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F E A T U R E D A R T I C L E

Eliminate the Guesswork: Estate Planning

Creating an estate plan is a key component of achieving financial wellness.

Most people don’t spend too much time thinking about end-of-life planning on a daily basis. But you may have loved ones who will soon face those issues. While it’s not pleasant to think about, you may be the one who ends up having to sort out their affairs. In addition, there will come a time when you need to think about yourself and your own family.

In a nutshell, estate planning is writing down what you want to happen after you die. This is commonly accomplished using wills, trusts, advance directives and beneficiary designations on accounts. If you don’t have an estate plan when you pass away, you force people to guess what you wanted. Guessing can place a lot of stress on your family. Creating an estate plan is actually one of the most generous things you can do for them. Here are four key reasons to create an estate plan.

Choose How To Distribute Your Assets

An estate plan allows you to allocate your assets according to your wishes. If you don’t have an estate plan, your money and property may not get to the correct person. In addition, some people who get an inheritance in one big sum may have the potential to spend it all pretty quickly. Creating an estate plan identifies specific inheritances for certain beneficiaries, especially those who might be young, immature or irresponsible.

In addition, if there is not a will when you die, it is called dying intestate. Each state has a succession formula for who receives money and property left behind. In most cases, if the state can’t find anyone, it goes to the state where you passed away.

Set Up Care for Dependent Children

Families with dependent children should make a plan for childcare if both parents pass away. Many young couples don’t think about it, but in the event of both of their untimely deaths, they need to appoint someone to be the guardian of their children. Make sure that if you have minor children, that you have named someone to be the proper caretaker. Although it can be uncomfortable having the conversation on who will be the caretaker (your parents or your spouse or partner’s parents, for example), setting up an estate plan can prevent arguing among family members.

Avoid Probate

If you die without a will, your estate will go through probate. The probate process in most states takes a minimum of seven months to allow creditors to put through claims. In addition, it’s a public hearing, which allows people to know your personal business. The probate process can also be expensive, and legal costs will reduce the amount your loved ones inherit. Essentially, the probate process gets in the way of a smooth transition of your assets to your loved ones.

Minimize Taxes

Some advance planning can save your heirs from getting a big tax bill. For example, depending on whether or not your heir is a spouse or nonspouse (and subject to certain rules), they may need to pay income tax on money they inherit and withdraw from a traditional IRA. However, if they inherit a Roth IRA that was funded for five years or more prior to your death, distributions can be taken tax-free. In addition, if you plan to leave behind an estate in excess of $12.06 million (based on 2022 Internal Revenue Service figures), you need to make a plan for estate taxes, or the so-called “death tax.” Some states also have an estate or inheritance tax with a different threshold. You can reduce these estate taxes with an estate plan.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Kmotion, Inc., 412 Beavercreek Road, Suite 611, Oregon City, OR 97045; www.kmotion.com

©2022 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intended to provide specific advice or recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.

Top of Mind: Mindfulness with Money

Practicing Mindfulness With Money Can Help Boost Your Financial Wellness.

Many people practice mindfulness through yoga, tai chi or other forms of movement, often incorporating breathing exercises. Others rely on their smart watch or phone to ping them at the same time each day, urging them to practice it for a few minutes. While there are many definitions of mindfulness, this one from mindful.org seems to capture it well:

Mindfulness is the basic human ability to be fully present, aware of where we are and what we’re doing, and not overly reactive or overwhelmed by what’s going on around us.

Practicing mindfulness with your money can be a valuable exercise, too. Here are four ways it can help you boost your financial wellness.

Pay Yourself First

Practicing mindfulness here is about determining a savings amount and considering it a bill, the same as any other bill, like electricity or rent. Whether it’s building up an emergency account or saving for some other financial goal, put away what you can, such as $100 a month, $50 or even just $25. Small amounts add up, and can be incrementally increased over time. The good news here is that you’re already practicing pay-yourself-first mindfulness with your 401(k).

Which leads us to… Increase Your Retirement Account Contribution

You should be looking at your retirement account at least once a year and seeing if you can improve how you’re saving for the future (hint: the start of a new year is a great time to do this). For example, how much are you contributing? Are you contributing enough to get the full employer match? Can you increase the amount you are contributing? The longer you put off increasing your retirement savings, the more you miss out on the mindfulness of compound interest. So don’t wait — even a $50 per month increase in retirement savings has the potential to grow to nearly $75,000 over 30 years, assuming an 8% annual rate of growth, compounded monthly.*

Make a Game Out of Saving

A no-spend challenge is when you don’t spend money for a certain period of time. It could be a weekend, a week or a month. You can set rules to spend only on essentials or other allowances. Doing this forces you to be creative with what you have and learn new skills and possibly open up ideas for more ways to save. Visit https://tinyurl.com/yt6cj5rv for more information on taking on a no-spend challenge.

Leverage Technology Apps

One popular savings app is called Acorn (a subscription-based app). You tie Acorn to your debit card, and it rounds the purchase up to the nearest dollar, effectively allowing you to invest your spare change. For example, if you buy something that costs $5.44, when you use your debit card, $6 will be taken out of your account, with $5.44 going to the store and $0.56 going into your investment account. What could be more money mindful than an app that allows you to save money as you make everyday purchases — without having to even think about it?

* This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.

All companies noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Kmotion, Inc., 412 Beavercreek Road, Suite 611, Oregon City, OR 97045; www.kmotion.com

©2022 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intended to provide specific advice or recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.

Every 2023 Tax Deadline You Need to Know

The IRS started accepting tax year 2022 returns on Jan. 23, 2023, but there are several other important dates to remember throughout the year.

In 2023, taxpayers will be required to file their federal income tax returns by April 18 – or file for an extension. For those who own their own businesses, are self-employed or need to take other special tax considerations into account, however, there are plenty of other important dates to remember. Keep reading to learn about them.

Mark your calendar with these important 2023 tax deadlines:

Jan. 17: Fourth quarter estimated tax payments are due for self-employed workers and business owners.
Jan. 23: Tax season begins and filing opened.
Feb. 15: Reclaim exemption from withholding.
April 3: Take your first RMD if you turned 72 in 2022.
April 18: Tax Day is here.
April 18: File Form 4868 to request an extension.
April 18: First quarter 2023 estimated tax
payments are due.
April 18: Last day to contribute to an IRA or
HSA for 2022.
June 15: Second quarter 2023 estimated tax
payments are due.
Sept. 15: Third quarter 2023 estimated tax
payments are due.
Oct. 16: File extended 2022 tax return.
Dec. 31: Take any RMDs.

Jan. 17: Estimated Fourth Quarter Taxes Due for Self-Employed Workers and Business Owners

If you're self-employed or didn't pay your taxes through W-4 tax withholding, you'll need to make estimated quarterly tax payments by Jan. 17, 2023. Generally, this applies to those who will owe more than $1,000 in taxes when they file their returns.

Jan. 23: Tax Season Began and Filing Opened

On Jan. 23, 2023, the Internal Revenue Service began accepting and processing returns from tax year 2022. The earlier you file your taxes and start the process of receiving your refund, the more it boosts the time value of that money, Robert Gorman, certified financial planner and founding partner at Apollon Wealth Management in Mount Pleasant, South Carolina, says.

Feb. 15: Reclaim Exemption From Withholding

If you used Form W-4 to claim you were exempt from federal income tax withholding in 2022, you must file a new W-4 on Feb. 15 to extend your exemption into 2023.

April 3: Turned 72 in 2022? Make Your First Required Minimum Distribution

If you turned 72 in 2022, you must take your first RMD from your traditional IRA or 401(k) by April 3, 2023. Note that this does not apply to Roth IRAs. While the deadline would normally be April 1, that date falls on a Saturday in 2023, so it's now Monday, April 3. Taking RMDs is important to avoid penalties.

"It's very important to stay on top of those because those penalties are probably some of the steepest that the IRS can enforce," Travis Schaat, certified public accountant, chief financial officer and senior financial advisor at Perspective Wealth Partners in Boise, Idaho, says.

April 18: Tax Day Is Here

Though it generally falls on April 15, the deadline to file your federal tax return is later in 2023 because Washington, D.C., observes Emancipation Day. By the end of the day on April 18, taxpayers must file their federal returns.

April 18: First Quarter Estimated Tax Payment Is Due

If you own a small business or are self-employed and earned more than $400 in the tax year, you'll need to make quarterly estimated tax payments. The IRS looks at your estimated liability during certain windows of time, and if you don't make payments during those windows you could be subject to penalties, Schatt says.

April 18: Last Day to Contribute to an Individual Retirement Account or Health Savings Account for 2022

If you haven't hit the maximum limits on your IRA or HSA for 2022, you can always contribute more (up to the annual contribution limit) until April 18. For IRAs, that limit is $6,000, or $7,000 if you're age 50 or older. For HSAs, the total contribution limit is $3,650 for those with self-only health care coverage and $7,300 for those with family health care coverage.

June 15: Second Quarter Estimated Taxes Are Due

For those who don't have their federal income taxes withheld, such as small business owners or self-employed workers, estimated quarterly taxes are due June 15. Use your 2022 taxes as a starting point for calculating the amount you owe, or use your annual gross income and any deductions or credits you may take for the year.

Sept. 15: Third Quarter Estimated Taxes Are Due

Those who are self-employed or own a small business should put Sept. 15 on their calendars, which is when third quarter estimated taxes are due. If you became self-employed during the year, this could be your first payment. Those who don't expect to earn more than $1,000 in the 2023 calendar year, however, may not need to pay quarterly taxes.

Oct. 16: File Extended 2022 Tax Return

If you filed Form 4868 for an extension, your 2022 federal income tax return will be due Oct. 16. You'll need to file Form 1040 or Form 1040-SR and pay the taxes you owe, plus any interest and penalties if applicable.

Dec. 31: Take Any Required Minimum Distributions

After you take your first RMD, you'll need to take any subsequent ones by the end of the calendar year. If you delay the 2022 RMD until 2023, you'll need to take the 2023 RMD by Dec. 31, 2023, Schaat says. "The delay option is only applicable for the first year an individual is subject to required minimum distributions."

Title: Every 2023 Tax Deadline You Need to Know
Source: https://money.usnews.com/money/personal-finance/taxes/slideshows/every-tax-deadline-you-need-to-know
Author: Liz Knueven
Copyright 2023 © U.S. News & World Report L.P.

-Recipe of the Month-

Pina Colada Grilled Pineapple

INGREDIENTS:

1 carton (8 ounces) frozen whipped topping, thawed
1-1/2 teaspoons grated lemon zest
1 teaspoon coconut extract
3 tablespoons canola oil
1 teaspoon ground cinnamon
1 fresh pineapple, peeled, cored and cut into
1/2-inch slices
1/2 cup sweetened shredded coconut, toasted

INSTRUCTIONS:

In a large bowl, combine whipped topping, lemon zest and extract. Refrigerate, covered, until serving. In a small bowl, combine oil and cinnamon. Brush over both sides of pineapple slices.
Moisten a paper towel with cooking oil; using long-handled tongs, rub on grill rack to coat lightly. Grill pineapple, covered, over medium heat or broil 4 in. from heat 5-7 minutes or until lightly browned, turning once. Place pineapple on dessert plates. Top with whipped topping mixture; sprinkle with coconut.