Campbell Wealth Management - June 2018

Campbell Wealth Management - June 2018

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CampbellWealth.com • (703) 535-5300 • 700 S. Washington St., Suite 220, Alexandria, Virginia 22314

REELING IN A SUMMER CATCH

S ummer is just about in full swing for the Campbell family. Our youngest son, Carter, and I recently went deep-sea fishing. We found a spot off the Oregon Inlet in North Carolina and hauled in 145 pounds of tuna. We were with two other people, and we ended up taking about 40 pounds of tuna home. Let’s just say we had tuna all over the house for a while there. Carter absolutely loved getting out on the boat and bringing in the fish. It’s quickly become his latest passion. We had a lot of fun, and we’ll have a lot of fun as we spend the next two years eating our way through our catch. Connor, our oldest, is getting ready to head off to college. It’s a bittersweet time for Mom and Dad. On one hand, it’s our first step toward becoming empty nesters. On the other hand, we’re going to miss seeing his face every day. Codie, our daughter, was excited for the latest “Avengers” movie. She got her tickets early and made us watch each movie leading up to the big event. To give you just an idea of what we watched, we made our way through “Iron Man” (1, 2, and 3), the “Captain America” movies, “Thor,” “Guardians of the Galaxy,” “Ant-Man,”

Speaking of special events, Kim recently celebrated her birthday. She wanted to spend time with family, so the kids and I set up a little surprise. I told Kim we were going out for a nice dinner, just the two of us. At the restaurant, the kids showed up and we got a table for five instead of two. I think it was a sweet surprise for a very deserving woman.

As for myself, lately I’ve been building a small wine cellar in our basement. My father taught me a lot about carpentry, plumbing, electrical, and drywall. Now I’m putting what he taught me to the test. I’ll admit it’s turned into a much bigger project that I had anticipated, but I’m having a lot of fun with it. It’s an excellent ongoing project for the weekend. I’ve even gotten the kids to help out, and it seems they have a real knack for it. As we get ready for summer, the Campbell family is simply busy. That tends to be the case almost always, but it is a good feeling to spend time with my family and to share some of what we are up to. As we grow older the need for family becomes even more important. I cherish the time I spend with them, and I hope for many more memories and adventures. With that, I hope everyone has a safe and happy summer, and we’ll talk soon. Kelly Campbell

and “Doctor Strange.” I think you see where I’m going with this. There are a lot of these Marvel movies! The Campbell family ate their way through a lot of popcorn and had plenty of late nights, but we were ready when “Avengers: Infinity War” came out in April.

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Improve Cognitive Function in Minutes HOWMEDITATION HELPS YOU MAINTAIN A HEALTHY BRAIN

TheHippocampus Your hippocampus helps you process and formnewmemories, and it’s very sensitive to stress. In fact, research shows that your hippocampus will shrink in response to stressful situations and chronic stress.

Meditation has often been touted by NewAge gurus as a way to find inner peace and stillness. But what if meditating could reduce the effects of aging on your brain? According to research, taking a fewminutes out of your day to meditate may improve cognitive function. As meditation’s popularity has spread, so have studies of the practice. An article in Frontiers in Behavioral Neuroscience gives an overview of some of the studies examining cognitive effects of meditation. All show evidence of improvements in psychological and cognitive functions. Some of the results are intuitive, such as howmeditation helps us deal with stress. But other results are incontrovertible, like the scans taken by Dr. Sara Lazar, a neuroscientist at Massachusetts General Hospital, showing that meditation causes structural changes in the brain. For people facing age-related changes like memory loss, the results of these tests are especially relevant. The studies point to evidence that meditation can strengthen certain areas of the brain—the prefrontal cortex, the hippocampus, and the amygdala—that weaken as we age. The Prefrontal Cortex Your prefrontal cortex thins with age, which is associated with decreased cognitive function in your later years. However, meditationmay reduce this age-related thinning. Dr. Sara Lazar, a neuroscientist specializing in the effects of yoga and meditation on cognitive and behavioral function, reports that long-time meditators don’t show a decline in the thickness of the prefrontal cortex.

The remedy? Meditation. Dr. Lazar’s study showed a positive correlation betweenmeditation and a higher concentration of gray matter in the left hippocampus. The Amygdala Often called the fear center of the brain, the amygdala is triggered by stressful situations. But unlike the hippocampus, which shrinks in response to stress, the amygdala has been shown to become denser. In another study conducted by Dr. Lazar, people who attended mindfulness meditation classes showed a smaller stress response in brain scans compared to those who did not attend the classes. Meditationmay help to decrease the density of the amygdala and therefore increase your ability to handle stress. Of course, in addition to these benefits, there’s a good chance that five minutes of meditation each day will simply make you feel better. People who meditate report an increase in overall well-being. Why not give it a try? Source: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3903052/ https://www.huffingtonpost.com/2013/04/30/meditation-health-benefits_n_3178731.html https://www.psychologytoday.com/us/blog/use-your-mind-change-your-brain/201305/is-your- brain-meditation suggests we’re overdue. That said, every 1–2 years, the S&P 500 has a -10 percent pullback, as we saw this year. Many financial analysts called it an expected pullback. Ten years following the financial crisis, a lot of people are still worried about the possibility of another recession. For those approaching retirement, market drops are a big concern. When the markets take a hit, it can be harder to recover, especially if you are investing more conservatively as you get ready to retire and rely on your retirement accounts as a primary source of income. With these things inmind, when the market experiences volatility, one of the best strategies is to “wait and see.”Weather the storm. Investing for the future and for retirement is about long-term investing. The type of volatility we’ve witnessed this year is short-term volatility. If you do have questions, be sure to consult with your financial advisor. Ask questions, and avoid making rash decisions based on what you think might happen. Content is for general information only and not intended to provide specific advice or recommendations for any individual. No strategy assures success or protects against loss. Past performance is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

What to DoWhen the StockMarket Goes Volatile Manage your Emotions, Your Money, and Your Retirement

It has been a wild ride for the stock market this year. The year started strong, but by February, the market started to correct itself. On February 8, the S&P 500 was down by 10 percent. In April it was

down again. These downs (and ups) leave people with a lot of questions: What should I do? Should I be worried? Are my investments at risk? Is my retirement at risk? If you are invested, it’s always good to pay attention to what is going on. But acting on emotion—that is, buying or selling in response to suddenmarket changes—can cause more harm than good to your portfolio. Even for folks who aren’t invested in the stock market, seeing the S&P plunge 10 percent (or any market fall by a large percentage) can be disconcerting. The truth is, these kinds of corrections are expected, though there is no practical way to predict them. At the moment, we are in the second longest bull market in history. And looking at the markets from a historical perspective brings things into better focus. The S&P 500, for instance, has a -5 percent pullback roughly 3–5 times every year. The last -5 percent pullback was two years ago, which

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Save for Rising Health Care Costs Now

E ven with Medicare, medical expenses can be costly. Many retirees worry that rising medical costs will eat away at their retirement savings. Even when offset by insurance, health care costs are above what the majority of people (working or retired) can pay, regardless of whether they have Medicare, employer-subsidized health insurance, or insurance through the Affordable Care Act. Fidelity estimated that couples who retired in 2017 at age 65 faced a cost of $275,000 for health care throughout their retirement, a 6 percent hike from 2016’s estimate of $260,000 and more than a 70 percent increase since Fidelity came out with its initial estimates of retiree health costs in 2002. These totals include Medicare premiums, copays and deductibles, and prescription drug costs, but not nursing homes or long-term care. Obviously, health care costs continue to rise every year. Over time, employers have offered ways to help workers offset costs through health savings accounts, which provide tax breaks on medical expenses. However, many retirees are not prepared for the high cost of medical care when they are no longer part of a company plan. Medicare only covers a percentage of your medical bills, which means retirees have to dip into savings to pay for medical costs.

While this certainly isn’t good news, there is a silver lining. If you take steps to increase your retirement plan contributions, you can compensate for those daunting health care

costs. This could mean cutting your spending or canceling trips now, but by ramping up your savings, you’ll be able to enjoy more of these things later in retirement. Given the rate at which health care costs are rising, you really have no choice but to face the problem head-on. Social Security won’t be able to provide enough income to cover medical expenses. The sooner you add to your portfolio, the better positioned you’ll be to save without worrying about dipping into your assets.

Upcoming Events

SUDOKU

TAXES IN RETIREMENT SEMINAR Connie Morella Library, Bethesda, MD Thursday, June 7 or Tuesday, June 12 at 6:30 PM

TAXES IN RETIREMENT SEMINAR Lee Center, Alexandria, VA Wednesday, June 27 or Thursday, June 28 at 6:30 PM

To register for any of the upcoming events, please email us at [email protected] or call Carol at (571) 800-6373. Make sure to check out our website to see more upcoming events: CampbellWealth.com/educational-resources/upcoming-events/

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Inside

Reeling In a Summer Catch How Meditation Can Help the Aging Brain What Should You Do During a Volatile Stock Market? Are You Prepared for Rising Health Care Costs? The Best Time to Book a Flight

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Save Big on Airfare With This Simple Rule THE BEST TIME TO BOOK A FLIGHT

I n case you haven’t noticed, traveling is expensive. It can feel like you’re signing away your soul when you sit down to plan a vacation. But when it comes to flights, there’s good news:They’re getting cheaper! According to a 2017 report published by online travel company ODIGEO, long-distance trips across Europe fell 7 percent last year. Luckily, the same trend is reflected inNorth American airlines as they engage in a price war to woo a growing base of ultrafrugal travelers. Still, a $600 summer flight toHonolulu isn’t exactly pocket change. What’s worse, flight prices are slippery; CheapAir.com’s 2017 Annual Airfare Study determined that the fares for any given trip go up or down an average of 71 times, about $33 each shift. When you purchase your flight is nearly as important as where you’re going. But how do you choose a booking window that will maximize your savings?

According to the CheapAir.com study, in which they evaluated 921 million airfares, the best time to book is 21–105 days in advance of your flight, on average. If you want to get evenmore specific, try to book 55–75 days out, and book on a Sunday. Many travelers swear by Tuesday andWednesday bookings, but as Condé Nast Traveler reports, Expedia and the Airlines Reporting Corporation say that Sunday is the way to go, based on >Page 1 Page 2 Page 3 Page 4

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