SPRING 2020 NEWSLETTER

EXPLORING AN ENCORE Do You Want to Keep Working During Your ?

UNDERSTANDING THE EASY GARDENING PICKLEBALL: THE SECURE ACT: 4 THINGS TIPS TO MAKE FASTEST-GROWING YOU NEED TO KNOW YOUR YARD POP SPORT IN AMERICA

It’s not often that such sweeping legislation is Beautiful lawns and flower beds It’s a pastime that many people “relish” passed, and while it’s not a massive upheaval, help set off a welcoming home. regardless of age or background, and the new rules are expected to cause changes to Here are some steps you can despite this growing popularity, it’s also some retirement strategies. take this season. a game that many Americans remain unaware of. WELCOME

DEAR CLIENT,

While winter may still hold many of us in its grasp for some weeks yet, the bluster and bravado will soon soften, bringing the return of longer, warmer days. Our first spring issue of the decade provides you with a timely operational update as well as four articles that we hope will brighten your day. Spring also means new beginnings, which is exactly what many people are looking for in the work they do after retirement. In “Exploring an Encore Career,” we’ll take a closer look at some things to keep in mind about your second act. You’ve probably heard that the SECURE Act is now the law of the land, but do you know what it means for your future? We’ll explore some important details in “Understanding the SECURE Act: 4 Things You Need to Know.” Speaking of things you need to know, if you’re not on the pickleball bandwagon yet, you’re missing out on a great way to build friendships and stay active. Get the scoop in “The Fastest-Growing Sport in America.” While you’re thinking about staying active, check out “Easy Gardening Tips to Make Your Garden Pop” for things you can do this time of year to promote an attractive landscape. Happy reading, and we wish you a prosperous and beautiful springtime!

WARM REGARDS, Lewis Chamberlain Lewis Chamberlain, AIF® Investment Advisor Representative, Owner

2 | 2020 SPRING MAGAZINE OPERATIONS UPDATE We have been and will continue to be in direct contact with you about how COVID-19 is affecting the markets and your investments. In addition, I also want to take a moment to provide you some important reassurances about our business operations. Next Level Investor remains open and fully operational. All aspects of our wealth management systems continue to work tirelessly to manage your portfolios using our years of experience and in-depth analysis. We remain your dedicated partner in ensuring you are positioned to pursue your long-term goals. And, as always, we are simply a phone call or email away. COVID-19 is a public crisis and in order to protect our colleagues and communities much of our infrastructure has shifted to remote operations. This helps minimize the spread of the virus and ensures our operations continue normally with minimal impacts. Fortunately, a robust business continuity infrastructure enables remote operations in a way that is almost seamless to you. Again, if you have any questions or concerns about our operations during this public health crisis then please do not hesitate to call or email me directly. We welcome the opportunity to review each aspect of our wealth management processes. Expansion of The Next Level Investor Extension Team I would like to introduce you to Amie McGlinch, our newest member of the Next Level Investor extension team! Our extension team’s role is to allow me to spend more time working with you to help you reach your financial goals. Extension team members serve in a supporting role to ensure that all your client service requests and operations are handled in a timely manner and in good order. Feel free to contact Amie McGlinch anytime using the information below. [email protected] or 619-269-0768 About Amie McGlinch Amie McGlinch attended Winona State University in Minnesota where she graduated with her Bachelor’s degree in Finance. She started her finance career in the insurance and mortgage industries where she became detailed oriented, working closely with regulators and auditors. Outside of work, Amie spends her time outdoors: hiking, surfing or taking long walks on the beach with her dog, Remy. She also enjoys cooking and trying new restaurants around San Diego.

2020 SPRING MAGAZINE | 3 exploring encore career

Our concept of retirement has evolved in recent years. Today, we age differently from previous generations, and many of us enjoy active lives well into our seventies, eighties, and beyond. It’s not unusual to see retirement not only as a time to stop working, but also to seek a change of pace or a new definition of work. In this environment, the encore career is catching on.

4 | 2020 SPRING MAGAZINE exploring an encore career Fresh Ideas for Your Second Act What do you hope that “second act” reading or watching a bit of TV, but will look like? And are you looking if you’re looking for more, an encore For some, it might be an all-new to stick with what you know or try career may be right for you. career that takes root sometime during something entirely new? retirement years, such as starting a An encore career isn’t an either/or business or for a charity proposition. Since retirement is “your or other nonprofit organization. Craving the Good Life time,” your work life need not prevent Others might choose to continue in you from exploring other interests: it Most retirees report being confident an already-familiar line of work, can be a both/and scenario. You have in their ability to enjoy a “comfortable helping individuals in a consulting or the ability to control the pace and retirement”—80%, in fact, according advising capacity. direction of your encore career, with to a 2019 EBRI/Greenwald Retirement no need to sacrifice your sense of An EBRI study released in 2019 found Confidence Survey. It’s reasonable purpose or set aside your leisure time. that 80% of Americans intended to assume that you might enjoy the to keep working after they retired. traditional version of “the good life:” However, not all wind up going that pursuing hobbies, spending time with Try Something New... route—28% of those retirees reported 2 family, and relaxing. You might already have a clear idea of working during their retirement years.1 But for some folks, that’s simply where you want to go with your encore If you’ve never thought about an encore not their idea of a good time. Certain career. Maybe you’ve had something career of your own, it’s worth asking personalities crave productivity and a in mind for years, just waiting for the yourself some questions. Do you still bigger purpose by which to navigate. time and resources to make it happen. hope to keep working after you retire? We all enjoy catching up on our It could be that you’ve wanted to direct your energies toward a cause or charity that’s meaningful to you. Or maybe, you want to take what you’ve learned in your career and spin it off in a different direction, giving back to others who are coming up through the ranks, as you once did. Perhaps, you have a hobby that you’ve long considered turning into a business or passion project. Homebrewing is a popular hobby, and it isn’t unheard of for a prominent label to start out in a garage and expand into local venues. Many writers and artists look at retirement as a time to go public with more personal work. Likewise, avid golfers find in retirement at golf courses and enjoy the perk of unlimited play. Another path may present itself in the form of giving back to a nonprofit organization or charity. If you’re not seeking a paying , you may find your work is even more meaningful when your efforts are volunteered. Your contribution of time and energy might be deeply valued by your community, at a school, hospital, or even your church.

... Or Stick with What You Know

Of course, your encore career could be connected to or inspired by the one you’ve recently retired from. If you loved your job or industry, less-experienced employees might not of the community by connecting with a maintaining contact with a familiar only be good for businesses, but also younger generation. work environment and professional offers you the opportunity to put all connections might suit you well. your hard-won wisdom into a greatly Time, the Ultimate Commodity After all, a long, successful career in rewarding second act. a particular field becomes second As retirement nears, you approach nature. There may be ways you can something of enormous value: time. continue doing parts of your job you Consider Your Community Your encore career represents an really enjoyed and less of the parts opportunity to spend your time in Whether you opt to stick with your you didn’t. whatever way you choose, connect comfort zone, start your own business, with others in new ways, and explore One option might be to simply reduce or strike off into a new direction, one the person you were too busy to the number of hours per week you’re aspect that an encore career offers working instead of going all the become. Whatever you choose to do is an abiding sense of community, way to zero. That way you’ll get to with your time, and whatever thriving in connection, and belonging. experience some of the additional retirement looks like to you, we will be freedom of being “semi-retired,” while Humans are inherently social creatures. there to support your goals. your workplace continues to benefit While one person might want to stay from your expertise and institutional part time at their old job in order to knowledge. Keep in mind that your maintain their long-standing social Medicare benefits will come into play connections, another might start a once you turn 65, so you may not business or join a nonprofit with a have the same need for workplace desire to contribute to their community. insurance coverage. In that case, Connecting with our community losing that insurance, by going part through work is one way that we time, probably isn’t too concerning. can offer our service to others. A consulting or position, And engagement in our community either with your employer or with other serves us as well. Interacting with our companies in your field, can also be a neighbors keeps us involved. Even deeply satisfying line of work. Using better, it can be a great source of joy, your expertise to mentor and train particularly as you invest in the future 1. Employee Benefit Research Institute, 2019 2. Employee Benefit Research Institute, 2019

2020 SPRING MAGAZINE | 7

UNDERSTANDING THE SECURE ACT Things You 4Need to Know

The SECURE Act (or “Setting Every Community Up for Retirement Enhancement Act”) was passed at the end of 2019, with most provisions going into effect on January 1, 2020. It’s not often that such sweeping legislation is passed, and while it’s not a massive upheaval, the new rules are expected to cause changes to some retirement strategies. For others, new opportunities may be revealed.

2020 SPRING MAGAZINE | 9 HERE ARE 4 THINGS YOU NEED TO KNOW ABOUT THE SECURE ACT…

1. New Limits on Stretch IRAs Let’s say you have a hypothetical minimum distributions (RMDs) from a $1 million IRA. Under the new law, traditional IRA at age 72, an increase The SECURE Act “modifies” the your non-spouse beneficiary may want from the prior 70½. Allowing money to distribution rules regarding defined to consider taking at least $100,000 remain in a tax-deferred account for an contribution plans and Individual a year for 10 years regardless of their additional 18 months (before needing Retirement Account (IRA) balances age. For example, say you are leaving to take an RMD) may alter some upon the death of the account owner. your IRA to a 50-year-old child. previous projections of your retirement Under the new rules, distributions to Prior to the rule change, a 50-year-old income.2 non-spouse beneficiaries are generally child could “stretch” the money over required to be distributed by the end their expected lifetime, which may The SECURE Act’s rule change of the 10th calendar year following the have been as many as 30 more years. for RMDs only affects Americans year of the account owner’s death.1 Now, however, they must withdraw all turning 70½ in 2020 or later. For the money from the IRA by the time these taxpayers, RMDs will become It’s important to highlight that the new they reach age 61. mandatory at age 72. If you meet rule does not require the non-spouse this criterion, your first RMD won’t beneficiary to take withdrawals during 2. Changes to IRA Contributions be necessary until April 1 of the year the 10-year period. However, all the and Distributions following your 72nd birthday.2 money must be withdrawn by the end of the 10th calendar year following Another major change is the removal the inheritance. of the age limit for traditional IRA contributions. Before the SECURE 3. Multiple Employer Retirement Other minimum distribution Act, you were required to stop making Plans for Small Business requirements may apply to the contributions at age 70½. Now, you surviving spouse of the IRA owner, can continue to make contributions as In terms of wide-ranging potential, the disabled or chronically ill, long as you meet the earned-income the SECURE Act may offer its biggest individuals who are less than 10 years requirement.2 change in the realm of multi-employer younger than the IRA owner, and any retirement plans. Previously, multiple child of the IRA owner who has not Also, as part of the Act, you are employer plans were only open to reached the age of majority. mandated to begin taking required employers within the same field

10 | 2020 SPRING MAGAZINE or ones that shared some other trust does not qualify as an eligible 1. WaysAndMeans.House.gov, 2019 “common characteristics.” Now, small designated beneficiary (EDB), then the 2. MarketWatch, 2019 businesses have the opportunity to entire plan balance is required to be 3. Forbes, 2019 th buy into larger plans alongside other distributed by the 10 anniversary of 4. JDSupra, 2019 small businesses, without the prior the plan holder’s death. The end result limitations. This opens up a much is that the previous benefits of the wider field of options.1 conduit trust might be limited to the new 10-year rule.4 Another big change for small-business employer plans comes for part-time Keep in mind that a trust involves employees. Before the SECURE a complex set of tax rules and Act, these retirement plans were not regulations. Before moving forward offered to employees who worked with a conduit trust or any other fewer than 1,000 hours in a year. trust, you’d be wise to work with a Now, the door is open for employees professional who is familiar with these who have either worked 1,000 hours rules and regulations. in the space of one full year, or at least 500 hours per year for three While the SECURE Act represents consecutive years.2 some significant changes to the laws governing retirement preparation, it’s 4. Conduit Trusts Have important to remember that shifts can Been Modified happen anytime. However, approached with guidance from a financial Before the SECURE Act, a conduit professional, changes of all types can trust was an easier way to safeguard become easier to navigate. If you the life of an inherited IRA. Instead of have questions or concerns, making an individual the beneficiary don’t hesitate to reach out. of the IRA, the trust would become the beneficiary. If you were concerned about how your heirs might spend the inheritance, putting your IRA into a conduit trust was one approach to help manage distributions.3

Under the SECURE Act, if the beneficiary of a conduit 12 | 2020 SPRING MAGAZINE 2020 SPRING MAGAZINE | 13 ight this second, there’s a sport Americans remain unaware of. Quite the than 2.8 million passionate players with a fun name sweeping the pickle, since this mysterious pastime swing their rackets daily. No, it’s not nation. It’s a pastime that many is the fastest-growing sport in the tennis, but you’re on the right track. Rpeople “relish” regardless of age or United States. It’s played in elementary The answer? Pickleball!1 background, and despite its growing schools, community recreation centers, popularity, it’s also a game that many country clubs, and parks where more

14 | 2020 SPRING MAGAZINE Who Put the Pickle Pickleballing “The kitchen” is a colloquial term for the non-volley zone. This is a three- in Pickleball? Like a Pro and-a-half-foot-wide section of the court closest to the net and extends The game of pickleball was invented Pickleball, often shortened to “pickle” to each sideline. It’s not uncommon in 1965 by Bill Bell, Barney McCallum, by many, is a game that feels familiar, to hear yells of “Kitchen!” followed by and Congressman Joel Pritchard. thanks to rules borrowed from ping- bellows of laughter during a game, These three fathers and their families pong, tennis, and badminton. Pickle as seasoned players find themselves had a tradition of spending summers can be played either as doubles— celebrating a great volley, only to together, but that year, their children two players per team—or singles. realize they’re standing squarely in were bored. The three fathers decided Don’t have a partner? No worries! “the kitchen” where volleys are a big to invent a game for their families to Many leagues and communities have no-no.4 play, using an old badminton court and members who are more than happy to ping-pong paddles. By all accounts, play with new teammates. Fun for the everyone loved it, and soon, this strange new game began to spread The standard pickleball play area Whole Family throughout the neighborhood.2 measures 20×44 feet, with the net set at tennis court height. There are Because pickleball rules are so So, why name it “pickleball”? many easy-to-grasp rules, but the similar to ping-pong, the barrier to Joan Pritchard (Joel Pritchard’s most significant difference between entry can be quite low. Grandparents, wife) coined the term because the pickleball and tennis is the “serve” grandchildren, and anyone in between combination of rules borrowed from and the “kitchen.” can pick up this fun game with ease. other games reminded her of the So, whether you’re a beginner, a “pickle boat” used in crew. However, Unlike tennis, a pickleball serve is seasoned athlete, or just looking for Barney McCallum claims that the made underhand, and paddle contact something to up the monotony game was officially named after the with the ball must be below waist of your normal exercise routine, Pritchards’ dog, Pickles, who loved level. The serve is made diagonally why not give it a try? After all, being nothing more than chasing the ball crosscourt and must land within America’s fastest-growing sport makes and running away with it.3 the confines of the opposite pickleball a pretty “big dill.” diagonal court.

1. USAToday.com, 2018 2. USAPA, 2019 3. USAPA, 2019 4. USAPA, 2019 Lewis Chamberlain, AIF® 1314 Oregon Street Redding, CA 96001 Phone: (530) 243-9888 Toll-Free: (800) 949-4872 [email protected] www.nextlevelinvestor.net

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SPRING 2020 NEWSLETTER