Bridgeriver LLC - January 2022

Bridgeriver LLC - January 2022

JANUARY 2022

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Once You Retire, How Do You Withdraw Money? The Expert’s Secret: It’s the Wrong Question

When you retire, your retirement plan might seem on track with everything finally in its proper place. But now, you’ll ask yourself this question: In what order do you start withdrawing money?

The truth is, this isn’t the question you should be asking.

Let me explain. There are three types of accounts that you’ll have. First, there are retirement accounts, such as 401(k) plans and IRA accounts. The taxes on your gains accounts are always deferred. Second, there are non-retirement accounts — anything that’s not in an IRA or 401(k) — and gains in these accounts are generally taxed, paid every year as you make them. Lastly, there are tax-free accounts (Roth IRA, life insurance, etc.). When you Google which type of account you should start withdrawing from first, the media you’ll find almost always gets it wrong. You should be creating an income plan rather than taking withdrawals that might lack any strategy or tax consideration. When thinking about retirement, the most profitable question you can ask is, “How can I tax diversify?” Once you stop working and income is fully in your control, it’s up to you to start moving money from “always taxable” to the “never taxable” bucket. When you first retire and begin moving your money to accomplish this, you’ll initially have to pay some taxes, but that is the cost of getting your money into the perfect tax diversified setup. If you’re following me so far, let me explain why you’ll actually need two income plans. The first plan starts when you first retire (i.e. moving your money to be tax beneficial), and the second plan starts when you turn 72. Why? Well, that’s the required minimum distribution age, meaning there’s a certain amount of money that you’ll have to withdraw from certain retirement accounts starting at the age of 72. There are some rules of thumb while

charting out your two separate income plans. First, consider not taking Social Security right away. Usually, a lot of people will take their Social Security as soon as it’s available, but when the markets are doing great, I tend to tell clients to hold off. It’s easier to produce income from investments at that point and not take Social Security. After you reach your full retirement age, your Social Security will grow by 8% a year. Worst case scenario, Social Security is only 85% taxable, meaning it’s always 15% tax-free. If you can hold off, that’s always an income stream that you want to grow when possible. Second, if you’re lucky enough to get a pension from your company, sometimes (not all the time) you’ll have an option to either roll out a lump sum into your own IRA, tax-free, or take monthly payments for the rest of your life. I usually try to get people to roll it into their IRA because it offers more freedom to tax diversify. Monthly payments are still a nice problem to have, but you’ll be tied to the IRS for the rest of your life. Third, don’t pay taxes on money you’re not spending! If you have money in non-retirement accounts that you’re not spending, consider putting those funds into the right investments. That way, taxes aren’t making you pay more than you have to.

More Income and Less Taxes in Retirement Seminar

So, as you can see, it’s expensive to rely on unreliable Google answers on this matter. If you need help assembling your two income plans, don’t hesitate to reach out — I’ll be happy to help.

Jan. 18 & 20 — 6:30 p.m. Fifth Tavern (Clarkston)

Jan. 25 & 27 — 6:30 p.m. Maggianos (Troy)

Upcoming: Feb. 8 & 9 — 6:30 p.m. Camp Ticonderoga (Troy)

Register today at BridgeriverLLC.com! Free dinner provided.

-Dan Casey

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EMBRACE YOUR INNER BOOKWORM 4 Secrets to Finding Time to Read as a Busy Parent

Make it a family affair. Sometimes parents feel guilty when they take time for themselves that could be spent with their

When you think of reading, you might conjure up an image of yourself curled up next to a cozy fireplace, sipping on coffee, and reading the day away. However, with the hustle and bustle of daily life and raising kids, it’s tough to find the time to truly dive into a good book. We know it’s important to read to our children, but we forget how valuable it is for them to see us reading, too.

children. If this sounds like you, make time to read together — the kids read their books, and you read yours! Some days, this may last 10 minutes, but other times, they may stay captivated longer. Either way, you are creating healthy habits for your kids while getting in a chapter for yourself, too! Swap out the movies for books. Once the kids are tucked in after a long day, it sounds so nice to park yourself in front of the television with a cozy blanket and mindlessly watch a good movie or an episode of your favorite show. However, instead of watching TV for an hour, dedicate some or all of that time to reading. This way, you’re still making progress in your book.

So, how can you fit it into your schedule?

Don’t leave the house without a book. Whether you are waiting in the pickup line at school, at the dentist’s office, for your order at the coffee shop, or at your kid’s soccer practice, this downtime could be spent reading a chapter of your book. Schedule reading time. This one sounds quite silly, but as parents know, if you don’t make time for something, it won’t get done. Plan out 30 minutes of reading time each day to allow yourself to get comfortable and read without distractions. The trick here is to make sure you don’t cancel on yourself!

No matter how you make the time to read, you will be glad you did. Good luck and happy reading!

2 DOCTOR-APPROVED ALTERNATIVES TO COTTON SWABS ARE YOU CLEANING YOUR EARS WRONG?

Okay, let’s get something straight once and for all: Exactly how risky is it to use a cotton swab to clean out earwax? You’ve probably heard rumors about the dangers of stuffing Q-tips into your ear canals for years, but most people dismiss them as fearmongering. Unfortunately, those fearmongers have it right.

Ear specialist Dr. Yu-Tyng Wong agrees. He told Cedars-Sinai Medical Center that not only can swabbing the ear canal cause hearing loss, but also “[i]n severe cases, the cotton swab can damage many sensitive structures behind the ear canal and cause complete deafness, prolonged vertigo with nausea and vomiting, loss of taste function, and even facial paralysis.” Yikes! A Better Way to Clean According to many doctors, the best way to clean out your ears is simply not to do it. Earwax is actually beneficial for our ear canals: It keeps out dust, and it protects us from fungi and bacteria! However, it is possible for too much earwax to build up, especially if you regularly use earplugs or headphones. Symptoms of excess earwax include hearing loss, tinnitus, earaches, or a strange feeling of fullness in the ear. If this happens, your best bet is to visit your doctor for a professional cleaning or pick up over-the-counter ear-cleaning drops that include hydrogen peroxide on the ingredient list. You can also use a bulb syringe to flush your ear with room-temperature water, mineral oil, or even olive oil in a pinch (visit Healthline.com for step-by-step instructions). However, only use this method if you have a healthy, intact eardrum and no signs of ear infection.

The Truth About Cotton Swabs There’s a reason boxes of cotton swabs almost always say, “DO NOT INSERT INTO EAR CANAL” right on the label. “A cotton swab acts like a ramrod in an old-style cannon. The tip pushes the earwax in deeper, so the more you use it, the more earwax you push in,” Dr. Nguyen-Huynh — an ear, nose, and throat specialist — explained to the

Cleveland Clinic. “Plus, you may rupture your eardrum if you push too far. Or if you scratch your ear canal, it can get infected because now dirt and bacteria can penetrate under your skin.”

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PLAGUED BY MIGRAINES? BE CAREFUL WITH THESE 5 FOODS

Aged Cheese According to the National Headache Foundation, cheeses that contain tyramine, such as feta, blue cheese, cheddar, and brie, can trigger migraines. Pickles Tyramine is also present in pickles, raw onion, and sauerkraut. Consider swapping out some of the pickled items you enjoy for fresh ones.

If you regularly fall victim to migraines, you likely know that stress, lack of sleep, certain smells, genetics, and visual stimuli cause pounding headaches that send your body into utter disarray. But did you know that the foods you eat can also be the culprit? Triggers, such as certain foods, can affect your gray matter, the area in your brain that houses motor and sensory function, taste, hearing, vision, and memory. Adjusting your eating habits may help to find you some relief!

Monosodium Glutamate (MSG) Likely, you’ve heard that MSG causes headaches, but which foods contain enough MSG to do so? Fast food commonly is high in MSG, especially Chinese food. Snack foods, seasoning, frozen foods, and chips also include a high level of MSG. It is usually listed as an ingredient on the packaging, so check labels if you want to avoid it. Cured and Processed Meats Hot dogs and sausages are not only inflammatory foods, but they also contain nitrites and/or nitrates, which are known to widen your blood vessels — and that can potentially initiate a migraine. Keep in mind that not every migraine is tied to a trigger, but if it is, everyone’s triggers are different. If your trigger is food, the amount you consume also plays a role. If you begin to suspect a certain food or ingredient is a trigger, consume the same amount at the same time of day to try and identify a pattern. Then, start eliminating one food at a time to narrow down the culprit so you can adjust your diet accordingly to reduce the number of migraines you endure. While you can’t control all triggers, such as the weather or environment, you can control what you eat. And, as always, stay hydrated to keep your headaches at bay.

Coffee Sometimes, the caffeine in coffee is

known to actually cure some killer headaches — that’s why it’s added in migraine medications. However, just as much as it can offer relief, it can be a nasty trigger if your

body is used to getting it through your morning cup of coffee — and doesn’t. Oftentimes, caffeine withdrawal is a culprit.

HAVE A LAUGH

Deep-Fried New Year’s ‘Cookies’

Inspired by MennoniteGirlsCanCook.ca

Ingredients

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2 tbsp yeast

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2 1/2 cups milk, warmed

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1/2 cup water, warmed

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1 1/2 tsp salt

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1/2 cup and 1 tsp sugar, divided

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4 cups raisins

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5 eggs, beaten

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7 cups flour

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1/4 cup butter, softened

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4 cups canola oil

Directions

1. In a large bowl, combine yeast, water, and 1 tsp sugar. Wait 10 minutes. 2. Stir in remaining sugar, eggs, butter, milk, and salt. 3. Fold in the raisins and flour. Cover the bowl with plastic wrap. Let the dough rise for an hour.

4. In a high-sided pot or deep fryer, heat canola oil to 340 F. Line a plate with paper towels. 5. Drop a rounded tablespoon of dough into the oil. Fry until golden brown, then set aside on the plate. Poke the cookie with a toothpick. If the toothpick comes out clean, it’s cooked through!

6. Repeat until the batter is gone.

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40900 WOODWARD AVE., STE. 305 BLOOMFIELD HILLS, MI 48304

248.785.3734 WWW.BRIDGERIVERLLC.COM

INSIDE This Issue Googling the Wrong Question

Make More Time for Reading

The Safe Way to Clean Your Ears

Get Migraine Relief by Monitoring These 5 Foods

Deep-Fried New Year’s ‘Cookies’

Why Hobbies Are Important

SKILLS THAT ENRICH US The Importance of Having a Hobby January is National Hobby Month, and since it falls at the beginning of the year, it’s the perfect time to try something new! Hobbies add variety to your life and ensure you aren’t just living to work, so to speak. The best way to find a hobby you enjoy is to be open to new things. Whether it’s gardening, reading, drawing, running, fishing, crafting, or even beekeeping, finding an activity you enjoy is important. Here’s why!

Hobbies offer a social outlet. Some hobbies involve group activities, such as bowling, sports teams, book clubs, and even wine tasting. Connecting with others offers the social support humans depend on to lead a healthy and fruitful life. Who knows? Maybe you’ll find some great friends who share the same passions as you! Hobbies develop patience. When you take on a new hobby, you are tasked with learning something new. Whether you’re practicing a new instrument, learning a different language, or figuring out how to make jewelry, a learning curve is involved. Building new skills takes patience, a very important attribute for success. Finding a hobby that suits you may take some exploration and trial and error, but it is all in good fun! Make it your goal to try something new or learn a new skill each month until you find something that sticks. Once you do, you’re sure to find that hobbies are both enjoyable and enriching!

Hobbies are stress relievers. Hobbies offer a healthy escape from your busy lifestyle by keeping you engaged in something you find pleasure in. Instead of just relaxing on the couch and turning off your mind for a bit (which is totally acceptable sometimes), hobbies allow you to remain mentally productive while winding down at the same time. Hobbies also provide eustress . Believe it or not, one type of stress is deemed beneficial: eustress. If you aren’t overly stressed and are feeling a little under-stimulated, a hobby can provide activity for both your mind and body to keep you feeling excited about life and ready to take on new challenges and adventures.

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