Principal Shield Financial - February 2021

Principal Shield Financial - February 2021

FEBRUARY 2021

WISE & WEALTHY NEWSLETTER

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DON’T GIVE UP YET! IT’S NOT TOO LATE FOR A RESOLUTION DO-OVER

I have some good news and some bad news. The good news is that we’ve already made it through the first month of 2021. That could have been worse, right? The bad news is that by now, about 80% of people have already given up on their New Year’s resolutions. Like I said last month, I’m not a big fan of resolutions, but I DO want you to succeed with your goals. If you set resolutions and you feel overwhelmed and frustrated now, don’t give up yet. There’s still time for a do-over. When I catch myself feeling down about my progress on something, it’s usually because I’ve fallen into the trap of measuring forward rather than backward. To build momentum toward a goal, you really need to look back at where you came from. Take inventory of all of the things you’ve already accomplished and let that high push you forward, instead of looking ahead at how far you still have to go. Say your goal for the year was to lose 30 pounds. Last year you weighed 175, and a month into this year you still weigh 175. If you measure forward, that might seem like a failure because you still have 30 pounds to lose. But if you measure BACKWARD, guess what Retirement Secret #237: A surefire way to never run out of money in retirement is to withdraw ONLY the interest your retirement money earns each year. Want to read more? Download your FREE copy of my book, “Who’s Stealing Your Retirement? 7 Cunning Thieves Who Are Trying to Ransack Your Nest Egg (And How You Can Catch ‘Em),” at WhosStealingYourRetirement.com.

— you’ve achieved a victory! You were stuck inside in the middle of a pandemic for an entire month and didn’t gain a single pound. Doesn’t that perspective make you feel better? The same goes for a retirement savings goal. If you wanted to save $1,000 last month and ended up saving $500, that’s still progress. At least you saved $500! In my last newsletter, I shared several strategies for achieving your goals. Here are two more strategies you may find as useful as I have.

2. Describe what your life will be like when you achieve that goal. How will you feel?

3. List every obstacle that could get in the way of your success. For example, if you want to lose weight you might list that your gym is closed. 4. Now, for each obstacle write down how you’ll overcome that obstacle. For example, if your gym is closed, you might list “go for a walk or walk on the treadmill.” At the end of this process, you’ll have a road map to success AND a way to overcome each and every obstacle. With these strategies in your pocket there’s only one thing left to do: take the leap. I’ll close with a riddle. It goes like this: “Five frogs are sitting on a log and four decide to jump into the water. How many frogs are still on the log?” The most common answer I hear when I ask that question is “one.” But the truth is there are still five frogs on the log, because making a decision and taking action on that decision are two very different things. I hope that as we head into a new month, you decide to take action. It’s not too late to jump off the log.

Celebrate Your Accomplishments

1. Grab a piece of paper and a pen. Think about the last 90 days of your life. What did you accomplish that made you feel good? Write down five things (e.g., I coached my daughter’s soccer team). 2. Write down WHY each accomplishment is important to YOU (e.g., I’m showing my daughter how important she is to me). 3. Write down any progress you’d still like to make for each of the five accomplishments you selected (e.g., Work with her one-on- one outside of team practice).

4. Finally, write down the first small step you’ll take toward expanding on that

accomplishment (e.g., Take her to the park on Saturday).

This strategy works because it’s rooted in recognition. You’ve already succeeded and you need to celebrate!

Make Your Goals Easier to Achieve

1. Grab another piece of paper and write down the New Year’s resolutions you’ve yet to accomplish.

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MAKE FRIENDS AROUND THE WORLD

A Quick Guide to Forming Lasting Online Friendships

We’ve entered a new age of creating online friendships, and many are embracing them now more than ever before. Those in our online circles can provide tremendous support, and online communities make it easier to find people we connect with and who have similar interests or identities. Of course, meeting people digitally poses many new questions: How do we find these friends? What are the social expectations? If you’re curious about how to meet new people online, here are a few guidelines! First, decide what kind of people you want to meet. Do you want to meet fellow creatives? Tennis players? Doctors? Find where your online community gathers! There’s a forum or circle for every type of person and interest. Your community could be on Facebook, Twitter, or another site. Join those platforms and start finding your people by searching for hashtags or looking at groups to join. Second, respond to people’s posts, send messages, and participate in online events. A great way to make new friends is by showing an interest. In the online environment, this means interacting virtually. Don’t be shy. Respond to what people are saying or send them personal messages. Ask questions to extend the conversation and learn more about someone. Or, jump into some open online events (even locally hosted ones!) to learn something new and meet new people! Third, don’t feel pressured to make your online circle your new life. It’s possible to get a little too invested in your online community and lose track of your in-person pals. But, in many ways, that doesn’t make online friendships much different from nonvirtual ones. Keeping your virtual friendships casual once you’ve established a connection is just like any friendship; communication is key. Lastly, don’t give out personal information — ever. It’s standard protocol for online friends to avoid talking about personal details, such as their last name, address, family members’ names, where they work, etc. If your new online “friend” starts pestering you to learn this information (they may even pretend it’s for a good reason), don’t trust them. You may want to have video calls and interact with an online friend for years before ever meeting in person.

Nothing says “I love you” more than equipping your children with important knowledge they’ll need for the rest of their adult lives. Even if they groan about it now, they’ll be grateful for the know-how when they’re on their own in the future. Keep in mind that your home classroom doesn’t have to mimic a school classroom. Research from the University of Utah shows that kids learn best through hands-on activities and play. Have fun while teaching these life skills, and you’ll earn thank-yous for decades to come. Clean the House Were you ever surprised by how often you have to clean your kitchen? Your child may be too. Although your 10-year-old won’t have to worry about cleaning the stove today, they will need to know how when they move out, so find ways to incentivize cleaning and make it more fun. You can have your kids collect “chore points” that add up to a prize, like an extra hour of playing video games! Develop Cooking Skills You may be hesitant to have a little chef in the house, but if you’re teaching them how to clean up and stay safe while making some easy dishes, there’s no reason to worry! Even if you’re not a great cook yourself, it’s fun to prepare simple recipes as a family. Plus, your kids will get used to the idea of cooking for themselves, which is both healthy and cost-effective. Learn to Garden What’s a better way to get outdoors with your child than to garden together? From using tools like shovels and rakes to nurturing another living organism, gardening provides plenty of rich life lessons, such as patience. Understand Household Maintenance Whether they’re learning how to use an electric breaker, unclog a drain, or clean out the washer or dryer, your kids can get started learning household maintenance skills with just a little guidance. Who knows, maybe they will be their dorm’s future superhero! There are many lessons you can teach your child at any age, so don’t limit yourself! Be creative with the lessons you pass on, and there’s a chance they’ll never forget them! 4 LIFE SKILLS YOU CAN TEACH YOUR KIDS THIS VALENTINE’S DAY

We hope this guide helps you make the most of your online adventure! Happy virtual mingling!

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MASTER YOUR SKIN’S GLOWWITH HYDRATION

2: Don’t take long, hot showers. It may surprise you that standing in hot water dehydrates your skin, but over time, hot water strips away your skin’s barrier and causes a loss of moisture and necessary oils. Try using lukewarm water, or as cool as you can handle, to protect your skin. 3: Embrace your humidifier. It’s not just handy for your sick days! Humidifiers can keep your glow on by maintaining the moisture in your skin. In the dry winter months, the air loses moisture, and so does your skin. Get a reliable humidifier, and you’ll never have to worry about it again! 4: Recover moisture at night. During the day, your skin loses moisture. That’s why you need to take full advantage of your sleep and put on a heavy night mask, moisturizer, or Vaseline so your skin can heal overnight. 5: Use hydrating skin products. It’s hard to navigate the world of skin care on your own, and not all hydrating products are going to work for your skin type. Always talk to a dermatologist if you’re struggling to pick out the perfect moisturizer for you. Even if your skin has been dry for years, with some time and dedication to new hydration habits, you can have fuller, glowing skin. Whatever you do, don’t give up!

No matter what type of skin you have — dry, oily, or a combination — hydration is an important part of your skin care. But how well do you understand the science behind keeping your skin hydrated? Knowing a few key facts could change your routine and keep you glowing for a lifetime. 1: Drink lots of water. Research shows that even mild dehydration can cause memory and mood issues in people of all ages, but it can also negatively affect your skin. Keeping your skin hydrated from within may seem like a boring life hack, but it’s true: Drinking water can make a huge difference in not only how you think and feel but also in how your skin maintains its glow.

BUTTER AND HERB BAKED OYSTERS

TAKE A BREAK

Ingredients

Directions

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Rock salt or uncooked rice (to coat your baking sheet)

1. Preheat oven to 425 F. 2. On a rimmed baking sheet, spread out a layer of rock salt or uncooked rice. 3. Arrange oysters on the baking sheet, meat side up. 4. In a skillet over medium heat, melt half of the butter. Add breadcrumbs and sauté until brown. 5. In a small bowl, combine remaining butter, chives, lemon juice, and zest. 6. Top each oyster with a teaspoon of chive mixture and a sprinkle of sautéed breadcrumbs. 7. Bake for 8–10 minutes and serve garnished with lemon wedges and chopped parsley.

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1 dozen fresh oysters, scrubbed and shucked

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1 stick butter, softened and divided into 8 tbsp

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3/4 cup panko breadcrumbs

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2 tbsp fresh chives, chopped

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1 tbsp lemon juice

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1 tsp lemon zest

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Lemon wedges and chopped parsley for garnish

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PRST STD US POSTAGE PAID BOISE, ID PERMIT 411

10435 Cadwell Rd Santee, CA 92071

INSIDE

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2 Ways to Reboot Your New Year’s Resolutions

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Teach Your Kids Life Skills This Valentine’s Day! How to Make Friends Around the World 5 Hydration Tips to Keep Your Skin Glowing Butter and Herb Baked Oysters ‘High Quality’ Relationships Lower Blood Pressure

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LOVE BOOSTS YOUR IMMUNE SYSTEM AND LIFESPAN

It doesn’t take a scientist to tell us that a healthy, loving relationship can lessen our stress — but did you know it also boosts our immune system’s response and could help us live longer? Multiple studies have shown that couples in happy, loving marriages tend to have lower blood pressure. And marriage itself isn’t the actual key to a healthier life — it’s the “loving” part, researchers find. How do researchers define a “loving” relationship? To put it simply, it depends on the couples’ own opinion. Married couples with a “high quality” (aka loving) relationship showed significantly lower ambulatory systolic blood pressure than singles. However, happily married couples and singles had lower blood pressure than people in “low quality” marriages. Which means, at least in terms of your health, it’s much better to be single than unhappily married.

oxytocin and vasopressin interact with your dopamine reward system. Vasopressin in particular helps control blood pressure. Of course, getting into a new relationship can be a little stressful! Cortisol, the stress hormone, initially rises when you fall in love. However, it quickly drops in a long-term, stable relationship. Those low cortisol levels sustained for a long period of time contribute to many health benefits. But how does it improve your immune system? That’s a bit of a mystery to researchers. So far, women in love have shown changes in their gene regulation of immune cells compared to women not in love. Some theorize that this is in order to prepare for pregnancy. Unfortunately, we still don’t have conclusive research on whether men in love better fight flu and other viruses, too.

degrade your health over time, significantly increasing your risk of chronic conditions like heart disease. And while love is certainly not the only way to lower blood pressure, it’s comforting to know our loved ones can boost our health for a longer, happier life. Happy Valentine’s Day!

How does it help your blood pressure exactly? Well, when positive events occur, the hormones

High blood pressure is known as the “silent killer” since it has no symptoms, but it will steadily

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It’s that time of year again: tax time! Since April 15 is right around the corner, I decided to put my finance knowledge to work for you and create a summary of some of the more important recent changes in tax law. These seven updates may impact your return, so read carefully. When you’re finished, add this roundup to your files for future reference. Read This Before Filing Your Taxes! 7 Tax Law Changes That Could Impact Your 2020 Return

Loan Interest Paid on a Home Equity Line of Credit — Interest paid on a home equity line of credit can no longer be deducted on your income taxes unless that money was specifically used to buy, build, or substantially improve your home. To be clear, only the interest paid on the specific amount of money from the HELOC used to buy, build, or improve the property is tax-deductible.

Stimulus Checks Taxability — If you received a stimulus check it is not considered income , and as such, is NOT taxable . The government classifies the stimulus checks as an advance payment of a tax credit and tax credits are not taxable income.

Required Minimum Distributions (RMDs) — Tax law says that when you reach a certain age you must begin to withdraw money from your 401(k)s, IRAs, 403(b)s, etc., so the government can tax that money. These withdrawals are called required minimum distributions (RMDs). There are two RMD changes you should be aware of. The first is that the SECURE Act , which took effect on Jan. 1, 2020, changed the age at which you must begin taking RMDs from your 401(k)s, IRAs, 403(b)s, etc., to 72 from 70½. Those who turned 70½ before Jan. 1, 2020, must take RMDs for 2019. However, the CARES Act , which became law on March 27, 2020, eliminated RMDs for 2020. The “Stretch-IRA” — The SECURE Act eliminated the ability of non-spousal beneficiaries who inherited an IRA in 2020 and beyond to “stretch” out distributions over the beneficiary’s life when liquidating the account. Instead, with few exceptions, non-spousal beneficiaries must withdraw the entire account balance within 10 years of the year of death of the IRA owner . Obviously, the increased tax bill will impact those inheriting sizable IRAs the most, but it will likely affect almost all non-spousal beneficiaries.

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Tax-Deductible IRA Contributions — Tax law allows Americans to contribute to an IRA up to April 15, 2021, and take a deduction* on their 2020 income taxes. Those under 50 can contribute up to $6,000. Those 50 and older can contribute an additional $1,000, called a make-up contribution. The SECURE Act makes it possible for those 70½ or older on Jan. 1, 2020, to contribute to an IRA if they earned income and are otherwise eligible to contribute to an IRA. Under the old law, an IRA owner older than age 70½ could not continue to contribute to an IRA despite the fact they had earned income. * Whether or not you can take a deduction, and the amount of that deduction, is determined by four things: your age, whether you’re covered by a retirement plan by an employer, your tax filing status (e.g., single, married filing jointly or separately, etc.), and your “modified adjusted gross income.” COVID-related 401(k) Loans — The CARES Act increased the maximum 401(k) loan for COVID-related purposes to $100,000 or 100% of the account balance, whichever is smaller . Non-COVID-related 401(k) loans are limited to the lesser of $50,000 or 50% of the account balance. To be clear, a 401(k) loan is not a taxable event, but the reason I chose to include it is because it could easily become one. Tax law says that if you leave your job, even if it’s not your choice to leave, the outstanding 401(k) loan balance becomes due and must be repaid in full within 90 days. Otherwise, the loan balance will be treated as a withdrawal. You will have to pay federal and state taxes, depending on your state, on the outstanding balance and a 10% early withdrawal penalty if you’re under 59½ years of age. On rare occasions, some companies will allow you to continue making payments until the loan is repaid without reporting the loan as a taxable withdrawal. COVID-related 401(k) Withdrawals — The CARES Act also allowed individuals to take a COVID-related withdrawal of up to $100,000 from a 401(k) or IRA without a 10% early withdrawal penalty. Prior to the CARES Act, if you took a withdrawal from a 401(k) or IRA the amount of the withdrawal would be reported as income and taxed at your highest tax rate. However, the CARES Act allows taxpayers up to three years to EITHER pay the tax on the amount withdrawn OR to deposit any amount up to the amount withdrawn into another eligible tax-deferred account and avoid that tax altogether.

This paper is designed to provide introductory information in regard to the subject matter covered. Neither the company, the advisor, nor their representatives offer legal or tax advice. Consult your attorney and tax advisor as to the applicability of this information to your specific circumstances and for complete up-to-date information concerning federal and state laws in this area.

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