1 | Week In Review

Markets Slow As Energy Creeps Higher

Mixed earnings, accompanied by creeping energy and mortgage rate increases, reflect an economy that appears uncertain. Will the Fed’s meeting in Jackson Hole next week provide clarity? Annex Wealth Management’s Dave Spano and Derek Felske discuss.

2 | Poll

Required Minimum Distributions

Common Questions: Do I have to take an RMD if I own an annuity?

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3 | Client Exclusive

Fishing: The Age-Old Sport With Modern Benefits.

Pick up a rod and reel; let’s get out there.

There is nothing quite like having a singular purpose. One simple goal you are trying to achieve and one that has no deadline. The task is simple, and the execution is easy. Or at least, that’s what we hope for every time we head out to the water.

You know, they say a bad day of fishing is better than a good day doing anything else. The mysterious “they” must really love fishing, and we sure appreciate the enthusiasm!

Unique to this sport, you can make it as simple or as complex as you want – the object is still the same. You can stand at the shoreline with a rod and some bait, or even a spool of fishing line with a hook on one end if you really want a challenge. On the other hand, you can be floating in a boat with a sonar fish finder, four different rods mounted to the back of your flat deck boat, and all the gear you could ever need and then some. Either way, or somewhere in between, at the end of the day catching that elusive fish is what you’re out there for.

Have you ever noticed after an afternoon of fishing, you just feel better? Well, you aren’t alone, and science has proven it! And if you put aside the fact that maybe you didn’t actually catch anything worth keeping, there are plenty of mental and physical benefits to make it absolutely worth it too. As if you needed any more reasons to take the day off to go fishing, here are a few more for you to use:

Focus and awareness. The focus and awareness needed to continually watch your line and feel for the tug of a bite can set your mind on one single task, reducing anxiety and promoting relaxation as your mind has a chance to slow down. We can agree that this is something most of us need more of in our lives.

Vitamin D and fresh air. We could get buried under the pile of studies and research out there that proves the many benefits of vitamin D and fresh air – like boosting your immune system, clearing your lungs with clean air, and improving heart, bone, and brain health to name a few.[1] We thought we’d just state that again: fresh air and sun can only benefit your mind and body, and being in nature increases energy levels too. So even if you don’t catch anything, your body will thank you just for being out there.[2]

A series of studies showed regular exposure to nature helps to lower cortisol levels, the hormone known to cause stress. And even further, a study done in 2009 with combat veterans also showed fishing significantly lowered the symptoms of PTSD and also aided in better sleep. [3] That alone makes it worth it!

No distractions. With so many ways to be distracted in today’s tech savvy world, being out on the water with no reception might actually be the best thing to happen. Too often with phones and computers we jump from screen to screen, checking this, looking up that, taking pictures, playing games, and we miss what is around us. The world hasn’t lost its wonder and beauty, we’ve just stopped looking so closely. So, next time, try not to be frustrated when you can’t post your selfie with the fish right after you’ve caught it and take in the view instead.

Concentration and patience. Fishing also can help to increase concentration and patience. The fish are on their own timeline, and you have to wait for them to decide to bite and then be ready when they do. Yes, this may actually take some practice.

Choose your activity level. There are several ways to fish, some more active than others. You can always stand along the shoreline, pier, or in the water, but you can also be in a boat, on a kayak, or even hike or bike to a remote spot which adds much more physical activity to your fishing trip. While fishing itself doesn’t require great physical strength, you can still burn an extra 200 calories or so per hour with the pole in your hand and the low-impact benefits keep your shoulders, core, back and neck muscles loose.[4]

Lots of nutrition. If you like fish, keep what you catch! The benefits of having fish in your diet are numerous. Omega-3 fatty acids found in fish are marvelous; good for your eyes, skin, heart, and joints, catching and keeping your fish for your next meal gives your trip an added bonus your body will love. [5]

We’re not telling you that you should take the day off to go fishing, but we will say that these benefits speak for themselves. We’re ready to get out on the water too, so grab your license, fully loaded tackle box, fishing pole, and cooler for “fish” and let’s go!

[1] https://www.healthline.com/health/food-nutrition/benefits-vitamin-d#_noHeaderPrefixedContent
[2] https://guidesly.com/fishing/blog/8-ways-fishing-keeps-you-healthy
[3] https://www.outsideonline.com/health/wellness/fishing-can-make-you-happier-and-healthier/
[4] https://www.ontarioparks.com/parksblog/health-benefits-fishing/
[5] https://www.huffpost.com/entry/benefits-of-fishing_n_5754408

4 | MoneyDo

If You’re Looking To Find A More Tax-friendly State, Look At These Key Factors

With the 2017 Tax Cuts and Jobs Act in effect, there’s been a lot of talk about the change in the SALT (State and Local Tax) deduction. This is a deduction we receive for state income taxes and property taxes paid.  

SALT deductions continue to be limited to $10,000 per tax return in 2022 and are slated to remain capped through 2025. This means many people may not be getting a tax benefit for all state income taxes paid. Moving to a no- or low- income tax state during retirement may be more appealing. Nine states do not have an income tax:  

• Alaska  
• Florida  

• Nevada  
• New Hampshire  
• South Dakota  
• Tennessee  
• Texas  

• Washington  
• Wyoming 

This week’s MoneyDo: Review the following factors when looking at moving to a tax-friendly state. 

Consider What It Takes To Leave  

Before you make the switch to leave your home state, be aware of what the state uses to determine your legal residence for income tax purposes. The Wisconsin Legal Residence Questionnaire asks if you changed your driver’s license, where you vote, where your car is insured, and what your future intents are. Wisconsin typically requests the form with your tax return in the year you change your residency.  

Consider What It Takes To Establish Residency  

Depending on what state you move to, they may have their own requirement on what you need to file/do to establish residency. For instance, in Florida you’re able to file a Declaration of Domicile, affirmatively establishing your intent to be a Florida domiciliary going forward. Unfortunately, establishing domicile isn’t as easy as completing a form. Please see your advisor for a comprehensive list of action items for establishing domicile in your target state.  

Consider If You’ll Be Paying Partial-Year State Taxes  

If you’re deducting expenses on your federal tax return at tax time, you may have to file two separate state tax returns when you move out of state. If you earned income in two different states during the year, unless you’re moving to or from a state that does not collect individual income taxes, you’ll need to file a return in each state to cover the time you lived there.  

Consider Changes To Insurance  

If you’re changing jobs, consider your individual or new employer-sponsored insurance options, like life, health and disability insurance. Ask your private insurance provider about coverage for your cars, any items you have in storage, and your residence to make sure you’re covered during your move.  

Talk with your financial advisor about any insurance policies you have to see if they still apply to your change in circumstances. Sometimes, a change in insurance coverage is necessary when you move someplace new. 

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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.