Capital Advisory Group - March 2022

Capital Advisory Group - March 2022

THE WEALTH ZONE

March 2022

119 Old State Rd., Ellisville, MO 63021

CapitalAdvisoryGrp.com

CLEANING UP THE MESS How to Avoid a Chaotic Tax Season

Fire extinguishers are useful tools to have in your home — until they fall off your wall and spray everywhere. If it wasn’t obvious, I’m writing from experience. Years ago, the fire extinguisher in our laundry room fell, popped open, and sprayed across the entire room. There wasn’t an inch of space in the room that wasn’t coated. We had piles of dirty and clean clothes victimized by the extinguisher, and we spent days cleaning out that room. Whenever we have a spill or spring-cleaning season rolls around, I think about how grateful I am that the mess is not as bad as fire extinguisher-gate. It’s ironic that tax season lands in the middle of the time of the year when we clean out our junk drawers, organize Have You Heard Us on the Radio Yet? Tune in to KTRS 550 AM radio every Saturday from 3–4 p.m. as Jeff Zufall and Josh Gilbert discuss all things taxes and financial planning. From innovative strategies to optimize your benefits to breaking down proposed and current legislative measures, Jeff and Josh guide you through the most pressing topics in the financial world today.

our closets, and create extra space in the garage. In a lot of ways, tax season is similar. For some, it’s organized; for others, it’s messy. We have worked with many clients who, in the early stages of working with us, had a lot of tax work to clean up. Maybe

they avoided paying taxes, or they didn’t realize they were recording something improperly. Whatever it is, tax season is not immune to the mess. The stimulus checks we all received in the past two years are a great example of this. Many people didn’t realize they had to be exact when recording how much they were sent. A nice round number like $1,000 just isn’t going to cut it. You have to be precise and clear on your tax forms. But tax season messes do not have to be as bad as the fire extinguisher falling off the wall. (Nothing has to be that bad.) This is why we utilize our tax organizer. It allows us to seamlessly receive the correct information we need from you in one document, streamlining the process and preventing major disasters. Our goal is to make the tax process as simple as possible, allowing you to protect more of your wealth and sleep easier at night. There is no bad luck here, because we help you face the mess. We have always been able to untangle it.

On your end, it’s important to create a storage system that allows you to properly track files should you need them during tax season or an audit. As a reminder, you only need to keep paperwork for seven years past the date of issue or past its expiration of use. Afterward, it’s time to shred the document. (We can help with that! From 10 a.m. to 1 p.m. on Saturday, April 23, we’re hosting our annual shredding event. Bring your documents in, and we will ensure they are shredded!) Remember, tax season doesn’t have to be messy, anxiety-filled, or tense. At Capital Advisory Group, our goal is to ensure you have the confidence and knowledge to approach tax season with more organization and control. We conquer the “bad luck” and the mess for you.

You’re on your own when it comes to fire extinguishers, though.

-Jeff Zufall

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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 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. Leaving on a Jet Plane? 3 ESSENTIAL PACKING TIPS

Sell Happiness Without Draining Yourself

HOW TO MAKE SALES FROM THE HEART In life, you might feel pressured to smile even when you’re unhappy, and the same is true when trying to please customers in your business. As the best marketers know, happiness can’t be bought, but

it can be sold. Selling happiness and fulfillment is something companies do every day — and for genuine, great reasons, too.

But how do marketers display those positive feelings all the time? How do you remain an effective leader, fulfilled business owner, and ambitious individual when imposter syndrome strikes? Don’t ‘trade’ your happiness every time. It’s hard to approach sales or marketing with a generous attitude if you’re already giving away a lot in your personal life. Do you ever exchange your money for temporary happiness, like a car that you can barely afford? What about spending too much time on certain tasks you dislike or with a group of friends you don’t really care for? Make conscious decisions to trade your money, time, and effort for happiness — and nothing less. That means cutting out unhealthy decisions that might’ve been useful coping mechanisms at one point of your life but are no longer necessary to help you thrive. Selling happiness starts with possibility. Even when you and your employees don’t feel 100%, remember that happiness starts with a common truth: Anything is possible. When you’re happy, it can feel like the world is full of opportunities. That’s something you want to share with your customers, whether through friendly one-on-one interactions or through your marketing campaigns. Give customers happiness, and give yourself purpose. When a business sells happiness, it doesn’t always directly convert into happiness for anyone else. Maybe they’re not in need of your service or product and simply aren’t receiving your messaging the same way they will later. However, when you shift your focus from selling to providing people with a sense of happiness and/ or peace, you might surprise yourself with how meaningful and fulfilling your company’s content, marketing, and overall mission will feel for you and your team. Happiness can’t be bought, but it can be sold effectively to make the world a better place. We hope these tips will help make you and your team become more fulfilled marketers!

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Accounting for Crypto What You Need to Know This Tax Season

Cryptocurrency is quickly becoming a popular investment, but it has changed a lot since its inception more than 12 years ago. Many people enjoy the ease of transfer, security, growth, and diversification of crypto; however, as of 2014, the IRS has cracked down on use of this technology.

This isn’t always readily available through cryptocurrency transactions.

However, that doesn’t matter to the IRS. Much like ignorance of the law is not a defense in criminal court, the IRS says you have to report an income or losses from crypto, regardless of whether you receive a form or not. (1099s will be required for the 2023 tax year.) Capital Gains Tax Still Applies Wherever you generate a profitable trade or purchase, you are required to pay capital gains taxes on that transaction. The same goes for cryptocurrency, and the rules don’t change between each. This is perhaps one of the easiest rules to keep in mind. Capital gains are taxed — regardless if the transaction is crypto or “real.” A Crypto-Adjacent Reminder: The IRS is now requiring businesses that utilize platforms like Venmo or PayPal to pay taxes on these transactions if they reach $600 or more throughout the year.

As the world of cryptocurrency continues to shift and evolve, here’s what you need to know about its effect on this tax season.

Answering the Question Every taxpayer will be asked if they received, sold, sent, exchanged, or in some other way used cryptocurrency in the past year when filing their taxes. If you did any of these actions in the past year, you are required to check “yes.” However, there is a small, new caveat to this: If you used physical currency (sometimes also called “real” currency) to purchase the cryptocurrency, you do not have to answer yes. We’re happy to help you clear this up if you have any questions. No 1099? Not the IRS’s Problem Whenever you receive additional income outside of your employer or business, you typically receive a Form 1099 outlining that income.

If this article sparked any questions regarding your virtual currency habits, please contact Capital Advisory Group today.

Achieving financial security and success doesn’t always have an easy answer. Our team at Capital Advisory Group is dedicated to helping you protect your wealth, and while doing so, you may have the following questions: • What are the rules when investing in cryptocurrency? • Should I retire during a high inflationary period? • Which form of investing is best for me — active or passive? • What do I need to know if I’m retiring this year? If you are curious about any of the above questions, please call Capital Advisory Group today at 636-394-5524! Have Questions? We Have Answers!

Easy March Madness Chili Inspired by MyRecipes.com

Cheer on your favorite team and chow down in minutes with this easy chili recipe!

Ingredients

Directions

• 2 lbs ground beef • 2 tbsp chili powder • 1 tbsp Creole seasoning • 1 tsp ground cumin • 2 16-oz cans diced tomatoes • 2 16-oz cans small red beans • 2 8-oz cans tomato sauce

1. In a deep pot, brown the beef, stirring often. 2. Once beef is cooked, add chili powder, Creole seasoning, and cumin, cooking for 1 minute. 3. Stir in diced tomatoes, beans, and tomato sauce and bring the mixture to a boil. 4. After the mixture boils, reduce the heat to low and let chili simmer for 15 minutes. 5. Serve with toppings of choice, like cheese, sour cream, or chives.

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Inspired by GoodHousekeeping.com

119 Old State Rd. Ellisville, MO 63021 CapitalAdvisoryGrp.com

PRST STD US POSTAGE PAID BOISE, ID PERMIT 411

ISSUE INSIDE THIS

page 1

Taxes Don’t Have to Be Messy

Make Sales From the Heart Without Draining Yourself

page 2

Packing Tips to Save Your Back, Wallet, and Sanity

page 2

page 3

3 Crypto Rules You Need for Tax Season

page 3

Easy March Madness Chili

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3 Financial Lessons From Mr. Rogers

Won’t You Be Smarter With Your Finances?

3 LESSONS FROM MR. ROGERS

For 33 years, Mr. Fred Rogers entertained millions of children, teaching them valuable lessons and neighborly skills on “Mister Rogers’ Neighborhood.” Among the many lessons Mr. Rogers taught, one that you wouldn’t expect, is financial security. While Fred Rogers never directly discussed money management, today you can use his lessons as inspiration for a wealth mindset. And March is the perfect time to do so; this neighborly giant was born this month. Tough Conversations Have Value Despite being a children’s show, Mr. Rogers wasn’t afraid to tackle big issues like race and divorce. His show created an opportunity for children to express their feelings in a way no other adults at the time would allow them to. When it comes to your finances, sometimes

tough conversations are necessary, and avoiding them only exacerbates the problem. Whatever the issue is, having the conversation with your spouse and/ or a trusted financial expert is better than avoiding it. Investments Are Worth It In 1969, Mr. Rogers went before the U.S. Subcommittee on Communication to testify on behalf of PBS. His show had been on air for one year, but Mr. Rogers

leaders just one year into “Mister Rogers’ Neighborhood” can teach us to be wise with our investments and always look for its true value — just as Mr. Rogers did with PBS.

Mistakes Happen Mr. Rogers’ enduring message was

acceptance. He argued that everyone in every community should be accepted, regardless of who they were or what they had done. He fought for compassion and kindness in a world that was increasingly cutthroat and demanding. Through it

knew it had tremendous value. Stripping PBS of $20 million to fund the Vietnam War effort would only hinder that cause. His speech was what protected PBS from

all, he taught forgiveness. Making financial decisions is no different. You have to accept the mistakes or miscalculations so you can move forward. Dwelling on mistakes only creates division, and when it comes to your finances, this can stall your growth.

losing that $20 million. His bravery in speaking before congressional

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