Wolf Retirement Navigation February 2018

Wolf Retirement Navigation February 2018

904-232-8760 www.wolfretirement.com MONTHLY RET IREMENT NAV IGAT ION

February 2018

READY FOR THE WORST The Value of Preparation

What a winter! It’s been years since I found myself reaching for a scarf. I moved here from up north; and during my first winter down here in Florida, I remember scoffing at anyone who complained about how cold it was. When you grow up in a place where the winter lows average less than 30 degrees, celebrating Christmas in 50-degree sunshine is a dream come true. Of course, I soon got used to the hot summers, and my tune changed drastically the next year when anything below 60 was “freezing.” This year, we got a taste of the winters I remember as a child. The “bomb cyclone,” aka “Winter Storm Grayson,” stretched from Maine all the way down to here in the Sunshine State, and it brought some freak winter weather. Tallahassee even saw a measurable snowfall for the first time in While we should always hope for the best, the smartest move anyone can make is to plan for the worst-case scenario.

28 years! Stranger still, the sudden cold snap caused iguanas to rain from the trees when their body temperatures lowered so drastically they were literally frozen — granted, most of them warmed up in the sunlight and scurried away soon enough. I wouldn’t go so far as to say the winter weather caused mass panic, but there’s no doubt many Floridians weren’t prepared to handle the sudden cold. Who else found themselves wishing they had a thick jacket and some gloves stashed away in the hall closet? The unexpected winter reminded me of the value of preparation. Being prepared is a mindset I encourage in retirement planning. A healthy dose of optimism is good for the soul, but don’t let it blind you to the reality of your situation. While we should always hope for the best, the smartest move anyone can make is to plan for the worst-case scenario. When times are good, like they are in the market right now, we can forget how easily the tides can turn. But many who were preparing to retire in 2007 can tell you how great things seemed then and how much they lost in 2008. A lot of people spent the last decade trying to rebuild their portfolios to where they were pre-2008. Many people had to put their retirement plans on hold, except for those folks who prepared well in advance for the inevitable “worst-case scenario.”

History tends to repeat itself. Just because snowfall is uncommon in Florida doesn’t mean it has never happened before or that it will never happen again. When a cold snap is forecast on the weather report, those who already have a jacket are better off than those who have to run to the store, paying extra due to the sudden demand of warm clothing. Or worse, those who have to go out in their T-shirt still because they couldn’t get the winter coat soon enough. When it comes to retirement, if you don’t prepare for the “downfall,” you’ll be a lot worse off than not having a jacket during a snowfall. The ice has long since melted, but I encourage you to remember what it felt like not to be ready for the cold spell. Make sure you’re doing everything you can to prevent that feeling from extending to your retirement plans.

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–Adam Wolf, CPA, CFP ®

www.wolfretirement.com | 1 a. Investment Advisory Services offered through Retirement Wealth Advisors, (RWA) a Registered Investment Advisor. Wolf Retirement Navigation LLC and RWA are not affiliated. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision. This information is designed to provide general information on the subjects covered. Pursuant to IRS Circular 230, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Wolf Retirement Navigation LLC and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney. Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurer. Any comments regarding safe and secure investments, and guaranteed income streams refer only to fixed insurance products. They do not refer in any way to securities or investment advisory products. Fixed Insurance and Annuity product guarantees are subject to the claims-paying ability of the issuing company and are not offered by Retirement Wealth Advisors. 2 LOCATIONS TO SERVE YOU! Jacksonville & Fleming Island.

Be Social Media Savvy and

STAY CONNECTED

Check a Source Before Sharing Just because something is online, that doesn’t make it true. It’s just as easy for someone to post a lie about a celebrity or politician as it is for Judy to post about her dog. If you read a news story that gets a rise out of you, double check the facts before you hit share. Googling the article’s claims and main points will bring up similar articles — if those claims are true. This will help you determine if it’s breaking news or a big hoax. Just 10 years ago, snail mail and expensive long-distance calls were the only way to keep in touch with the people we couldn’t see every day. Thanks to social media, we can stay connected to our loved ones around the world. Now that’s something that deserves a like.

It’s time to break the bad

contact with in one centralized location. Here are a few things to remember for keeping your digital friendships enjoyable. Social Media Isn’t a Diary No one wants to see a feed clogged with posts from the same person. Your friends might like reading about exciting vacations or days with the grandkids, but they don’t need updates about your wait in line at the grocery store. Sharing TMI (too much information) will put you on the fast track to losing friends. It’s Okay to Hit Unfriend Likewise, if you find yourself sick of Judy’s moment-by-moment updates of her dog’s kidney stone, feel free to cut ties. That might entail unfollowing (you remain friends, but no longer see their posts in your feed), unfriending, or blocking a person entirely. There’s no reason to keep in touch with someone whose very profile picture makes you angry.

news to your grandkids: Social media isn’t just for them. A study from the Pew Research Center found that 47 percent of baby boomers are using social media. Facebook in particular proves to be an excellent resource for adults moving through the later stages of life. This social media platform helps keep you in touch with friends, family

members who live far away, and workplace acquaintances who you don’t see during retirement. Social media can help you gather the people you want to keep in

THANK YOU!

Tune in every Sunday for the “Sunday

TUNE IN!

Morning Money Report” on CBS 47 at 9:05 a.m.

for financial news and retirement tips in just two minutes.

Tune in every Monday from 11:00 a.m. to noon for “4 Your Money” on River City Live on Channel 4, The Local Station. Re-airs Mondays at noon on Channel 17, WCWJ “The CW,” and again on Tuesdays at 7:00 a.m. on “The CW.” Tune in to NBC 12 on Tuesdays for Jacksonville’s Retirement Coach, Adam Wolf, on First Coast Living, from 11:00 a.m. to noon and again from 2–3 p.m.

Every day, we’re grateful to our clients who continue to trust us as we help them navigate the road to financial security. It means a lot when you introduce your friends and family to us so we can help them, too! Special thanks to: Linda P.

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PLANNING FOR RETIREMENT?

Here’s What the New Tax Plan Means for You

Last December, a new tax bill was signed into law, ushering in the most significant tax changes our country has seen in 30 years. While the new tax plan will not impact the current tax season, we can see changes on the horizon, and some elements of the new tax law are already being felt today. Employers have modified their withholdings in order to adapt to the new tax brackets, and workers will see that reflected in their paychecks. For most Americans, the greatest impact they will feel from the tax changes will be caused by the new tax brackets. While there are still seven tax brackets determined by income, the marginal tax rate has been greatly lowered for most of these brackets. For example, this will be the last year a married couple with an income of around $50,000 will be taxed at 10 and 15 percent. The new tax law drops their rate to 10 and 12 percent. Three percent may not sound like much, but it can result in thousands of dollars in savings. These lower rates can go farther than just putting more money in your pocket — they can also impact the way we plan for retirement. Today, Roth conversions are more beneficial than ever, thanks to the overall lower rates. If you’ve put off converting an IRA to a Roth IRA now is the time to convert.

Also Roth IRAs and Roth 401(k)s offer tax-free earnings since you pay taxes on the money you put into the account, not what you take out. This means when you’ve reached retirement, you can enjoy tax-free distributions to help maintain your dream lifestyle. Currently, the maximum Roth IRA contribution is $5,500 for those under 50 and $6,500 for those who are 50 and older. However, if you have a traditional IRA, you

can convert it into a Roth IRA with no income limits. While Roth conversions are certainly not a one-size-fits-all solution, thanks to the lower tax rates, Roth conversions have the potential to help many retirees enjoy a fulfilling retirement. Curious about how the new tax plan will impact your retirement strategy? Give us a call at 904-232-8760! We’ll be happy to chat about the changes and help you determine the best way to plan for your retirement.

Sudoku

Sure, your showoff pal can wrap a tater tot with a piece of bacon and call it “The Daniel,” but you can take it a step further. Prepare a couple batches of these savory snacks for your Super Bowl party or the next family get-together. Snag a few for yourself before they disappear!

INGREDIENTS

• 2 cups frozen tater tots, defrosted • 1 ounce sharp cheddar, cut into 1/4-inch squares

• 4 slices bacon, quartered • 1/4 cup brown sugar • 1 tablespoon chopped parsley

DIRECTIONS

1. Heat oven to 400 F. Line a baking sheet with parchment paper and set aside. 2. Press a cheese square into each tot, then wrap with a piece of bacon. Dredge each tot in brown sugar. 3. Place tots seam side down on baking sheet. Bake for 20–25 minutes, using metal tongs to turn halfway through. 4. Garnish with parsley, if desired, and serve immediately.

Solution

(Recipe inspired by ThisGrandmaIsFun.com.)

2 LOCATIONS TO SERVE YOU! Jacksonville & Fleming Island.

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904-232-8760 www.wolfretirement.com 4230 Pablo Professional Court Ste. 101 Jacksonville, FL 32224

INSIDE

• Snow Angels in Jacksonville PAGE 1

• Are You Committing a Facebook Faux Pas? PAGE 2

• Thank You! PAGE 2

• Will the New Tax Plan Change Your Retirement? PAGE 3

• Bacon-Wrapped Tater Tot Bombs PAGE 3

• The Most Romantic Destinations on Earth PAGE 4

The Best

Valentine’s Getaways TO FANTASIZE ABOUT

Tips forYourTripBack inTime

Valentine’s Day is for fancy dinners, heart-shaped boxes packed with subpar chocolates, and fantasizing about the magical places you and your beau would have escaped to — if only you had the PTO. So, grab a glass of bottom-shelf cab sauv, cuddle up next to your special someone, and try to make them feel bad for taking you to Chili’s instead of whisking you away to one of these picturesque fantasy lands. Udaipur, India These days, meandering through the cobblestone streets of Paris with your loved one is très passé . All the real high- rolling romantics are migrating southeast to the famous Oberoi Udaivilas hotel in western India. Set in a traditional Mewari palace, visitors will feel like royalty as they stroll around the labyrinthine gardens that surround the elaborate cream-colored structure. Travelers can relax beside one

of the many glassy pools sprinkled throughout the estate, all of which are enthusiastically attended by an unparalleled service staff. Positano, Italy

The Maldives From a water villa smack dab in the midst of the glassy, ultra-blue Indian Ocean, you and your main squeeze can enjoy utter seclusion. Sip champagne in the shade of a palm overlooking an otherworldly sunset or get a little more adventurous, strap on a mask, and check out the abundant aquatic wildlife. Many hotels in the area even include access to an array of boats, perfect for your own private excursion along the mild waves. Of course, you could also always just stare, dumbfounded, into the horizon, wondering how such a place could actually exist on Earth.

More than perhaps anywhere in the world, this place looks like it was lifted straight from a sappy romance novelist’s imagination. You and your partner can kick back on a balcony overlooking the entirety of this seaside town, taking in the century- old multicolored Italian architecture perched precariously on the verdant mountainside. Too small to accommodate swarms of tourists, it’s the perfect place to while away the hours ambling from shop to shop, sampling the delicious local cuisine, and maybe taking a dip along the 300-meter beach.

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