VOYAGER

FROM THE DESK OF… features rotating columns from

Helmstar partners Tom Steelman and Ben Boettcher, ChFc, CFP.®

ISSUE 13 . SEPTEMBER. 2019

Why You Should Adopt A Growth Mindset

And How To Do It

P2

Leaving a Family Legacy

Strategies To Help Pass On Wealth To The Next Generation

P4

5 Ways to Maximize Your Social Security Benefits

Tips To Help Optimize Your Social Security Income In Retirement

P3

FROM THEDESK OF…

Would we really rather take the road less traveled?

Let’s be honest: the status quo is always tempting. We’ll often follow in the footsteps of those around us, simply because it’s “the way things have always been done” — not necessarily because it actually works.

And that’s especially true for our finances. We’ll keep coming back to the advice of our parents, grandparents and colleagues, even if we don’t have much evidence to back up their claims.

But after years of working with hundreds of clients, I’ve learned that no two financial situations are the same. At Helmstar, we believe that each one of us has our own set of biases, challenges, beliefs, goals and values that inform our plans for the future.

Some of us dream of traveling the globe. Others dream of spending more time at home, close to those they love.

Some of us value security and stability, while others value entrepreneurship and thinking outside the box.

Financial plans should be just as unique and personalized as a fingerprint.

We can’t use a one-size-fits-all approach. If we chase after our goals the same way those around us are, we’re moving toward their vision for the future, not necessarily our own. We’re letting someone else “steal our dreams,” rather than achieving them for ourselves.

Ultimately, we have to forge our own path to reach the future we really want. And there’s no better tool to accomplish that than a clear plan based on our dreams.

But more often than not, taking the road less traveled takes us exactly where we want to be.

Insights on wealth, personal finance and more

A R E G I S T E R E D I N V E S T M E N T A D V I S O R Y F I R M

TOMSTEELMAN

Planning for our future isn’t just about what we save — it’s also about what we give. Each year, over 35 million households claim a deduction for charitable donations, with the average donation amounting to $5,508 [source: USA Today].

Over a lifetime, these charitable gifts can really add up, becoming an important tool for leaving a lasting impact.

But in 2018, changes to the federal tax laws have made it difficult for many households to claim deduc-tions by raising the standard deduction for single filers and married couples. New regulations have also imposed limits on state and local deductions.

Today, those who want to give back need to give smart.

Bunch your contributions Time your contributions to fit more inside one tax year. This makes it more likely for you to be able to exceed the standard deduction and get a write-off.

For example, let’s say you contributed $8,000 to a charity in one tax year, rather than two separate gifts of $4,000 over two tax years. This would double the amount you could claim on your return, making it easier to be over the standard deduction.

If you’d rather continue making annual gifts, consider a donor-advised fund, which allows you to make a charitable contribution and receive an immediate tax deduction.

Donate appreciated assets Give shares of stock, mutual funds or exchange-traded funds that have grown in value over time. As long as the asset has been held in a taxable account you’ve owned for over a year, you can get two potential opportunities for a tax break.

Cont. on page 3

44

GIVING SMART

Have a friend or family member who you think could benefit from receiving our Voyager newsletter?

Let us know.

Go to helmstargroup.com/contact or call 208.429.0800

and we’ll make sure they receive it.

PASSALONG! © 2019 The Helmstar Group.

Material in this newsletter is for informational purposes only. Please note - investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This material is not to be construed as tax, legal or investment advice. Information has been gathered from sources believed to be reliable, but individual situations can vary. Please consult with an investment, legal, accounting or tax professional about your unique situation.

T 208.429.0800 | F 208.429.0801250 S. 5th St. Suite 600 | Boise, ID 83702

4

After spending years building a career, a home and a family, we have to ask ourselves, “What am I going to leave behind?”

That simple question can spark a lot of anxiety. Nearly 57% of Baby Boomers fear they won’t have enough in their retirement accounts to pass on to their families. But Helmstar clients are bucking those trends by employing strategies that can allow them to pass on wealth to the next generation.

Establish a trust. Establishing a trust or a family foundation allows you to transfer your assets on a tax-deductible basis to family, friends and charities. This can provide a steady supplemental income for years and even generations to come, while avoiding capital gains taxes.

Leave real estate. Leaving a family home or vacation home to your loved ones can leave a variety of options. They can live in it and create new memories of their own, or they can renovate the property to sell or rent.

Leave a business. If you own your own business, you’ve likely put in years of hard work, perseverance and passion to create something successful. You’ll want to pass that success on to your family. You can leave all or part of your business ownership to your family members. From there, your family can decide to keep or sell their share. Make sure to coordinate and let any co-owners know about your plans.

1 List a loved one as a beneficiary. If you’re going to have money left over from your retirement accounts, make sure it goes back to the right hands. Beneficiaries listed on IRAs have five years to take the money from the account, or they can transfer the money into an inherited IRA for a lifetime stream of steady income. For those with a 401(k), check with your employer’s human resources department about how you can rollover the account to your spouse or transfer it to an inherited retirement account.

You can also purchase an annuity and list children or loved ones as beneficiaries. They can receive a steady stream of payments after you pass away.

Pass on healthy financial habits. A family legacy isn’t just the assets you’ve left behind — it’s also the values you pass on to the next generation. Share your knowledge with your children and grandchildren. Show them how to save. Give advice on where to invest. Teach them how to make a plan, reach goals and bounce back after setbacks.

4

5

2

3

Read more...Visit helmstargroup.com/blog to read past newsletter articles, additional personal finance tips, & more.

FOLLOW US ON LINKEDIN! linkedin.com/company/the-helmstar-group/

70% of inherited wealth is gone by the first generation, and 90% by the second.

FAMILY LEGACY

L E A V I N G A

From real estate to businesses and personal possessions, assets can be powerful tools to give families peace of mind and financial security for years (and even generations) to come.

Thinking about how you are going to build and leave a legacy of your own? TALK TO US.

No matter what your

ability is, effort is what ignites

that ability and turns it

into accomplishment.

CAROL DWECK author of Mindset: The New Psychology of Success

“”

every step along the way. Focusing on what we can save and invest now will lead to better results later.

SEEK OUT NEW PERSPECTIVES Consulting with someone who is outside your close social circle can provide a more objective assessment of your situation. For example, because the Helmstar team works with a range of clients, we’ve likely seen the challenge (or opportunity) you face. And we can provide insights, tools and strategies you may have never considered before, ones that may take you closer to the life you really want.

Ultimately, adopting a growth mindset is always a choice. We have to stop viewing money as a scarce resource and our financial situation as unchangeable.

Instead, we have to choose to believe that anything is possible with a plan.

money is a “scarce” resource and there’s only so much of it to go around. This belief keeps us in a perpetual cycle of fear and guilt, thinking, “I’ll never have enough.”

The Helmstar Wealth Clarifying Process is designed to facilitate the process of determining your whys, and create a plan that either overcomes them or builds on them… or both.

CHALLENGE THE NARRATIVE Our thoughts direct our actions. When you constantly think, “I’ll never have enough,” or “I’m going to screw this up,” you’re more likely to make poor decisions — or worse yet, no decisions at all.

Instead, practice changing the story you tell yourself about your financial situation. When you encounter a setback, think, “I’ll find a way,” rather than, “There’s no way out of this.” When you’re presented with an opportunity, don’t immediately dwell on the potential failures — think about the possibilities for success.

VALUE THE PROCESS In financial planning, many tend to focus on the destination rather than the journey. We often hear ourselves saying, “Once I have enough for retirement…” or “When we buy that house…” or “When I start that business...”

But financial planning is just as much about the present as it is about the future. It’s life planning. We can’t do anything to speed up time — but we can choose to learn from

“I’ll never be able to start my own business.”

“I’ll never have enough to retire.”

“I’ll never have enough to leave behind for my family.”

Any of these thoughts sound familiar? This might mean you’re approaching your finances — and life — with a fixed mindset.

When it comes to financial planning, having a fixed mindset means you believe your ability to invest or save will never improve, causing your financial situation to ultimately stay the same. This way of thinking causes us to focus on paying off debt, rather than seeking out opportunities to invest, save and grow wealth.

A growth mindset is a choice to believe that any goal is achievable with a plan. By believing that you have the power to improve your financial situation, you will put in the time and effort toward making a plan and reaching your goals. This sets you up for long-term success.

Here are four ways to get started on adopting a growth mindset.

ASK “WHY?” Before we can start revolutionizing the way we view our finances, we first have to take a deeper look at why we have these fixed beliefs about money.

The reason so many of us have a fixed mindset about money is because we were taught that

WHY YOU SHOULD ADOPT A GROWTH MINDSET

— and how to do it

If you started Social Security benefits before full retirement age, then you can undo your decision within 12 months of starting benefits (called a withdrawal). To do so, you will have to repay ALL benefits received. This gives you a fresh start and you can claim benefits at a later time.

If you started Social Security benefits after your full retirement age, then you have the opportunity to suspend benefits. At any time (before age 70), you can stop your benefits and earn the delayed retirement credit, which is equal to 2/3 of one percent for each month it’s delayed. The delayed retirement credits accrue until the age of 70.

With any of these strategies, be sure to contact the local Social Security Administration office because there may be other circumstances that are affected by these decisions.

Everyone’s life expectancy is a little different, and not all standards apply for everyone. The best way you can decide when to claim your benefits is to take a look at your own longevity. If you’re currently facing health issues and in need of assisted living, it may make sense to claim your payments sooner rather than later. If your parents lived past age 90 and you’re in good medical condition, you could delay your benefits for the possibility of higher payments later on.

Ultimately, you need to craft a financial plan and social security strategy that works best for your unique situation. Everyone has their own vision for the future and life after retirement.

Want to get started? Helmstar can help.

Suspend payments.4

Estimate your longevity.5

Claiming social security can raise a lot of questions: When should you start claiming your benefits? What if you claim them too early? Can your benefits transfer over to a spouse or children?

Getting the answers wrong could mean losing out on thousands of dollars at the end of your lifetime — dollars you worked decades to earn. Luckily, there are various strategies you can use to get the most out of your benefits.

While every situation is unique, here are 5 common ways to help optimize your social security income in retirement:

Social Security calculates your average indexed monthly earnings by using your 35 top-earning years in the workforce. If you’ve worked less than 35 years, that means yearly incomes of $0 are being used to calculate the average, lowering your payments. Consider continuing working for a few more years if you have less than 35 years of employment history or had some lower-earning years.

Full retirement age is 66 years old for those born before 1960, and 67 for those born afterward. While you technically can claim your benefits earlier, this is usually not the best idea. Signing up at age 62 can result in a reduction of your payments 25-30%, depending on your birth year.

By waiting until age 70, you can earn delayed retirement credits. You can increase your social security income by 25 percent or more, even if you stop working. This strategy is ideal for someone with a normal life expectancy and is not currently facing any serious health issues or needing assisted living services. Past age 70, you can no longer accrue delayed retirement credits.

Work for at least 35 years.1

Don’t claim before you hit full retirement age. 2

Delay until age 70. 3

2 3

5 WAYS TO MAX IMIZE YOUR

Social Security Benefits

“GIVING SMART” cont. from page 1First, you can avoid the capital gains tax on the asset by donating it, reducing your taxable income. Second, you can itemize the donation and claim it on your return during that tax year. It’s a win-win.

That said, there are some limitations. Make sure your asset is valued at no more than 30% of your gross income.

Use your IRA When you hit 70.5 years old and you’re making the minimum required withdrawals from your IRA, you can give a portion of your withdrawals to charity as a Qualified Charitable Deduction.

You can give as much as $100,000 annually, as long as the donation goes directly to charity. Because this money is not going to you, these donations would not count as part of your adjusted gross income, helping you avoid taxes on your IRA withdrawals.

Maximize your impact Giving smart isn’t just about maximizing your deductions — it’s also about maximizing the impact you can leave on an organization and your community.

Get choosy about which nonprofits you give to. Before selecting an organization, do your research. Find out what tax classification they’re in, how you can document your donations and where your money is being used. Read reviews and reports on the organization looking for verifiable impact (statistics, measurable benefits, etc.), rather than just feel-good stories.

By narrowing your giving to a handful of organizations you really believe in, your contributions can go even farther.

Looking for help determining what approach is best for you? Contact Helmstar. We can work closely with your CPA and other tax professionals to ensure you maximize both the tax benefits and impact of giving.

VOYAGER

FROM THE DESK OF… features rotating columns from

Helmstar partners Tom Steelman and Ben Boettcher, ChFc, CFP.®

ISSUE 13 . SEPTEMBER. 2019

Why You Should Adopt A Growth Mindset

And How To Do It

P2

Leaving a Family Legacy

Strategies To Help Pass On Wealth To The Next Generation

P4

5 Ways to Maximize Your Social Security Benefits

Tips To Help Optimize Your Social Security Income In Retirement

P3

FROM THEDESK OF…

Would we really rather take the road less traveled?

Let’s be honest: the status quo is always tempting. We’ll often follow in the footsteps of those around us, simply because it’s “the way things have always been done” — not necessarily because it actually works.

And that’s especially true for our finances. We’ll keep coming back to the advice of our parents, grandparents and colleagues, even if we don’t have much evidence to back up their claims.

But after years of working with hundreds of clients, I’ve learned that no two financial situations are the same. At Helmstar, we believe that each one of us has our own set of biases, challenges, beliefs, goals and values that inform our plans for the future.

Some of us dream of traveling the globe. Others dream of spending more time at home, close to those they love.

Some of us value security and stability, while others value entrepreneurship and thinking outside the box.

Financial plans should be just as unique and personalized as a fingerprint.

We can’t use a one-size-fits-all approach. If we chase after our goals the same way those around us are, we’re moving toward their vision for the future, not necessarily our own. We’re letting someone else “steal our dreams,” rather than achieving them for ourselves.

Ultimately, we have to forge our own path to reach the future we really want. And there’s no better tool to accomplish that than a clear plan based on our dreams.

But more often than not, taking the road less traveled takes us exactly where we want to be.

Insights on wealth, personal finance and more

A R E G I S T E R E D I N V E S T M E N T A D V I S O R Y F I R M

TOMSTEELMAN

Planning for our future isn’t just about what we save — it’s also about what we give. Each year, over 35 million households claim a deduction for charitable donations, with the average donation amounting to $5,508 [source: USA Today].

Over a lifetime, these charitable gifts can really add up, becoming an important tool for leaving a lasting impact.

But in 2018, changes to the federal tax laws have made it difficult for many households to claim deduc-tions by raising the standard deduction for single filers and married couples. New regulations have also imposed limits on state and local deductions.

Today, those who want to give back need to give smart.

Bunch your contributions Time your contributions to fit more inside one tax year. This makes it more likely for you to be able to exceed the standard deduction and get a write-off.

For example, let’s say you contributed $8,000 to a charity in one tax year, rather than two separate gifts of $4,000 over two tax years. This would double the amount you could claim on your return, making it easier to be over the standard deduction.

If you’d rather continue making annual gifts, consider a donor-advised fund, which allows you to make a charitable contribution and receive an immediate tax deduction.

Donate appreciated assets Give shares of stock, mutual funds or exchange-traded funds that have grown in value over time. As long as the asset has been held in a taxable account you’ve owned for over a year, you can get two potential opportunities for a tax break.

Cont. on page 3

44

GIVING SMART

Have a friend or family member who you think could benefit from receiving our Voyager newsletter?

Let us know.

Go to helmstargroup.com/contact or call 208.429.0800

and we’ll make sure they receive it.

PASSALONG! © 2019 The Helmstar Group.

Material in this newsletter is for informational purposes only. Please note - investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This material is not to be construed as tax, legal or investment advice. Information has been gathered from sources believed to be reliable, but individual situations can vary. Please consult with an investment, legal, accounting or tax professional about your unique situation.

T 208.429.0800 | F 208.429.0801250 S. 5th St. Suite 600 | Boise, ID 83702

4

After spending years building a career, a home and a family, we have to ask ourselves, “What am I going to leave behind?”

That simple question can spark a lot of anxiety. Nearly 57% of Baby Boomers fear they won’t have enough in their retirement accounts to pass on to their families. But Helmstar clients are bucking those trends by employing strategies that can allow them to pass on wealth to the next generation.

Establish a trust. Establishing a trust or a family foundation allows you to transfer your assets on a tax-deductible basis to family, friends and charities. This can provide a steady supplemental income for years and even generations to come, while avoiding capital gains taxes.

Leave real estate. Leaving a family home or vacation home to your loved ones can leave a variety of options. They can live in it and create new memories of their own, or they can renovate the property to sell or rent.

Leave a business. If you own your own business, you’ve likely put in years of hard work, perseverance and passion to create something successful. You’ll want to pass that success on to your family. You can leave all or part of your business ownership to your family members. From there, your family can decide to keep or sell their share. Make sure to coordinate and let any co-owners know about your plans.

1 List a loved one as a beneficiary. If you’re going to have money left over from your retirement accounts, make sure it goes back to the right hands. Beneficiaries listed on IRAs have five years to take the money from the account, or they can transfer the money into an inherited IRA for a lifetime stream of steady income. For those with a 401(k), check with your employer’s human resources department about how you can rollover the account to your spouse or transfer it to an inherited retirement account.

You can also purchase an annuity and list children or loved ones as beneficiaries. They can receive a steady stream of payments after you pass away.

Pass on healthy financial habits. A family legacy isn’t just the assets you’ve left behind — it’s also the values you pass on to the next generation. Share your knowledge with your children and grandchildren. Show them how to save. Give advice on where to invest. Teach them how to make a plan, reach goals and bounce back after setbacks.

4

5

2

3

Read more...Visit helmstargroup.com/blog to read past newsletter articles, additional personal finance tips, & more.

FOLLOW US ON LINKEDIN! linkedin.com/company/the-helmstar-group/

70% of inherited wealth is gone by the first generation, and 90% by the second.

FAMILY LEGACY

L E A V I N G A

From real estate to businesses and personal possessions, assets can be powerful tools to give families peace of mind and financial security for years (and even generations) to come.

Thinking about how you are going to build and leave a legacy of your own? TALK TO US.