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FAIRHAVEN JOURNAL SPRING SUMMER 2023 1

TABLE OF CONTENTS Note from Marc Horner 3 Ready or Not AI is Already Here 4 Community Rising Dupage Foundation 6 Meet the Fairhaven Team 9 Help at Home for Parents Come Forcare 11 Charity Golf Halfway to St Patrick s Day 13 SECURE 2 0 Retirement Focus 14 Team Member Spotlight Gina Hornbogen 18 Extraordinary Photos Joe Lekas 20 Lo Main Attraction Recipe 27 Preferred Stocks 101 30 Fairhaven Museum of Art 35 Bear Brothers Funny but True 36 Team Member Spotlight Gerry King 38 Million Dollar Cup of Coffee Education 41 Chaos to Memories 42 This material has been prepared for informational and educational purposes for our clients and friends Please consult your Fairhaven Wealth Management professional to discuss how this may impact your own financial plan and or investment portfolio This material is not intended to provide and should not be relied upon for accounting legal or tax advice or any other purposes Neither Fairhaven Wealth Management nor its subsidiaries or affiliates provide accounting legal or tax advice Please consult your tax advisor and or attorney for such guidance Advisory services offered through Fairhaven Wealth Management an SEC registered investment advisor For a copy of Fairhaven Wealth Management s ADV Part 2 disclosure document please direct your inquiry to admin fairhaven com NOTE FROM MARC HORNER Welcome to what some have called the very best self published magazine by an independent financial planning and investment firm located in the western suburbs of Chicago the Fairhaven Journal The theme of this blockbuster issue is artistry As you read about and see pictures of art expressed in a variety of mediums please do your best to keep in mind the words of English author Neil Gaiman The world always seems brighter when you ve just made something that wasn t there before Inside this issue you will experience artistic expression across a wide variety of mediums in food in family in business in comedy and even the artistry of tax efficiency within the context of financial planning doesn t that last one make you feel sorry for all the children of financial advisors across the world This issue marks both a consolidation and an expansion Our team works hard to deliver a unique client experience We believe an important element that elevates a solid product and service to a distinctive experience is variety that causes someone to reflect I wonder what they are going to do next This issue consolidates in one place all of the ways we try to illicit that reaction by communicating our culture our values in different and we hope interesting ways and our financial planning thinking In addition to our regular topics around entrepreneurship philanthropy financial planning and food you will find information on our recently launched podcast in partnership with the Wheaton Chamber of Commerce the story behind the fictional financial advisory firm we created our collection of Million Dollar Cup of Coffee financial literacy videos a virtual tour of our artwork filled office and much more As always we encourage your feedback and discourage the pulling of punches We can take the criticism provided it is delivered in the spirit of helping us get better And do not be shy about liberally sharing The Journal YAMAS Cheers in Greek Marc Horner Wealth Advisor Founder 2023 Fairhaven Wealth Management All rights reserved The information contained in this issue of the Fairhaven Journal is correct as of press time 3

READY OR NOT AI IS ALREADY HERE The world is about to change it s a threat and an opportunity Artificial Intelligence AI is a hot topic in today s world and for good reason The potential for AI to change the way we live and work is immense and it presents both dangers and opportunities One of the biggest concerns with AI is the potential for job displacement As machines become more intelligent and capable they are taking over tasks that were previously done by humans This has led to a fear that AI could cause widespread unemployment and economic inequality But before you start hoarding canned goods and building a bunker let s take a closer look at the opportunities that AI presents The increasing use of AI in industries such as healthcare finance and transportation is leading to more efficient and effective processes It is also driving new product and service development which is creating new jobs and boosting economic growth In fact it s estimated that by 2020 AI will generate 2 3 million jobs offsetting the 1 8 million jobs that will be displaced That s not too shabby and it s a great reason to put down the canned goods and start investing in AI But what about ChatGPT You may have heard of this specific AI technology and for good reason ChatGPT is a large language model that can generate human like text This has led to the development of new chatbots and virtual assistants that can help companies improve customer service automate tedious tasks and even generate content And let s be real who doesn t love a good chatbot They re like having a personal assistant but without the whole being a human thing So what should investors understand about AI and ChatGPT First and foremost AI is a rapidly growing field with tremendous potential Companies that are investing in AI research and development are likely to see significant returns in the future However it s important to remember that investing in AI is not without risk The field is still in its early stages and it s difficult to predict which companies will be successful in the long term But hey that s what makes investing fun But what about blue chip stocks How will AI affect them It s likely that AI will have a significant impact on many industries and as a result companies that are heavily invested in AI will see growth in their stock prices It s also important to note that AI has 4 the potential to disrupt traditional business models so it s important to pay attention to which companies are investing in AI and how they plan to use the technology In conclusion AI is a powerful technology that is changing the economy in both positive and negative ways As an investor it s important to stay informed about the latest developments in AI and to carefully evaluate any investment opportunities that arise With the right approach investing in AI can be a great way to tap into the tremendous potential of this technology But remember investing in AI is not without risk so make sure you have a good sense of humor about it After all if you can t laugh at the stock market what can you laugh at Aside from your favorite chatbot s jokes of course This article was both written and illustrated by Open AI in less than 30 seconds from the prompt Write a 525 word magazine article about the dangers and opportunities of AI ChatGPT How will they change the economy What should investors understand How will it affect investors portfolios Add some humor We have not edited the AI generated story so that you objectively can judge the strengths and weaknesses of the AI currently available to the public 5

COMMUNITY RISING Helping Our Community See More Impact Together Astrong commitment to locally focused philanthropy is a vital part of every vibrant community This idea lies at the heart of DuPage Foundation s work As DuPage County s philanthropic leader the Foundation seeks to foster philanthropy connect donors to area needs and build community partnerships Through a variety of personalized charitable services available to donors strategic grantmaking and initiatives and a host of other community focused activities the Foundation is continually striving to raise the quality of life for area residents and to be a catalyst for coordinated impact By working directly with community minded individuals families and organizations DuPage Foundation helps educate donors about local needs and opportunities and create personalized charitable plans to benefit their favorite causes and charities locally and beyond whether they want to give today or create a lasting legacy The Foundation also provides a broad range of support for area not for profits from vital grant funding through its various programs and hosting convenings around critical issues to providing guidance and support in creating and administering endowment and reserve funds the Foundation is committed to helping area organizations collaborate and ensure their long term sustainability Since its founding in 1986 DuPage Foundation has grown to more than 130 million in assets and has awarded more than 75 million in grants to notfor profits throughout DuPage County and beyond Grantees have included Addison Center for the Arts Alive Center Autism Society of Illinois Ray Graham Association Reclam13 and more For complete list of historical grantees please visit dupagefoundation org grants past grantees html 2022 marked one of the Foundation s most impactful years to date culminating with the start of a powerful new alliance with the DuPage County Board through the DuPage Community Transformation Partnership This five year 10 million grant program established through federal funds received by the County through the American Rescue Plan Act ARPA is enabling the Foundation to deliver vital support to area social service organizations helping our most vulnerable residents who continue to struggle in their recovery from the pandemic with a focus on addressing four key areas food insecurity housing instability mental health and substance use disorder This is just one example of how DuPage Foundation is working collaboratively to raise the quality of life throughout our community From addressing broad needs through its signature Community Needs Grant Program to investing in our county s vibrant arts sector through its Arts DuPage initiative and ensuring that area children have access to quality affordable early 6 7

The DuPage Foundation supports a wide range of causes including education arts and culture social services environment health and community development Michael R Sitrick top right recently named as its new President CEO childhood education through its Bright Early DuPage initiative the scope of DuPage Foundation s impact is robust At the beginning of this year the Foundation announced a new President CEO Mike Sitrick JD CFRE takes on the new title after holding multiple roles within the organization over the course of two decades most recently serving as the Foundation s executive vice president for advancement Sitrick succeeds Dave McGowan CFRE who retired at the end of 2022 after 25 years of distinguished service Sitrick is excited to continue the Foundation s legacy of hard work and community investment Serving our community and constituents is a privilege I look forward to working with our phenomenal staff volunteer leaders and partners to continue delivering on our promise of raising the quality of life throughout DuPage County and seeing even greater impact for our residents Giving is one of the most rewarding things we can do in our lives especially when we get to see the impact of our gifts reflected locally DuPage Foundation knows this and is committed to continuing to provide impactful support to our shared community as together we keep doing a world of good in our own backyard To learn more about DuPage Foundation and its upcoming events and activities visit www dupagefoundation org or call 630 665 5556 8 MEET THE FAIRHAVEN TEAM The best people carefully chosen for service and results Gerald King Wealth Advisor Gina Hornbogen Executive Administration Specialist Marc Horner Wealth Advisor and Founder Jennifer Taylor Wealth Advisor Trent Warren Wealth Advisor David Fluett Investment Advisor Denise Jahns Client Care Specialist Heidi Orth Client Care Specialist Kurt Anderson Wealth Advisor Blair Fuchs Wealth Advisor Susan Kostecki Emeritus Barb Schrage Client Care Specialist Michele Lantvit Client Care Specialist David Edstrom Emeritus Jean Lyon Client Care Specialist Michael Kronk Emeritus Julie Papievis Brand Ambassador Phillip Smolinski Wealth Advisor Lori Iwaniszyn Client Care Specialist Haley Horner Data Analyst Operations Associate Ryan Madigan Medicare Social Security Specialist Sam Martyn Director of Digital Communications Jacqueline Pawlak Financial Planning Associate Bill Hornbogen Director of Tax Accounting Paul Mardoian Wealth Advisor 9

SIGNS YOUR PARENTS MAY NEED HELP AT HOME And how to approach the coversation Giving up independence is one of the most difficult things adults often face as they age Recognizing the signs that help is necessary and handling the subject with sensitivity will make it easier on everyone when it s time to discuss these issues with your family Ask yourself some of the following questions while visiting your older loved ones Observe their behavior if they struggle in any of these areas they likely need support to continue living safely at home Bathing Grooming and Hygiene Can they bathe themselves and perform other grooming tasks independently Do they have difficulty getting on and off the toilet Are they experiencing incontinence Fall Risk Are they at risk for falls If they have mobility issues that complicate simple tasks then they are at risk of serious injury because of a fall Nutrition Do they eat regularly Can they prepare nutritious meals for themselves Look for any safety issues in the kitchen Are they forgetting to turn off the stove Is there spoiled food in the fridge Medication Are they taking the proper dosage at the right time Are they getting their medications refilled on time Do they need verbal reminders to take their medications Transportation Are they able to shop pick up prescriptions and get to appointments Are they able to drive safely or do they have friends or family who can drive them HOW TO TALK TO YOUR LOVED ONES ABOUT HOME CARE If your loved ones have difficulty with any of the above issues it s time to talk with them about how you can help them continue to live independently It s important to remember that while you may feel uncomfortable bringing up this sensitive subject your loved ones may find it even more stressful it may be difficult for them to admit they need assistance Knowing that approach your loved ones in a kind way and ask to have a conversation about their plans for their future Remember to be sensitive when talking about their needs and available care options and take their feelings and opinions seriously Explain the safety issues you have noticed and reassure them that you want to make sure they have the support they need 10 11

Recognizing the signs that help is necessary and handling the subject with sensitivity will make it easier on everyone when it s time to discuss these issues These types of conversations are most successful when you remember that even though you are experiencing a type of role reversal your loved ones are grown adults Treat them with respect or you risk putting them on the defensive If the conversation does not go well keep trying Many home care providers can help facilitate these conversations and answer any questions or concerns FINDING THE RIGHT CAREGIVER FOR A LOVED ONE WITH ALZHEIMER S Today many people care for a loved one with Alzheimer s As the disease progresses however the demands of these responsibilities can be overwhelming and leave the family caregiver little time for a personal life This can lead to increased stress anxiety and even depression and illness Non medical home care is an ideal solution for a family caregiver who needs respite care professional care provided in the home so family can work travel care for children see friends or simply rest By bringing a caregiver into the home your loved one can remain in a familiar and comfortable environment This is especially beneficial to those with Alzheimer s as they may become confused or agitated in new settings If you are considering bringing in professional home care services to supplement family caregiving research your options Prepare a list of questions before calling agencies and be ready to take notes The agency should also have questions for you about both your loved one s condition and your family s needs A good home care agency should begin with an assessment by a licensed nurse of your loved one s physical mental and social needs The nurse should then develop a care plan to be followed by the caregiver at every visit Alzheimer s symptoms are as unique as the individual with the disease so these individualized care plans are important The agency should perform in home evaluations of their caregiver and regularly check with family to ensure satisfaction with care Don t feel that respite care is a luxury it is a service that you deserve Being able to enjoy personal time away from caregiving responsibilities allows you to return to your loved one refreshed and ready to be their caregiver again John Trompeter is the owner operator of ComForcare Home Care located in Wheaton and serving Northern DuPage County ComForcare is licensed by the State of Illinois and has been in Illinois for 10 years Caregivers guided by RN s provide home care for people of all ages He can be reached at jtrompeter comforcare com or 630 517 8423 12 FORE OUR FIRST RESPONDERS Golf for a cause with bagpipes and more On Tuesday September 12th 2023 at the Arrowhead Golf Club in Wheaton IL golf enthusiasts and philanthropists from all over Chicago will gather for the Annual Halfway to St Patrick s Day Charity Golf Invitational It is a popular charity golf event in Chicago known for featuring bagpipers and an exciting day of golf The world famous Shannon Rovers Irish Bagpipe Band performs early and even joins in on the on course action The post event awards ceremony includes an impromptu performance by the pipe band including Fairhaven founder Marc Horner All proceeds go towards supporting two organizations that support our first responders The Hundred Club of DuPage County and RE ACT Slainte mRoregbiystsecraantn eiwndgwitawh efvaciiorddheeaovaesbnowveealth com golf 13

SECURE 2 0 RETIREMENT FOCUS The new law might have something for everyone On December 29 2022 President Biden signed into law the Consolidated Appropriations Act of 2023 This 1 7 trillion spending bill contains the SECURE 2 0 Act of 2022 the Act Key highlights of the Act include The age to commence Required Minimum Distributions RMDs increases to age 73 in 2023 and to 75 in 2033 Penalties for failing to properly take an RMD will decrease from 50 to 25 of the RMD amount and 10 if corrected in a timely manner for IRAs Beginning in 2024 RMDs will no longer be required from Roth accounts in employer retirement plans NOTE Backdoor Roth conversions remain allowed Catch up contributions will increase Now that the SECURE 2 0 Act is law the slate of changes contained therein could help strengthen the retirement system and Americans financial preparedness for retirement While SECURE 2 0 contains dozens of provisions the highlights revolve around retirement strategy changes both for individuals and employers Additional provisions address balancing saving and investing while paying off student debt making it easier to move accounts from employer to employer and allowing individuals to save for emergencies within retirement accounts Here are a few things Secure 2 0 changes INDIVIDUAL RETIREMENT ACCOUNTS IRAS EMPLOYER PLANS Big changes to required minimum distributions RMDs Currently investors have to start taking RMDs at age 72 The dollar amount required to be withdrawn is determined by a combination of account values and expected longevity as determined by our friends at the Internal Revenue Service The new law raises the RMD beginning age in two tranches Starting in 2023 the beginning age is increased to 73 Then in 2033 the beginning age is increased to 75 In other words if you turn 73 in 2023 you must take your inaugural RMD no later than April 1 2024 no this is not an early April Fool s joke Subsequent distributions would need to be made by December 31st of that year 14 15

If you turned 72 in 2022 or earlier you will need to continue taking RMDs as scheduled If you re turning 72 in 2023 and have already scheduled your withdrawal you may want to consider updating your withdrawal plan NOTE should you delay your first RMD until early 2024 you would need to take two RMDs next year your first in April to satisfy your 2023 RMD and then another by the end of 2024 to satisfy your 2024 RMD IRAS ONLY Qualified Charitable Distributions QCDs Beginning in 2023 people who are age 70 and older may elect as part of their QCD limit a one time gift up to 50 000 adjusted annually for inflation to a charitable remainder unitrust a charitable remainder annuity trust or a charitable gift annuity This is an expansion of the type of charity or charities that can receive a QCD This amount counts toward the annual RMD if applicable Note for gifts to count they must come directly from your IRA by the end of the calendar year QCDs cannot be made to all charities EMPLOYER PLANS ONLY Increased catch up limits at age 60 61 62 and 63 Increases age based catch up limits to the greater of 10 000 or 50 more than the regular age 50 catch up amount in 2025 as indexed for inflation for participants who have reached ages 60 61 62 and 63 leave it to the government to keep things simple Effective date Calendar years beginning after December 31 2024 Applicable plans 401 k 403 b and governmental 457 b but cannot be used in addition to 457 b special catch up Newly Established Company Retirement Plans Eligible Automatic Contribution New 401 k and certain 403 b plans must automatically enroll eligible participants who do not opt out using a 3 minimum and 10 maximum contribution rate Such plans must also provide for an automatic escalation feature that increases employee contributions by 1 per year up to at least 10 capped at 15 of compensation The plan must permit a participant to make withdrawals no later than 90 days after the date of the first contribution For safe harbor plans the cap on permissible auto escalation is 15 for non safe harbor plans the cap on permissible auto escalation is 10 prior to 2025 for 2025 and later years the cap is increased to 15 Effective date Plan years after December 31 2024 Exclusions This provision does not apply to 1 401 k and 403 b plans that were adopted prior to January 1 2025 2 governmental or church plans 3 SIMPLE 401 k plans 4 new businesses in existence for less than three years and small employers normally employs 10 or fewer employees Student Loan Payments as Elective Deferrals for Purposes of Matching Contributions The definition of a matching contribution may include an employer contribution made to an employer plan on behalf of an employee in order to match amounts paid towards their qualified student loan payment Effective date Plan years after December 31 2023 Applicable plans 401 k 403 b and governmental 457 b plans and SIMPLE IRAs Withdrawal for Emergency Personal Expenses Plans and traditional IRAs may permit one withdrawal per calendar year up to 1 000 for an unforeseeable or immediate financial need relating to necessary personal or family emergency expenses This emergency personal expense distribution is exempted from the IRS 10 premature distribution penalty tax that would normally apply to a pre 59 withdrawal The distribution may be repaid within 3 years and a subsequent distribution cannot be made until the repayment is completed The plan administrator may rely on a certification by an employee seeking an emergency withdrawal unless the plan administrator has actual knowledge to the contrary Effective date Plan years after December 31 2023 Applicable plans 401 a 401 k 403 b governmental 457 b plans and traditional IRAs 16 The new law introduces extensive modifications to 401 k plans aimed at widening coverage raising retirement savings and simplifying and clarifying plan rules Reliance on Employee s Self Certification of Hardship and Emergency Withdrawals A plan administrator may rely on an employee certification that a hardship withdrawal is based upon an immediate and heavy financial need as described in the Treasury regulations and that the amount requested is no more than is necessary to satisfy the financial need Similar rules apply to the administrator of a governmental 457 b plan with respect to unforeseeable emergency withdrawals Effective date Effective for plan years beginning after the date of enactment Applicable plans 401 k and 403 b plans hardship withdrawals governmental 457 b plans unforeseeable emergency withdrawals Eliminating Unnecessary Plan Requirements Related to Unenrolled Participants Provided a participant has received a summary plan description and other documents related to plan eligibility a plan is not required to provide disclosures or notices to employees who are eligible to participate but have not enrolled in the plan other than an annual reminder notice of the participant s eligibility to participate in the plan and applicable deadlines as well as any required documents upon a participant s request Effective date Plan years after December 31 2022 Applicable plans 401 a 401 k 403 b and 457 b plans 529 PLANS ROTH IRAS 529 Plans even more flexibility For plans that have been open for at least 15 years 529 plan assets can be rolled over to a Roth IRA for the beneficiary subject to annual Roth contribution limits and an aggregate lifetime limit of 35 000 The rollover is treated as a contribution towards the annual Roth IRA contribution limit All the more important to get started saving for college ASAP Effective date After December 31 2023 beginning 2024 CONCLUSIONS While SECURE 2 0 provides increased opportunities to save for retirement everyone s financial goals and circumstances are unique this legislation is a gajillion pages long so this summary is far from comprehensive As always give us a call or stop by the office to better understand how SECURE 2 0 changes might apply to you 17

OILING THE FAIRHAVEN MACHINE Gina Hornbogen Executive Assistant Spend just a few minutes with Gina Hornbogen and it will become clear to you she approaches life with unbridled enthusiasm Whether at home with her family tending her hydroponic tower garden or juggling an endless variety of projects in the office she does it all with a smile and the attitude of a cockeyed optimist A lifelong Chicagoan Gina earned her undergraduate degree in finance and has been a member of the wealth management industry since 1996 In early 2015 Fairhaven acquired the firm where she worked Part of the deal included Gina staying on for one year to help with the transition Just a few months after the acquisition closed Gina approached Marc Horner and asked about staying on a bit longer The due diligence process leading up to Fairhaven buying us lasted more than a year so that gave me a good chance to get to know Marc After the acquisition closed the new energy that is a hallmark of how we do things at Fairhaven was crystal clear to me It was abso lutely something I wanted to be a part of reflects Gina We are now in year eight of my one year commitment and I don t have plans of going anywhere anytime soon it s too much fun coming to work Outside of work Gina stays busy cooking hiking reading practicing yoga spending time in nature and gardening in her hydroponic tower garden we did not make that up As if that is not enough Gina and her husband Bill have three children the oldest Ryan and twin girls Samantha and Alexandra and a house full of assorted animals While always firmly grounded a recent family health scare reiterated for Gina the importance of striking a healthy work life balance and spending your time with people about whom you care My family is my number one priority Each of my kids and my husband make me so proud comments Gina Right behind them is my Fairhaven family We are such a fun group of people that cares a lot about each other our clients and our community What more could I ask for 18 1295

CAPTURING THE EXTRAORDINARY IN THE ORDINARY Pushing the boundaries of reality to reveal the previously unseen If you look at a handful of Joe Lekas photos you might see some scenes you recognize the Chicago skyline the Empire State building the lush landscapes of the north woods But the longer you look at these images the more you begin to notice Joe s photography allows these common scenes to take on an almost magical quality the Colors are vivid the light seems to glow right out of the picture the water appears to be actively moving Joe Lekas has a passion for Pushing the boundaries of reality and bringing out previously unseen detail and his photography is his attempt to awaken the extraordinary in everyday life Joe launched his business formally in 2015 though photography was a significant hobby of his ever since receiving his B A in graphic design from Dominican University in 2006 But it wasn t always his main interest Initially he loved illustration it wasn t until he started taking photos of the things he wanted to draw that his new passion was born He began experimenting with exposure and learning new photography techniques and hasn t looked back since The ability to coax subtle details out and play with light surpassed my interest in illustration and photography became my foremost passion Whereas I enjoy other art forms to me finding ways to bring out enhance or even exaggerate things in a photograph that are already present but not necessarily visible is where my interest lies Over the years Joe has worked on a wide variety of projects A lot of his work ends up in private offices or residences or used internally for various companies But he s also had some exciting public projects like a 139x9 foot panoramic photo he shot for a hallway in the Merchandise Mart in Chicago One of Joe s recent projects involved working with his own father on a book he wrote about lesser known travel destinations and historical sites in and around Chicago Where the Tour Buses Don t Go Chicago s Hidden Sites of the Mysterious Macabre Ghostly Glamorous was 20 21

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released in 2020 and all the images in the book were shot by Joe Joe enjoys taking photos of both urban and natural landscapes He loves photographing cities at night because of the way it allows him to see how light spreads and mixes with other light sources over the course of a long exposure Light illuminates more than it appears to and creates beautiful colors only visible when time is factored in When he s out taking pictures in more rugged landscapes his favorite thing to capture is water I love water the same way I do light because of how it spreads and changes over exposure time Whatever scene Joe is capturing he always aims to use light in a way that gives depth and form to the subject of the image Joe s love of nature extends beyond his photography he also has a strong love for animals When he s not capturing the world through a camera lens he s often taking care of his cat and aquarium in his home in Des Plaines He s an adventurous person who loves travel and exploring new locations and while most of his photography has been done locally he hopes to find more opportunities to travel for work It takes an artistic eye to see the extraordinary within the ordinary and Joe Lekas has his wide open Learn more at photography josephlekas com 24 25

WHEATON IS TALKING Uncover amazing Wheaton stories happening everyday 26 THE LO MAIN ATTRACTION Professional Chefs Extraordinaire Shanna and Brian O Hea Get ready to impress your taste buds with a mouthwatering seafood dish that you can make at home Developed by renowned chefs Shanna and Brian O Hea Lobster Lo Maine is a tantalizing fusion of Asian and New England cuisine With succulent Maine lobster and bold lo mein noodles this recipe is sure to satisfy even the most discerning of palates And the star ingredient Fresh high quality lobster from Maine that captures the true essence of the region s culinary heritage Whether you re a seafood lover or just looking for a unique and flavorful meal Lobster Lo Maine is the perfect dish to take your taste buds on a culinary adventure like no other Bon appetit Shanna and Brian O Hea are the Chef Owners of MaineLobsterPotPie com a website the O Heas developed to ship their fresh lobster signature dishes from their critically acclaimed restaurant Academe at The Kennebunk Inn The O Heas owned The Kennebunk Inn and Academe Brasserie for 19 years and recently sold the business in December 2021 However they retained ownership of the overnight shipping business and are continuing to develop its offerings The signature Lobster Pot Pie has been featured in Oprah Magazine as one of Gayle King s favorites on Food Network s The Best Thing I Ever Ate Travel Channel s Food Paradise and 2014 Travel and Leisure Holiday Gift Guide Their Lobster White Truffle Pizza has appeared on the O List in Oprah Magazine and was also featured on Travel Channel s Food Paradise The O Heas have gained international recognition by participating in cooking programs around the world including The Boca Bacchanal The Walt Disney World Epcot International Food and Wine Festival Holland America Cruise Line Sugar Land Texas Grand Food Wine Affair and Charleston Food Wine Shanna has appeared on Food Network s Chopped Beat Bobby Flay and winner of Rewrapped The Food Network named The Kennebunk Inn 3 best Food Hotels in the Country March 2019 and Trips to Discover listed it within 14 US hotels with top rated restaurants April 2021 27

LOBSTER LO MAINE SERVES 4 ENTR E SIZE OR 12 MINI TASTINGS 1 pound cooked and chilled fresh Maine lobster tail knuckle and claw 4 pieces pork belly cut into inch thick cubes pound fresh Lo Mein noodles blanched and chilled bunch cilantro leaves 1 scallion green part sliced on bias 1 teaspoon sesame seeds Drizzle Ginger Vinegar WHITE MISO DRESSING cup white Miso cup mayonnaise 2 tablespoons white Soy sauce 2 tablespoons lemon honey 1 tablespoon Mirin 1 teaspoon rice wine vinegar 1 teaspoon Sambal Servings 6 METHOD FOR DRESSING Combine all ingredients in bowl and whisk together Check seasoning for spicyness Add more Sambal at your own peril FAMILY STYLE PLATING In large bowl mix together the noodles and miso dressing making sure all the noodles are coated Mix in scallions and lobster meat Place noodles in large bowl scatter with cilantro leaves and sesame seeds Pan sear pork belly in non stick pan over medium high heat all sides should be caramelized and warmed through Place pork belly on top of noodles and drizzle with ginger vinegar These specialty food items can be purchased at a local Asian market For individual tasting place ounce of miso dressed noodles and lobster in miniature Chinese take out containers Garnish with warm pork belly cilantro sesame seeds and ginger vinegar 28 29

PREFERRED STOCKS 101 Higher yields and tax benefits for investors WHAT ARE THEY Preferred stock is often described as a hybrid security that has features of both common stock and bonds It combines the stable and consistent income payments of bonds with the equity ownership advantages of common stock Investors often buy preferred stock to bolster their income and to get certain tax benefits Preferred stocks generally provide higher yields than common dividend stocks or bonds issued by the same company Traditional preferred stocks pay fixed or floating dividends to investors and have preference over common stock in the payment of dividends and in the liquidation of a company s assets This means that a company must pay dividends on preferred stock before paying any dividends on its common stock However like common stock preferred stocks are junior to most forms of the company s debt including both senior and subordinated debt Preferred shareholders usually have no right to vote for corporate directors or on other matters Shares of traditional preferred securities have a liquidation preference that generally equals the original purchase price at the date of issuance The market value of preferred securities may be affected by several things These include favorable and unfavorable changes impacting companies in the utilities and financial services sectors which are prominent issuers of preferred securities In addition values can be affected by actual and anticipated changes in tax laws such as changes in corporate income tax rates Be aware that the issuer may redeem the security when interest rates fall below the rate payable on it U S corporate investors are generally permitted to claim the 50 dividends received deduction DRD with respect to distributions from traditional preferred securities so long as certain requirements are met In addition individual shareholders may be eligible for favorable tax treatment as well More on that below MORE TAX EFFICIENT THAN YOU THINK Individual investors may treat preferred stock distributions as qualified dividend income QDI provided certain holding period and other requirements are met In that case individuals will generally be taxed at long term capital gain rates on QDI The category of QDI was created with the Jobs and Growth Tax Relief Reconciliation Act of 2003 It reduced all taxpayers personal income tax rates and cut the tax rate on qualified dividends to lower long term capital gains tax rates Currently over half of the preferred securities market is eligible for QDI treatment Utilizing 30 31

QDI BASICS Dividends taxed at ordinary income Qualified dividends taxed at lower rate 37 20 Qualified dividends are reported on Form 1099 DIV in box 1b The category of a Qualified Dividend was created with the Jobs and Growth Tax Relief Reconciliation Act of 2003 It reduced all taxpayers personal income tax rates and cut the tax rate on qualified dividends to lower long term capital gain tax rates Source Investopedia Qualified Dividends wwr irs gov For illustrative purposes only Destra Capital Investments does not offer tax advice Assumes a marginal income tax rate of 37 and a QDI rate of 20 Currently the maximum tax rates on qualified dividends are 0 15 or 20 depending on your income level This does not include a 3 8 Medicare surtax on investment QDI eligible preferred securities has the potential to enhance after tax income and total return Currently the maximum tax rates on qualified dividends are 0 15 or 20 depending on income level Dividends are separated into two classes by the IRS A dividend is an ordinary dividend if you have held the stock for less than 61 days in the 121 day period that began 60 days before the ex dividend date The exdividend date is one business day before a dividend is declared If you purchase it on or before that date and hold it for 61 days or more before the dividend it is a qualified dividend which qualifies it for the lower capital gains tax rate Preferred Stock has a different holding period than common stocks You have to hold preferred stock for more than 90 days during a 181 day period that starts 90 days before the ex dividend date The holding period requirements are somewhat different for mutual funds The mutual fund itself must have held the security unhedged for at least 61 days of the 121 day period which began at least 60 days before the security s ex dividend date To receive capital gains tax treatment in your mutual fund you must have held the applicable share of the mutual fund for the same period All this is to say an investor looking to purchase preferred stocks through a fund should strongly consider those funds which have a focus on being most 32 AFTER TAX INCOME AFTER TAX INCOME ON PREFERREDS Currently the maximum tax rates on qualified dividends are 0 15 or 20 depending on income level 500 400 300 500 450 Illustrative After Tax Income on a 5 0 Yield Preferred Security Initial Investment of 10 000 500 440 425 390 425 380 425 340 425 325 400 325 400 315 85 200 100 QDI Eligible Not QDI Eligible 0 0 10 0 12 15 22 15 24 15 32 15 35 20 35 20 37 TAX RATE ORDINARY INCOME QDI For illustrative purposes only and is not meant to imply performance of any security Illustration does not incorporate the Net Investment Income Tax of 3 8 Destra Capital Investments does not offer tax advice 1 Source www irs gov QDI TAXABLE EQUIVALENT YEILDS 10 9 8 7 6 5 4 4 25 3 2 1 0 Corporates ASSET CLASS YIELDS AS OF JUNE 30 2022 8 88 Pre tax Yields Taxable Equivalent Yields1 7 72 6 00 5 42 3 21 2 98 High Yield Bonds Municipal Bonds Preferreds Treasuries Preferreds Municipal Bonds 33

tax efficient In other words make sure the fund utilizes those securities that will generate QDI WHAT ARE THE DOWNSIDES Like any investment there are always risks to consider Here are just a few of them Market Events Risk The market values of securities or other assets will fluctuate sometimes sharply and unpredictably due to changes in general market conditions overall economic trends or events governmental actions or intervention etc Subordinated Securities Risk Preferred securities rank lower than bonds and other debt instruments in a company s capital structure and therefore are subject to greater credit risk than those debt instruments Financials Sector Risk Preferred portfolios are often concentrated in the financial sector The financial sector is especially subject to the adverse effects of economic recession currency exchange rates government regulation decreases in the availability of capital volatile interest rates portfolio concentrations in geographic markets and in commercial and residential real estate loans Interest Rate and Duration Risk Interest rate risk is the risk that securities will decline in value because of changes in market interest rates For fixed rate securities when market interest rates rise the market value of such securities generally will fall CONCLUSION Preferred stocks may not be the most exciting topic in the world but they can play a beneficial role in an investor s portfolio All investments have pros and cons which is why we advocate for balanced and diversified portfolios As long as you understand what you are getting into the generally higher yields and tax efficient dividends are worth a look to provide that extra diversification in fixed income Please reach out to us with any additional questions LOOK FOR WHAT IS DISTRIBUTED NOTE WHAT IS ELIGIBLE Pre Tax Annual Income Tax Liability QDI Ordinary Income Total Taxes Owed Taxes Owed Taxes Owed Fund 1 60 QDI 10 000 1 200 1 480 2 680 After Tax Income 7 320 Fund 2 80 QDI 10 000 1 600 740 2 340 7 660 Fund 3 80 QDI 10 000 2 000 0 2 000 8 000 For illustrative purposes only and assumes a marginal income tax rate of 37 a QDI rate of 20 and an annualized yield of 5 for each Fund Does not include the Net Investment Income Tax of 3 8 Destra Capital Investments does not offer tax advice Past performance is not a guarantee of future results 34 FAIRHAVEN MUSEUM OF ART CHAOS CAPTURED Metal glass and contemplation DeeToo b 1992 Deconstruction 2020 No 1 2020 Rubble from civil unrest The Fairhaven art collection recently added a controversial piece by American artist Deetoo Using metal glass and polypropylene in varying stages of degradation the wall sculpture was constructed from the debris of the infamous Kenosha unrest capturing the violence and destruction that occurred during that time The artwork encourages introspection and invites viewers to contemplate the impact of such societal upheavals To enhance the immersive experience Deetoo s artwork includes a dynamic audio element By scanning the provided QR code viewers can access audio from the riot creating an illusion of perpetual descent and immersing them in the chaotic environment Although Deetoo s artwork appears superficially nihilistic a closer analysis reveals a critical reflection on the nihilistic philosophy This philosophy suggests that all values are inherently baseless and only serve to perpetuate destruction However Deetoo s pursuit of equilibrium and unconventional beauty in his work suggests that he does not share such a worldview We invite you to visit the Fairhaven Wealth Management office during regular business hours to expericence this extraordinary piece and other exceptional artworks in person In the interum you can take a virtual tour of the Fairhaven offices by scanning the QR code above 35

WHAT WE RE NOT Our humorous take on wealth management Fairhaven was founded with a clear mission to challenge the status quo of the wealth management industry We are committed to redefining our responsibilities towards our clients and revolutionizing the way we communicate with them We strive to be different from the rest and our dedication to excellence drives us to continually improve To highlight some of the practices that we aim to avoid Fairhaven has created a series of satirical yet suprisingly accurate videos of the conventional approaches adopted by some other firms These humorous depictions are a reminder of the importance of doing things differently and setting a new standard for our clients Go to fairhavenwealth com bear brothers or scan the code above You ll be so financially secure your wife will refuse to walk We re committed to our success 36 37

FOCUSED ON THE CLIENT EXPERIENCE Gerry King Wealth Advisor Gerry King has been with Fairhaven Wealth Management since the beginning After joining the firm one month after its founding in 2015 he has spent the last seven years joyfully serving its clients Before entering the financial planning industry in 1988 Gerry earned his law degree from DePaul University and began his career as an attorney But while he enjoyed the process of learning about and understanding law he found the grind of trying to become a partner much less gratifying He eventually made the switch to a national RIA which offered him the best of both worlds By advising corporate executives on all aspects of their financial needs he was able to utilize his law background and do the more fulfilling work of helping clients along the way Today Gerry is a client advisor at Fairhaven where he fosters communicative and trustworthy client relationships My role is to educate advise and then help clients implement their decisions While clients need to understand the various pros and cons of each option they are ultimately looking for a trusted advisor to guide them in their decision making When Gerry moved to Chicago for law school he met his wife Mary through the large beach and indoor volleyball community Today their oldest daughter Lilly a senior in high school plays the same sport and hopes to continue her volleyball career at the college level Clara their second daughter is a sophomore in high school juggling drivers ed cross country track and field and horseback riding Their youngest Emma is a 7th grader interested in cross country and show choir When the busy family finds time between all their various shows games and sporting events they enjoy traveling together and spending time at home with their pets Their beloved dog Isaac is a 42 pound mini Bernedoodle People get a big kick out of the fact that his mother is an 80 pound Bernese Mountain 38 39

Fairhaven is 100 focused on the client experience and that starts with the first impression dog and his father is an 8 pound toy poodle Last and definitely least according to Gerry is their pet tarantula Spy who the family inherited from one of the girls former teachers and who is Slightly more active than a pet rock When Gerry isn t walking Isaac or waiting for Spy to shed her exoskeleton once in a blue moon he enjoys the occasional round of golf as well running and biking to stay active Way back when Fairhaven was just an idea Gerry met Marc Horner Even when the firm was still in its early planning stages Gerry could already tell that he shared the same philosophy when it came to serving clients Fairhaven is 100 focused on the client experience and that starts with the first impression Whether you are walking into our unique office for the first time or spending meaningful time on our website you will know right away we are not the same as any other firm Our number one focus is helping our clients reach their specific goals for themselves and their families and we try to have a little fun doing it WELCOME TO A PAIN FREE FINANCIAL EDUCATION Empowering financial freedom through short jargon free videos Fairhaven s award winning Million Dollar Cup of Coffee website and video series is an exceptional resource that provides financial planning and investing fundamentals for anyone seeking to understand how money can work for them The platform started with the idea of serving teenagers and young adults The jargon free short videos using relatable examples resonates with more than just high school and college age people With titles like It s Tough to Look Rich and Be Rich The Mirepoix of Estate Planning and Retirement Readiness Mind The Gap our financial literacy video series is for every one of us young or young at heart 40 41

MISSION PRESERVE AND ORGANIZE Wheaton firm saves family histories from the shoebox What if it was possible to have access to generations worth of family photos clearly sorted and right at your fingertips This is the mission of Chaos to Memories an award winning professional photo organization service started five years ago by Adam Pratt The idea is simple We scan your photos convert your home movies and organize your digital photos into a Family Photo Archive that s searchable shareable and safe This service both preserves photos and videos in a high quality digital format and allows clients to access them from anywhere Chaos to Memories began as a side hustle for Adam with an initially basic offering of photo scanning and organization services to local families We started with family clients around Chicago but we ve expanded to families and commercial clients from Chicago across the US and even a few international clients The growth of our work still amazes me The business has grown naturally from there expanding its services to include home movie conversion film reel digitizing photo restoration and photo books The quality of our work is top notch We ve won awards published books offer courses and were recently invited to present at the Smithsonian After an impactful experience hiking the John Muir Trail in the summer of 2021 Adam made the switch to focus full time on Chaos to Memories I decided it was time to leave my comfortable corporate job and devote myself 100 to work that I love and find purposeful Adam has always been an adventurous person two of his favorite hobbies are running ultramarathons and ultralight backpacking He has also been skydiving hang gliding and bungee jumping This appetite for risk is part of what helped him take the leap to launch such a creative business Professional photo organizing is unique work and something Adam never really pictured in his own 42 Adam Pratt founder of Chaos to Memories future But in hindsight it makes total sense I have a background in photography and design worked at Adobe for more than 22 years and I m the most organized person you ll meet Adam s personal and professional experiences have set him up perfectly for what he s doing now he was practically built for this combination of incredibly detailed and deeply meaningful work The current waitlist is 3 4 months for new clients but most projects are turned around in 1 2 weeks once Adam and his staff currently composed of six other people begin their work Clients are often amazed by the quick process which is due largely to the fact that the Chaos to Memories team collaborates incredibly efficiently We can t control if clients bring us photos home movies or hard drives so everybody on staff knows how to do everything and we all work well together Adam is excited to watch the business continue to grow but his top priority is maintaining the high level of quality and care that his existing clients know and trust Building a Family Photo Archive is an immense and special undertaking and one that can easily feel overwhelming at the start By working with trusted professionals like the team at Chaos to Memories clients can relax in the knowledge that their photos are being cataloged with expert care through a highly personalized process There s a lot of technology and process in the work we do but it s the memories that connect people that make it meaningful That s why our new studio has a 6 foot neon sign on the back wall that says Memories I want my staff and our clients to be reminded every day why we do what we do Our family photos and videos hold the stories that bring us together By offering services that make our favorite memories endlessly accessible Chaos to Memories is helping its clients remember and be remembered Learn more at chaostomemories com 43

FAIRHAVEN IN THE MEDIA In addition to sharing valuable financial knowledge and education on social media we re also a frequent presence on radio and TV Follow us on Facebook and LinkedIn and see all of our media appearances at fairhavenwealth com media ABOUT FAIRHAVEN Fairhaven Wealth Management is an independent privately owned investment and wealth management firm serving select families and small to mid sized businesses At Fairhaven our commitment is simple we exist to serve our clients period Our culture of service and accountability combined with prudent risk management and tax efficiency are the cornerstones of our client commitment fairhavenwealth com This material has been prepared for informational and educational purposes for our clients and friends Please consult your Fairhaven Wealth Management professional to discuss how this may impact your own financial plan and or investment portfolio This material is not intended to provide and should not be relied upon for accounting legal or tax advice or any other purposes Neither Fairhaven Wealth Management nor its subsidiaries or affiliates provide accounting legal or tax advice Please consult your tax advisor and or attorney for such guidance Advisory services offered through Fairhaven Wealth Management an SEC registered investment advisor For a copy of Fairhaven Wealth Management s ADV Part 2 disclosure document 4pl4ease direct your inquiry to admin fairhaven com