The arrival of the new year brings with it a sense of change, of new vistas to explore and new friends to meet. It is a time of optimism and renewal, a time to look forward with a sense of hope. In the song Feeling Good by Nina Simone, she sings, “Birds flying high, you know how I feel. Sun in the sky, you know how I feel. Breeze driftin’ on by, you know how I feel. It’s a new dawn, it’s a new day, it’s a new life for me”.
It is hard to believe that another year has already come and gone! It feels like just yesterday, Prosperity Wealth Planning was preparing our 2023 calendar and determining how we would be spending the coming twelve months. And now, with the year nearly behind us, it seems like a good time to look back and consider what we were able to accomplish this past year.
One of the real challenges we experience comes from working to understand and then implement the complex investment and savings choices that exist in the world today. There are so many offered that it’s hard to keep track of what is out there sometimes. When I think about the concept of building a nest egg, one of my personal favorites, and one that has grown in popularity for a variety of reasons, is the Roth Account. Having your retirement savings made available tax-free is a great thing, and the Roth is like the “Golden Egg” when it comes to making that happen.
When George Harrison wrote the song Taxman, he did so to protest a progressive income tax imposed in the United Kingdom which saw the Beatles, who were amongst the highest earners in the country, required to pay a whopping 95% “supertax.” This led to the lyric where they sing, "There's one for you, nineteen for me." Fortunately, the income taxes in our country (and many of the individual states) have not risen that high. However, it is always a good idea to be aware of what your tax liabilities are, and, more importantly, what you can do to legally minimize those costs.
The stormy economic forecasts seem to mirror the very wet winter we experienced in California this year, which makes me think of the song Umbrella by Rihanna, where she sings, “...Now that it's raining more than ever, know that we'll still have each other. You can stand under my umbrella, you can stand under my umbrella”.
In this issue, we will examine what's new for 2023, including information that may be relevant to your own finances, as well as some updates here at Prosperity Wealth Planning.
It seems hard to believe it's October already and time to start planning for year end. As the winter season approaches, now may be a good opportunity to look back at what has happened during the past nine months and, more importantly, to begin to prepare for 2023. In the song My List, country singer Toby Keith talks about his to-do list, singing, "Under an old brass paperweight is my list of things to do today. Go to the bank and the hardware store, put a new lock on the cellar door. I cross 'em off as I get 'em done, but when the sun is set, there's still more than a few things left I haven't got to yet."
It seems hard to believe it's October already and time to start planning for year end. As the winter season approaches, now may be a good opportunity to look back at what has happened during the past nine months and, more importantly, to begin to prepare for 2023. In the song My List, country singer Toby Keith talks about his to-do list, singing, "Under an old brass paperweight is my list of things to do today. Go to the bank and the hardware store, put a new lock on the cellar door. I cross 'em off as I get 'em done, but when the sun is set, there's still more than a few things left I haven't got to yet."
When the Rolling Stones sang, "You can't always get what you want, but if you try sometimes, well, you just might find, you get what you need," they described our personal search for acquiring more. With those lyrics in mind, let's dedicate this edition of the Prosperity Wealth Planning newsletter to Spending and some of the issues that can affect our unique buying habits.
The holidays are behind us, and I hope everyone reading this had a wonderful time with friends and family over the past couple of weeks. For many of us, the arrival of the new year is accompanied by a reflection of the past and a desire to look forward, with a renewed interest in setting goals for the coming year. In the song, It's My Life, Jon Bon Jovi's thoughts on goal-setting remind us that "Tomorrow's getting harder, make no mistake. Luck ain't even lucky, got to make your own breaks… It's my life, and it's now or never."
In the Pink Floyd song, Breathe, the listener is encouraged to, “Breathe, breathe in the air, don’t be afraid to care. Leave, don’t leave me. Look around, choose your own ground.” Most of us strive to build a life that allows us to live comfortably and leave something behind for our families and friends when we’ve left. Determining the most appropriate and meaningful way to pass your legacy on to the next generation is often fraught with challenges, especially when it comes to navigating the legal choices that come with estate planning.
In the song My Wish, Rascal Flatts gives voice to the thoughts many parents have this time of year when watching a child heading off to that first day of school: “But more than anything, my wish, for you, is that this life becomes all that you want it to. Your dreams stay big, your worries stay small, you never need to carry more than you can hold. And while you're out there getting where you're getting to, I hope you know somebody loves you and wants the same things too.” For parents of college-bound children, there is a feeling of pride in what their child has accomplished to get to this point, tempered by a mix of concerns: Is he/she ready to be on their own?
Living life to the fullest takes on different meanings for different people. For some, it may mean white-sand beaches, majestic peaks, or treks to remote areas across the world. For others, it’s spending more time with friends and family, or possibly buying that cabin on the lake, or touring the country in an RV.
Financial planning is vital at every stage of life. When you are young and just starting out, the goal may simply be to cover monthly expenses, get out of debt, and save for the future. As you get older and your financial life becomes more complicated (think of juggling saving for your kids’ education costs while saving for your own retirement),
In the song, Taking Chances, Celine Dion asks, "What do you say to take chances, what do you say to jumping off the edge? Never knowing if there's solid ground below, or a hand to hold, or hell to pay, what do you say?" The reality is that risk is a part of everyday life.
In the song Brand New Day, Sting asks, “Why would you want to put yourself through all that again?” Indeed. It is now 2021 – a brand new day and a brand new year. It’s time for a fresh start, with the confidence that this year will be better than the last.