Brybeck Financial - August 2021

Brybeck Financial - August 2021

F INANCIAL F O R U M

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WHAT YOU NEED TO KNOW ABOUT CURRENT TAX PROPOSALS

We are dedicated to your financial success. • 1 Regardless, I’m happy to guide you through any changes you may need to make within your plan. If you would like a longer summary of what’s included in recent proposals, please call or email me. And let’s connect to hash out your concerns and the potential changes we need to make. Just give me a call, and we’ll get started. –Brian Irving tax credit could be restored to a maximum of $15,000, and there are talks of extending subsidies for health care insurance, increasing the threshold where people can apply. As you examine these changes, keep in mind that the initial drafts that hit the congressional floor are often not the final result. Tax proposals are usually met with resistance and staunch opposition, and by the end, the changes made to taxes are often different from what was initially proposed. • Increased Tax Rates: If you are making more than $400,000 as a single earner, or $509,300 for joint filers, your income tax rate could jump from 37% to 39.6%. • Exciting Additions: As mentioned above, there are some good proposals offered in these latest changes. Families with dependents could see their child tax credit rates increase, the first-time homebuyer • Estate and Gift Tax Exemption Amount Decreases: Under current law, you can leave up to $11.7 million to your heirs, federal estate tax free, but current proposals suggest dropping that cap to $3.5 million for estate tax per individual and $7 million for couples. This may not affect all of you, but there are some of you who may want to consider what this could mean for your current plans. I can help you figure out what steps may be best to take. • Eliminating a “Step-Up in Basis”: Currently, those who receive property after a loved one’s death are allowed to value it at a “step-up in basis” — or the current market value of the property. This almost always eliminates or lowers the capital gains tax paid on that property. Current proposals would eliminate this. • Increase Capital Gains Rates: Today, those who make more than $1 million in income pay a capital gains tax at 20% — plus a 3.8% tax for Medicare. Current proposals would raise it to 39.6%, or 43.4% with the Medicare tax.

In this pandemic world, we’ve seen a number of tax and stimulus proposals filter through Congress. There was the CARES Act, which passed during those early pandemic days, the American Rescue Plan, and the American Jobs Act. This summer a new plan has dominated proposal talks in Congress: the American Families Plan. Under this proposal, the executive branch of the U.S. government is hoping to expand financial services with free schooling and child care, paid family leave, additional health care subsidies, and increased tax credits for children. To fund these proposals, new tax laws are currently being examined and dissected. There are varying degrees to which these proposals could impact you and your family, but I believe they are valuable laws to keep in mind. Even if portions of these tax proposals do not directly impact you, you could still feel the effects of these potential changes. To help you better understand, I’ve created a brief outline of some of the biggest proposals, starting with what I believe is the important change for my readers to keep in mind. • Corporate Tax Rates Increase: Corporations could see a boost in their tax payments from 21% to 28%. This could affect consumers, who may see a spike in prices as a way to compensate.

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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.

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. 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. 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. WHATWE CAN LEARN FROM CELEBRITY CHILDREN The Pressures of Internet Fame

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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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: THE SKIN CARE STIMULANT? How This Coffee Ingredient Could Energize Your Skin Care Routine

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!

SUMMER VEGETABLE GREEK SALAD

TAKE A BREAK

Ingredients

• 1/2 cup feta cheese, crumbled • Optional protein choices: 1 cup cooked chickpeas or 6 oz Genoa salami

For the vinaigrette: • 2 tbsp red wine vinegar

Directions

• 1 tsp Dijon mustard • 1 garlic clove, minced • 1 tsp dried oregano • 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. 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.

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We are dedicated to your financial success. • 3

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Securities and advisory services offered through Triad Advisors, LLC Member FINRA / SIPC Brybeck Financial and Triad Advisors, LLC are not affiliated.

INSIDE

1

Your Guide to Current Tax Proposals

2

Internet Fame and Lessons From Celebrity Children

Will a Night at the Movies Change Forever?

3

How Caffeine Could Energize Your Skin Care Routine

Summer Vegetable Greek Salad

4

Why Are So Many Young People Lonely?

WHY SO MANY YOUNG PEOPLE ARE LONELY And How to Stop It

The Post-Dorm Friendship Drought 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.

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.

How to Fix It 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

A Front Row Seat to Everyone’s Highlight Reel 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.

there, but you might be surprised by 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!

We are dedicated to your financial success. 4 •

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