Brains & Gains: The Importance of Brain Health

In an increasingly fast-paced and demanding world, the significance of maintaining optimal brain health cannot be overstated. Often dubbed as the body’s most intricate and essential organ, the brain serves as the command center for every facet of our existence, from decision-making and problem-solving to emotions and memories. As research continues to uncover the intricate interplay between lifestyle choices, mental well-being, and cognitive function, the imperative of preserving and enhancing brain health becomes all the more evident. Nurturing our brain’s vitality through mindful practices and informed choices is paramount to leading a fulfilling and cognitively empowered life.

I have shared below six tips for helping maintain brain health in your day-to-day life. These are easy to practice and will help your overall health, not to mention help keep your brain in tip-top shape.

Tips for Your July 4th Holiday Weekend

Make Sure You Have All Your Fourth of July Party Supplies

Whether you are heading out to your backyard, or getting together with family or friends, the Fourth of July holiday is the unofficial start to summer and backyard party season. Here is a quick checklist to make your Fourth of July planning easier. Make it even easier by asking others to help. 

Fourth of July Party Checklist

  • Folding table, picnic table, festive tablecloth & napkins (maybe even a centerpiece!)
  • Lawn Chairs, folding chairs, camp chairs, umbrellas, or shade tents
  • Paper or plastic plates, cups, and eating utensils
  • Plenty of fresh water; a water dispenser & a cooler
  • Smores sticks, marshmallows, chocolates, and graham crackers
  • Bug spray, sunscreen, citronella candles
  • Flags, party favors, fireworks
  • Sprinkler, pool, water guns
  • Music, playing device, portable speakers
  • Backyard games, cornhole, dodge ball, badminton, Twister, or cards
  • First Aid kit
  • Towels, blankets
  • Paper towels and cleanup supplies

Now that the party is underway plan for a SAFE 4th of July. Here are a few tips to keep everyone safe during the festivities.

4th of July Safety Tips

  1. Before using any fireworks, read the instructions and labels carefully.
  2. Designate one responsible adult to monitor and be responsible for all Fireworks. Ensure your firework handler wears protective eyewear when handling and igniting fireworks.
  3. Create a Safe Area where you plan to ignite the fireworks. Ensure that friends and family are at a safe distance away and that trees, shelters, or shrubbery are not in the trajectory of the fireworks.
  4. Know where your water source is should anything unexpected occur. Keep a filled bucket of water handy. (the dog will love that!)
  5. Keep a keen eye out for the kids and people that act like kids during the fireworks.
  6. Have everyone maintain a safe distance from the fireworks to protect them from potential harm.
  7. Trash fireworks that didn’t light. Don’t relight. Wait and then soak those fireworks in water before disposing of them properly.
  8. Protect Your Pets! If your pet doesn’t like the noise of fireworks, leave them at home. If you bring your pet with you, make sure they are cool and comfortable. Their paws are sensitive and burn on the hot pavement just like your hand would. If it is too hot to touch for 10 seconds, it is too hot for your pet.

Tiny Habits to Improve Your Life

One of life’s rewards is having great friends that are bright, successful, articulate, and full of valuable information. For those of you that don’t know Mary Kelly, I am pleased to introduce you to my friend, Mary. Mary is an international speaker and the author of 15 books on topics such as leadership, business, and economics. After graduating from the United States Naval Academy and devoting over 20 years on active duty in intelligence and logistics, she retired from the Navy as a commander. She has a master’s degree in history and economics, a Ph.D. in economics, and always has a wealth of information to share. You can read more of Mary’s wisdom at https://productiveleaders.com. But first, enjoy Mary’s article on Tiny Habits You Can Do Today to Improve Your Life.

Tiny Habits You Can Do Today to Improve Your Life

Living your best life means something different to everyone. Your definition may be drastically different from the people close to you or your co-workers.

One of my favorite moments last week was talking to my Lyft driver. A retired chemical engineer, he drives because it is how he gets other people’s honest perspectives. “No one is trying to impress anyone during a drive,” he pointed out. “Passengers are honest about their lives and their opinions, and I learn from everyone.”

I love his perspective. He is fascinating! Why waste time when you can learn from talking with other people? His role of driving for a few hours a day evolved from his tiny habit of learning from someone else every day.

It is important to remember that there is a lot we cannot control, but we do have control over small amounts of time, and tiny changes in attitude and perspective make a difference.

Many people do not realize that small things add up to big things.

For example:

1. Walk a mile a day. That is 365 miles you walk that year.

2. Drink four ounces of water every hour from 7 AM to 7 PM. That is forty-eight ounces of water.

3. Write for 15 minutes a day and you have a manuscript in 90 days.

No matter where you are, you can improve by making minor changes. Tiny habits, compounded over time, produce amazing results.

Here are nine things you can do right now to change your life and increase your level of happiness:

1. Practice habit stacking. If you have been meaning to read more, but cannot seem to find the time, take the 5 minutes it takes your coffee to brew in the morning to read. Do not reach for your phone. Grab your book instead. This commitment is much easier because it is not a lot of time, and you are already spending that time waiting for your coffee. Another example is to floss right after brushing your teeth. You are already in the bathroom, so flossing is the next logical step.

2. Incorporate the 2-minute rule. Instead of committing to something for 20 minutes every day, commit to 2 minutes. Decide to walk for 2 minutes every day. Relieve stress by doing deep breathing exercises for 2 minutes. Clean out a drawer for 2 minutes. It is much easier to do something for 2 minutes than it is to carve out time for 20 minutes.

3. Set clear boundaries. Boundaries are necessary to keep us sane in both our personal and professional lives. Do you want to be available for clients 24/7, or would you like to handle business only during standard business hours? I know that I habitually work on weekends, but I don’t expect others to if those are not their working hours.

4. Identify the person you want to be. Use the right words to describe the type of person you want to be. Are you trying to quit smoking? You are a non-smoker. You are trying to become less messy? You are an organized person.

5. Find your community and join them to further commit to your habits. Surrounding yourself with like-minded people helps you keep that positive mindset. Think about going to the gym. We may not feel like going to the gym, but once we get there, we see other people who are working out and making an effort, so we do the same thing. It is the same at work. Align yourself with others in your industry or others who share your goals. Allow other people’s success to be a source of motivation.

6. Get back on the wagon. None of us are perfect. Donuts are my kryptonite. I really like donuts. One of the best donut stores on the entire planet is Horseshoe Donuts in Monument, Colorado. They have apple fritters, that way about 4 pounds. And they are delicious. Everything they have is delicious. I have dreams about their donuts. But I also don’t get to eat donuts every day. I might treat myself once every few months, but eating one donut is a treat. Eating donuts three days in a row is a habit. There are consequences for the donut. If I have a donut, I have to be extra healthy for a few days. If I skip a workout, I recommit to working out tomorrow. Most of us have good habits, so we cannot allow slip-ups to derail progress. Get back into positive habits right away. It is far easier to restart the habit immediately than to start all over again days later.

7. Don’t break the chain. Tracking your habits gives you a visual reminder of the progress you are making, and make sure tracking is a visual reminder of your attainable goal. For instance, if you want to improve your writing speed and skills, consider a goal of writing five hundred words per day for 30 days. Every day that you write, draw a giant x or smiley face on the calendar. After a few days, you may not feel like writing, but you don’t want to break the chain. At the end of 30 days, consider tracking for another 30 days. Seeing your progress gives you increased energy to keep moving forward.

8. Choose concrete goals instead of abstractions. “Getting healthy” or “start going to the gym” are not concrete goals. They are too abstract, and they do not lead to healthy habits. Instead, choose to do one easy health-related commitment, such as doing five sit-ups a day. You improve health, but the time investment is minimal. At some point, sit-ups every day will become second nature – a new habit – at which point you can add another tiny habit.

9. If you start too big, make your tiny habit tinier. We often set habits that are still too big because we are used to thinking big. If you cannot run for 30 minutes, drop it down to 30 seconds and add 30 seconds every day. If you cannot get motivated to go to the gym, let your first tiny habit be doing a jumping jack at home. Then your second tiny habit can be filling your water bottle. These tiny habits are meant to become automatic movements that you just do not think about once they are ingrained. In the end, all these tiny habits build on each other, and you will find yourself at the gym or running for 30 minutes.

Tiny habits are the stepping stones for our lifestyle. If something is not working, or we are not living our best life, then it is time to explore how to change our tiny habits, so we receive the outcome for which we work so hard.

Adulting 101: Your Living Will

You may have heard people speak of a “living will” and wondered what they are talking about. A living will is also called an advance health care directive. But, no matter what you call it, every adult needs a legal document that tells your loved ones and doctors the medical care you want if you cannot make those decisions yourself.

Your living will outlines the procedures, medications, and treatments you want or do not want to prolong your life when you cannot make those decisions for yourself. Additionally, it can address if and when you want life support removed and whether you want hydration and nutrition supplied if that is the only thing keeping you alive. If these decisions need to be made and you haven’t provided specific instructions, decisions will be made, and they may not be the decisions that you would have chosen.

Don’t confuse a “living will” with a “last will.” A “last will” sets forth what happens to your property and wealth after you die. A living will sets forth what medical treatment you want while alive.

A healthcare or medical power of attorney is another part of advanced healthcare directives. The healthcare power of attorney is the legal document that names who will make the healthcare decisions for you. Simply put, a medical power of attorney names those who can make medical decisions in the event of your incapacity, while a living will explains what medical care you want.

A living will is a vital part of every adult’s estate plan, as it can ensure your medical treatment is handled exactly the way you want if you cannot communicate. Without a living will, your loved ones are left to make difficult decisions which can result in conflict, stress, and guilt.

We all know that unforeseen illness or injury could strike at any time. Don’t wait to plan. We can assist you to ensure your medical treatment and end-of-life care is tailored to suit your unique needs and wishes and provide counseling and guidance in decision-making.

Now is the Time to Act

Tax-Saving Strategies For 2022

Although the end of the year can be hectic, it’s also the deadline for you and your family to implement several key tax-savings strategies. By taking action now, you may be able to reduce your tax bill due in April significantly. But you must do this before the end of the year, so act fast.

While there are dozens of potential tax breaks you may qualify for, here are 4 of the leading moves you can make to save big on your 2022 tax return.

1. Maximize retirement account contributions

By maximizing your contributions to tax-deferred retirement accounts, such as IRAs and 401(k)s, you can save for retirement and reduce your taxable income for 2022.

In 2022, you can contribute up to $6,000 to an IRA, up to $20,500 to a 401(k) if you’re under 50, and up to $7,000 to an IRA and $27,000 to a 401(k) for those 50 and older. If you don’t have the cash available to fund the maximum amount, contribute at least any amount that your employer will match since that’s basically free money, and you lose it if you don’t use it.

That said, the ability to deduct your traditional IRA contributions from your taxes comes with certain limitations. These limitations are based on factors such as whether or not you or your spouse are covered by a retirement plan at work and your adjusted gross income (AGI), so make sure you know how your family is affected by these limits when taking deductions. On the other hand, Roth IRA contributions are not tax-deductible since they are made after taxes are taken out, but withdrawals from a Roth in retirement are tax-free.

Additionally, consider maxing out your Health Savings Account (HSA) contributions. Contributions to HSAs for 2022 are capped at $3,650 for individuals and $7,300 for families, with an additional catch-up contribution of $1,000 allowed for those aged 55 and older.

You have until December 31st, 2022, to contribute to a 401(k) plan and until April 18th, 2023, to contribute to an IRA or HSA for the 2022 tax year.

2. Defer income if you’ll make less next year

If you’re expecting to make significantly more income this year than in 2023, try to defer as much income into next year as possible. However, this strategy only makes sense if you’ll be in the same or a lower tax bracket next year.

On the other hand, if you think you’ll be in a higher tax bracket in 2023, you may want to do the opposite and accelerate income into 2022 to take advantage of a lower tax bracket.

3. Use “loss harvesting” to offset capital gains

With the stock and crypto markets down this year, it can be the ideal time to use a strategy called “loss harvesting.” This means selling taxable investment assets (such as stocks, mutual funds, and bonds) at a loss to offset any capital gains you may have realized earlier in the year. Capital losses offset capital gains dollar for dollar.

If your losses exceed your gains, you can write off up to $3,000 of collective losses against other income. Any losses in excess of $3,000 can be carried over into the following year. In fact, you can carry over such losses year after year over your lifetime.

Note that the loss harvesting strategy does not apply to tax-advantaged accounts, such as 401(k)s, IRAs, and 529 plans. Additionally, the IRS “wash-sale” rule prohibits using this tax write-off for buying a “substantially identical” asset within a 30-day window before or after the sale that generated the loss.

Always consult your CPA or financial advisor before employing loss harvesting to ensure it doesn’t backfire on you.

4. Watch your required minimum distributions (RMDs)—or ensure your parents are watching theirs—if you or they are over age 72

If you have an employer-sponsored retirement plan, including a 401(k), 403(b), traditional IRA, SEP IRA, or SIMPLE IRA, you must start taking required minimum distributions (RMDs) by April 1st of the year that follows

the year you turn 72. After that, annual withdrawals must be made by December 31st each year to avoid a severe penalty.

If you fail to take the proper RMD, you may face a 50% excise tax on the amount you should have withdrawn based on your age, life expectancy, and account balance at the beginning of the year. That said, if you do make a mistake, you may be able to avoid the penalty by requesting a waiver from the IRS. You can request a waiver if your failure to take the RMD is due to a reasonable error and you take steps to make the required distribution. To request a waiver, submit Form 5329 to the IRS with a statement explaining the error and the steps you are taking to correct it.

Note that in 2022 the IRS updated its uniform lifetime table to calculate RMDs to account for longer life expectancies. As a result, your RMDs for this year may be slightly lower compared to previous years. To determine your RMD, refer to the IRS RMD worksheet or use an RMD calculator.

Maximize Your 2022 Tax Saving

There you have just four year-end tax-saving strategies that could save your family thousands of dollars on your 2022 tax bill. But DO IT NOW, as the end of the year will be here before you know it.

‘Tis the Season

Beware of Holiday Scammers

‘Tis the season for fall leaves, first snowfalls, hot apple cider, and holiday cheer. For most of us, the holidays are full of giving, getting, and goodwill. 

But we must also realize that the holidays are the time of year when scammers are out in droves. Unfortunately, not only is the number of scammers multiplying each year, but scammers have also become more and more adept at creating new scams to rip you off both in person and online. 

Thousands of people become victims of holiday scams each year. The numbers are staggering. Consumers lost $770 Million to scams that originated on social media in 2021. Non-payment or non-delivery scams cost people more than $337 million, and credit card fraud accounted for another $173 million in losses. That is a large chunk of change! Not only is it the hard-earned money you can lose, but scammers can rob you of your identity and personal information and ruin your festive mood.

When shopping online this holiday season—or any time of year—always be aware of deals that seem too good to be true. Do your part to avoid becoming a scammer’s next victim! 

Tips to Avoid Holiday Scams

Whether you’re the buyer or the seller, there are a number of ways you can protect yourself—and your wallet.

PROTECT YOUR PERSONAL INFO. It’s easy to hit a button and “Buy” from anyone anywhere on your phone or laptop. However, be sure you’re not sharing personal or credit card information over public Wi-Fi. Only “BUY” when you are on a secure network.

DON’T CLICK. Don’t click on just any links or attachments in emails, websites, or social media. Phishing scams and similar crimes offer a link to click on whereby you give up some personal information like your name, password, and bank account number. You may unknowingly download malware to your device with just a few link clicks. 

GIFT CARDS. Yes, gift cards are a convenient holiday gift, but they also open the door to several scams. Gift cards are for gifts, not for payments. If someone asks you to pay them with a gift card, that’s a scam. Gift cards are popular with scammers because they’re easy for people to find and buy. They also have fewer protections for buyers compared to some other payment options. They’re more like cash: once a scammer has the gift card number and the PIN, they have your money. 

If you are going to use gift cards, stick to stores you know and trust. Avoid buying from online auction sites because the cards may be fake or stolen. 

Check out your gift card before you buy it. To ensure your gift card is protected, avoid the rack and ask for one directly from the counter. Make sure the protective stickers are on the card and that they do not appear to have been tampered with. Also, check that the PIN on the back isn’t showing. Get a different card if you spot a problem. And always keep your receipt with the card’s ID number on it, as that will allow you to file a report if your gift card goes missing.  

TOO GOOD TO BE TRUE DEALS. There may appear to be deals galore over the holidays, and many are on social media – but not all of them are legitimate. Carefully read reviews, look for security credentials on websites, and research unfamiliar retailers before you take advantage of a deal or discount. If it is too good to be true, it probably is. 

BEWARE OF PORCH PIRATES. When you’re expecting packages over the holidays, shippers will often provide us with updates on the status of our orders. Knowing this, scammers will send phishing emails pretending to be from companies like FedEx and UPS to lure us to phony web pages and get us to share personal information. So, look closely at delivery notifications and email updates before you click on links or input information. And remember, UPS and FedEx won’t ask for personal information via email.

DON’T RESPOND TO REQUESTS FOR UPDATES. Be especially wary if a company asks you to update your password or account information. Look up the company’s phone number on your own and call the company.

ROBOCALLS. The robocall scams continue. I’ve had two calls this year that appeared to be from a utility company. Lucky for me, the caller didn’t realize that I was going to interrogate him more aggressively before he was going to get information from me. Those calls appeared legit on my phone, and identified the call as the phone number for the utility company. Otherwise, I would never have picked up the calls in the first place. The caller attempted to tell me a past-due utility bill had been overlooked. I started asking very detailed questions to which the utility company would have the answers. I did report the calls to the utility company, and they enlightened me to the fact that scammers can now disguise their call and have it appear that it is the actual telephone number of the company itself. 

The bottom line is don’t answer the phone if you don’t recognize the number. Scammers often use this time of year to call and solicit donations for fake charities. Don’t ever agree to donate to a charity or buy anything over the phone without first looking into the organization.

 As we move into the holiday season, remember that we can all be targeted by unscrupulous persons. The best thing you can do to protect yourself is to be AWARE of the newest scams out there and verify the identity of the person or organization to be sure they are legit. Don’t be afraid to ask lots of questions, pause, think, and hang up if any red flags arise. 

4 Major Advantages of a Trust

advantages-of-a-Trust

Wills and trusts are both estate planning documents used to pass your wealth and property to your loved ones upon your death. However, trusts come with some distinct advantages over wills that you should consider when creating your plan.

That said, when comparing the two planning tools, you won’t necessarily have to choose between one or the other—most plans include both. Indeed, a will is a foundational part of every person’s estate plan, but you may want to combine your will with a living trust to avoid the blind spots inherent in wills.

Here are four reasons you might want to consider adding a trust to your estate plan:

1. Avoidance of probate

One of the primary advantages a living trust has over a will is that a living trust does not have to go through probate. Probate is the court process through which assets left in your will are distributed to your heirs upon your death.

During probate, the court oversees your will’s administration, ensuring your property is distributed according to your wishes, with automatic supervision to handle any disputes. Probate proceedings can drag out for months or even years. Your family will likely have to hire an attorney to represent them, resulting in costly legal fees that can drain your estate.

Bottom line: If your estate plan consists of a will alone, your family is guaranteed to go to court if you become incapacitated or when you die.

However, if your assets are titled properly in the name of your living trust, your family could avoid court altogether. Assets held in a trust pass directly to your loved ones upon your death, without the need for any court intervention whatsoever. This can save your loved ones major time, money, and stress while dealing with the aftermath of your death.

2. Privacy

Probate is not only costly and time-consuming, it’s also public. Once in probate, your will becomes part of the public record. This means anyone who’s interested can see: the contents of your estate, who your beneficiaries are, as well as, what and how much your loved ones inherit, making them tempting targets for frauds and scammers.

Using a living trust, the distribution of your assets can happen in the privacy of our office. So the contents and terms of your trust remain completely private. The only instance in which your trust would become open to the public is if someone challenges the document in court.

3. A plan for incapacity

A will only governs the distribution of your assets upon your death. It offers zero protection if you become incapacitated and are unable to make decisions about your own medical, financial, and legal needs. If you become incapacitated with only a will in place, your family will have to petition the court to appoint a guardian to handle your affairs.

Like probate, guardianship proceedings can be extremely costly, time-consuming, and emotional for your loved ones. Plus, there’s always the possibility that the court could appoint a family member you’d never want making such critical decisions on your behalf. The court might even select a professional guardian, putting a total stranger in control of just about every aspect of your life.

A living trust includes provisions that appoint someone of your choosing—not the court’s—to handle your assets if you’re unable to do so. Combined with a well-drafted medical power of attorney and living will, a trust can keep your family out of court and conflict in the event of your incapacity.

4. Enhanced control over asset distribution

A trust offers more control when it comes to distributing assets to your heirs. It can specify when and how your heirs will receive your assets after your death.

For example, you could stipulate in the trust’s terms that the assets can only be distributed upon certain life events, such as the completion of college or purchase of a home. Or you might spread out the distribution of assets over your beneficiaries’ lifetime, releasing a percentage of the assets at different ages or life stages.

In this way, you can help prevent your beneficiaries from blowing through their inheritance all at once and offer incentives for them to demonstrate responsible behavior. Plus, as long as the assets are held in trust, they’re protected from the beneficiaries’ creditors, lawsuits, and divorce, which is something else wills don’t provide.

If you do not want a living trust, you can use a testamentary trust to establish trusts in your will. A testamentary trust will not keep your family out of court, but it can allow you to control how and when your heirs receive your assets after your death.

An informed decision

The best way for you to determine whether or not your estate plan should include a living trust, a testamentary trust, or no trust at all is to meet with an estate attorney for a Family Wealth Planning Session. During this process, we’ll take you through an analysis of your personal assets, your family dynamics, what’s most important to you, and what will happen for your loved ones when you become incapacitated or die.

Sitting down with an estate attorney to discuss your family’s planning needs will empower you to feel 100% confident that you have the right combination of planning solutions in place for your family’s unique circumstances. Schedule your appointment today to get started.