Morgan Stanley. What s included in this quarter s Brief: Financial Wellness o Net Worth Statement o Cash Flow Statement

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1 The Hammersley Brief Q Helping you with Financial Education, Organization, Advanced Planning Strategies, and staying informed on the Economy, Markets, and Investing What s included in this quarter s Brief: Financial Wellness o Net Worth Statement o Cash Flow Statement Planning Strategies & Financial Education o New Year s Resolutions: Don t Overlook Your Finances o Difference between Saving & Investing o PWC Overview of 2017 Tax Legislation Prepared for Clients o Retirement Savings Options for 2018 o Roth IRA s (Conversions, Funding for High Income Earners, Funding for Children) o Savings & Income Calculators The Economy, Markets, & Investing o GIC On the Markets Jan annual outlook The Company Corner o Plan Perspectives for Individuals o Plan Sponsor Insights FINANCIAL WELLNESS: Annual NET WORTH STATEMENT update (review the increase/decrease & why) NET WORTH STATEMENT

2 Annual CASH FLOW STATEMENT update (review the Income/Expenses surplus/deficit & why > do any adjustments to lifestyle, savings, and expenses need to take place?) CASH FLOW STATEMENT PLANNING STRATEGIES & FINANCIAL EDUCATION: New Year s Resolutions: Don t Overlook Your Finances o Retirement Savings o Family Gifts o Asset Allocation o Estate Planning/Insurance Check-Up o Charity Difference between Saving & Investing: o Goals Worth Savings For o When it Might Make More Sense to Invest o Don t Make These Common Mistakes o Hitting the Sweet Spot PWC Overview of 2017 Tax Legislation Prepared for Clients: o Impact of Tax Reform on Individuals What exactly is changing? Tax Rates Exemptions Deductions 07b5228c94cd469a8d888907c1f365dc.pdf

3 Retirement Savings Options (for 2018): o Company 401k/403b/457 Plans Maximum Deferral $18,500 with $6,000 catch-up (age 50+) o SEP IRA (for business owners) Max. Deferral $55,000 or 20% of Net Earnings o Simple IRA (for business owners/small bus.) Max Deferral $12,500 with $3,000 catch up (age 50+) o Traditional / Roth IRA Max Contribution $5,500 with $1,000 catch-up (age 50+) ***Deductibility & Restrictions based of Modified Adjusted Gross Income & Retirement Plan Accessibility o Please find the attached 2018 Federal Tax Report 2018 MS Federal Tax Report Roth IRA Conversion / Back Door Roth IRA Strategy / Funding Children s Roth IRAs: o Consider Converting Small Traditional IRA balances to a Roth IRA ***Please note there will be tax consequences based on the gains and deductible contributions of your Traditional IRA portions converted to the Roth IRA o The Back Door Roth Strategy Income Limitations (see MS 2018 Federal Tax Report) o Funding Children s Roth IRA s: If your child has Employment Income you can consider gifting or matching that amount up to $5,500 to help them fund their Roth IRA

4 Savings & Income Spreadsheet Calculators: o Savings Calculator Income Calculator o Savings & Income Spreadsheets SAVINGS & INCOME CALCULATORs THE ECONOMY, MARKETS, & INVESTING: On the Markets o 2018 Outlook o Lifting the US Growth Forecast o Can Active Management Improve? o Controversy Over Bond Yields o Short Takes o India s Digital Leap o Q&A: Exchange-Traded Funds

5 THE COMPANY CORNER: Plan Perspectives for Individuals o Taking the Guesswork out of Your Retirement Planning o How Goals-Based Planning Works o Retiring Before You Are Ready o Developing Your Own Asset Allocation o Protecting Yourself After a Potential Data Breach 2017 Q4 MS Plan Perspectives Plan Sponsor Insights o Considering a Roth 401k Option Benefits of a Roth 401k Implementing a Roth 401k In-plan Rollovers Nondiscrimination Testing o Small Plan Audit Waivers Qualifying Plan Assets or Bonding SAR Disclosure Requirements Availability of Financial Statements Requirement o Recent Developments Cure Periods for Plan Loans Average 401(k) Balances Effect of Automatic Plan Features ***For more information about these topics and my financial advisory practice please visit my Tax laws are complex and subject to change. Smith Barney LLC ( ), its affiliates and Financial Advisors and Private Wealth Advisors do not provide tax or legal advice and are not fiduciaries (under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise provided in writing by, Individuals are ecouraged to consult their tax and legal advisors (a) before establishing a retirement plan or account, and (b) regarding any potential tax, ERISA and related consequences of any investments made under such plan or account.