Bridgeriver Advisors - May 2022

Bridgeriver Advisors - May 2022

MAY 2022

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Is it possible to create a tax-free retirement? I recently did this for a client who was amazed that it worked. It all started with establishing (or converting to) a Roth IRA. This works because you put in after-tax money and avoid additional taxes on any gains made. For example, if your initial $5,000 grows to $10,000 — or $50,000 or $80,000 — you won’t owe any taxes on your gains (just follow a few basic rules). That money is yours. Roth IRAs are a powerful tool and were developed in 1997. A lot of people at that time were already deeply invested in whatever plan their company offered and didn’t immediately jump to the Roth IRA. Fast forward to today, and those people who didn’t contribute or perform any conversions will be paying taxes on all those gains. Worse, they may be in higher tax brackets and owe far more than they expected when they were working in the 90s. One of the biggest misconceptions about Roth IRAs is about how much you can contribute every year — $7,000 max for anyone over 50 for 2022. While contributing is limited by the requirement that you have wages, but not too much wages, you can get around this by converting a traditional IRA into a Roth IRA. There are no limits on converting a traditional IRA to a Roth IRA. Why convert? Under the Trump tax law, you may be able to convert and avoid jumping tax brackets, even if you convert $200,000 or more, but this goes away at the end of 2025. Once the money is a Roth IRA, you can create tax-free income for the rest of your life. If you’re invested in stocks through a Roth IRA, you can create a situation in which you live off the dividends without touching the principal. The account will never go away and all dividends are tax-free. Alternatively, if you put Roth money into an annuity, you can create a pension for yourself, with all of your payments being tax-free. If you can effectively create a pension plan within your Roth IRA, that gives you even less to worry about. Since the 1970s and 80s, more and more companies and municipalities have been phasing out pension plans. Instead, they’ve shifted more of the risk to their employees by offering 401(k)s or similar plans. This often leaves people with plans they don’t know how to manage. The great thing about pensions is that they are, usually, managed on behalf of the workers. In terms of setting up an annuity-based pension through your Roth IRA, the hardest part is just setting it all up, and it’s really not that difficult. After that, there is very little you have to worry about. Now, when you convert one lump sum from a traditional IRA into a Roth IRA, you will have to pay tax on the conversion amount. It’s like ripping off a Band-Aid. But the benefit is, you’re paying the tax on that sum at a known rate. You don’t Create Your Own Tax- Free Retirement

More Income and Less Taxes in Retirement Seminar

May 10 & 12 — 6:30 p.m. Fifth Tavern (Clarkston)

May 17 & 18 — 6:30 p.m. Camp Ticonderoga (Troy)

May 24 & 26 — 6:30 p.m. Filippas (Shelby Township)

Register today at BridgeriverLLC.com! Free dinner provided.

have to worry about paying an unknown rate in the future when you may be in a different tax bracket or if and when the IRS increases taxes. People often assume that when you make the conversion from a traditional IRA to a Roth IRA that you have to pay tax on the gains at some point down the road, but this is not the case. Once the conversion takes place, gains remain tax-free from then on out. Keep in mind, once you turn 72, you usually must take required minimum distributions (RMDs) from your traditional IRA. It doesn’t matter if you have other income sources. The law requires you to take a certain amount out of your IRA every year, and this can complicate your tax situation. If you don’t take your RMDs, you will be hit with a major penalty — 50% of the amount you should have withdrawn but didn’t. Luckily, you do not have to take RMDs from a Roth IRA, giving you less to worry about. These days, it seems that IRAs are constantly under attack by the federal government. It used to be that once you die, your heirs could take small payments from your IRA. Guarantees are based on the claims-paying ability of the insurance company. Do not act without receiving an illustration.

The SECURE Act that passed in January 2020 forces your beneficiaries (usually children) to take payments from your IRA every year for 10 years (unless it’s

your spouse and a few other exceptions and that stipulation doesn’t apply). The government wants to put more and more limits on your money. But when you establish a tax-free pension through your Roth IRA, that gives you far more freedom to manage your hard-earned money in retirement and to take the IRS out of the equation.

-Dan Casey

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DO YOU LOVE ALL THINGS BEAUTY? Then Try These Subscription Boxes!

Do you love trying quality beauty products that don’t cost a lot of money? Then now is your time to order a beauty subscription box! Not sure how to begin? Here are some boxes to get you started!

and so much more. This subscription gives you 6–8 items, and you can even choose from different categories.

Boxycharm $27.99 monthly Boxycharm.com

Ipsy $12.99 monthly Ipsy.com

Boxycharm gives you five products that have a value of $175. All the products you’ll receive are from luxurious high-end brands. Once you create your account, you will take a beauty quiz that helps Boxycharm pick out products to give you each month. You can choose to receive all makeup products, skin care products, or a combination of both. You’ll also be able to access their online store, which has discounts from the brands that partner with them.

If you’re just getting into makeup and skin care and want to try deluxe samples on a budget, then Ipsy is for you. You will get five sample items that range from primers to lipsticks. After selecting your payment, you’ll take a beauty quiz that helps Ispy pick items especially for you. All of your products will come in a cute bag that you can gift to friends and family or use for your own purposes. Getting a beauty subscription box is like receiving a gift for yourself every month. If you’ve been wanting to try new products without the price tag, then these boxes are for you!

FabFitFun $49.99 quarterly FabFitFun.com

This box gives you a variety of products worth up to $275. You’ll receive makeup, skin care products, clothes, jewelry, hair care products, decor,

TRY THESE COMBINATIONS THAT CELEBS ARE WEARING NEED MORE COLOR IN YOUR WARDROBE?

Now is the perfect time to add more color to your wardrobe! Several celebrities have been mixing and matching all sorts of colors you may not have considered. Let’s look at some of the hottest color trends of 2022! Orange and Green Although these two colors appear to not go together, with the right outfit, this look is a showstopper. You can wear forest green denim pants or cargo pants with an oversized neon

now is pairing an all-black ensemble with hot pink. You can achieve this by adding a hot pink blazer to your outfit, a pair of shoes, or a handbag. If you want to add more color, you can wear a hot pink blazer over a black shirt with mint green pants. Although it may seem like these colors contrast, the new trend brightens up your look for summer.

Brown and Brown Who says you can’t mix and match different

shades of the same color? You can pair different shades of brown together to create a classic look. Start with a tree bark brown jumpsuit or pants and pair it with a cream-colored brown leather or faux fur trenchcoat. Although you’re wearing the same color, the different shades will contrast subtly for an elegant and classy look. You can also wear a dark brown skirt with a cream-colored brown shirt if you need something to wear on a night out.

orange jacket to recreate this look. If you want to start small, you can exchange the orange jacket

with a black or white tank top or T-shirt and add an orange handbag or beanie. You can dress this look up or down, depending on your plans for the day. Hot Pink and Black If black is a staple in your closet, then adding a pop of color will go along with any look. One of the hottest trends right

The clothes you wear can be an artistic expression of who you are. Don’t be afraid to step outside of the box and your comfort zone when it comes to clothes. Mix and match different styles and colors to see what works best for you. If it makes you feel confident, then go with it!

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TIME TO BE A MOVIE CRITIC!

3 MOTION PICTURES INSPIRED BY BOOKS

and provide more information on the characters. Spoiler alert: There are no twins or garden maze in this series, but there are moving topiary hedges!

‘The Ultimate Evil’: The Search for the Sons of Sam There are a lot of conspiracy theories about the Son of Sam and his crimes. Some have argued that David Berkowitz didn’t commit these crimes alone — and they have evidence to prove it. Follow along with journalist Maury Terry as he makes his way down the rabbit holes of this case. There is more to this crime than what appeared in the media, such as cult practices and ties to other cases like Charles Manson and his family. ‘Looking for Alaska’ John Green has captured the hearts of millions of readers across the world, and now there is a movie inspired by his first novel, “Looking for Alaska.” This coming-of-age story follows a teenage boy as he searches for the meaning of life. Then, a sudden tragedy strikes, and the boy and his friends must come to terms with the event. The movie shows the emotion, grief, and love the boy deals with on his journey. Pull out your tissues for this film; it’s sure to be a tear-jerker. You don’t need to read the books first in order to watch the TV show or movie — these films can stand on their own. These are only a few of the many movies and TV shows that are based on best-selling books. Now it’s time for you to be the judge and determine if the books are, in fact, better than their films.

We’ve all heard the saying, “the book is way better than the movie or TV show.” Movies and TV shows provide you with a great visual representation of the characters and storyline. The films are equally as good as their respective books in their own right. Here are a few films inspired by books that you should check out. ‘The Shining’ 3-Part Mini-Series This is one of Stephen King’s most famous novels. There is even a much-acclaimed 1980 movie based on the book. But did you know that Stephen King directed and produced his own miniseries? The three one-hour episodes follow the book precisely

HAVE A LAUGH

Mother’s Day Brunch Rainbow Frittata

Inspired by EatingWell.com

Ingredients

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Nonstick cooking spray

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Basil, thyme, salt, and pepper, to taste

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1/4 cup sweet potato, diced

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1/2 avocado, seeded, peeled, and thinly sliced

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1/4 cup yellow pepper, diced

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Cherry tomatoes, halved

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1/4 cup broccoli, chopped

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Sriracha hot sauce (optional)

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8 eggs

Directions

1. Preheat oven to 350 F and coat a cast-iron skillet with nonstick cooking spray. 2. In the skillet, cook sweet potatoes, yellow pepper, and broccoli over medium heat 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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40900 WOODWARD AVE., STE. 305 BLOOMFIELD HILLS, MI 48304

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INSIDE This Issue Create Your Own Tax-Free Retirement

Give Yourself a Gift Each Month

Fresh Wardrobe Color Combinations to Try!

Are the Books Better Than the Films?

Mother’s Day Brunch Rainbow Frittata

Strengthen Your Entire Body!

Mental Benefits

The weather is getting warmer, which means you can do more activities in the water. Canoeing or kayaking is an excellent way to get outdoors and be active. Besides looking at the beautiful scenery around you, taking to the water confers several physical and mental health benefits.

PADDLE YOUR WAY TO BETTER HEALTH Big Benefits of Canoeing and Kayaking

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While canoeing or kayaking, your body releases serotonin, dopamine, and endorphins from neurotransmitters. This will help boost your mood and self- confidence and improve your focus. These activities can enhance your memory and learning ability. This is because it exercises your hippocampus, one of the largest portions of your brain that is responsible for verbal memory and learning. If you have trouble sleeping, this activity can improve your sleep. Exercising during the day can make you naturally tired, which helps you fall asleep and stay asleep throughout the night. Since you’ll be in the sun, your body can produce more vitamin D. This vitamin is essential for strong bones and an effective immune system.

Physical Benefits

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Paddling can help improve your upper- body strength and muscle tone — because you’re using your arms to guide yourself through the water with the paddle. Paddling helps strengthen your arms, shoulders, chest, and back. You use your legs to balance, maneuver, and change directions in the vessel. In turn, this movement helps strengthen your lower-body muscles . While trying to stay centered and balanced on the water, you will develop more core strength. Paddling helps work your lower back, abs, and oblique muscles. It’s a form of cardiac exercise that will help your heart circulate more blood throughout your body. It will also improve your endurance, enabling you to go longer distances faster.

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Canoeing and kayaking are great outdoor activities to help you get your daily dose of physical activity and a mental health boost. So, enjoy the warm weather and be one with nature — this may be your new favorite summer hobby this year!

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