Tax Reform and Tax Planning

Financial Symphony
Saturday, April 14th
Answers to your financial questions.

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

No financial center and helping you. Harmonious financial plan and getting your portfolio in two weeks so sit back while always strike up the ban. The financial simple it's starts now. Well hello and welcome to another edition of the financial symphony with former. In gold worse over. Because gold and silver are the ultimate reserve assets you know gold is over. Now they provide insurance against a world that's addicted to a depreciating Fiat currency. So for example in 2017. The dollar gave up 10% of its value despite. Are fed be in the first Central Bank to raise rates you know the race and race typically. Attract capital into US assets and raises the value of the dollar but not last year. You look at last year and India's gold imports were up 67%. China they consumed. 1089. Metric tons of gold bars and jewelry so there's a high demand in China still to this day. But the surprise buyer in 2017. You know there was Europeans. Especially the Germans taken the number one spot. Four per capita gold consumption. So whatever the reason there was a notable shift. From dispose end of gold to acquisition. Which marks a major shift in sentiment. And with the recent volatility in the market investors have minded that the markets can move into directions both up. And down and so this is a perfect environment for gold and silver bullish sentiment is at its peak in traditional asset markets. And there's very little interest in the medals you don't wanna buy things that people are not interested in. Many have forgotten. To do true intrinsic value of gold and metals are extremely undervalued so the demise of the dollar. As a reserve currency of the world is a certainty in my opinion that's gonna occur at some point in time it's only a question of when it will take place you know since 1971. When the dollar was no warmer backed by gold. He has lost 98%. In real terms when measured against gold it has lost value against most other currencies as well. You know for the dollar you got to remember it's backed by nothing no immunity basically backed by nothing but debts and massive deficits so. You know most of you who are fully invested and have no reserves or plan B. Think of your favorite sports team this time I like to see it. The successful teams you know they have a bench full of good replacement players. So in my opinion gold and silver are your replacement players and allocation in gold and silver is how you win win and have a financial catastrophe hit. You know I recommend to my clients that they should purchase metals primarily show over. As close to spot prices possible. You don't wanna pay a high premium buying and you know I knew miss fanatic coins or things like that get as close to the spot price is possible. You know that you do that by behind bars where there thousand ounce barge owner Al barge one ounce barge. And then you can also buy what they call rounds which are points per say but they've still have the metal that you look and swore. And I recommend. Is that if you're gonna buy medals you might want to do so as quickly as possible. As the available ounces globally has been sharply diminished. That's right Richard and it's good to hear gold can serve a valuable role. In your portfolio I know personally and that's something that my father got into Vienna. Paper out back in the day back in the fifties. And picked it up along the way early as a hobby he started with coins and then got in the gold a little bit and now all these years later we're almost seven years later he seen. It pay off and so we're not you know Richards not selling gold we're not pushing gold. But we are here to say that it can serve a valuable role in your portfolio. All right let's move on now. To Michael and mores villain Michael says simply should I take my RMD early in the year or at the end of the year. Katz and street question I hear this on a frequent basis listen. You're required minimum distributions are due by the end of the year and that's when most of you seem to take them you know many of you were under the impression. That it's best to take them late in the year to maximize the tax deferred build up. You know in theory that's sounds good but there are practical advantages to take an arm these earlier in the year. You know for example you know take an arm these early in the year puts less pressure on your beneficiaries if you die before taking the distribution. You know I'll concede problems in the year of death especially when beneficiaries have a tight window. To take a year of death are indeed when that hiring owner is subject arm d.s died before taking the distribution for that here. It must be taken by the beneficiary and sometimes there's not enough time to get this done when the diary corner dice clay here. And you know set and up inherited a higher raise also means making direct transfers inherited IRAs can only be funded. Via a trustee to trustee transfer from a two seasons account. You know these transfers tend to be more time consuming and and they had potential delays. In addition taken an arm before deceased parent a few weeks after death is not usually first on anyone's to do list. You know of course there are remedies for mr. arm dvds this requires more time and more work. And another reason for taking your arm these early is the first dollars out our do you rule you know and at seven and a half your subject to two record minimum distributions. And the law states that the first dollars of the year withdrawn from the higher rate. Are deemed to satisfy the armed peace so if a client does not want to take the armed. You know for example. If a person is subject. Armed d.s but wants to do a roll over when the new year they cannot do that until arm do you would be wrong if the client wants to do Roth conversion. It cannot be done until arm do you mountain satisfy you know aren't these cannot be converted to Roth diaries because they're considered rollovers. And armed you are not eligible to be rolled over so once you are being taken though. All the Ari funds are available he rolled over can be converted. The same is true for a 41 K that you might want to roll over to a higher rate you know the armed you must be we've drawn first. From the planned before any of the remaining funds can be rolled over to an honor racial on the surface it seems that the way an arm d.s leaves more fiery income sheltered from taxes. But take an arm do you earlier in the year can eliminate a domino effect of other expensive tax problems. That take time and effort to correct and and listen nobody wants tax problems or want those type of problems for their beneficiary. You're listening to the financial symphony where taking your listener questions we love taking questions from folks. All around the area here in the Charlotte metro area and of course if you have a question that we're not getting to illumination or you'd like a more in depth answer. You can get answers by calling the team like Carolina retirement resources. At 80646. 5996. That's 80646. 5996. Now let's move over to Robert in import milk Robert says our stocks heading for a bear market. When should I pull out my investments I think a lot of people are asking this question and honestly been asking this question for awhile. It's very calm and individuals get emotionally charged. When the market for computer show. Listen when the markets become volatile. Most of you begin to get nervous from one nerve it's time we go to cash. And preserve your money unfortunately. You know more often than not that's that ends up being a bad decision. You know legend has it dead dual Jones was the greatest scored sharp ever to work in a while what's casinos. He was extremely ruthless at the poker table backe was quoted as saying in that is immoral political sucker keep his money. Wall Street is in the exact same business which is the business of recent suckers. And keeping their money it's a timeless concept even the book of proverbs states that a fool and his money person imparted so. If we're we were to design a system that transfers money from foolish people too short professionals. You couldn't do much better than the US stock market you see when the market trades higher for an extended period of time. You hear stories about your friends making money. And the longer the stock market moves higher the more attractive stocks become at some point usually much stock prices are near their highest point yard jump back again. And at some point stocks start trading lower maybe it's because of trade war rumors. Maybe investors are worried about interest rate hikes. Or maybe there's a privacy issue when their favorite social media companies you know whatever the reason stocks trade lower and many of you panic and you show your shares typically have the worst possible time of course. The shares are sold to professional investors who wait for opportunities just like this to accumulate shares at a discount and with tax reform. You know keep in mind that many companies who benefit from the lower tax rate. And the strong US economy should lead to bigger profits and higher profits will naturally drive stock prices higher. You know I can't tell you exactly how long it will take per share to start moving higher again. But I can tell you they're huge and lower stock prices as a buying opportunity is how professionals invest. And selling when other investors panic is an amateur way to invest. And one that won't lose you money in the long run the goal is to limit losses not avoid that. Are we headed into a bear market I don't think so I think the key is to be prepared for one just in case. Till the market's move around and that's what they do. And they can move quickly both up and down and you should know this you know you should accept it if you want to harvest long term returns. From the stock market in fact you get those returns specifically for taken on the risk of investing in the stock market. What we're seeing and today he's just short term always in my opinion we need to be focused on the long sweep of market returns. The markets have been very good too long term investors. To harvest the long term return that will help you in retirement. He need to be able to shrug off the bad days so invest in. Isn't something that happens over the course of days or weeks or even a couple of years. It's easy to forget that instead you wanna focus on having a plan that will help you limit Marshall officers and stay disciplined over the long term the key is to determine your risk tolerance. And know your maximum draw down is so if you're anxious about your portfolio it may be time to take another look at the level of worst picture exposed to. So your interest about your portfolio. It may be time to take another look at the level risk you're exposed to pain on very passionate about my believed that you deserve a secure independent retirement. And that's why offer free consultation to our radio listeners to help keep you on that path. So if you call next fifteen minutes and have at least you're thousand dollars saved for retirement I'll offer you this free consultation to help you determine how prepared you are to handle retirement pitfalls like inflation. Health emergencies. Stock market volatility and taxation. I know you work hard for your money fall worked just as hard to help you protect and grow it. There'll wide variety of tools and services available on the financial world. I'll show you how to harness those tools and services to create a plan that's tailored just for you and I'll show you how to achieve a life Thomas security. Thanks to a lifetime thing come so let's get to work now so they you can get that back based approach you deserve and get better answer your financial challengers and objectives. Give us a call next fifteen minutes and I'll work together which you can get you on that road to financial security and independence. That number call is 806465996. That's 80646. 5996. Come in for visit the team Carolina retirement resources this is no cost no obligation. It's just the chance to gotten to know the team a little bit better. In order a little bit more about you were situation to see if they may be of any help are you gotta do is pick up that phone call 80646. 5996. 806465996. Again that's a complementary review of your financial situation all you gotta do is pick up that phone. Call 80646. 5996. All right it's tax season infected his tax weekend wind is here upon us. And so coming up on the next segment tax reform has created the biggest changes in the tax rules and more than three decades. What are they and how they affect you keep listening there's more I'm away. Here on the financial center. It's remarkable sometimes the emotions and feelings music brings to our daily lives. It was there for graduation. On her wedding day. And sometimes even residents on our darkest days. So as you look back on life and remember the music strikes or take a moment to look forward to your retirement. That any time ripe with uncertainty. A will be a time of Julie. If you're in a spot now where you don't think your current plan deserve that kind of celebration when you reach retirement. Think it's time to get a second opinion. Come visit with your financial my strength Richard materially. Serving the Charlotte metro area. Call 806465996806465996. We all see the finished product of the music superstar. The sold out performances the TV and magazine covers and the eventual acceptance speech have been dreaming. What you don't often see is what it takes to get to that stage. Hours and hours of practice the traveling that critics see improvement. All those little details have been in the background without us noticing and you know what your financial maestro which together a financial plan for you in much the same way they make that process easy for you on the surface. And you'll get tomorrow we'll get the finished product. You're playing now. But don't forget about the all important each killed in an effort has been going on in the background to wrap your financial masterpiece. And remember that your plan should be in the beauty come visit with your financial my stroke Richard picture telling. Serving as Charlotte metro area top 80646. 996. 800 646. KB 996. Wherever you go there I have. Following lurking stinking alone continuously nibbling away your hard work. The video. CT. Don't be afraid of hidden fees in your portfolio. Come in to meet with their financial maestro for review of all the fees in your current plan. Let's see if we can eliminate those pesky. Yeah okay. I'm. Come visit with your financial maestro and Richardson to LE serving the Charlotte metro area. Call 806 point 65996806465996. It's time for fireside chats. As we get to know your local financial symphony maestro. Well you heard the line it's time to get to know Richard preacher really just a little bit better. This is where we take a break from all the financial talk on the show just to get to know Richard his personality a little bit better. We think that's an important part of well the whole process is just. Building a relationship and so this is just your chance to learn a bit more about Richard culturally Richard your question this week. What do you do to get rid of stress that. I don't want you. Like what. I come and hit. Well typically I exercise could get my mind off of what might be causing stress number one. And I also kind of immerse myself into a good book also go to Dan and sit down sure Rita and it's amazing how that will help relax me you know. You know with my background I understand these to physiology behind it because you when you actually charged hard. You know your body produces endorphins were sure her chemicals in the brain dead back. As natural painkillers and improve the ability to sleep which in turn to reduce your stress so. And Reid did just get my mind off things especially if it's something number usually do so that's what I do to reduce stress and it seems to work really well for me. Oh like this strategy Richard you know I like to get up early and go to the gym just to start my day off that tells me to get my head right clear my mind before the day ahead and work of the sweat I mean. Innocent front of the computer are all day and so it's good move a little bit in the morning helps you feel better in the before you go to bed at night and helps you wind down you've got that soft glow here. Reading lamp there by your bed or maybe you tablet and I'm just read relax and get ready to forward to sleep alike that sounds like a good point network read. All right well this has been getting to know you hear all the financial symphony we of course have more funny talk. Timing is everything. In music as well as in life. Having the right tempo and rhythm helps all the musicians in the connector lock into place and ensures smooth and steady performance. The same can be said for your financial future where timing is everything. Having the right person to guide you through your financial concerto can make all the difference timing. And tempo in life in music and in retirement. Is everything. Come visit with your financial maestro and Richard Richard Elliott. Serving the Charlotte metro area. Call 806 point 65996806465996. Children who is studying music tend to have a larger vocabulary and more advanced reading skills than peers. Still get pissing us off when you meet with a local financial might strip. It's an education about the financial world that will enable and it could lead to better understand how markets work and how good a portfolio can work for you. And how you can retire with a more peace of mind than those around they were using tired outdated strategy. Get on track to retire with confidence and knowledge come visit with the US financial my strength Richard Shannon serving as Charlotte metro area. Call 806 point 65996. 80646. 996. Johnny cashes estate was approached by an advertising company asking permission to use. Ring of fire on an ad for him right greens. The request was three. On a similar note here's the financial symphony we requested that Johnny Cash the state allow us to use Folsom prison blues is our theme song. That request was also reviews. But keep listening anyway. This is the financial symphony with Richard preacher Elian market would alongside Richard culturally. He's an investment advisor represented in the Carolina retirement resources serving you in the Charlotte metro area with offices in hunter's bill and Rock Hill South Carolina. And of course North Carolina Charlotte metro area. Give him calling reach out of the team like Carolina retirement resources call 806465996. That's 80646. 5996. And Richard as we discussed. Our talk about tax reform after all it is probably one of the biggest text. Weekends of the year that is upon us. So tax reform Richard has created the biggest changes in the tax rules and more than three decades the Tax Policy Center predicts that the average family's tax bill for 2018. Won't go down by 12100 dollars but that doesn't mean every one it will benefit. Let's talk about some of the biggest tax changes for 2018. Richard let's start off with the new tax brackets enlighten us. For 2018 there in this seven tax brackets have been restructured. They now go from 10%. 237%. Instead of 10% to 39 point six so most taxpayers will achieve your tax bills go down by about one to 4%. So one occasion my wanna do is you want to review your W four. And see if changes are warned to you know regardless it's always a good idea on and on an annual basis to review your W four. It's not enough is withheld you'll owe money come tax time and if you pay too much you'll end up with a larger refund so no major life changes. Including having a child or getting married you know those things might warrant an update to your car with Holden. For retirees tax reform doesn't change the way your Social Security investment income for tax. Many retirees wouldn't fact benefit from the new factories as your pension income. And your income from your duties will be taxed at a lower rate so for the vast majority of retirees that's great news. Moreover although not represented in his seniors individual tax return to corporate and small business tax provisions. That have recently been passed would benefit seniors both through investment income and their purchases and that's because the benefits of lower corporate taxes. Will likely flow to retirees who own stock in those corporations and those of you that have large arteries. You know you'll want to warn sure brawls freer counts toward an open higher tax brackets so you know you might want to begin distribution prior to seven and a half so that when you get there you won't be forced into a higher tax brackets. You might also want to consider a qualified charitable distributions from your higher res to stay in a lower tax bracket you know many of you. Contribute your church and other charitable organizations with after tax dollars. You know well tax reform could affect the way you itemize your charitable deductions. But if you make a qualified charitable distribution you're using pretax dollars. And that could help you stay in a lower tax bracket as well also listen you want to be sure and meet with your financial advisor Warren experienced tax planner in 2018. Instructor rethink your approach fourth 2019. That's right you really it's too late for this year but it's not too late for next year and it's really more about tax planning that in his tax filing those are two. Completely different things and tax planning is an important component of your overall retirement plan. You have questions about it as always you can reach out to the team Carolina retirement resources call 806465996. That's 806465996. We're talking taxes here on the financial symphony specifically dharma the tax bill. Some of the changes it's created for 2018. Richard there's now much higher loan limit on standard deductions. And standard deduction has been increased there's no doubt about that in 2018. We're almost doubled to 121000 for individuals and 24000 for couples filing jointly. This higher deduction will certainly be a relief for many of you. Especially retirees as most of you will likely take the standard deduction. And if you if you itemize you'll need to exceed the standard deduction make itemize and a worker while. The increase in conjunction with new limits on some itemized deductions is expected to lead to more than thirty million taxpayers. Who have itemized in the past. To choose the standard deduction instead you know because it will reduce or taxable income by more than the total of their deductible expenses. So there's even more incentive for taxpayers paid 65 and older to make the switch because your standard deduction will be even bigger. You know in the past those of you who are 65 and older or legally blind you know you get another thirteen brawler who are married. And 16100 dollars if you're single to add to the basic amount you know for a married couple we've both. Husband and wife at 65 years of age or older the 2008. 26600. Dollars. It also could make sense to itemize if you enter retirement with a mortgage. But for most of you it may no longer makes sense for you know our demise is a retirees took to reiterate. For a retired couple aged 65 and older the new total standard deduction is 26600. Dollars. Compared to the standard deduction plus personal exemptions. Of 925017. And had ten days to 3% lower tax rates for taxable income above the 10% tax bracket and you have. I tax havens for all but very few retired how hold you in the standard deductions so the actual tax impact of tax reform. Who'll vary from household to household. Who has always if you have questions about how the new tax law will affect your household tax. You should control with a tax plan an accountant or your financial advisor. And Richard we're gonna continue this conversation in the next segment but before we pause here for a break. And that there are new limits on interest deductions as well. That's true you know previously deductions for state and local taxes include property taxes were unlimited. Now the combined total of all Torre he's limited to 101000 dollars eliminate property tax deductibility. To 101000 dollars will hurt homeowners especially. Those of you that live and high property tax states. Or who own expensive. Properties were both. For retirees income tax free states. May be your best option you know with no job tying you down. Your more easily able to move from state to state so you know some of you may consider relocating into one of the seven states would no state income tax. You know no longer being able to deduct state income taxes will hurt retirees in states like New Jersey New York. You know Minnesota those states or high income tax states. In your life is difficult to begin with over how they're just simply because. Of hope the brutal winters that. And now we have this issue you know at least in California residents complain outside your round. And make no mistake California residents lose under the new tax reform bill as well also home equity loan interest up to honor thousand was deductible. But the tax reform bill eliminated that unless the funds are used for home related costs in fact. I recently had a client who had a home equity loan should no longer deduct the interest issues and on at home equity line of credit. And so what are your recommended that she going to get a mortgage pay off the homer for a lot of credit and that's racial have interest to deduct next year on the mortgage she has on her home. And mortgage interest deductions partial allowed. They used to be up to a million dollar but now it been changed to loan to toss 750000. And that's on loan are new. Especially after November 2017. All exist in now mortgages are grandfathered in. You know reduced from the one million dollar mortgage indebtedness at 750 doesn't typically affect the middle class. But what does help to middle class. Is the standard deduction whether you have a property or not you're 24000 standard deduction. Mark for a married couple equates to 2.4 percent interest on million dollar mortgage. Hence the increase in the standard deduction take some disdain. Out of the potential of reduced from the mortgage deductions governor in 2000 so yeah there's been some changes with respect to. Deductions but then it's balanced out with the increase in the standard deduction. The other a lot of political rhetoric and media but when you look at the benefits from tax reform. It'll surprise you discover that most people benefit while simplifying the tax goes to the pros and cons of tax reforms seem to be remarkably balanced to me. You know regardless of how you feel about tax reform tax plan is something that you should consider annually anyway. You know learn how to manage your affairs in ways that postponed or more taxes or something everyone should pursue. Income tax planning should be a critical part of your overall retirement income plan. And you know retirement is a complex puzzle and all those peoples of your puzzle. Need to fit together post so well so I'd like to offer you the opportunity coming for complete financial review. I'll offer this review for free. To all listeners who have at least 2000 more safe retirement. I'll talk you through all the different puzzle pieces that you need to consider. You know for instance. How much risk you take in your portfolio. How much you paying fees or commissions for your current plan. You have an income plan in place to be sure that you aren't in danger of run out of money if you end up live in thirty or more years to retirement. Do you have a plan to address inflation in future decades as the costs that very thing continues to rise. And what about the tax implications on your savings is there any way to save money in taxes down the road by planet proactively today. Obviously there's a lot that we need to discuss and I found that most people just haven't planned for early enough to address these issues. Again this review is complementary to anyone who has at least shorter now marsh save for retirement. But the calendar does fill up quickly so go ahead and give us a call right now that we can be sure to get a spot reserved for. That number called reach out of the team at Carolina retirement resources is 806465996. That's 80646. 5996. Feet of questions about explaining or any other elements of your retirement. You can reach out of the team at Carolina retirement resources get a complimentary review of your situation call 806465996. That's 806465996. Come in for a visit with the team find out more about your retirement. But your financial situation and what it would take to accomplish your goals in retirement. Call 806465996. Nets 806465996. We're talking all about the tax bill on this very special tax weekend it is the weekend which we render unto Caesar what is caesar's we'll continue our conversational text. Yeah shortly here on. Funny some. He can take a composer weeks months. Even years to get together they're making an endless. That's because they take time to find just the right news reports no. And while in great financial plan won't take years to put together. You should take the same kind intention to make sure it's the perfect plan for you. Come visit with the north financial maestro Richard preacher yelling serving the Charlotte metro area. Call 806465996806465996. It's remarkable sometimes the emotions and feelings music brings to our daily lives it was there for graduation. On her wedding day. And sometimes even resonates on our darkest days. So as you look back online and remember the music strikes. Take a moment to look forward to your retirement. Look at any time ripe with uncertainty. Over Libya time eventually. If you're in a spot now where you don't think your current plan deserve that kind of celebration when you reach retirement. Think it's time to get a second opinion come visit with your financial my strength Richard materially. Serving the Charlotte metro area. Call 806465996. 806465996. Wherever you go there yeah. Following lurking stinking alone continuously nibbling away your hard work and and the. Yeah okay. Up up up up. Don't be afraid of hidden fees in your portfolio. Come in to meet with their financial maestro for review of all the fees in your current plan. Let's see if we can eliminate those pesky. Yeah okay. I'm not. Come visit with your financial maestro and Richardson to LE serving the Charlotte metro area. Call 806 point six out of 996806465996. You're listening to the financial company and they show that makes your your financial plan at the perfect fit. This is the financial symphony I'm mark Haywood and I'm joined as always by Richard put your rally. Is an investment advisor representative at Carolina retirement resources serving you here in the Charlotte metro area with offices. And hundreds hill and run kill reach out of the team by calling 80646. 5996. That's 806465996. We're talking about taxes here on the financial symphony today specifically the tax reform remain. We said in the last couple of segments the tax reform was created the biggest changes in tax rules and more than three decades we're talking about some of those changes and how they will affect you. Richard let's continue our conversation now I want to talk about expanded child and family credits that come along with new tax bill looking tells nothing. Well the child credit has been doubled to 2000 dollars per child. And the maximum amount that may be refunded as an additional child tax credit is increased from 1000 to 14100 bucks. You know the 50% of earned income over specified dollar amount is still in effect. But the amount is reduced from 3000 to 2500 dollar so to assist lower income households. The tax credit. Was made refundable with the implementation of the additional child tax credit. Act mean in the credit can be taken even if the taxpayer has no tax liability no more importantly the child credit. Is available to taxpayers with much higher income so. I'm now you qualify for the full credit if your single with a taxable income up to 200000. And if you're married with a joint income up to 400000. Above those income levels of child credit starts to phase out. And if you have an elderly parent. Or relatives over seventeen whom you claimed as a dependent he may be able to take a Stanley credit of 500 dollar per person. And if you pay for child care or the care of a disabled adult you may qualify for an additional tax credit. Backing Kutcher tax bill a lot. By another 1212100. Dollar depend on your income you know the child tax credit also ties into. The earned income credit which helped working class families pay for the costs of raising children you know the maximum credit for 2017 with 6381. Dollars for taxpayers with three or more All My Children this means that the low income households. With three children now can claim a maximum credit of about 9000. 381 dollars when combined in the child tax credit and the earned income credits so. The lesson each tax situation is different it's very important that you sit down and begin the planning process in 2008 team. So that you have a good understanding of what to expect in 2019. That's right it's all about tax planning really tax filing is what you're doing right now and tax planning is a very different ball game. It all sounds complicated and north around a lot of stats but. The basic gist of it all is that you need a tax plan as you head into retirement it's part of your overall retirement plan and if you don't have a game plan for how you're going to. Manager tax situation in retirement you really need to get that in place you can do so by reaching out of the team Carolina retirement resources. And of course the number call is 80646. 5996. That's 806465996. We'll give you that number again later on the show but. Really just keep in mind as we're talking through all these changes in the tax bill it's important to get a tax plan. In place. Our Richard another change in the tax bill this year that you'll be seeing in 2018 going in the 2019. Is that now there's more flexibility for boring from your 401K. And is that something in the past that's. And problematic and we often discouraged that but now there's a little bit more flexibility in that area. What does that mean for urban listeners out there. But I you know this new provision in the tax goes is that it's much kinder. Than the previous provision. In the past if you've had an outstanding 41 K loan and you lost your job or liquor company for no reason. You were required to pay the balance of the loan within sixty days. Otherwise he Internal Revenue Service would consider that money in the early would crawl and assess a 10% penalty fortune you pay taxes on the distribution that's pretty hard since if you get laid off you'd likely have a hard time coming up with the cash. In a hurry to repay the loan balance but now tax reform extent is this from sixty days. To the due date for filing your tax returns for the tax full year in which to plan officer Kurt and other words when this rule took effect. And let's say you left your company in 2018. You'll now have until April 15 2019. To pay back the loan balance or October 2019. If you file an extension so. The act includes relief that extends the period for roll over loans offset and that's good news you know fortunately many of the proposed changes to defined contribution plans that were discussed earlier on in this debate on tax reform a work excluded in the final bill and that's good news as well. And finally Richard as we can wrap up our conversation on the new tax bill. Corporate tax rates are changing. So yeah that's a whole another conversation early but let's just a brief overview of that. Where did their responses bin excellent my pin you know dozens of major. Companies are given their employees significant pay raises or bonuses because of the new tax law. You know it because it lowered their corporate tax rate from 35% to 21%. Com and this will help many of you significantly you know and some of the companies that have taken that route. Include Wal-Mart Lowe's Disney FedEx Home Depot. Bank of America and AT&T. And you know and her more and more companies provide new benefits as well. And small businesses under the new law receive a 20% tax deduction and the ability to immediately expensed or business investments. And they're also given pay increases their employees and expand their businesses as a result of the new tax laws so. You know the combination of small business and corporate tax cuts you know it's created a lot of optimism in the marketplace. You know optimism that we haven't seen for more than a decade. Now the likely impact of the corporate tax cuts for those if you invested in stocks. I should be positive as the tax code will likely increase company earnings. Remember when you borrow shares of stock your body in a small piece of the company. But more importantly your body and the rice term earnings the company generates those bigger profits for the company. Will naturally drive stock prices higher so industries. Like Tel com retail transportation. Health care you know you should especially see. Significant benefits they're because of lower corporate countries so you know some sectors will benefit better than others so now's the time to review your portfolio and make some potential changes you know as a shareholder. Again you stand to benefit from my these corporate tax cuts and almost higher earners. Who otherwise would be illusion should be in the same boat unless they aren't investing in. I believe companies are likely to use much of their tax havens to boost profits and reinvest. So you're invested in the market he stand to benefit from result in increased dividends and share appreciation. And most literature does indicate that the general economy should benefit as well especially at first it offshore cash flows. Come back to the US in all retirees. Should have a group portfolio. That would be in conjunction with a safe money strategies the two combined. Constitute your retirement income plan. With a comprehensive plan you don't have to worry about the fluctuations in the market you know she why I'm really passionate about our community being well prepared for retirement. And I want to extend that opportunity to you right now to help be sure that your well prepared as well I'm offering complimentary are funny and Corey UTU. If you call the next fifteen minutes. And have at least 200000 dollars saved for retirement I'll talk about your retirement income needs. Where the income is going to come from how you outpace inflation pay as little as possible and taxes and make sure that you don't outlive your money. Now you might say I don't really have to comb the next fifteen minutes and yes it's true you can probably take care of it next week even next month. But here's the deal hunting coach and people on retirement plan for a long time. I've learned that you really. Easy to procrastinate or get distracted. So if you don't start to process now. There's a very good chance you're not gonna do it at all so the first coach and that we're gonna give you is to encourage you to take the first step right now. For almost everybody that's the hardest core from there it's really not a painful process so if you're ready to finally get a plan in place. Give us a call right now. That number to call is 806465996. Minutes 806465996. That's your number to reach out to Richard which early in the team Carolina retirement resources again call 806465996. That's 806465996. This just the chance to sit down with Richard. Have a complementary no cost no obligation meeting find out a little bit more about your financial situation. A little really take to prepare yourself for retirement to achieve your goals in retirement and yes to put a tax plan in place is part of that. Reach out of the team now by calling 806465996. That's 806465996. Richard as always we thank for joining us today on the show thank you mark all right we'll see you back here next time for more. On the financial something. Information is for illustrated purposes only. And does not constitute tax investment or legal advice. Always consult with a qualified investment legal or tax professional before taking any action investment advisory services offered through Brookstone capital management LL CBC him. A registered investment advisor BCM and Carolina retirement resources are independent of each other.