1 | Week In Review
The recent jobs report grabbed headlines by missing estimates, but some experts noted that unemployment is at a near-50 year low. The economy is slowing, but still expanding – how will the Fed react. Annex Wealth Management’s Dave Spano and Derek Felske discuss.
2 | Poll
Some experts believe a structured morning routine is a key part to success.
Do You Have A Morning Routine?
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3 | Client Exclusive
It’s That Time of Year Again
The surprising numbers behind the New Year tradition.
It’s that time again, when we have grand designs and make big promises for the year ahead.
Studies show that 80% of people who make New Year’s resolutions break them by the first week of February, and only 8% are successful in sticking to their goal.[1]
So, why do we continue to do them every year? Maybe it’s a hope that this will be the year we finally commit to it, whatever it may be. Or maybe it’s tradition.
Surprisingly, the practice of New Year’s resolutions is anything but new.
Dating back 4,000 years, the Babylonians celebrated the New Year during a twelve-day festival called Akitu – this festival took place surrounding the first day of spring when planting began, as that was the signifier to ancient peoples that a new year was beginning. This was a time of renewal, crowning the king, and making promises to pay debts and return borrowed farm equipment, which apparently was an actual issue.[2]
As the Roman Empire spread years and years later, they adopted the concept of celebrating the New Year and making resolutions from the Babylonians. In 46 B.C. the Romans shifted the New Year to January 1st from the spring equinox in March to honor the god Janus, who they believed was two-faced, using one to look back in reflection, and one to look forward to resolution, the hallmark of the start of any New Year.[3]
Fast forward even father, and the concept of creating resolutions still hung on, and was intriguing to knights of the 17th century. Known for their unwavering dedication and service to those whom they swear to, the New Year provided an excellent occasion to renew these grand vows of chivalry. Apparently, in order to make this pledge properly, the knight had to place their hands on a live or roasted peacock, and this act then became known as the “Peacock Vow”.[4]
The vows made by knights in front of their ladies and the court were often focused on things other than themselves – to uphold their chivalrous duty, to defend the honor of their king, or to help and protect those in need. In today’s world of New Year’s resolutions, we often tend to focus on ourselves, and it seems that lots of resolutions are the same every year. List after list continue to show a theme on resolutions: self-improvement in some way.
Recently, there has been a rise in the concept of lifestyle changes just for the month of January. Maybe this is just a trend, but it makes a lot of sense. The goal or resolution we usually set for ourselves can often be lofty or unrealistic, with the end goal feeling very far away. If you’re looking to try out a new lifestyle or habit change, try setting the end date for January 31 – that’s only 22 days away and feels much more attainable!
That number is far less daunting than the 356 days you’d still have to go if you set your sights on maintaining it for the whole of 2022, especially if the change is something more radical! Resolutions can act as a sort of reset for your body and brain as the calendar turns to 2022 and our brains tell us that it’s time for something new. Like the roman god Janus, we can both look back and reflect, and look forward to a brighter future.
There are lots of good tips and tricks out there for helping to keep resolutions past the first few weeks of the year, when everyone knows the gyms typically start to thin out and restaurants are full of people who have already become tired of cooking every meal at home. Researchers and psychologists suggest that reframing the way you set your resolutions can help you improve your mindset and success rate.[5]
In one rather intriguing study to investigate the “fresh-start effect”, a popular goal-setting website meant to help people with self-improvement was used to study if the affect could be artificially prompted or resolutions were just doomed to fail in their very nature. To study this, researchers would send email reminders to participants about their goals they had logged on the site. One group was emailed with a reminder and start date of “the third Thursday in March”, while the other group received their start date as “the first day of Spring” as a prompt to achieve their goals. Those who were prompted with Spring as their goal start date were found to be more likely to keep their goals, given the sense of new beginning provoked by a significant date, rather than just any old day.[6]
The New Year provides an even bigger and more significant start date, and our brains seemed to be trained to take advantage of it. And though not everyone who makes resolutions ultimately keeps them (we’re in the group too…) there is hope. Waiting to start over at the New Year may take awhile for the calendar to catch up, but research also showed that some people even use Mondays for fresh start. Maybe we can make “new week, new you” a thing?
One great tip we found says that rather than stopping an activity or habit, create a goal that indicates you’ll be starting something new. For example, if dessert is your downfall, instead of saying “I’m going to stop eating chocolate this year”, reorient your goal to something like “I’m going to start eating more veggies” or “I’m going to start reading for a half an hour after dinner to distract myself from the dessert craving”. This switches the resolution from something negative or being taken away, to something new that is being added to your life and is therefore much more appealing.
Of course, it will still take work, but most change for the better requires some perseverance and dedication, but this could be your year to start something new!
And if you don’t make an official resolution, you can join the crowd who has given up on the tradition and seeks to improve daily, and that is a noble goal worthy of a Peacock Vow just on its own.
Here’s to 2022!
[1] https://www.trafalgar.com/real-word/history-new-years-resolutions/
[2] https://www.almanac.com/history-of-new-years-resolutions
[3] https://www.trafalgar.com/real-word/history-new-years-resolutions/
[4] https://slate.com/human-interest/2014/01/new-years-resolutions-are-lame-the-peacock-vow-is-awesome.html
[5] https://www.bbc.com/worklife/article/20220103-powerful-effective-new-years-resolutions
[6] https://www.bbc.com/worklife/article/20220103-powerful-effective-new-years-resolutions
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4 | Did You Know?
Women & Wealth is going on an adventure!
Join us in Sedona, Arizona from April 25 to 29, 2022.
Pack your bags for a week of rest, rejuvenation, exploring, and education! Our trip takes us the beautiful Arabella Resort located in the tranquil Arizona desert. Enjoy time with other women who also prioritize financial education and want to explore all that Sedona has to offer – and it’s a lot!
With our trusted travel partners at Fox World Travel, you can reserve your spot to join us today! Booking through Fox World Travel will include airfare, accommodations at the Arabella Resort, a fun-filled excursion to Jerome, AZ also known as America’s oldest ghost town, financial wellness workshops geared for women, and more! You’ll even have the ability to add on excursions of your own to make your trip unique!
Gentlemen are also invited and may participate in all activities besides the workshops. To learn more about the details and pricing of our excursion, click here and visit the Fox World Travel site.
We are so excited, and hope that you will join us too!
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5 | Ask Annex
“I’m thinking about moving to a different state when I retire. Is it true that I need to live there a certain number of days in order to receive tax benefits from that state?”
– Joanne
This week’s Ask Annex response was prepared by our Director of Client Learning & Development, Deanne Phillips, CFP®, CDFA®:
If you’re considering a move for tax reasons, keep in mind that “moving” is different than changing domicile — which is the location of your principal, permanent home.
Your tax benefits – including no state income tax in those states that don’t have it – usually follow your declared domicile. Some states do have criteria-driven statutes that help to determine your domicile – such as how many days in the year you must stay there.
But there is much more to proving where your main, permanent home is than residing a number of days at the residence. You may be asked about where your driver’s license and voting registration are, where your doctors or other professionals reside, or even where your important household possessions are. Remember, you can have many residences, but you can declare only one domicile.
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Ask Us A Question!
6 | Financial Fact
“About 44% of US-based millennial millionaires live in California.”
www.spendmenot.com
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7 | Annex Radio
What’s Pushing Record Lumber Prices?
Housing Market: Still A Seller’s Market
Ask Annex: Bitcoin through the roof – your thoughts?
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Events & Webinars
Annex Wealth Management has always been committed to client growth and education. Planning and saving can be demanding. We’ve found that when our clients master key concepts, it often enhances working together to reach their goals. Because these are not sales presentations, our clients benefit from a truly informative experience.
WEBINAR | Annex University: Social Security Basics
Wednesday, January 26, 2022
3:00 PM – 4:00 PM CST | 4:00 PM – 5:00 PM EST
Social Security is a milestone – you’ve worked hard to get here! Navigating the labyrinth of Social Security information can be daunting. As your financial planning firm, we know this can be difficult. Because we know how complex Social Security can be, we are inviting you to a workshop on some general Social Security concepts.
If you have not yet begun to collect Social Security (SS), this informative session is for you. We will cover:
- What does it mean to collect SS early?
- What are the rules for spousal benefits?
- How do you start collecting your SS benefits?
- How is SS taxed?
R E G I S T E R →
WEBINAR | Annex University: Medicare Basics
Thursday, February 10, 2022
3:00 PM – 4:00 PM CST | 4:00 PM – 5:00 PM EST
Medicare enrollment is a milestone for each of our clients.
We understand the complexity and anxiety that can go with making a selection, and Annex Wealth Management is here to help.
We will help you:
- Understand your healthcare needs as you reach Medicare age
- Approach Medicare enrollment with confidence
- Navigate Medicare’s complicated rules and deadlines
R E G I S T E R →
WEBINAR | Annex University: Estate Planning Basics
Wednesday, February 16, 2022
4:00 PM – 5:00 PM CST | 5:00 PM – 6:00 PM EST
Because we know how complex Estate Planning can be, we are inviting you to a workshop on some general Estate Planning concepts.
We will discuss:
- The various documents that are key elements of every estate plan
- Reasons you should do estate planning
- Lifetime planning and asset distribution planning at death
- Should I avoid probate and if so, how
- How do beneficiary designations and asset titling impact an estate plan
- Who should I name as fiduciaries
- How to communicate with family about your estate plan.
R E G I S T E R →
IN-PERSON | Women & Wealth: Investigating Investment Myths
Thursday, January 20, 20226:00 PM – 8:00 PM CST
Join us as we investigate “Rules of Thumb” around investing, honing in on actionable guidelines for our own personal situations. Join us as we debunk common myths such as investing is saving, being in the stock market is gambling, de-risking means to be mostly invested in bonds, and more in this lively, in-person, interactive workshop.
R E G I S T E R →
Annex’s Women & Wealth Retreat: Sedona, AZ
Monday, April 25th to Friday, April 29th, 2022
*Book by January 13 to secure accommodation and room rates.
R E G I S T E R →
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