 30s, you don’t have to worry — you have the benefit of time, so your retirement accounts can recover and grow without any withdrawals. However, if you’re retired and living off your funds, withdrawing from your savings while markets are falling could be really bad for your portfolio. You essentially kill dollars that would’ve been there if you left it to recover. And if you’re going off the 4% myth, you’re ultimately “withdrawing” a lot more than 4% from your savings if you do this. That’s why we often advise clients to divide their money into buckets. That way, you’ll always have a bucket for the money that’ll give you the income you need, which will be exposed to as little market risk as possible. If that bucket provides you everything you need, the rest of the money can sit in the stock market happily. You’ll never be concerned for your livelihood in a bad market, and, in a good market, there are always ways to withdraw with as little tax consequences as possible.

Retirement plans can be an intimidating process, but I hope you find that our resources and staff help make it as easy as possible for you. Thank you very much for reading, and safe climbing, everyone.

-Dan Casey

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WHAT WE CAN LEARN FROM CELEBRITY CHILDREN THE PRESSURES OF INTERNET FAME A few months ago, USA Today ran an article titled “Leni Klum, Lori Harvey, Lourdes Leon, and more celebrity kids becoming fashion trendsetters.” The article shared how the Gen Z children of big-name celebrities such as Steve Harvey, Will and Jada Pinkett Smith, and Madonna have sought to create their own fame through their fashion choices. Children of celebrities often have to work hard to leave their parents’ shadows, and in the age of social media, that means a lot of posts, tweets, snaps, and videos.

The pressure of fame has been exacerbated by social media, especially among minors. Today, one of the most popular answers to the question “What do you want to be when you grow up?” among children ages 7–14 is to be an influencer, a comedian, a vlogger, or an entertainer. As more young people make money (some enough to live quite lavishly) by posting pictures and videos online, more of their viewers aspire to do the same without understanding the pressures or consequences that can come with that lifestyle. The more public you make your life, the more public your mistakes and flaws become along with it. Just as many children of celebrities are starting to come into their own fame, many other celebrities have kept their children out of social media, at least until they themselves consent to be on it. Celebrities like Ryan Gosling, Ashton Kutcher, and Adele understand better than most the pitfalls of a social media presence, especially when famous, which is why they’ve all elected to keep their kids off it for as long as they can. Perhaps many other parents and children would do well to follow suit. In a world where avenues to becoming famous are multiplying online, it’s best to understand the pressures of internet fame before pursuing it.

None of that may shock you. Members of Gen Z are on their phones and other electronic devices watching videos, viewing posts, and commenting on and discussing the ones they like and don’t like. Why wouldn’t Gen Z celebrities’ main avenue for bolstering their fame be their social media accounts? Still, that phenomenon has downsides.

WILL A NIGHT AT THE MOVIES CHANGE FOREVER?

MOVIE THEATERS IN POST-PANDEMIC TIMES

Out of all the businesses hit by the COVID-19 pandemic, few were affected more than movie theaters. For the past year, as movies have debuted on streaming services rather than in theaters, many industry leaders, critics, and theatergoers alike have raised the alarming question: Did COVID-19 kill the movie theater industry? In short? No. Not by a long shot. Though the past year has left the industry somewhat beleaguered (AMC closed 60 theaters permanently, Cineworld reported losses totaling $2 billion, and the Alamo furloughed more than 5,000 employees). Yet, despite all of this, a night at the movies is here to stay. When a Vox reporter reached out to various moviegoers about whether they would attend theaters once the pandemic ends, many of them said yes because streaming a film in their living room just can’t provide the same experience. Watching a movie in a theater completely immerses one in the experience — you can’t pause the film to watch later or do chores. And you’re in it with the whole theater. Comedies are funnier when you laugh with others. A hero’s triumphs are more spectacular when you cheer them on together. (Who didn’t go nuts when Captain America caught Thor’s hammer in “Avengers: Endgame”?) When you leave the theater, you feel a little closer to the

strangers around you, and having been immersed in the movie alongside your friends, you can discuss how you liked the movie on the way home.

Of course, movie theaters will still change as a result of the pandemic. Theaters are working to become more digital, some even moving to eliminate paper tickets and creating options to order concessions before your arrival. More theaters may promote private viewings of movies so people can be more careful about whom they watch movies with. Some theaters are also trying to create more of an “experience” for moviegoers by offering a wider array of food and even comfier seats.

However, these changes, especially given the circumstances of the past year, are hardly surprising. The movie theater industry has been evolving

for over 100 years, and it certainly won’t stop evolving now.

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CAFFEINE: THE SKIN CARE STIMULANT? HOW THIS COFFEE INGREDIENT COULD ENERGIZE YOUR SKIN CARE ROUTINE We all know caffeine is the stimulant in our morning cup of coffee that energizes us for the day. But could it also leave your skin looking and feeling refreshed? Most Americans (62%, in fact) would agree that a cup of coffee a day keeps the drowsiness away. According to some dermatologists, though, the caffeine that keeps us awake may also liven up our skin as part of our daily skin care routine — but how? As it turns out, caffeine can help keep your skin healthy in a number of ways. For one, it has antioxidant properties. Antioxidants protect the body from free radicals, which are unstable atoms that can destabilize cells, leading to illness and aging. Free radicals cause wrinkles, so using skin care products with caffeine in them can minimize the amount of wrinkles on your face.

Secondly, caffeine can reduce eye puffiness because it increases circulation in the blood vessels just below the skin. However, it should be noted that this effect doesn’t last long, so you should apply the right caffeinated skin care products daily to maximize this benefit.

Caffeine can also get rid of subdermal fat and cellulite by metabolizing fatty acids as well as aid in the production of collagen (the most abundant protein in the body, aka what’s literally holding you together).

However, before you start applying skin care products with caffeine to your face and expecting all of the above results, you should know that not all dermatologists agree on the extent of these purported benefits. Paula Begoun of Paula’s Choice skin care products says that caffeine “doesn’t work well” for puffy eyes or cellulite. On the other hand, Jennifer L. MacGregor, MD of Schweiger Dermatology Group, insists that caffeine is best for brightening puffy eyes.

In any case, the potential benefits of adding caffeine to your daily skin care regimen far outweigh any possible drawbacks. So, what are you waiting for? Energize your skin with a little caffeine!

HAVE A LAUGH

Summer Vegetable Greek Salad

Inspired by CookieAndKate.com

Ingredients

For the vinaigrette :

• • • • • • • • • • • • • • • •

2 tbsp red wine vinegar 1 tsp Dijon mustard 1 garlic clove, minced 1 tsp dried oregano

Directions

1. In a medium bowl, whisk together vinegar, mustard, garlic, oregano, honey, and salt. Slowly drizzle in the olive oil, whisking until well combined. 2. In a large serving bowl, toss together the romaine lettuce, tomatoes, cucumber, bell pepper, red onion, parsley, olives, and feta (as well as the chickpeas or salami, if desired). 3. If you plan to serve all the salad at once, drizzle the dressing over the salad to lightly coat, then toss to combine. Otherwise, store the vinaigrette and salad separately, then dress each portion before serving.

1/2 tsp honey

1/2 tsp salt

1/4 cup extra-virgin olive oil For the salad: 1 head romaine lettuce, chopped 1 cup grape tomatoes, halved 1 small cucumber, seeded and chopped 1 cup yellow bell pepper, chopped 1/4 cup red onion, finely chopped 1/4 cup fresh parsley, chopped 1/4 cup Kalamata olives, pitted and halved

1/2 cup feta cheese, crumbled

Optional protein choices: 1 cup cooked chickpeas or 6 oz Genoa salami

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INSIDE This Issue Never Make This Retirement Mistake Internet Fame and Lessons From Celebrity Children Will a Night at the Movies Change Forever? How Caffeine Could Energize Your Skin Care Routine Summer Vegetable Greek Salad Why Are So Many Young People Lonely?

WHY SO MANY YOUNG PEOPLE ARE LONELY

And How to Stop It

The Post-Dorm Friendship Drought

Given the choice between an elderly person living alone in the countryside and a young recent college graduate living in a major metro area, who do you think would have a greater chance of experiencing loneliness? While many seniors do suffer from loneliness, you may be surprised to learn that people in their 20s and 30s experience loneliness today more than any other age group. In fact, the post-college years are when loneliness peaks despite opportunities to interact with others in the workplace or other social environments.

Even before the advent of social media, people moved away from the conditions that created friendships when they left their college dorms. According to sociologists in a 1978 study, there are three conditions that lead to making friends: “proximity, repeated and unplanned interactions, and settings that encourage people to let their guard down.” Young people are much less likely to come across these conditions in their lives after college.

How to Fix It

A Front Row Seat to Everyone’s Highlight Reel

Loneliness isn’t easy to tackle. It takes time and effort to alleviate, and it starts with actively looking for opportunities to form relationships with other people. It can be scary putting yourself out there, but you might be surprised by

When you view someone’s social media, chances are you’re seeing a “highlight reel” of their life. When you compare your behind-the-scenes footage to that highlight reel, it can leave you feeling unaccomplished and isolated, which further leads to loneliness. Given that millennials are very involved with social media, it’s no wonder their age group is lonelier.

how accepting other people can be. Rejection is always

a possibility, but so is the remedy to your loneliness. You’ll never know how many future friends you may have until you get out and look around for them!

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