Campbell Wealth Management - February 2022

Campbell Wealth Management - February 2022

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February 2022

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

National Get Up Day BEFORE YOU FALL, HAVE A PLAN IN PLACE TO GET BACK UP Every month, while sorting through topics to discuss in the newsletter, I take a look at the calendar of events, and it just so happens that Feb. 1 is National Get Up Day. It’s a day that focuses on the importance of getting back up when you stumble or fall down. Getting back up may just mean that when you’re knocked down, it’s time to review and strategize. We have a lot of major turning points ahead of us, and my message to you may be less of a “get back up after falling down,” because the last few years have been fairly good in the stock market, and from a planning standpoint, things have gone well. What lies ahead of us could be where we struggle. Thus, going forward, maybe it’s time to restrategize about what our future looks like with potential changes on the horizon. Taxes are bound to go up in the near future. I teach a tax seminar where I outline all of the different reasons (and there are about 10 of them) why taxes may go up in the near future. If you would like to come to that class, let us know and we’d be happy to send you an invitation. My point is that as taxes go up, you need a tax strategy in place. You may not be working with Campbell Wealth Management yet, but if you were, you’d already have a tax plan in place. The interesting thing about taxes is that tax planning is not something you do for the short term — you must have a long-term focus. For example, if you’re doing a Roth conversion, while it may cost you money now, the long-term effects are significant, especially if tax rates go up. So, having a tax plan becomes increasingly important. It’s also essential to take micro and macro strategies into account. These focus

on how to save on taxes both today and for the long haul. Keep in mind that while we are not CPAs, we cannot give tax advice, but we can provide tax planning through our planning process. Another thing to remember is that both the IRS and your CPA may be experiencing staffing issues. If you’re expecting a refund, the sooner you file your taxes, the better your chances of getting your refund right away. So, if you’re more of an April tax filer , you may want to file a little earlier. The sooner you can do this, the better off you will be. When it comes to inflation, I read reports that inflation has gone up anywhere from 7%–9% over the last year, which is definitely unsustainable, and we hope this will only last a short period of time. However, while I don’t think you should plan on long-term inflation rates hovering around 7%, I do think it takes some thought as to what might happen if the near-term inflation stays high. It may affect what you buy and when you buy it, and with supply chain issues, it may also affect how you start to warehouse certain products so you don’t run out (toilet paper shortage). Because all of our clients are in or very close to retirement, we must have a strategy in place so they won’t lose significant amounts of money on their portfolio should the market turn. Many people wind up with a portfolio that is too aggressive or not very high quality and end up being very reactive to stock market changes. Continued on Pg. 2 ...

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Think about what’s going on right now as a hurricane situation. We have time to prepare, but we’ve got to take action. That’s the key to following the message behind National Get Up Day. We must strategize what you’ll do in the future, but you have to choose that strategy now while you still have time. If you have any questions about any of this, reach out to your wealth manager. As a reminder, if you aren’t yet a client, don’t hesitate to let us know. We’d be happy to get on a phone call with you to discuss your situation and portfolio. If you are a client and you have a friend or family member with questions about this, don’t hesitate to let us know. We’d be happy to talk to them. A friend of yours is a friend of ours.

Having a strategy and process in place is the most important thing when dealing with stock market declines.

The stock market has gone up now for over 13 years in a row. It has never gone up this high for this long. That being said, we aren’t saying it’s going to go down tomorrow. As a matter of fact, we never know when it’s going to go down, but it’s all about having a plan in place to be prepared for when it does take a downward turn. From an investment standpoint, that’s where our Progress and Protect Program has helped significantly with our portfolio performance. If you have questions about this, please don’t hesitate to reach out to your wealth manager or to anyone at Campbell Wealth Management if you are not yet a client. The beauty about where we are today is that while all this is starting to come into fruition, we have time to deal with it. For example, when a tornado comes, you typically only have minutes to react. But, in the event of a hurricane, you have several days’ notice so you can prepare.

Kelly Campbell

How Will You Pay for Long-Term Care? The Big Question Mark

As you age, the question of what to do if and when you require long-term care becomes more important. Although you’re far away from that point right now, it’s important to have plans in place now. According to statistics, roughly 70% of Americans who are 65 years old right now will require long- term care at some point in the future, and those costs only seem to keep going up. When it comes to long-term care, there are options. Assisted living facilities, nursing homes, or long-term care at home are possible choices. Some may prefer a specialized facility while others wish to “age in place,” at home where they are comfortable and familiar. Long-term care comes at a hefty cost, though. According to Genworth’s Cost of Care Survey, the average price of a private room in a nursing facility is $8,821 monthly! At prices like this, way higher than any mortgage you can dream of, long-term care can quickly deplete your savings.

If the largest portion of your nest egg is in a retirement plan such as an IRA or 401(k), those funds can be used for long-term care, but you will be taxed on the withdrawals. Instead, you may consider traditional long-term care insurance. With this asset-based long- term care insurance policy, you can use a portion of your life insurance death benefit to cover assisted living facility costs. Or, an immediate annuity is another option. Just like you’ve planned for retirement, having plans in place for the possibility of needing long-term care is important — you can make sure the burden never falls on your loved ones. At Campbell Wealth Management, we can help you take into account all of your options for covering those hefty long- term care costs. Call us today — we’d love to talk to you!

This is intended for informational purposes only and should not be construed as tax advice. Consult your tax advisor regarding your situation.

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A Big NYC Attraction Becomes Illegal

If you were an immigrant who just arrived to New York City in the 1880s and had at least 10 cents, you could rent a pushcart and become a business owner. For more than 50 years, pushcart markets in New York City offered immigrants immediate access to an $828 million industry (in today’s money) that sold competitively priced goods like groceries, household items, and clothing. However, those who were wealthy and in anti- pushcart movements complained primarily about poor sanitation in these markets. So, in 1938, Mayor La Guardia proclaimed in The New York Times that “peddling on the streets of this city is a thing of the past.” To ease opposition, La Guardia opened indoor markets, which required pushcart sellers to apply for limited spots and pay higher fees. Thousands of pushcart sellers lost their jobs afterward, and some brick-and-mortar stores lost as much as 60% of their business with the decrease in nearby foot traffic.

To this day, pushcart selling is still illegal.

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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 ( 703) 535-5300 and let’s set up an introduction! If they are important to you, they are important to us.

2022 State of the Market Tuesday, Feb. 8, at 3 p.m. Healthy Cooking Class Tuesday, March 8, at 3 p.m.

To register, email us at [email protected]

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

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

Inside

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National Get Up Day

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Covering Long-Term Care Costs

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Why This NYC Attraction Became Illegal

Upcoming Events

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Eat Smart While Abroad

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. Our firm does not offer tax or legal advice. Consult your tax or legal advisor regarding your situation. 5 Tips for Eating at Restaurants in Foreign Countries

Chile: With the exception of bread, in Chile, you must use utensils for everything you eat! It’s considered bad manners to eat with your hands. Even french fries and pizza are eaten with a knife and fork. Egypt: It’s never acceptable to refill your own beverage while in Egypt. It’s customary to allow someone else to do it. When your neighbor’s glass is half-empty, refill their glass, and they’ll return the favor! England: Port — a sweet wine that originates from Portugal — is enjoyed in a very specific way in England. It must be continuously passed to the left side of the table until the

bottle is finished. If the port is not passed, it’s impolite to ask for it. Instead, someone can ask the person who has it, “Do you know the Bishop of Norwich?” Once they reply they don’t know him, the response goes, “He’s a very good chap, but he always forgets to pass the port.” Italy: In Italy, it’s considered a cardinal sin to ask for cheese when it’s not offered to you. If you want to blend in with the locals, don’t ask for extra cheese on your pasta or — even worse — seafood!

Enjoying some food abroad? It can be tough to feel like the odd one out, and restaurant etiquette can vary widely across country borders. Here are five things to keep in mind while exploring the cuisine in new places! China: While eating food in China, don’t stick your chopsticks into your meal straight upward. It brings a curse of bad luck since it reminds those in the Chinese culture of the incense that burns at funerals. It’s also bad luck in many other Asian cultures for similar reasons, including Japan and Korea. When setting down your chopsticks, let them rest on the rims of your rice bowl or on the table.

We hope these tips help you on your next journey abroad! Bon appétit!

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