Campbell Wealth Management - March 2022

Campbell Wealth Management - March 2022

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March 2022

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

Stressing a Tax Plan and Welcoming Spring SPRING HAS SPRUNG A pril 18 — the tax deadline — is rapidly approaching. When it comes to planning for tax season, having a tax strategy is paramount. But if you don’t have a plan in place, it’s already too late for 2021’s taxes and we are already a third of the way through the tax year for 2022. On a much brighter note, spring is a great time to begin thinking long term. Depending on where you live in the United States, areas with cold climates are beginning to warm up, and there are many fun outdoor activities to plan for and look forward to in the coming months. It’s time to focus on the three areas of retirement: health, wellness, and fulfillment.

Tax planning is more of a chess game than checkers in the sense that when you play chess, you really have to plan out your next few moves — and where taxes are concerned, how those moves will impact you over the next 10, 20, or even 30 years following today’s rules. But, understand that the rules will change. So, why do we stress tax planning? When you take a look at government spending, balance sheet, and obligations, you’ll see that the national debt is nearly $30 trillion. In the beginning of 2020, it sat at roughly $23 trillion. That $7 trillion jump is huge! But that’s not all. Many people don’t realize what’s on their income statement and what their future obligations are, which is why having a tax strategy is so important. Right now, the government pays about 1.4% interest on their debt, which equals about $425 billion a year! While rates are incredibly low right now, there’s a good chance that rates may go up, and if they do, it will cost much more to service the national debt. Obligations such as Social Security, Medicare, Medicaid, government retirement plans, government pensions, and military pensions are increasing every year for those nearing or in retirement. With these increasing obligations, it makes it more apparent that we are likely to end up in a situation where the government may owe so much that they will have to raise taxes for everyone. Lastly, the Tax Cuts and Jobs Act (TCJA), which was instituted by Trump in 2018, will no longer be in effect at the end of 2025, and tax rates are expected to rise as a result. Moving into the future, having a tax plan will be essential.

In retirement, your biggest asset is your time. The more efficiently you use your time, the better off you will be. If you protect and manage your health properly, you can potentially create more time for yourself. For example, if you’re unhealthy, you may only have 10 more years to live, but if you have safeguarded your health, the future is limitless! This takes true commitment to exercise and nutrition. Whenever I think about nutrition, I build accountability partners into it. If you have a friend that you meet at the park or the gym to walk or work out, you are more likely to show up and get it done. With respect to wealth, it’s all about having someone to help you along the way. Having a professional you trust to monitor all areas of your wealth is important. That’s why you hired us — not only for assisting with planning, but for active management. Here at Campbell Wealth Management, we are constantly looking for issues that could potentially present themselves way before they even arise. We’ve got your back! For those that aren’t yet clients that are receiving this newsletter, if you have some questions about your particular wealth, let us know. We’d be glad to get together and be a sounding board for all questions and concerns. When it comes to fulfillment, I am talking about your bucket list — all of the things that you are excited about doing. What are the things that you’ve always wanted to accomplish but never had the Continued on Page 2 ...

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According to a recent Allianz survey, 54% of American investors fear that the stock market will crash in the near future. The study implies that dynamic Federal Reserve policy, inflation, the pandemic, and labor shortages could potentially lead to a major market correction. The CNN Business

in the next year. In November 2021, inflation increased at a rate of 9.6%, a record high. The Federal Reserve’s central banks stated that they will increase their monthly bond purchases and potentially raise interest rates three times this year.

Fear & Greed Index, which takes many aspects of market sentiment into account, is detecting feelings of fear. After a few good years, many investors are left wondering where we can go from here. A market correction could greatly impact you as you enter or near retirement. Are you protected against the possibility of a market correction? Do you have enough cash and bonds in your portfolio to cover all of your expenses in the event the stock market crashes?

When we compare prices of

goods and services from when we were kids to now, it’s easy to see the impact of inflation. While

The Future Unknown

small differences right now aren’t

that monumentally noticeable, over your many years of retirement, they will be. To combat inflation and have your savings last through an enjoyable retirement,

you need to have an investment strategy

in place. Having a solid financial plan will ensure that you are prepared for whatever 2022 or the future throws our way.

How to Be Prepared for Market Curveballs in Retirement

And, what about inflation? While we can’t make any solid predictions, the Federal Reserve expects a 2.7% rise in inflation

To ensure your financial security, give us a

call! We are always here to help!

... continued from Cover

chance to do? I’m not just talking about what you want to do today and tomorrow, but looking five or 10 years down the road too! Have you always wanted to attempt skydiving? Is taking your grandchildren to Disney World a dream of yours? Do you want to learn another language or take up a new hobby? If you don’t have your bucket list put together, it’s time to create it! If you have one, take a look at it to determine whether or not you should add more items and, of the items you have listed, what items should you get checked off this year and when are you going to do them? So many plans never get accomplished because times and dates are never set.

Retirement is exciting, but you have to dot your i’s and cross your t’s. Some of those i’s and t’s are based on ensuring that you really enjoy the fun stuff in retirement. Whatever questions, thoughts, or concerns that you have, let us know how we can help! We are here to help you realize your possibilities in retirement!

Kelly Campbell

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Vinyl Is Final? It Can Be!

Storage Tips to Keep Your Records Safe

In addition to offering great sound, records provide a cozy aesthetic. Before you throw your records on any old shelf, consider these expert tips for vinyl storage and protection! Cover Up Vinyl is very fragile. To prevent scratches or damage, store your vinyl records in plastic sleeves. Outer sleeves are great options for older record cover art or those that you don’t listen to often. Stay Upright One vinyl record only weighs about 5 ounces, but when stacked on top of each other, that weight adds up to a lot, creating great pressure for records at the bottom of the stack. Instead, store your records upright like library

books or in a cascading pattern. Maintain Temperatures

Keep your home’s humidity low and heat levels below 70 degrees F to protect from warping. Furthermore, a wooden shelf will attract less dust and static electricity. Light can also be damaging to records, so store your vinyl away from windows and UV lamps.

For more recommendations, contact your local record shop!

Would you like to be a Campbell Wealth Management Ambassador? Would you like access to exclusive events?

Healthy Cooking Class Tuesday, March 8, at 3 p.m. Downsizing and Organizing Class Tuesday, April 12, at 3:00 p.m. To register, email us at [email protected] Wellness & Wisdom Series

All you have to do is refer a friend.

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.

Call Us Today (703) 535-5300 • 3

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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A Spring Message

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Preparing for Uncertainty in Retirement

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Vinyl Storage Solutions to Protect Your Aesthetic

Upcoming Events

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Packing Tips to Save Your Back, Wallet, and Sanity

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.

Leaving on a Jet Plane? 3 Essential Packing Tips

personal item. The dimensions allowed vary by airline, but the general rule of thumb is that the personal item needs to fit under the seat in front of you. Don’t bring a small purse or a laptop bag when you can take a large tote or backpack. With the extra room, you can avoid checking another bag. Never check essential items. Lost luggage is the worst way to start a vacation, but it happens. If your luggage is misplaced, you probably won’t get it back that same day. So, you need to pack all essential items, like prescription medications or glasses, in your carry-on bag. Some experts even recommend tossing an extra shirt or pair of underwear in your carry-on in case your bag gets lost. You’ll be glad to have them if something goes awry. Packing smart will make for a less stressful journey. You can kick back, relax, and enjoy the trip knowing that everything you need is right there in your suitcase, and everything you don’t need is safe at home.

Many people are considering traveling this spring for the first time since the pandemic started. A lot has changed since 2020, but packing for vacation remains a hassle, and baggage fees haven’t gone anywhere. Here are some essential tips to keep your load as light as possible — physically and mentally. Make a list . It’s just as easy to forget things as it is to overpack. Solve both problems at once by creating a packing list in advance. Consider in detail what you’ll need, and put it in writing. As each item gets added to the suitcase, check it off. Writing everything down creates a system to prevent leaving anything behind. And when it’s all on paper, you’re more likely to notice that you probably don’t need that many pairs of sandals.

Use your personal item for extra storage. Airlines generally allow travelers one carry-on bag and one

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