YOUR FINANCIAL FUTURE

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1 YOUR FINANCIAL FUTURE May 2017 In This Issue Market Watch April 2017 Investing to meet long-term goals can certainly try ones fortitude and patience, but like a marathon, is achievable with the help of a good plan. We hope this educational resource proves helpful. We believe an educated investor is a better investor. Please call us if you have questions. Your Team at Community Trust Financial Services 101 N. Main St. Versailles, KY severda@ctbi.com Independent Investor April 2017 Naming the wrong -- or no -- beneficiary to retirement accounts and life insurance policies can derail the best estate plans. To be safe, plan ahead with the help of a financial advisor. How Much Will That Little Bundle of Joy Cost You? Try $245,340 It certainly comes as no surprise to parents that raising a child can be expensive. But just how expensive?

2 2 Market Watch April 2017 April 20, 2017 Dear Valued Investor: The world's oldest annual marathon was run on April 17 as amateur athletes from around the world descended on Boston, Massachusetts for the 121st running of the Boston Marathon. While elite athletes grab the headlines, over 25,000 entrants finished the marathon. Training for and running a marathon takes fortitude and patience, and many casual marathon runners aim simply to reassure themselves that they possess those qualities. No less of a test, investing to meet long-term goals can certainly try one's fortitude and patience, but like a marathon, is achievable with the help of a good plan. After an extended period of low volatility, markets have been in a bit more challenging environment over the last several weeks. The S&P 500 has retreated modestly since its last high on March 1, and long-term interest rates have declined over the same period, pushing bond prices higher. These kinds of consolidations can be reassuring and health for markets from a longer-term perspective, as what may have initially been overly optimistic expectations of the timing and impact of pro-growth policies in Washington, D.C. adjust to a still likely positive outlook but with a more realistic timeline. Policy will continue to dominate the headlines, but prospects of better economic and earnings growth will be the foundation of any potential market advances. With improving business and consumer confidence, a more stable U.S. dollar, and a rebounding manufacturing sector, real economic growth in 2017 has the potential to come in near 2.5%, after averaging 2.1% during the current expansion. Earnings for S&P 500 companies could grow in the high-single digits in 2017, helped by steady economic growth, stable profit margins, and rebounding energy sector profits. Policy hopes could be dashed, but we continue to believe corporate American will get a tax cut within the next 9 to 12 months. In some respects, some policy risks have declined as President Trump has become more focused on his primary legislative agenda. While the president retains his emphasis on fair trade, trade tensions with China have abated some after the president shifted his emphasis from currency manipulation to enlisting China's cooperation on the North Korean threat. The president's tone on renegotiating NAFTA has also moderated. A more balanced approach to trade policy may have reduced one potential market concern. Despite a steady economic and earnings backdrop supporting markets, there are still several risks that need to be carefully monitored. A policy mistake by a major government or central bank, geopolitical threats in the Korean Peninsula and Middle East, and elevated stock valuations are among the challenges markets face that may contribute to bouts of increased volatility. Don't forget that opportunities can come from volatility. I encourage you to stick to your long-term plan and stay invested. Investing is a marathon, not a sprint. As always, if you have any questions please contact me. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Economic forecasts set forth may not develop as predicted. Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market. Investing in specialty market and sectors carries additional risks such as economic, political, or regulatory developments that may affect many or all issuers in that sector. The S&P 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. This research material has been prepared by LPL Financial LLC. Securities offered through LPL Financial LLC. Member FINRA/SIPC. Tracking # (Exp. 04/18)

3 3 Independent Investor April 2017 Estate Planning and Retirement Assets: What You Need to Know Whether you're wealthy or earn a modest income, there is one estate planning concern that is shared by people from all walks of life -- the decision of who gets what when you're gone. While some individuals may logically assume that a last will and testament is the one official forum to express such decisions, that's not always the case. Often, an equally important issue is whom to name as beneficiary on life insurance policies, pension plan accounts and IRAs, since these assets are passed on independent of what may be spelled out in a will. Life Insurance No matter who is designated, the beneficiaries will generally receive the death benefit proceeds income tax free. Unlike property disposed of in a will, if the beneficiary designation form is properly completed, insurance proceeds typically do not go through probate. For many married individuals, a spouse will be the most logical beneficiary. A trust may be a better beneficiary choice, however, if a surviving spouse would not have the knowledge, time or comfort level to manage the insurance proceeds. A properly designed and executed life insurance trust can provide considerable advantages to you, your loved ones and your estate. But trusts can be complex instruments, so be sure to consult with an estate planning professional with experience in setting up life insurance trusts to help ensure your peace of mind. Also, remember to name contingent or secondary beneficiaries. This means that if the primary beneficiary has died, the insurance proceeds will go to the individual or trust named as secondary beneficiary. If there are no surviving beneficiaries, then the beneficiary is generally the insured's estate, which means the death benefits will be probated and ultimately distributed according to the instructions of the decedent's last will and testament. If an individual dies without a valid will (intestate), then the order of legal beneficiaries to whom assets are distributed is specified by that state's intestacy laws. Pension Plans and Individual Retirement Accounts (IRAs) Generally, the law requires that the spouse be the primary beneficiary of a 401(k) or a profit-sharing account unless he/she waives that right in writing. A waiver may make sense in a second marriage -- if a new spouse is already financially secure or if children from a first marriage are more likely to need the money. Single people can name whomever they choose. And nonspouse designated beneficiaries of qualified retirement plans may be eligible for a "trustee-to-trustee" transfer to an inherited IRA, thus preserving the ability to stretch distributions over their life expectancies. Consult your tax advisor on how these rule changes may affect your situation. Naming Children May Not Be Best Naming children as beneficiaries may cause unforeseen problems. For example, insurance companies, pension plans and retirement accounts may not pay death benefits to minors. The benefits would likely be held until they could be made to a court-approved guardian and/or trustee of a children's trust. A guardian, trust or trustee should be named beneficiary to ensure competent management of the proceeds for the children. IRS rules provide that plans may allow nonspousal beneficiaries to stretch retirement plan distributions over the life of the beneficiary. Check with your employer to find out if this is an option under your plan prior to naming a child as a beneficiary. A competent financial professional and/or tax advisor can also offer guidance as to whether this action may be appropriate for you. Keep Your Plan Up to Date As you formalize or update your estate plan and will, it is important to review all beneficiary designations so that your plan accurately reflects your current intentions. Remember that beneficiary designations could misdirect the intended flow of an estate unless they are kept up to date. As is always the case with estate planning, consult with qualified professionals concerning your particular situation in order to ensure that your beneficiary designations are in tune with your goals. Tracking #

4 4 How Much Will That Little Bundle of Joy Cost You? Try $245,340 The average total child-rearing costs for a child born in 2013 and living at home through age 17 range from $176,550 to $407,820, depending on the family's income level. It certainly comes as no surprise to parents that raising a child can be expensive. But just how expensive? While many financial studies focus solely on college costs, research by the U.S. Department of Agriculture (USDA) provides parents and prospective parents with a general idea of the cumulative expenses for a child before college kicks in. The results are sobering. According to its landmark study Expenditures on Children by Parents, 2013, the average total child-rearing costs for a child born in 2013 and living at home through age 17 is now $245,340 (in 2013 dollars). The USDA calculations include a wide variety of expenses, including housing, child care and education, health care, clothing, transportation, food, personal care, and entertainment. Estimated Cumulative Child-Rearing Expenditures, Lowest Income Group (<$61,530) Middle Income Group (between $61,530 and $106,540) Highest Income Group (>$106,540) $176,550 $245,340 $407,820 Source: USDA, News Release No , August 18, 2014 (latest available). Two-parent households in the lowest income group (those earning under $61,530 per year) are estimated to spend between $9,130 to $10,400 per year on average; those in the medium income group (earning between $61,530 and $106,540) can expect to spend between $12,800 and $14,970 per year; and those in the highest income group (with incomes above $106,540) can expect to spend between $21,330 and $25,700 on average. For a middle-income family with two children, the largest expenditures are: Housing, at an average of 30% of total expenses Child care/education, 18% Food, 16% Transportation, 14% Health care, 8% Not surprisingly, geography matters. Parents in the "Urban Northeast" had the highest average expenses, while those in "Rural" areas had the lowest. It also should come as no surprise to parents that it is generally more expensive to raise a child today than it was when they were children. The USDA website has a free calculator that can help parents estimate their child care costs. The Cost of Raising a Child Calculator factors in geography, single-parent or two-parent status, and the costs of additional children. Source: Lino, Mark. Expenditures on Children by Families, 2013, United States Department of Agriculture, Center for Nutrition Policy and Promotion. Miscellaneous Publication No August 2014 (latest available) Wealth Management Systems Inc. All rights reserved. Tracking #

5 The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly. The financial consultants of Community Trust Financial Services are registered representatives with and Securities are offered through LPL Financial. Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. Not Bank/Credit Union Not FDIC/NCUA Insured Guaranteed Not Insured by any Federal Government Agency May Lose Value Not a Bank Deposit This newsletter was created using Newsletter OnDemand, powered by Wealth Management Systems Inc.