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The Carrington Connection: May 2017

The Carrington Connection 
"Helping Families Live a Great Life"

CWA Family Feature

Jeff and Denise Hoyt both grew up in rural Nebraska.  Jeff, a Captain with Southwest Airlines and retired B1 bomber pilot with the Air Force, grew up in the Northeastern part of the state where he was the oldest of three boys.  His dad worked for a cattle feeder and his mom was a nurse.  He has fond summer memories of working with his grandfather in the hay fields on the family ranch, gardening and canning.

Denise, a Marriage and Family Therapist and TherapyAppointment software trainer, grew up in South Central Nebraska with three older sisters and a brother.  Hers was a frugal family, but her parents provided the means for each of the children to acquire a college education.  Looking back, they had less than most, but never felt that anybody else was either richer or poorer - you were a member of the community where everybody knew your name. 

Jeff and Denise share similar childhood memories of  playing cards around the kitchen table with family and friends, family gatherings with cousins,  and swimming in the river.  It was a simple life rich with the things that matter.  Faith, family, friends, community, and a strong work ethic. 

They met in Kearney, Nebraska while attending what is now the University of Nebraska at Kearney.  Denise majored in nutrition and dietetics, while Jeff in business administration and accounting.  Their fondest memory of their college days was their first date, 'a blind date' set up by a mutual friend.  It was January 28, 1983 that brought their paths together.  Denise remembers the fun of watching their college compete in a basketball game and then midnight bowling, followed two days later with a four-hour phone conversation. Jeff remembers the good-night kiss that motivated him to have a four hour phone conversation.

Denise describes their life together as a long curve full of turning points.  She's always had diverse interests. When Jeff was stationed at Dyess Air Force Base, she pursued her Masters in Marriage and Family Counseling at Abilene Christian University. She then launched Turning Point Counseling in Abilene along with four business partners.  Jeff, on the other hand, feels his life has been a straight line following graduation. He joined the Air Force to learn how to fly, became a Weapons School Officer, and then after 17 years in the Air Force, he joined South West Airlines, where he serves as a Captain and Committee Chair with the Southwest Airlines Pilots Association.

They consider their greatest achievement to be their son and daughter.  Jason has his bachelors and masters in architecture from Texas Tech and serves with a firm in Dallas.  His bride, Erica, is a first-grade teacher.  Andrea earned her bachelors degree from the University of Texas with a major in both Sociology and Psychology.  She is now entering the Washington University School of Law in St Louis. 

With a wry smile that is common to Jeff, he says he's enjoyed his flying career, but that he takes greater satisfaction from Denise agreeing to marry him again when he asked her that question on Valentine's Day of 1999.  "I asked her if she would do it all over again, and she said, "Yes."

Today, their greatest joy and their deepest satisfaction comes from watching magnificent Texas sunsets together from the back porch of their new home overlooking Lake Granbury.

Both invest long hours in community service.  Denise serves as Secretary on the Bentwater on Lake Granbury POA Board, and Jeff Chairs the Architectural Control Committee.  They are patrons of ISF, a foundation serving children aging out of foster care who seek to go to college. 

Jeff is motivated to make smart choices about money in order to enjoy a contented retirement.  Denise still aspires to having enough free time to learn to play the violin.

They recently met with a Carrington Family Officer® for a Bridge Conversation™.  What was remarkable to Denise about the process was that it enabled her to verbalize what she wanted for their future in a way that allowed it to became a shared understanding with Jeff. "Being able to verbalize it meant that we could embrace it together as an achievable goal."  

Jeff smiles that same smile again and says, "During the process, I gained a new friend in Tyler, our Family Officer®.  Despite the age difference, the Bridge Conversation allowed us to become friends.  Both Jeff and Denise agree: "The Bridge allows you to put into words what you've been thinking for years, then provides a structured process to put in perspective what you are working to achieve in the end.  It brings forward  your core family values, and allows those values to guide your financial choices for the future."

Jeff remarks that "Tyler has relieved my anxiety about where we are going and how we're going to get there.  He is doing what I should have been doing to manage and protect our assets,  but I didn't have the desire, knowledge, and time to do it myself." 

Denise adds, "Tyler has eased my husband's anxiety about securing our family's future, which makes my life so much simpler."

Denise's Favorite Cocktail

Bootleg Mule

 Fill a copper mug full of ice. Pour in:

1 oz South House Cherry Limeade Moonshine

1 oz Vodka 

1 oz Lime Juice

Fill to the top with ginger beer.

Add a Drizzle of simple syrup infused with fresh ginger. Stir to combine.

Garnish with a lime wedge, a moonshine-soaked cherry, and a mint leaf. Enjoy!

DFW Entertainment

PGA TOUR in Dallas
May 15-21 
TPC Las Colinas 


May Concert Calendar

Concerts and Entertainment Near You

Learn More >

PGA TOUR in Fort Worth

May 22-28
Colonial, CC

Ticket Information >

Trivia News

The Month of May. It just sounds nice, doesn't it? It's the promise of warmth and sunshine. The flower for May, lily of the valley, promises a return of happiness. That's exactly what May feels like after a long, cold winter. Aside from the sunshine and pretty flowers, May has also served as host to some other great events and special holidays. You know, like these cool historical events...

May 5 - Thank your lucky stars. In 1962, Alan Shepard became the first American in space.

May 20 - Amelia Earhart became the first woman to fly solo across the Atlantic. 

May 25 - Start your engines! The Indianapolis 500 is always on the Friday before Memorial Day.

May 27 - 200,000 people walked across the Golden Gate Bridge to celebrate its opening.

Did You Know?

  • More people are killed annually by donkeys than die in air crashes.
  • Every citizen of Kentucky is required by law to take a bath once a year.
  • No word in the English language rhymes with month, orange, silver and purple.
  • A 'jiffy' is an actual unit of time for 1/100th of a second.
  • Dueling is legal in Paraguay as long as both parties are registered blood donors.

A Little Humor

A plane was taking off from Kennedy Airport. 

After it reached a comfortable cruising altitude, the captain made an announcement over the intercom, "Ladies and gentlemen, this is your captain speaking.  Welcome to Flight Number 293, nonstop from New York to Los Angeles. The weather ahead is good and therefore we should have a smooth and uneventful flight. Now sit back and relax -- OH MY GOD!" 

Silence followed and after a few minutes, the Captain came back on the intercom and said, "Ladies and Gentlemen, I'm so sorry if I scared you earlier, but while I was talking off, the flight attendant brought me a cup of coffee and spilt it in my lap. You should see the front of my pants! A passenger in Coach said, "That's nothing, he should see the back of mine!"


Leadership & Business

Dr. Stephen Covey's inspirational book 

"7 Habits Of Highly Effective People®"

Dr. Stephen Covey (1932-2012) was and remains a hugely influential management guru. Covey's most famous book, The 7 Habits of Highly Effective People, became a blueprint for personal development when it was published in 1990. The principles may be used for life in general - they are not limited to workplaces, management, leadership, etc. Covey's concepts actually can help people to grow, change, and become more effective in really any other aspect of human responsibility that you might imagine.

Covey's Seven Habits are easy to understand, but like all the best and simplest models, can be a little more difficult to apply in practice. The 'Habits' seem very simple, and in many ways they are, yet to varying degrees they may entail quite serious changes to thinking and acting.

Be inspired by Covey's ideas nevertheless. They are wonderful.

Want to know more?



OCTOBER 20, 2017 at the Belo Mansion!

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A Happy Heart

  • Stay connected.  Don't cut yourself off from family and friends.  Maybe get a pet.
  • Get other-centered.  Break the vicious cycle of self-absorption.  Show interest in other people.
  • Laugh every day.  Find humor in every day events.  Watch funny movies or videos.  Have a good laugh every day.  Proverbs 17:22 says a merry heart does good like medicine, but a broken spirit dries the bones!
  • Nurture your spirit.  We are spiritual beings.  Nurture your spirit by reading, listening to and watching uplifting things.  Proverbs 18:14 says the human spirit can endure a sick body, but who can bear a crushed spirit?

Cut yourself (and others) some slack.  Don't be so hard on yourself.  Accept yourself, flaws and all, as well as others.  Focus on what is good in yourself and others rather than all that is wrong.

Learn More >

Our mission is to empower the families we serve to make smart choices about money so they can achieve their goals, fulfill their purpose, and live a great life!  

Contact us today to schedule a complimentary Bridge Conversation® and get clarity around what a great life could look like... for you!

Carpe Diem,  

Tyler Talman
Carrington Wealth Advisors 

Family Officer 

Hyperlinks on this site point to a website not affiliated with Regal Investment Advisors or CWA. These links are provided as a convenience only. Regal Investment Advisors and CWA disclaims any responsibility for the accuracy of the information on those other websites.
Investment advisory services provided through Regal Investment Advisors, LLC. an SEC Registered
Investment Advisor. Carrington Wealth Advisors is Independent of Regal Investment Advisors.
Published by Sovaré exclusively for Family Officers® delivering the Smart Money Experience®... branded for CWA.
The mission of the Smart Money Experience® is to deliver a liberating financial experience for each family where their financial house is so "in-order" that they feel free to pursue things in life that are more important than money, and things that give them a higher quality of life.  We empower them to more freely pursue their professional interests, grow their business, enrich their relationships, enhance their health, and have meaningful community impact.  We free them from financial issues to pursue quality of life issues.  The articles provided in this newsletter are meant to make you smile and give you information for health, business and life.  We hope that you find it to be a meaningful read.  Enjoy!

Giving Back: Creating Your Legacy Through Planned Philanthropy

“To know even one life has breathed easier because you have lived – that is to have succeeded.”

– Ralph Waldo Emerson

Success in life is about much more than wealth. Planning your giving allows you to educate yourself about causes and issues and develop relationships to ensure that your gifts make the greatest impact on the problem you’re trying to address.

Here are a few of the most common ways to give through charity:

A scholarship at your alma mater or a school of your choice can allow you to make a major impact on the future of future generations of students.

Sustaining donations allow you to provide regular support to charities without the financial burden of a large donation.

A donor advised fund allows you to leverage professional management while choosing when and how to make charitable donations.

A charitable remainder trust is a tax-exempt trust that can make payments to you over your lifetime and distribute the remainder to charitable interests.

Life insurance can allow you to keep your assets while benefiting charitable causes after your death.

Our goal is to help you and your family define your personal values and support you during your philanthropic journey. We can help you identify the right structure for your giving and create a philanthropic strategy that fits your needs. If you have any questions about philanthropic planning or any other personal aspirations, please give our office a call, we’d be delighted to hear from you.

Get the Most Out of Your 401(k)

An employer-sponsored retirement plan is one of your most powerful tools for pursuing a comfortable retirement. Even if your retirement is years away, some advance strategizing now will help you evaluate your current savings, estimate how much you’ll need to save for a comfortable retirement lifestyle.

Maximize Your Retirement Plan Contributions

When you enrolled in your retirement plan, you might have opted for the default contribution amount, which is often too low a savings rate to give you a comfortable nest egg. Many employers provide matching contributions to your account, and by taking advantage of your employer’s extra contributions, you can dramatically increase your savings over time. A good rule of thumb is to contribute at least enough to get your full employer match. It can be hard to suddenly increase your contribution rate, which is why we recommend taking a gradual approach and increasing your deferrals each year. We recommend that you save at minimum 10 percent of your salary, and gradually increase contributions to 15 or 20 percent as you approach retirement.

Understand Your Plan Features

Every 401(k) plan is a little different, and it’s important to learn about the different plan options available to you. Your plan administrator will be able to provide you with details about vesting schedules, loans, investment options, and any limitations to withdrawals that you should know about. A financial representative can help you review this document to be sure that you understand it fully.

Keep Your Savings Invested When You Switch Employers

When you leave an employer, you have a couple of basic options available to you: if allowed, you can leave your plan with your old employer; you can roll it over into an IRA or plan at your new employer; or you can cash it out. It can often seem simpler just to take a check rather than wrestle with complex paperwork, especially if the account balance is small, but this option will cost you a lot in taxes and penalties. Worse, it will potentially rob you of income in retirement.

If you no longer want to keep your plan at your old employer, the easiest way to avoid temptation is to transfer your money to your new employer or roll it over into an IRA. Talk to your employer and plan administrator to be certain that you understand timelines for moving your money and the relevant regulations regarding transfers and rollovers.

Develop a Long-Term Financial strategy

One of the best ways to help you stay on track for retirement is to develop a financial plan that takes into account your current financial circumstances and future goals. A long-term strategy can help you map out important milestones and help ensure that you are putting enough away for your future goals.

Understand Investment Risk & Time Horizon

If you have many years of employment ahead of you, you may want to consider a more aggressive investment strategy that offers higher potential returns. As you get closer to retirement, your needs and ability to absorb risk will change, and it’s important to review your investment strategy and make changes, if necessary. Most 401(k) plans offer asset allocation options to suit a variety of ages, risk tolerances, and investment goals. A financial representative can help you review your options and help ensure that your investment allocations fit your overall financial strategy.

While benefits and retirement plans can be complex, taking action on a few of the steps we’ve outlined could make a big difference for the future.

7 Principles of Long-Term Investing

7principlesoflongtermIncreasing your wealth over time is about more than making the right stock picks or always buying low and selling high. We have compiled this list of seven principles of long-term investing. These are by no means exhaustive, nor will they guarantee investment success, but we hope that you will find them useful in helping you make investment decisions

1. Focus On The Total Real Return Of Your Investments

To maximize investment growth over time, it’s critical to factor in the effects of fees, taxes and inflation on your returns. Incorporating tax efficiency into your overall plan will help you keep more of what you earn.

Inflation is another force that can eat away at investment growth each year. A candy bar that cost 25 cents in 1975 would cost over a dollar today, due to the effects of rising prices. In an effort to reduce risk, many people over-invest in fixed-income securities, which are highly exposed to inflation risk since they do not have the same potential for capital appreciation as equities. We recommend that our clients’ portfolios contain enough exposure to equities for their ability to fight inflation through growth.

2. Don’t Chase the Crowd

It is usually wise to avoid following the herd. By the time your friends, family, neighbors and newspaper columnists are all investing in a particular sector or security, it’s often too late to benefit because hype has already inflated the price. Instead, we strongly encourage an investment strategy that is based on objective research using the best information available, calculated choices, a realistic assessment of risk, and a determination to avoid emotional decision-making.

3. Remain Flexible and Diversified

Diversification is one of the pillars of modern investment theory and can be a powerful tool to reduce certain types of risk in your portfolio. Be sure that your overall portfolio contains a variety of quality investment types, including stocks, bonds, international securities, and a few alternative investments if your risk profile and investment goals support them.

4. Buy Value, Not Market Trends

Wise investors focus on value when evaluating investment options. Too many investors focus on buying market trends not realizing that trends can be deceiving and markets often perform very differently from the economy. A smart investor keeps an eye on the economy and factors economic outlook into investment decisions, but ultimately seeks out high-quality individual investments.

5. Take the Right Amount of Risk

Too much risk can leave your nest egg vulnerable to market swings with too little time to recover before you must start withdrawing money and locking in the losses. Too little risk in your portfolio will reduce your potential for capital appreciation and allow inflation to eat away at the long-term value of your investments. Determining risk tolerance and the appropriate amount of risk for your investment goals is one of the most important things we help our clients with.

6. Learn From Your Mistakes

One of the key differences between successful long-term investors and those who are not, is that successful people learn from their own mistakes and commit to never making the same mistakes twice. Many common investing mistakes can be attributed to emotional decision-making, but working with a financial professional can help avoid emotional decision-making and many other pitfalls commonly encountered by amateur investors.

7. Aggressively Monitor Your Investments, or Pay Someone Skilled To Do It

No market rally is permanent and no decline lasts forever, meaning that there are no investments that you can buy and forget about. If you aren’t completely sure that you have the time it takes to manage your investments well, it may be time to find a professional financial representative with the skills and experience to do it for you.


6 Social Security Tips

Pension WorryAccording to Social Security Administration (SSA) statistics, Social Security benefits account for about 36 percent of retirement income for the average American. One of the biggest mistakes today’s retirees can make is to underestimate the importance of Social Security in their retirement strategies.

1. Your Age Affects the Benefit You Will Receive

62 is the earliest age that you can file for Social Security (unless you qualify for disability), but you won’t be able to collect your full benefit then. Instead, the SSA reduces those benefits by either 25 percent if your full retirement age is 66 or 30 percent if it’s 67. So, if your full monthly benefit at age 66 were $1,000, you’d only receive $750 each month if you started collecting at age 62. That reduction in benefits will be permanent.

If you can afford to wait until your full retirement age, you’ll be eligible for 100 percent of your Social Security benefit. If you can afford to wait even longer, your benefit will increase by up to 8 percent every year until age 70, permanently. So, if your basic benefit were $1,000 at your FRA of age 66, it would increase to $1,320 per month or 132 percent of your benefit by waiting until age 70 to take it. If you were born after 1942, you’ll qualify for the 8 percent credit each year.

2. The Right Social Security Strategy Could Be Worth Hundreds of Thousands of Dollars Over Your Lifetime

There is no perfect time to file for benefits, but choosing the right claiming strategy can radically affect how much you are able to collect over your lifetime. Many Americans are forced to claim early benefits for financial reasons, but, if you can afford it, delaying Social Security benefits could mean collecting significantly more over the course of your life. Ultimately, your personal Social Security strategy will depend on many personal factors like taxes, marital status, age, health, and other sources of income. It’s a good idea to discuss your situation with a financial professional who can analyze your situation and offer personalized advice.

3. You Can Work and Collect Social Security, But it Might Affect Your Monthly Benefit

Many Americans are continuing to work well into their retirement years. While the government allows you to work and collect Social Security benefits, your benefits may be reduced if you are below your full retirement age.

In 2015, if you are over 62, but younger than your FRA, you will lose $1 of your benefit for every $2 you earn over $15,720. Starting with the month you reach full retirement age, you will start receiving benefits with no reduction, even if you keep working. Once you reach your FRA, the SSA will recalculate your benefit and give you credit for any benefits that were withheld while you were working. Keep in mind that you must pay Social Security and Medicare taxes as long as you are earning income.

4. Social Security Benefits Are Taxable

Unfortunately, retirement doesn’t mean retiring your worries about taxes. If you collect substantial income from sources like wages, investment income, rental income, or any source that you report on your tax return, you will very likely owe taxes on your Social Security benefits. The tax rate you’ll pay depends entirely on your overall income bracket since Social Security gets treated like ordinary income.

However, there are strategies that may help you maximize your income while reducing taxes. For example, one method is to take as much income as possible from sources that are excluded from the “provisional income” that the SSA uses to calculate the taxation of your Social Security.

5. Married? Don’t Forget About Spousal and Survivor Benefits

Married couples need to think about how their Social Security claiming strategies will affect their spouse’s benefits and income in retirement. This issue is especially important when one spouse is significantly older than the other or earned more during a career. Your spouse’s benefits are based on your personal benefit, which means that the age at which you file for benefits will have a major impact on what your husband or wife is eligible to collect.

For many couples, maximizing a survivor benefit for a younger spouse is a major consideration. Since a survivor who has reached FRA will be eligible for 100 percent of the primary worker’s benefit, he or she will be able to take advantage of any delayed retirement credits and cost-of-living adjustments that the primary earner accumulates. Surviving spouses can usually choose between collecting a personal benefit or a survivor benefit, depending on which one is higher.

6.Advanced Filing Strategies Can Help Boost Your Lifetime Income

If you are married, there are some advanced claiming strategies that you and your spouse may be able to use to increase your lifetime benefits. Keep in mind that factors like taxes, age differences, life expectancy, retirement assets, family status and income all affect Social Security claiming strategies and can reduce their advantages to you. No strategy can be right for everyone and it’s important to consider your entire financial picture when making decisions.

File and Suspend is a very popular strategy in which the higher earning spouse files for benefits at his or her FRA, and then suspends the claim. Filing for benefits allows the spouse to collect spousal benefits while the higher wage earner’s benefits continue to accumulate credits.

File and Suspend Plus allows the higher earner to file and suspend at his or her FRA, enabling the spouse to collect a spousal benefit when he or she reaches full retirement age. Both spouses will collect their higher personal benefits once they turn 70. The benefit of this strategy is that it maximizes household Social Security income at every stage and also increases the survivor’s benefit.

The Spousal Benefit Change-Up is a scenario in which the lower earner claims benefits at full retirement age, allowing the higher earner to claim a spousal benefit while his or her personal benefit continues to accrue. At age 70, the higher earner switches to collecting his or her personal benefit.