Retirement Planning Strategies - December 2020

Retirement Planning Strategies - December 2020

Give us a call! 303-922-4304 www.AnnVanderslice.com Hours: 8 a.m. to 5 p.m. M–F

DECEMBER 2020

HEALTHY, WEALTHY,

&Wise

1 Denver Federal Center Building 45, Entrance E-9, Room 1050 Lakewood, CO 80225

ALL TRADITIONS START SOMEWHERE The Holidays Can Be What We Choose to Make Them

If nothing else, 2020 has been a year when normalcy, familiarity, and tradition have been tested in nearly every sense of the word. And as we head into the holiday season, that fact will only become more apparent than it’s ever been. Holidays are built around tradition. They bring us together and are always wrapped in the warmth of knowing exactly what this season brings. So this year, how can we gather with the people we cherish if we really can’t gather at all? How do we make our holidays meaningful if it feels like they’re losing much of their meaning? At Retirement Planning Strategies, we’re really going to miss our annual holiday cookie exchange event. If you’ve ever attended, you’ll know how much fun it is; if you’ve never attended, there’s a good chance you’ve heard about it from someone who has. Every December for the past nine years, we’ve hosted a huge event complete with a sponsored craft show, live entertainment, catered food, and, of course, thousands of fresh baked cookies ready to decorate and take home at the end of the day. It’s something we always look forward to, and this December would have marked a decade of doing it.

health and safety of those who would attend are just too important for us to jeopardize, so we’ve had to make the difficult decision to call it off. It really is heartbreaking, and for a while, it felt like a little bit of Christmas had been stolen from us. It even left me feeling like maybe Christmas wasn’t worth celebrating this year at all. But then I took a moment to really think about it. I realized traditions like that don’t just appear out of thin air — they’re built. Tradition is crafted and carried with us over years and decades. It starts from nothing and becomes everything. It’s what we choose to make it. So, why not use this opportunity to start creating some brand-new traditions? Retirement Planning Strategies may not be doing its cookie exchange, but now we have a chance to figure out how to show our appreciation for one another, our clients, and our community in other ways. We have a chance to create an exciting new tradition. At home, I may not be hosting the same Christmas party I always do, but I already have some pretty great plans for how a few of us can gather together outdoors — in winter no less! — and try something entirely different than in years past. And I’m excited about

it. Those are just two examples of places where new tradition has a chance to blossom that may not have otherwise happened if not for this unusual year. Opportunity can arise from change if we’re willing to recognize it. Celebrating the same way does lend familiarity and consistency to our lives, things many of us are missing these days. But finding new ways to celebrate lends creativity, passion, and gratitude to our lives instead, and those are things we perhaps need even more. If you can’t gather physically with family, you have the opportunity to create a hilarious new Zoom call tradition. If you have young children, you can make this a unique celebration they’ll never forget. If you want to celebrate this holiday season in any way, then you have a chance to think outside the box and discover new ways of easing stress and tension to make way for warmth and cheer. This is a wonderful chance to invent brand-new traditions you and your family may take part in for years to come. That fact makes this a pretty incredible holiday season after all.

But it may come as no surprise that this year, it’s just not a feasible event. The

–Ann Vanderslice

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Snow Shoveling Hacks Everyone loves the snow — at least until it settles on the driveway, a barrier between your car and the open road. Shoveling snow off your driveway and walkway can be so tedious that you might be tempted to just hope and pray that the sun melts it all before you have to shovel it — which, of course, almost never happens. However, there are a few tools and methods you can use to clear the snow away that are faster than shoveling for hours on end. Check them out below.

HOW TO SPEND LESS TIME CLEARING YOUR DRIVEWAY EVERY WINTER

if you combine 1 teaspoon of dish soap, 1 tablespoon of rubbing alcohol, and 1/2 gallon of water in a bucket, you can spread the mixture over the ice and melt it away, much like the salt you see on major roadways. BE PREEMPTIVE WITH SOME TARPS. Did you see on the weather forecast that your area is about to get some major snowfall? Throw down some tarps on your walkways and driveway. Then, after the snow stops falling, lift the snow off to the side, and your walkways will be as clear as if it hadn’t snowed at all. BLOW THE SNOW AWAY. If you’re lucky enough to be clearing your driveway while the snow is still powdery, rev up your leaf blower instead of breaking out your shovel. You’ll be able to clear your driveway in a fraction of the time it would take to shovel and dump it off to the sides of your driveway.

CREATE A NONSTICK SHOVEL. Wet, partially melted snow might work well for packing snowballs, but it’s a pain to shovel. It has a tendency to stick to the scoop and not let go — unless you spray it with some common household cooking spray. This will make it a lot easier for the snow to slide off your shovel. Just remember to wipe your shovel down afterward! MAKE YOUR OWN SALT ALTERNATIVE. Sometimes you start shoveling, only to find that the snow concealed a layer of ice that you can’t scoop up with your shovel. However,

With one (or a few) of these methods, you can clear your driveway and enjoy the fun side of snowfall in no time!

Why It’s So Important to Know and Understand Your Pension Plan A CAUTIONARY TALE

It’s so important to keep track of your own retirement information and to make sure you understand it. Many systems attempt to automatically track how your retirement is calculated and processed, but as with anything, flaws in those systems can slip through the cracks. We recently worked with a client who fell victim to one of these flaws. For the sake of anonymity, we’ll refer to this client as Claire. Claire served on the Washington, D.C., police force for several years before moving into a different federal government position. The new position isn’t a necessary detail, but what is necessary to know is that while the D.C. police is a federal entity, its pension setup operates differently than other federal agency pensions. When Claire retired in 2017, the Office of Personnel Management (OPM), which is responsible for processing retirement calculations for federal employees, got her paperwork and payments squared away without issue — or so she thought. For 2 1/2 years, Claire was receiving the retirement payments she had been expecting as planned. That’s when she got a notice from OPM that they had miscalculated her pension. The result of that miscalculation? Claire now owed them $53,000 . Needless to say, Claire was shocked. We were shocked, too, when she came to us for help. It turns out that when Claire had worked for D.C. police, she had been placed in a special retirement system

for that entity. But when she left the force and went to work for a different federal agency, OPM never transferred Claire’s information into that organization’s retirement system. And no one caught that mistake for 35 years. The natural thought is that Claire can’t possibly be held accountable for this egregious error. It was an internal issue that OPM caused and never corrected. We agree — this isn’t Claire’s fault. But this is a prime example of just how important it is to be aware of the information and money you’re receiving from the government, and, more importantly, to understand what you’re receiving and why. If something is ever confusing, incorrect, or just feels wrong, you must reach out for help. That’s where Retirement Planning Strategies comes in. After carefully combing our way through all the reports and payments sent to Claire by OPM, we were able to catch a few miscalculations. We helped Claire lower her debt of $53,000 to a level that was a little more manageable to start paying back and figured out a system that works for her. It’s not going to be easy, but it will be doable. We don’t share these kinds of stories frequently because we’re not here to fill anyone with dread. But we wanted to share this cautionary tale to demonstrate just how important it is to stay in- the-know where you can and ask for help where you can’t. If you have questions about anything, or if something just doesn’t look or feel right, you can always turn to us for help.

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Three Gift-Giving Tips

THAT WON’T KILL YOUR SAVINGS

THINK BEYOND STORE-BOUGHT OR EXPENSIVE ITEMS. Sure, everyone wants this holiday season’s “it” item, but sometimes the best gifts don’t even come wrapped under the tree. Instead, look to your own talents as a clue to what you should give. If you’re a great crafter, create something unique for the people on your list. If you can offer the gift of time, provide a free night of babysitting for your friends with kids or even a chore or two you know you could provide. These gifts have a bonus factor: Recipients love the gift when they open it, and they love it when they get to use it! SET A BUDGET — AND STICK TO IT. Setting a holiday budget ensures you only spend what you can afford. It also narrows down your search. If you choose to buy your neighbor something, but they aren’t your top priority, set their budget at a lower level. If you have a sibling who has had a rough year and you’d like to make their holidays a little brighter, bump their budget up. This narrows the focus of what you’re looking for so you don’t stumble into something you can’t afford. Ultimately, it’s the spirit of giving during the holidays that makes them so rewarding. With a little ingenuity, you can be generous and avoid the stress of excess debt come January.

Ah, the holidays. It’s a time of sweet treats, family, and giving back — and sometimes giving a little too much. When it comes to the perfect holiday gift, many people spend too much money. The average American spends nearly $1,000 on gifts during the December holidays alone!

It is possible to cut back and make it to January without major debt. Here’s how.

CHECK YOUR LIST — TWICE! The list is going to be your secret weapon to tackling the holidays with your savings still intact. Start by writing

down the name of every person you’d like to get a gift for. Now, with the exception of your immediate family members, narrow the names down to your top five — top ten if you’re really popular. Now, place the names of the people who didn’t make the cut into a second list. If you still feel the need to do something for them, send homemade cookies or a handwritten note instead of purchasing something. This limits how much you actually have to spend!

BRAIN! Train Your

Russian Tea Cakes

INGREDIENTS

Inspired by FoodAndWine.com

• 2 cups flour • 1/4 tsp salt • 1 cup pecans or walnuts, finely chopped

• 1 cup butter, at room temperature • 2 tsp vanilla extract • 1 cup powdered sugar, sifted (plus extra for rolling cookies)

DIRECTIONS

6. Bake for 20 minutes or until edges are lightly browned. 7. Let cool slightly, then remove cakes

1. Preheat oven to 325 F. 2. Using a mixer, cream butter in a large mixing bowl. 3. Add the vanilla, then gradually add sugar, beating until light and fluffy. 4. Sift flour, measure, then sift again with the salt. Add gradually to the butter mixture, then add nuts and mix well. 5. Shape dough into 1-inch balls. On an ungreased baking sheet, place tea cakes 2 inches apart.

from the baking sheet and roll in powdered sugar. Place on a cooling rack to cool completely.

8. Before serving, roll cookies in powdered sugar again.

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PO Box 260787 Lakewood, CO 80226-0787

This does not constitute an offer to buy or sell any security. Investments in securities are not suitable for all investors. Investment in any security may involve a high degree of risk and investors should review all "Risk Factors" before investing. Investors should perform their own due diligence before considering any investment. Past performance and/or forward-looking statements are never an assurance of future results. Investment products, Insurance, and Annuity products are not FDIC Insured/Not Bank Guaranteed/ Not Insured by any Federal Government Agency/May Lose Value. Securities offered through Cabot Lodge Securities, LLC, (“CLS”) member FINRA/SIPC. Advisory services offered through CL Wealth Management LLC, (“CLW”) a SEC registered Investment Advisor. Cabot Lodge Securities, LLC and CL Wealth Management, LLC (“CLW”) are affiliated entities. Retirement Planning Strategies is not controlled by or a subsidiary of CLS or CLW and is an unaffiliated entity.

issue INSIDE THIS

A Chance to Create New Holiday Traditions PAGE 1

Hate Shoveling Snow? Try These Hacks

A Real Client Case That Will Shock You PAGE 2 3 Fool-Proof Ways to Pay for the Holidays Without Going Broke PAGE 3 The Surprising History of the Snowman PAGE 4

NOT JUST A CORN COB PIPE AND BUTTON NOSE The Surprising History of the Snowman

Why May Is the Best Month to Start THE MIRACLE OF 1511 In Brussels in 1511, during six weeks of subzero temperatures called the “Winter of Death,” the city was adorned with hundreds of snowmen. The spectacle told stories on every street corner — some artists, including 19-year-old Michelangelo who, in 1494, was commissioned by the ruler of Florence to sculpt a snowman in his mansion’s courtyard. Building a snowman is one of the most picturesque winter activities, which is why snowmen have become a wintertime cultural icon. A snowman appeared on the very first postcards, was the subject of some of the earliest photos, and even starred in silent movies. Frosty may be a happy snowman now, but his ancestors have a much more varied — and sometimes dark — history. THE MIDDLE AGES Snowmen were a phenomenon during the Middle Ages. They were constructed with deep thought and great skill because, during a time of limited means of expression, snow was a free art supply that literally fell from the sky. These artistic feats were popular winter attractions for well-to-do couples who wanted to get their fix of temporary art. Snowmen were often created by famous

political and some demonstrating anger with the church, many very risque. For the people of Brussels, this Miracle of 1511 was a defining moment of artistic freedom, but when spring came and the snow thawed, they were left with damaging floods. THE SCHENECTADY MASSACRE Not all snowmen have an innocent history. In 1690, then Fort Schenectady in upstate New York was home to a remote Dutch settlement, which faced the constant threat of attack. Soldiers guarded the gates at all times because they were frozen open. During a particularly severe blizzard, they left a pair of snowmen to

protect the gates while they sought shelter. That’s when 200 French Canadian soldiers and Native Americans approached. Unfazed by the snowmen, they ruthlessly invaded the settlement. Building a snowman seems like a simple and charming activity, but after learning about its surprising history, you might find those piles of snow seem a little more complicated and a lot more meaningful than before.

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