Capital Advisory Group - May 2022

Capital Advisory Group - May 2022

119 Old State Rd., Ellisville, MO 63021 THE WEALTH ZONE MORE THAN MILLIONS Guiding You to a Secure Future CapitalAdvisoryGrp.com May 2022

May has a very fitting holiday for the work I do every day: Be a Millionaire Day. I mean, that’s the very essence of what I do! Our goal is to help our clients keep and grow their wealth in a way that fits their lifestyle and goals. It sounds cheesy, but that’s the most satisfying part of our job. When I got into financial planning more than 30 years ago, I was focused on the ways I could help people grow their wealth. But somewhere, it all clicked. I realized that growing your wealth also came with tax implications. Everything you do in life impacts your taxes. What’s that famous saying by Benjamin Franklin? “... [N]othing is certain except death and taxes.” Have You Heard Us on the Radio Yet? Tune in to KTRS 550 AM radio every Saturday from 3–4 p.m. as Jeff Zufall and Josh Gilbert discuss all things taxes and financial planning. From innovative strategies to optimize your benefits to breaking down proposed and current legislative measures, Jeff and Josh guide you through the most pressing topics in the financial world today.

If I was going to be a financial planner who was truly focused on helping my clients grow their wealth, I also had to monitor their tax needs. I had to know how the moves we were making would impact their taxes and vice versa. Not many financial planners do that. In fact, some people rely on a CPA to take care of their taxes but see a planner for their financial investments and portfolios. It seems kind of crazy to me. That’s like going to one restaurant that only serves drinks and another that only serves food. Why have two experts, when you can have one? Taxes and wealth planning just go hand-in-hand. These days growing your wealth isn’t as simple as reaching $1 million. In the past, a retirement account with $1 million could stretch far into a person’s golden years, but that’s not the case anymore. Most people may not realize that aging can be very expensive, and often, the biggest bill comes from the very services they rely on to keep them alive. In 2019, CNBC reported that the average couple 65 years old who retired that year would need nearly $388,000 to cover medical expenses for the remainder of their lives. This includes Medicare costs, dental insurance — remember, it’s not in Medicare — and other out-of-pocket costs. If you have

“Taxes and wealth planning just go hand-in-hand.”

ever cared for an ailing family member, you may have noticed that figure doesn’t include a crucial element: long-term care. The U.S. Department of Health & Human Services reports that long-term care can cost anywhere from $3,628 to $6,844 per month! And those figures are from 2016. I would imagine that number has increased by now. So, Be a Millionaire Day may as well be Just Be Average Day, right? But don’t panic. That’s not the point of this article. There is a reason you are reading this, and why I’m recording all this information for you. Our team at Capital Advisory Group is equipped to guide you through these big questions and concerns about being able to afford the rest of your life. Our goal is to help you get to a place where you can keep more of your wealth, feel secure in your future, and know you have a financial and tax expert at the ready for you. We just want to simplify your financial life so you feel like a million dollars.

-Jeff Zufall

(636) 394-5524 1

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Here’s a shocking statistic for you: According to a Productivity Trends Report from ReclaimAI, the average professional is spending AndWatch Your Sales Soar FREE YOUR TEAM FROM ‘MEETING BRAIN DRAIN’

almost 309% more time in one- on-one meetings right now than they did before the pandemic. That’s crazy! Worse, it’s a waste of valuable time and a drain on your team’s productivity. Meetings can be productive, but there’s a reason why the phrase

A way to preserve or share a piece of your trip is to bring home a souvenir, but choosing a souvenir isn’t always a stress-free experience. How do you pick the perfect souvenir and not just the first thing you see in a tourist shop? Here are some tips for picking a truly meaningful gift for yourself or your loved ones. Who are you buying for? What are your recipient’s interests, or what do they spend the most time doing? If you’re buying for yourself and enjoy coffee, you might buy a local coffee blend to enjoy from home. However, if your recipient doesn’t enjoy coffee or rarely drinks it, that type of gift might not mean much to them. Is it legal to bring home? Whether you’re traveling domestically or internationally, there are many regulations that affect which souvenirs you can bring home. Even if you find the item in a tourist shop, that doesn’t mean it’ll be allowed into the country or even onto the plane. And the TSA does take this seriously. In 2012, two tourists were detained at the U.S. border for trying to bring home chocolate Kinder eggs — a specific kind that are illegal in the U.S. due to the potentially hazardous small toys inside. Purchase a handicraft. Handicrafts — items created by local artisans — are awesome souvenirs! But make sure you buy where artisans actually sell their own goods, such as an open-air market. Unfortunately, while some popular tourist shops may sell “locally made goods,” many souvenirs intended for tourists are actually made by cheap manufacturers in other countries. Keep something from the adventure. Bringing a glass bottle to take home some sand is a popular way of creating your own souvenir from a beach vacation. But you can do this with almost any item! Whether it’s stones, ticket stubs from favorite shows and activities, or a handmade item from a class, make sure to look out for souvenirs that’ll remind you of great memories and experiences. Picking the Perfect Souvenir

“This should have been an email” exists. If you pull your best people into Zoom call after Zoom call, they won’t have the focus they need to work quickly and perform at their best. That has implications across every department from marketing and sales to billing.

Entrepreneur has a few suggestions for how to free your team from this brain drain.

1. Say goodbye to company- and department-wide meetings. Think of building a meeting the same way you’d think of building a team: Add as many people as you need, and only that many. The more you can whittle down the required attendance for meetings, the less you will impact your employees’ productivity. Entrepreneur suggests keeping meetings at 4–6 people when possible. If you have a daily company huddle, consider making it weekly or even monthly to save brain space. 2. When you meet, always set an agenda. We’ve all attended “30-minute” meetings that stretched to two hours as the speakers rambled. Don’t let this become the norm! Instead, set an agenda for every meeting — even a routine check-in — and stick to it. If you’re a talker, consider including timestamps with each item to really keep you on task and get your team back to work ASAP. (Not sure how to write a fantastic agenda? Visit HBR.org and search “How to Design an Agenda” for an in-depth article on the topic.) 3. Encourage time blocking. Fewer interruptions to your team’s flow means it’s easier to get back in the zone, so try to cluster meetings during one part or “block” of the day/week. This will help your team build routines around those blocks, and they’ll be able to dive deep during non-meeting blocks without the fear of interruption. Try these strategies today and watch your key performance indicators (KPIs) for lead generation, conversion, and retention closely. You might be surprised at the results!

We hope these tips will help you make the best choice. Bon voyage!

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CapitalAdvisoryGrp.com

benefits can be taxed up to 50%. That number can climb to 85% if you earn at least $34,000 as an individual or $44,000 as a couple. So, while Social Security may offer a nice, small boost, it’s not free income. A Higher Deduction and Filing Ceiling The income threshold at which you will start being taxed jumps, which means, theoretically, you would be able to pay less in taxes than you would if you were middle aged and working. To hit this threshold, you have to be at least 65 years old during the taxable year. This also applies to the income you earn and its correlation to having to file a return. When you hit 65 years old, this income number increases. Often, the difference between the threshold prior to 65 and after isn’t more than a few thousand dollars, but it is something worth recognizing. Filing Is Necessary Okay, so this isn’t a change, but it’s something to keep in mind. Older adults are afforded certain benefits as they age. If they contribute to a retirement account, they have a solid nest egg from which to pull as they enjoy retirement. (This is taxed.) They also have medical coverage opportunities through Medicare. But taxes don’t change. While the threshold for what’s taxed may move, you will still have to pay taxes in many scenarios.

What You Need to Know About Taxes as You Age

For as long as you live, taxes will be part of life. And as you have aged, your mindset or understanding of taxes has likely changed, too. This doesn’t stop as you grow older, and once you hit that magic threshold of 65 years old, your outlook on taxes and what the IRS expects can change. Here’s what we mean. Social Security Tax Social Security is just one aspect of getting older that makes the achy joints and fuzzy print bearable. Who doesn’t want some extra money every month? But be careful. Prior to earning Social Security, most Americans don’t realize this income is taxable. Beyond that, it’s taxable by 50%–85%.

If you earn at least $25,000, or $32,000 as a couple filing jointly, each year — and this includes your Social Security — your Social Security

If this article prompted any questions about your tax situation, please contact our team today.

Achieving financial security and success doesn’t always have an easy answer. Our team at Capital Advisory Group is dedicated to helping you protect your wealth, and while doing so, you may have the following questions: • What are the rules when investing in cryptocurrency? • Should I retire during a high inflationary period? • Which form of investing is best for me — active or passive? • What do I need to know if I’m retiring this year? If you are curious about any of the above questions, please call Capital Advisory Group today at (636) 394-5524! Have Questions? We Have Answers!

Mother’s Day Brunch Rainbow Frittata Inspired by EatingWell.com

Ingredients

• Nonstick cooking spray • 1/4 cup sweet potato, diced • 1/4 cup yellow pepper, diced • 1/4 cup broccoli, chopped • 8 eggs

• Basil, thyme, salt, and pepper, to taste • 1/2 avocado, pitted, peeled, and thinly sliced • Cherry tomatoes, halved • Sriracha hot sauce (optional)

Directions

1. Preheat oven to 350 F and coat a cast-iron skillet with nonstick cooking spray. 2. In the skillet over medium heat, cook sweet potatoes, yellow pepper, and broccoli until soft. 3. In a medium bowl, whisk together eggs, basil, thyme, salt, and pepper.

4. Pour egg mixture into skillet with vegetables. Don’t stir but instead use a spatula to lift the edges of the egg mixture until it is evenly distributed. 5. Transfer mixture to oven. Bake for 5 minutes or until the dish sets. 6. Top with avocado and tomatoes. Drizzle Sriracha on top (if desired).

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(636) 394-5524

Inspired by GoodHousekeeping.com

119 Old State Rd. Ellisville, MO 63021 CapitalAdvisoryGrp.com

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ISSUE INSIDE THIS

page 1

Going Beyond the Millions

Hate Souvenir Shopping? Let’s Make It Easy

page 2

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3 Tips for Boosting Productivity

page 3

Aging and Your Taxes

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Mother’s Day Brunch Rainbow Frittata

Honor Memorial Day by Supporting Veterans

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SUPPORT LOCAL VETS

3 GROUPS TO DONATE TO THIS MEMORIAL DAY

Our team at Capital Advisory Group is proud to support veterans and our clients who have served our nation. This Memorial Day, we honor those who died while on active duty. May we never forget what a great sacrifice this is for our freedoms and our country.

and fill the gaps in communities. With programming nationwide, this St. Louis group is making a huge impact! Learn more online.

funding for care. You can support the organization by learning more online!

LifeWaters Website: LifeWaters.org

Dogs for Our Brave Website: DFOB.org

The water doesn’t discriminate; once in it, we are all just humans experiencing the depths of the sea! That’s the goal of LifeWaters, which provides scuba and diving opportunities for those with disabilities. Founded by a Veterans Affairs therapist, the organization has a special program for veterans called Hero Dive, which is dedicated to providing anyone with a physical or mental disability the opportunity to experience the freedom of underwater diving. Located in Arnold, Missouri, LifeWaters relies on donor support. Learn more online.

The Mission Continues Website: MissionContinues.org

Service dogs can provide companionship, support, and medical assistance to veterans after they return from active duty with scars and injuries. However, as Andy Gladstein, owner of Dogs for Our Brave found, a service dog comes with a hefty price tag — one most veterans can’t afford. That, and a little inspiration from his Navy SEAL friend, encouraged Andy to found Dogs for Our Brave. Located in St. Louis, this organization provides trained service dogs at no cost to veterans in need. Throughout the dog’s life, the organization also provides

Based in St. Louis, The Mission Continues is dedicated to utilizing the commitment and talent of veterans to improve their communities. The Mission Continues partners with nonprofits and volunteer groups to deploy veteran volunteers who better their communities through activities like cleanup, food security opportunities, and building projects. The goal of the organization is to utilize the full potential of our nation’s service men and women

Thank you for supporting our local heroes!

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Securities offered through Kestra Investment Services, LLC, (Kestra IS), member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC, (Kestra AS) an affiliate of Kestra IS. Capital Advisory Group, Inc. is not affiliated with Kestra IS or Kestra AS. Neither Kestra IS or Kestra AS provide legal or tax advice and are not certified public accounting firms. KestraFinancial.com/disclosures