DuPont Wealth Solutions - September 2021

DuPont Wealth Solutions - September 2021

LIFESTYLE ADVOCACY FAMILY FINANCE LAFF is a publication of DuPont Wealth Solutions and The Law Offices of DuPont and Blumenstiel, blending original and curated content, and is intended to educate the general public about investing, finance, estate planning, personal injury, and small-business issues. It is not intended to be legal or financial advice. Every situation is different. The information in this newsletter may be freely copied and distributed as long as the newsletter is copied in its entirety.

21 SEP

WHAT DOES IT MEAN TO HAVE ‘POTENTIAL’?

THE SECRET BEHIND FIXED VS. GROWTH MINDSETS

Whenever you’re stuck in life, how many times have you heard people say “think positive and good things will come”? Not only can it be discouraging, but it can even feel isolating if you don’t see yourself as a “positive” person.

But an effective positive mindset doesn’t necessarily start with positivity — it starts with potential.

In recent newsletters, I’ve talked about the power of being a lifelong learner, or “knowing what you don’t know.” With back-to-school season already here, I thought I’d share the concept of a growth mindset I learned from my friend, Mary Rauchsenstein, the chief encouragement officer at Leadership Edge Solutions and recent guest on my podcast (episode 19, “The Art of Leadership”). In our conversation about leadership, she shared about the book “Mindset” by Dr. Carol Dweck, which discusses research on people who have fixed mindsets instead of growth mindsets. To explain a “growth mindset,” first we have to explain what fixed mindsets are. Many people with fixed mindsets believe that traits, like intelligence, are fixed — you’re either smart or you aren’t. Parents can sometimes reinforce this mindset when we tell kids, “Wow, you’re so smart!” Kids may think in response, “If I’m smart, I need to always appear smart and avoid looking dumb at all costs.” This can discourage them from confronting challenges and overcoming obstacles. With a fixed mindset, people are more likely to see certain efforts as a waste and believe that good things appear to them. However, a person with a growth mindset believes that intelligence can be developed. Their motivation to learn allows them to embrace challenges and keep going despite any setbacks. Working hard, criticism, and other people’s success stories are openly encouraged, rather than perceived as threats. With a growth mindset, a person sees themselves as full of potential — they’re more likely to be inspired by others (rather than jealous), and see the world as within their control. Research shows that

people with a growth mindset have greater confidence, are happier, feel healthier, and live longer.

Although I hadn’t thought about being a lifelong learner that way, it deepened my understanding of why I’ve always valued knowledge. Without a growth mindset, I wouldn’t start every day with reading or trying to find new ways to broaden my horizons to become a better advocate for my clients. If I had thought that I’d always be one way or another, some of the success stories I’m most proud of would’ve never happened. With September also being my birthday month, I have to ask myself: How much did I learn in this past year of living? I think it’s perfectly healthy to be amazed by your past ignorance. In the famous words of Ray Dalio, “If you don’t look back at yourself and think, ‘Wow, how stupid I was a year ago,’ then you must not have learned much in the last year.” With that in mind, I think I feel pretty good about being a little wiser on my birthday — just don’t get a time machine and tell my past self what I really think.

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STAFF SPOTLIGHT: SERVICE MANAGER MIKE MOELLER

HOW LONG HAVE YOU BEENWORKING AT THE LAW FIRM, ANDWHAT DOYOU DO HERE? I’ve been working at DuPont & Blumenstiel since 2014, but I’ve known and been working with Greg DuPont for much longer. Straight out of college, I worked for my father’s financial planning business, and that’s where I met Greg because he was my father’s attorney. In 2003, I started working with Greg directly, managing the title agency office he had at the time. Today, there is no “typical” day at the office for me. On any given day, I could be handling human resource (HR) duties, accounts payable, court documents and correspondents, as well as answering the phones. WHAT IS YOUR FAVORITE PART OF YOUR JOB? My favorite part of my job is working with the clients. We have a lot of clients who do estate and financial planning with us. Some of them I’ve known for over 15 years. It’s rewarding to know that we are continuing to help these people develop a secure future for themselves throughout their lives.

WHAT WOULDYOU SAY TO SOMEONE WHO IS HESITANT ABOUT

CREATING AN ESTATE PLAN? To anyone thinking

about estate planning, I would say just take the time and do it. It’s good to have a plan in place in case something happens to you. It’s also very important to lay out your final wishes for your family.

After going through my father’s death, I saw firsthand just how important estate planning is. He had all of his documents already taken care of with Greg, so his passing was a lot less stressful for family and friends. It was nice to know that we were doing things the way he wanted.

WHAT HAVE WE BEEN TALKING ABOUT IN THE PODCAST?

EPISODE 21: “The Ins and Outs of Gun Ownership Management, Part 1” with Derek DeBrosse EPISODE 22: “The Ins and Outs of Gun Ownership Management, Part 2” with Derek DeBrosse

WE APPRECIATE YOU

We want to use this space to express our gratitude to the following members of the community who have recently left us a review or have referred someone to our care. Thank you!

Kara McCauley Srinivas Gunuku Nassima L. Ranju Mehta

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‘WILL RISING MEDICAL COSTS DECIMATE MY RETIREMENT PLANNING?’

One of the things that many retirees and pre-retirees fail to take into account when it comes to retirement planning is the rising cost of health care — especially as you get closer to retirement age. It’s tough to think about this when you’re relatively healthy, but as you age, your body is more vulnerable and prone to getting sick. That means you’ll have to spend more on drugs and medical visits as you get older.

On average, Medicare beneficiaries aged 65–74 spend $2,920 a year in out-of-pocket expenses. Those aged 75–84 spend $3,815 a year.

And, those 85 and above spend $4,615 a year — an average of 30% of their income.

For example, vision and dental care are not covered by Medicare, nor are hearing aids or hearing exams. Recent surveys show that 50% of people age 55 and over wear partial or complete dentures. One-third of all non-institutionalized elderly persons 70 years of age are hearing impaired. And 92% of persons 70 years of age and older wear glasses. The good news is that there are ways to potentially save for the rising cost of health care in a tax-advantaged way so that you can boost your savings. A skilled financial planner should be consulted to help you “catch up” on your retirement savings if you haven’t taken into account the rising cost of health care in your retirement plan. Give our office a call to get started or visit our website at DuPontWealth.com to check out our free online reports.

Not only that, but your health insurance premiums will go up as well — and medical expenses increase every year, far beyond inflation.

A recent Fidelity study showed that a couple who retires in 2021 will need $300,000 to cover health care costs in retirement. That figure applies only to retirees with traditional Medicare insurance coverage. It also doesn’t include costs incurred due to long-term care. Unfortunately, many retirees and pre-retirees make the mistake of thinking that Medicare will cover all of their medical bills when they retire. The truth is that Medicare only covers a percentage. According to an analysis, average out-of-pocket health care spending by Medicare beneficiaries is sizable and increases with age.

SUDOKU

ONE-PAN APPLE CIDER CHICKEN

Inspired by WellPlated.com

INGREDIENTS

1 1/2 lbs boneless, skinless chicken thighs

4 tsp olive oil, divided 3 sweet apples, cut into 1/2-inch slices 2 tsp fresh rosemary, chopped, plus more for garnish

•

• •

1 tsp salt, divided

• •

1/2 tsp black pepper, divided 1/2 cup apple cider 2 tsp Dijon mustard

•

• •

DIRECTIONS

1. Sprinkle chicken with 1/2 tsp salt and 1/4 tsp pepper. Set aside. 2. In a small bowl, combine apple cider and mustard. Set aside. 3. In a large skillet over medium heat, warm 2 tsp olive oil. When shimmering, add chicken thighs top-side down. Cook for 4 minutes, then flip and cook for 4 more minutes. Transfer to a plate and cover with foil. Wipe the skillet clean. 4. Heat the remaining oil in the skillet, then add sliced apples, remaining salt and pepper, and rosemary. Cook for 5 minutes. 5. Return the chicken to the skillet and add apple cider-mustard mixture. Cook for 5 minutes, then serve sprinkled with rosemary!

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INSIDE

What Does It Mean to Have ‘Potential’? PAGE 1

Staff Spotlight: Service Manager Mike Moeller We Appreciate You PAGE 2 Rising Medical Costs and Your Retirement One-Pan Apple Cider Chicken PAGE 3

The Best Places to Visit in Croatia PAGE 4

THE BEST PLACESTOVISIT IN CROATIA This gorgeous coastal nation will absolutely blow you away with its beautiful architecture, landscapes, and delicious blend of

regret it — the park has an outstanding and picturesque series of tufa lakes and caves, all connected by waterfalls. With over 16 interconnected cascading lakes, it’s unlike anything else

Mediterranean and Slavic cuisine. Even better, it’s a fairly affordable place to visit! While many travelers land in Zagreb, the beautiful capital city and cultural hub, you wouldn’t want to miss these destinations. DUBROVNIK As the “Pearl of the Adriatic,” this coastal city is one of the most popular tourist destinations in the Adriatic Sea. It’s a beautiful city, featuring 13th century walls, marble stone streets, Gothic palaces, breathtaking churches, and an imposing fortress. There’s so much to do in the town square — one of Croatia’s largest and most beautiful — and you’ll be able to explore many historic structures nearby. Nature also has plenty to offer, with secluded coves and beaches nearby for exploration. PLITVICE LAKES NATIONAL PARK Near the border with Bosnia-Herzegovina, you’ll find one of Croatia’s oldest and most beautiful national parks and a UNESCO World Heritage Site. Although it’s quite the drive, you won’t

you’ll see. If you get hungry, you’ll love the nearby National Restaurant Licka Kuca, which is famous for its traditional Croatian preparation of lamb under a cast-iron bell. SPLIT

The second largest city in Croatia (the first being Zagreb) is Split, founded by a Greek colony in the second or third century

B.C. Historically, Split enjoyed being an independent city-state many times, and that free spirit is very tangible, as Split is very different from any other city in Croatia. With well-preserved Roman architecture and a multitude of museums, it’s no wonder Split is also a

UNESCO World Heritage Site.

Although Croatia was among the first UN countries to open its doors to Americans, always be safe and check the newest regulations before booking your travel. Hopefully you enjoyed learning about this unique, wonderful country!

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PILOT SPOTLIGHT

According to many sources, federal income taxes will increase from $3.4 trillion currently to $6.8 trillion by 2028. The U.S. Debt clock predicts that our government will have almost $87 trillion of debt by 2028. That is THIS decade! ACCORDING TO MANY SOURCES, FEDERAL INCOME TAXES WILL INCREASE FROM $3.4 TRILLION CURRENTLY TO $6.8 TRILLION BY 2028. THE U.S. DEBT CLOCK PREDICTS THAT OUR GOVERNMENT WILL HAVE ALMOST $87 TRILLION OF DEBT BY 2028. THAT IS THIS DECADE! We are building overwhelming debt at all levels of government. In addition to our federal government, the states, counties, cities, townships, and municipalities face crushing debt. Several states are already using streets as collateral for pension loans. We are building overwhelming debt at all levels of government. In addition to our federal government, the states, counties, cities, townships and municipalities face crushing debt. Several states are already using streets as collateral for pension loans. Demographically, won't government require more money for all our retirees -- ---• -�� than allowing the government to be in control of how much tax you pay, would you want to develop a strategy? When would you want to get started? Predict A “Stealth Tax” An additional tax is the “stealth tax” called inflation . Inflation is best thought of a “lost purchasing power.” It is

Demographically, won’t the government require more money for all our retirees who are increased debt and possibly higher interest rates cause living longer than they have ever lived? Finance experts see a tidal wave coming: The government continues to encourage our government to have to pay more and more interest on that debt? With this knowledge, the government continues to encourage Americans to take a tax deduction now on a small amount Americans to take a tax deduction now on a small amount of contribution while taxes are historically low. This way, Americans can build a fully taxable, much greater amount of money in the future that the government can tax at any level they require. of contribution when taxes are historically low, so Americans can

who are living longer than they have ever lived? Won't this dramatically

predicted that the M2 money supply will increase by almost $100 trillion in the next seven years. What does that do to the purchasing power of our money? Isn’t that a tax? Inflation is even more insidious than the increased income tax because increased income taxes will only impact 15% to 20% of Americans, but inflation will

25% Debt

build a fully taxable, much greater amount of money in th future that the government can tax at any level they require. Does that sound beneficial to you?

impact 100% of Americans. No matter whether you are poor, rich, or middle class, you will pay the stealth tax. How do we know for sure the stealth tax is coming? Mathematically, after raising taxes and lowering benefits, the government will have to print enormous POWERED BY THE ..-PILOT I )If PROCESS -THELAWOFFICESOF- 0UPONT & BLUMENSTIEL

That doesn’t sound beneficial to us. If you could be in control of how much tax you pay rather

TAKE ACTION NOW MOST PEOPLE LOOK AT TAXES ALL WRONG. DON’T BE LIKE MOST PEOPLE WHEN YOU CAN PLAN, AND PERHAPS … • Pay only $10,800 to eliminate taxes on $1,156,000 over 20 years, at an effective tax rate less than one-tenth of a percent. • Pay only $101,000 to eliminate taxes on $1,5444,000 over 20 years at an effective tax rate of 6.5%. • Pay only $298,760 to eliminate taxes on $2,777,000 over 20 years at an effective tax rate of 10.76%. • Pay only $712,440 to eliminate taxes on $4,611,000 at an effective tax rate of 15.45%.

amounts of new money. It’s the only way they can provide the promised benefits and services necessary to run a country. Protect Your Legacy When the government needs more money in the future, will they get that money from the 90% of Americans who don’t have any money, or the 10% that do? In order to be in the top 10%, you only need $200,000 or more. 90% of Americans cannot put $200,000 together. So, even though you did everything right — you saved, you invested, you lived within your means — the government will come and take your money to take care of all the people who were not willing to do what you did. Not only will they take it from you, won’t they be taking it from your children and grandchildren? Are you okay with building a legacy for the IRS and the government, rather than your family or business? If there was a way to be in control of how much the government takes, when would you want to implement a strategy for that? Before or after the government comes and takes your money?

Time is not on your side. Give us a call today, and let’s look at ways to get you out of the retirement tax trap.

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