Our health and financial well-being are connected. According to the Employee Benefit Research Institute (EBRI), an eye-opening 35% of early retirements are prompted by health conditions or disabilities. This statistic serves as a powerful reminder of the importance of integrating health considerations into our financial strategies.

There’s an important relationship between your health and wealth. Proactive health management can not only enhance the quality of your life but also significantly impact your financial security.

Maintaining a healthy lifestyle supports sustained career longevity and a fulfilling retirement. From the advantages of regular physical activity to the long-term financial benefits of staying active, each can help you thrive both physically and financially.

Go for a walk, eat your vegetables and embrace the synergy between your health and wealth. Let’s move forward together, making informed decisions that not only seek to secure our financial future but also seek to ensure an active, and prosperous life.

Here’s to a healthier, wealthier tomorrow!
Lamont Brown, CFP®

This month we are back in the swing of things with:

• Mastering Capital Gains
• The Sprint: Disability
• The Finish

Mastering Capital Gains

Mastering capital gains is an important part of financial planning and your investment success. In the long-run, Capital Gains planning is important if you want to optimize asset transfers to your estate. Understanding the intricacies of capital gains, tax implications, and optimization strategies can potentially improve investment outcomes.

Basics of Capital Gains

• Capital gains are the profit you receive from selling assets like stocks or real estate above purchase price.
• There are two types of capital gains, Short-term (asset held <1 year) taxed at higher rates  and long-term gains (asset held >1 year).

Tax Implications

• Short Term Gains are taxed at your Ordinary Income Tax Rate
• Long-term capital gains tax rates: 0%, 15%, 20%, plus possible 3.8% Net Investment Income Tax (NIIT) for high earners.
• State and local taxes also affect net returns.
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Sounding Board Consultation

As a service to our clients, we offer your friends and family a no-obligation Sounding Board Consultation. This 30-minute session allows them to ask questions and receive feedback about their current financial plan or any other financial topics they’re concerned about.

-Lamont Brown, CFP®

The Sprint

Disability

n my experience, disability is one the most important, most overlooked financial planning topic. For most of us we sign up for disability during onboarding and never give it a second look. However this quick decision can have a lasting impact on your finances.

We all know that life can change in an instant. Imagine waking up one day and realizing you can’t work due to an injury or illness. Suddenly, your income stops, but your bills don’t. This is where disability insurance becomes your financial lifeline.

1. Protects Your Income: Disability insurance steps in when you can’t. It replaces a part of your income, helping to ensure you can still cover your daily expenses and maintain your lifestyle.
2. Keeps Your Savings Intact: Without insurance, you might have to use your savings or retirement funds to get by. Disability insurance can help you avoid this, keeping your nest egg safe for the future.
3. Provides Time to Recover: Knowing you have a safety net allows you to focus on getting better instead of stressing over money. It’s one less thing to worry about during tough times.
4. Supports Your Loved Ones: If you have a family relying on you, disability insurance can help ensure they are taken care of, even if you can’t work. It’s about protecting the people who matter most.
5. Goes Beyond Employer Coverage: Employer-provided insurance is most often limited and taxable. A private policy can offer potentially tax-free  protection tailored to your needs.

Disability insurance isn’t just a policy; it’s a promise to yourself and your loved ones that you’ll be okay, no matter what life throws your way. It’s a small step that can make a big difference when you need it most.

The Finish

As we wrap up this edition of our newsletter, let’s take a moment to reflect on what truly matters. For many of us balancing the demands of our careers, families, and personal aspirations has become an art. We’ve weathered economic shifts, witnessed technological revolutions, and navigated a world that’s constantly evolving.

It’s easy to get caught up in the hustle and grind, but it’s essential to pause and appreciate how far we’ve come. Your experience, resilience, and wisdom are invaluable assets—not just in your professional life but also in shaping the future for the next generation. Remember, it’s not just about managing wealth; it’s about living a life that’s rich in every sense of the word.

Take this time to reassess your goals and check that your financial strategies align with your life goals. Whether planning for retirement, investing in new opportunities, or ensuring your legacy, the decisions you make today will shape your tomorrow.

Stay positive, stay focused, and keep striving for excellence.

Lamont Brown, CFP®

Principal Wealth Advisor