Wolf Retirement Navigation - January 2020

Wolf Retirement Navigation - January 2020

RET IREMENT NAV IGAT ION

MONTHLY

4230 Pablo Professional Court Ste. 101 Jacksonville, FL 32224

4711 US Highway 17, Suite C-5 Fleming Island, FL 32003

As seen on:

January 2020

To Protect

Why I’m Here and What I Do

A new year brings new life and energy! I turned 42 years young last month. 2019 was a difficult year for me personally. With the difficulty now behind me I am energized and excited for 2020 for many reasons, including focusing on my purpose — why God put me on Earth. All my life, my job has been to protect folks, I just never put protecting people and my purpose together. That’s my purpose and my passion. When I was a kid playing football, I was on the offensive line, protecting the quarterback or the running back. Even when I was off the field, I was there for my friends when they needed someone to talk to or got into trouble. I chose retirement planning because I recognized this was a career where I could keep protecting people. Not having enough money is a scary thought, and the idea of running out of money in retirement can keep people up at night. An uncertain stock market, the possibility of another recession, increased taxes, and health care costs all contribute to this fear. As a retirement planner, it’s my responsibility to look at these risks, build plans that answer my clients’ needs, and help people enjoy their retirement without fear. Six years ago, I started Wolf Retirement Navigation so I could make sure my clients received the highest level of care. Running my own business meant I didn’t have to 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

things you’re actually good at. That’s why I prefer option two: surround myself with the right people to accomplish whatever needs to get done while I concentrate on what I am best at — building smarter retirement plans to protect clients leading up to and through retirement. your skill set, especially if you’re running a business. Great leaders aren’t the folks who can do everything themselves; they’re the ones who can bring together the best people to get the job done. This year, I’m putting a big focus on getting WRN running at its highest level, which means you’ll see some changes around our offices that will benefit clients. to see more of her in review and service responsibilities. She is also in the process of receiving her Certified Financial Planner designation, the premier financial planning designation in our industry. We’ll also be bringing on more team members on the service side to better meet the needs of our clients. Those new faces will be introduced as we move forward. Additionally, I’ll strive to be less in control of everything, and I will assume more of a leadership role, utilizing It’s always a prudent idea to surround yourself with people who complement These changes will include advancing Eileen Ybanez to an advisor role, so you can expect 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. Continued on Page 3 ...

I chose retirement planning because I recognized this was a career where I could keep protecting people.” “

take orders from someone else about how my clients should be treated. However, in my line of work, while you might be great at building plans and meeting with clients, that doesn’t mean you’ll be great at running a business. I believe I’ve done a pretty good job so far, but I know I can do even better because there is always room for improvement. That’s why I am focused to improve the business to better suit our clients, team members, and my life. Focusing includes continuing to attend business and leadership conferences, such as the ones I attended at the end of last year, in order to improve many aspects of Wolf Retirement Navigation. When you realize you’re not great at something that needs to get done, you have two options. First, you could become a novice yourself, learning just enough to get by. A lot of people turn to this option, but taking this path will almost always keep you from dedicating your full energy towards the professional before making any investment decision. This information is designed to provide general information on the subjects covered; 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.

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Know What’s Changing Social Security in 2020

I f you’re in the appropriate age bracket, Social Security may play a major role in your finances. So, it’s important to know how Social Security will be changing in 2020. Trust Fund Unless Congress takes some drastic actions in the coming months, the current excess trust fund revenue will be depleted by the year 2034. If that happens, Social Security will only be able to pay 79% of the promised benefits from ongoing payroll taxes. You may need to think about what your financial plan would be like with 21% less income. Retirement Age If you haven’t reached retirement yet, this one is important to consider. If you were born after 1959, the full retirement age is now 67 for you. You’ll still be able to start taking some benefits at age 62, but they’ll be at reduced monthly payments.

Maximum Benefits Those near the top of the Social Security income scale in 2019 will see an increase in their maximum payout in 2020. The maximum payout for an individual will be capped at $2,861 per month. That translates to $34,332 per year, so consider how that may impact your finances.

Taxes How much your benefits

are taxed depends on your household income levels. For example, 50% of your benefits will be taxed if you make between $25,000–$34,000 individually or $32,000–$44,000 for married couples. If you’re above that income bracket, then 85% of your benefits will be taxable.

Cost of Living Low inflation means that Social Security benefits will only see a minor cost of living increase. This year, it’s expected to be around 1.6%. It’s not major, but if you’re living off Social Security alone, every penny is important.

BETTER RETIREMENT, BETTER LADIES’ LUNCHEON

Big Events You Don’t Want to Miss

New Reality in Our Retirement Educational Workshop When: Thursdays, January 23 and 30, 2020 Where: University of North Florida, Adam W. Herbert Center

office at 904-232-8760. Learn the secrets to a stress-free retirement! All clients, friends, guests, and the public are invited. “Galentine’s Day” Luncheon When: Thursday, February 13, 2020 11:30 a.m. —1:30 p.m. Where: TBD This one’s for all the ladies! We’re taking a page from the great Leslie Knope of “Parks and Rec” and throwing a client- appreciation “Galentine’s Day” luncheon. Grab your gal pals and join us for a ladies-only luncheon, complete with food, drinks, and fun! More details to follow. Invitations are mailing soon, so keep an eye on your mailbox!

“I don’t want to run out of money!”

This is the No. 1 fear we hear from our clients on a daily

Wolf Retirement basis. That’s why WRN created New Reality in Our Retirement, an adult education class that covers potential financial threats now and in the future. Get the knowledge you need to build a successful retirement. This is a

two-day course with morning and evening times to suit your schedule. For more information and to register, please call our

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Top 3 Tax Changes Retirees Need to Know About in 2020

The Tax Cuts and Jobs Act of 2017 brought massive changes to federal taxes in the United States. We saw many changes take effect last year, but there are still more changes to come. Let’s look at the biggest changes you’ll see on your federal tax return this year. 1. No More Individual Mandate Penalty Under the Affordable Care Act, people who were required to have health insurance but didn’t get coverage faced the shared responsibility payment — better known as the individual mandate penalty. If you didn’t have health insurance, the penalty was due when you paid your taxes. The Tax Cuts and Jobs Act of 2017 removed this penalty, effective 2019. This means that even if you didn’t have health insurance in 2019, you won’t have to pay this penalty when filing your taxes in 2020. 2. Higher HSA Contribution Limits Over the next few years, expect to see the contribution limits of certain

tax-advantage accounts increase. Health savings accounts (HSAs) are one such account for which the limits will increase each year. The 2019 contribution limits for those eligible for an HSA are: • Self-only coverage: $3,500 (increased by $50 last year) • Family coverage: $7,000 (increased by $100)

• 24%: Between $168,401 to $321,450

• 22%: Between $78,951 to $168,400 • 12%: Between $19,401 to $78,950 • 10%: Up to $19,400

To see the full list of new tax brackets, visit the IRS website at IRS. gov.

3. Higher Income Brackets Thanks to inflation, the income tax brackets are a little higher than they were last year. For example, for married couples filing jointly, the

These are just a few

of the major changes that

may impact how you file taxes in 2020 and beyond. Be

new tax brackets are: • 37% tax rate: Over $612,351 • 35%: Between $408,201 to $612,350 • 32%: Between $321,451 to $408,200

sure to ask your financial advisor about the tax changes you need to be aware of and how to get the most out of your money.

... continued from Cover

A traditional New Year’s favorite in the South, Hoppin’ John includes black-eyed peas that are said to represent coins, a sign of prosperity for the coming year. It’s usually served alongside collard greens, which represent cash.

the experienced and professional team I have put together to get the job done efficiently and in a timely manner.

As we start 2020, there are many things our clients should be aware of. In addition to the typical retirement worries like rising health care costs, a volatile stock market, low interests rates, and federal taxes, we are focused on the trade war with China. This can impact your savings, not to mention the upcoming election and all the changes that can come with it. I want to remind my clients that your plans build in protection of retirement savings in many ways from the start, and we are laser-focused on addressing risks, no matter what the future brings — but we can’t do that if our offices aren’t running smoothly, and that is why I am focusing on better communication in addition to improved work product efficiency. Thank you for trusting us to help you through 2019. I look forward to welcoming the new year and the exciting progressive changes it will bring to WRN.

INGREDIENTS

• 1 cup dried black- eyed peas • 5–6 cups water • 1 dried hot pepper, optional (arbol and Calabrian are great options)

• 1 smoked ham hock • 1 medium onion, diced • 1 cup long-grain white rice

DIRECTIONS

1. Wash and sort peas. 2. In a saucepan, cover peas with water, discarding any that float. 3. Add pepper, ham hock, and onion. Gently boil and cook uncovered, stirring occasionally, until peas are just tender, about 90 minutes. At this point, you

should have about 2 cups of liquid remaining. 4. Add rice, cover, drop heat to low, and simmer for 20 minutes, undisturbed. 5. Remove from heat and let steam for an additional 10 minutes, still covered. 6. Remove lid, fluff with a fork, and serve.

-Adam Wolf, CPA, CFP ®

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PRST STD US POSTAGE PAID BOISE, ID PERMIT 411

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

INSIDE

Solution to puzzle on Page 3

• What the New Year Brings PAGE 1

• Changes to Social Security in 2020 PAGE 2 • What Are Your Galentine’s Day Plans? PAGE 2

• 3 Changes for Your 2020 Taxes PAGE 3

• Hoppin’ John PAGE 3

• 3 Ways a Healthy Diet Can Improve Your Looks PAGE 4

Stay Active During Your Golden Years

3 Part-Time Jobs for Retirees

Pass along your knowledge as a teacher. Many community colleges and community centers offer part-time teaching opportunities for those who want to share their field of expertise with others. Many of these positions don’t require a teaching degree or certificate — just a wealth of knowledge from your years in the workforce. Alternatively, if you want to help younger students with their academics, you could also work as a tutor or a teacher’s assistant at a local school. Share your passion for sports as a coach. Coaching can be a satisfying way to spend your retirement and support younger athletes. However, there are a few things to keep in mind if you want to be a coach. You might need to pass a background check, and you’ll probably need to know first aid as well. While the pay isn’t incredible, the time you’ll spend

Whether you want to generate some extra income during your retirement or just keep yourself busy, getting a part-time job can be a great way to spend your golden years. But why settle for just any opportunity when you could stay mentally and physically active and give back to the community? If that sounds like your ideal way to spend retirement, here are a few options to consider.

sharing your passion for sports with young people is more than worth it.

Tips forYourTripBack inTime

Give back as a personal care aide. If you’re looking for an opportunity to stay active and have a more direct impact on people’s lives, you can try being a personal care aide. Personal care aides help elderly and disabled people with everyday tasks, such as shopping, doing laundry, and bathing. Many people who require this assistance prefer older aides who can empathize with their struggles, so it’s a great job for recent retirees. Just because you’ve retired doesn’t mean you can no longer bring value to your community. With all the time you have on your hands, you could become one of your town’s most valuable assets. hiking, fishing, and swimming.

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2 LOCATIONS TO SERVE YOU! Jacksonville & Fleming Island