Campbell Wealth - November 2019

Follow us on:

CampbellWealth.com • (703) 535-5300 • 330 John Carlyle St., Suite 400, Alexandria, Virginia 22314

NAVIGATING LIFE’S BIGGEST TRANSITIONS

This month, we’re doing something a little different. Instead of the monthly cover letter from Kelly Campbell, we’re shifting the spotlight to Kim Campbell! As you may know, Kim is CWM’s Director of Finance and Kelly’s wife and longtime business partner. I’ve been with Campbell Wealth Management for 20 years. In that time, I’ve been a part of many transitions, watching many of our clients ease into retirement. I’ve seen as their kids go off to college and start families of their own, each on their own journey. Whether you’re retiring or just sending your kids off to college, these are major emotional and financial transitions. For most people, retirement is the single biggest transition they will make, shifting from the familiar work life to an uncharted territory full of questions. When you’re used to going into the office every day then suddenly you’re no longer making that commute, you may end up asking yourself, “What am I going to do with my time?” This is generally an important question to ask, but it’s especially key when you’re developing a financial plan alongside a wellness plan. You need to know what you’re going to do with your days after you retire, or at least have a good idea. Not knowing what comes next can be paralyzing, but when you have a plan, so much of that fear and uncertainty goes away. This is something we help many clients navigate. If you ever have questions about your plan, don’t ever hesitate to let us know. Of course, not every plan goes perfectly, but at least having one gives you a vision for yourself. Our eldest son, Connor, initially went off to Maryland for college. It didn’t quite work the way he (or we) envisioned. But he made the transition to a new school in North Carolina. He had to adjust his plan, and it was challenging, but he got through it. I’ve been talking about planning with our second-eldest, Carter. He’s in the middle of applying for college and has his heart set on one school.

At the moment, it’s the only school he applied to. I told him he should have a plan B and plan C, but he’s adamant. I'm putting all my positive thought into his choice. Codie, our youngest, is a freshman in high school, and she’s navigating this new chapter of school and life. She has all sorts of interests, and she’ll have to realize that she can’t do it all or she’ll become overwhelmed. It’s great that she has the drive to accomplish so much, but there’s no denying it can be stressful — especially when you throw in being a teenager into the mix. Generally speaking, when you are feeling overwhelmed, write it out. Writing a list or journal entry is a great way to put things in perspective, both in terms of planning and just for clearing your thoughts. Speaking of writing, my third book is coming out this year! It’s set to debut the first week of December, just in time for the holiday season. Kelly has mentioned my writing from time to time in this newsletter, and you may be familiar with the "Triple Crown Trilogy," a series about family, horse racing, and, of course, the Triple Crown. I initially published the first book, “The Calm Before the Storm” in 2015, followed by part two, “The Eye of the Storm” in 2017. I’m excited to have this third book complete. It’s going to be an interesting transition from writing to whatever comes next. I may focus on other interests outside of writing for a while. And as we come to the end of the year, Kelly and everyone on the CWM team is working hard. Of course, we hope you aren’t working too hard! We wish you and your family a wonderful Thanksgiving and holiday season, creating many wonderful memories together. Don’t get too distracted by all the white noise in your life, from the news to social media. The time we have together is precious, and there’s nothing better than being there with our children, grandchildren, and great- grandchildren making those memories. —KimCampbell

Call Us Today (703) 535-5300 • 1

Tea Time What’s Swirling Around in Your Cup?

Tea has been consumed for thousands of years and is the second-most popular drink in the world, with water being the first according to National Geographic. It is the national drink

Singapore has conducted studies that link reduced risks of dementia in the elderly with regular tea consumption. The results speak for themselves: “The longitudinal study involving 957 Chinese seniors aged 55 years or older has found that regular consumption of tea lowers the risk of cognitive decline in the elderly by 50%, while APOE e4 gene carriers who are genetically at risk of developing Alzheimer’s disease may experience a reduction in cognitive impairment risk by as much as 86%.” Your Mood Tea leaves contain the amino acid L-theanine, which stimulates several feel-good neurotransmitters, like serotonin and gamma- Aminobutyric acid (GABA). These neurotransmitters help boost your mood and alertness. According to a study by the Huazhong University of Science and Technology in China, tea even has the ability to ward off depression. The study took 22,817 participants with 4,743 cases of depression over 11 studies, and 13 reports found that individuals who drank three cups of tea a day decreased their depression risk by 37%. So, the next time you want a warm beverage that will do your mind and body good, reach for some tea and bask in all the health benefits as you sip.

of several nations, including China and India, and is an integral component of religious ceremonies the world over. Drinking tea has been known to reduce stress, promote relaxation, and improve sleep. In addition to these instant benefits, tea can also help improve a person's long-term health through regular consumption. Your Heart According to Harvard Health Institute, several studies show that those who regularly drink black and green tea are at a lower risk of developing cardiovascular disease. These types of tea contain antioxidants and flavonoids, which are plant chemicals that help dilate arteries and reduce bad cholesterol. Studies also link tea consumption with improved vascular reactivity —how well your blood vessels respond to stress. Your Brain Flavonoids don’t only fight heart disease; these chemicals can also reduce any vascular damage to the brain. The National University of 1. It’s best for one member of the household tomanage the finances. It’s not uncommon for one person in a household to be the one who pays the bills and manages all the accounts. Many people don’t necessarily enjoy being involved in the finances, so by default, one person shoulders the responsibility. While this arrangement may work for a while, it can be a source of long-term problems. For instance, should the person in charge of the finances die or become incapacitated, it leaves the other partner or family members in a challenging position. They must put all the pieces of the financial puzzle together, and there is no guarantee it will ever be completed. This is why communication about finances between spouses and family members is so important. Even if one person handles the finances, there should always be discussions about them. Both spouses, for instance, should be fully aware of all the bills they are responsible for and the accounts they have open in their name, from checking to retirement accounts. 2. You need to worry about estate taxes. The media often portrays estate taxes as something we all need to worry about, and we should be prepared to set up a trust so we can better navigate these taxes. For some people, estate taxes are something they

2 MONEYMYTHS THAT NEED TO BE DISPELLED

need to think about and plan for, but this isn’t the case for the vast majority of Americans.

According to NerdWallet, in 2019, there is an exclusion limit of $11.4 million. For an estate

exceeding that, say valued at $14 million, the federal estate tax would only be owed on $2.6 million of that estate. However, if the estate is valued at less than $11.4 million, the heir or heirs would not have to worry about the federal estate tax. Many states have an estate or inheritance tax. Maryland, for example, has an inheritance tax (10%) and an estate tax (16%, with an exemption of $5 million in 2019). Virginia has neither. Of course, regardless of the value of your estate, you should have an estate plan in place, including a living will and designation of power of attorney. Spell out your health care wishes, and make sure all of your estate documents are organized and up to date.

2 • CampbellWealth.com

GET MORE BANK FOR YOUR BUCK How to Take Full Advantage of Your Financial Institution

Whether you’re banking with a credit union or a national giant, your financial institution likely offers more resources, account options, and saving plans than you’re using — or even aware of. As one NerdWallet article puts it, “Banks and credit unions continue to find new ways to both delight and confound customers.” If you focus on the delights, you can get more bang for your buck out of the financial institution you’re already using. Plus, there’s a good chance you’ll pick up new ways to stretch your retirement fund, grow your investments, and pass nest eggs to your grandkids along the way. Take these two easy steps to get started. Get Clicking Even for someone with plenty of internet savvy, bank websites can be intimidating. Most are filled with tabs and portals that overwhelm customers, causing them to limit their interactions to plugging in a username and password to Would you like to be a Campbell Wealth Management Ambassador? Would you like access to exclusive CWMAmbassador events?

check their balance. Don’t fall into that trap! If you want to get a complete picture of what your bank has to offer, its website is the place to start.

Next time you log in, set aside an hour or two to explore the site tab by tab. Take note of products and services you might not be using, like mobile banking apps, 24-hour hotlines, continuing education, and additional account options and their interest rates. Schwab, for example, offers a free online learning center complete with seminars, one- on-one financial advice, and more than 300 informative articles and videos. Schedule a Sit-Down If your bank has a brick-and-mortar location near you, make a point to visit it. While there, take the time to learn about the latest updates from the reading materials on offer, make an appointment with a financial analyst, or speak with a bank teller. It’s in your bank’s interest to see your accounts grow, so representatives are happy to help. If you’ve already explored your bank’s website, this is the time to ask follow-up questions on what you found or make a financial move in a new direction. Whether you’ve decided on a 529 plan or a high-interest checking account, your banking representative can make it happen.

All you have to do is refer a friend. Do you know someone who: • Wants to be better prepared for retirement? • Is looking for a second opinion regarding their portfolio? • Has gone through a major life event (death of a spouse, retirement, etc.)? Call us at ( 571) 800-6371 and let’s set up an introduction! If they are important to you, they are important to us.

Call Us Today (703) 535-5300 • 3

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

PRST STD US POSTAGE PAID BOISE, ID PERMIT 411

CampbellWealth.com (703) 535-5300 330 John Carlyle St., Suite 400 Alexandria, Virginia 22314

Inside

1 2

Navigating Life’s Transitions Spilling the Tea on Tea Dispelling 2 Money Myths How to Get More From Your Bank Give the Magic of the Holiday Season to a Child in Need Stay in a Real Castle

3

4

Securities offered only by duly registered individuals through Madison Avenue Securities, LLC (MAS), member FINRA/SIPC. Advisory services offered only by duly registered individuals through Campbell Wealth Management, LLC (CWM), a Registered Investment Advisor. MAS and CWM are not affiliated entities.

CARCASSONNE THE REAL MAGIC KINGDOM

Every year, tourists flock to Disney’s “Magic Kingdom” and marvel at Cinderella's iconic castle. As fun as it is to see this Florida-based attraction, it would be even

gorgeous woodwork in the hotel’s interior, you’ll feel like you’re living among French royalty. Of course, if you’d prefer lodging with the commoners, plenty of quaint bed-and-breakfasts exist just across the Aude river. With rustic cafes, fresh crepes, and bustling crowds making their way down the twisting cobblestone streets, the surface-level experience of Carcassonne would be enticing to anyone wanting to explore the French countryside. But for those who want to delve into the history of this storied castle, grand narratives await you. Just walking the walls of Carcassonne paints a picture of the past. While the outer fortifications were built by Louis IX and Phillip III, a section of the inner wall is far older. The red brick used in this part of the construction dates back to before the existence of France itself. Roman troops first fortified the hillside town around 100 BCE, giving every stone of this site a story to tell. If you’ve ever dreamed of experiencing medieval life for yourself, your adventure awaits in Carcassonne.

more magical to step back in time and visit a real medieval citadel. What if you could walk the same ramparts as Roman legionnaires and climb the same towers as French kings? If this idea gives you goosebumps, pack your bags for Carcassonne, France. A four-hour train ride from Paris, towering above the rolling vineyards of southern France, you’ll find one of the most intact, accessible castles in Europe. With sweeping, concentric walls and 53 elegant towers, the Cité de Carcassonne is a breathtaking sight. Once an impenetrable border fortress between the kingdoms of France and Aragon, the gates now stand open to anyone curious enough to walk its cobblestone streets. In fact, you can stay in the ancient city yourself. The five-star Hotel de la Cité Carcassonne occupies a former bishop’s palace and overlooks the inner ramparts of the fortress. With medieval tapestries and

4 • CampbellWealth.com