Tatyana Bunich CEP.RFC. | Contact us: 410-908-9293

Income tax is a large revenue source for the United States government. While tax rates have changed many times, since the 1860’s, the United States has used a “progressive” tax code. A progressive tax code means that people who make more money are taxed at a higher rate than those who make less money. Our progressive tax system works by placing earners through different brackets according to how much money they make. The dollar amounts define your tax brackets and there are differing tables depending on your filing status (single, married, etc.). This matters in determining your marginal tax rate.

Filing 2019 Income Taxes

Understanding Marginal Tax Rates

Determining your tax bracket is not as simple as just adding up your total income and checking a tax table. Taxpayers need to calculate their taxable income (which can be sometimes referred to as their “adjusted gross income”) and then adjust their income for any deductions, adjustments and exemptions they are allowed to find their final taxable amount.

Once you determine your final taxable income amount, it’s critical to know that not all of your income was taxed at the same rate. So, for example if you are married filing jointly, your first $19,400 is taxed at 10%. If these same tax filers have a final taxable income of $95,000, then these taxpayers are in a “marginal tax bracket” of 22%. The key thing to note is that in this example, the last dollar earned is taxed at that 22% tax rate.

2019 Tax Law Updates

For 2019, Form 1040 has been slightly redesigned. There is time to look into tax planning ideas for your 2020 taxes, but here are some things that 2019 tax filers should review. They include:

• Tax brackets have been slightly adjusted.
• The standard deductions have risen from 2018.
• There are still caps to state and local tax (SALT) deductions.
• There are new deduction rates for medical expenses.
• Capital gains will still impact your income.
• There is still a 3.8% Medicare Investment Tax.
• Charitable donations are still deductible.
• You might still be able to contribute to retirement plans (or take an RMD) if appropriate.

2019 Tax Tables and Tax Rates

There are still seven federal income tax brackets for 2019. The lowest of the seven tax rates is 10% and the top tax rate is still 37%. The income that falls into each is scheduled to be adjusted in 2020 for inflation. For 2019, use the chart in this report to see what bracket your final income falls into.

TAX TIP: If you are not sure how best to file, ask your tax preparer or review IRS Publication 17, Your Federal Income Tax, which is a complete tax resource. It contains helpful information such as whether you need to file a tax return and how to choose your filing status.

2019 Standard Deduction Amounts

Most taxpayers claim the standard deduction. For 2019, the standard deduction has slightly increased. The amounts are now $12,200 for single filers and $24,400 for those filing jointly ($18,350 for head of household filers). If you are filing as a married couple, an additional $1,300 is added to the standard deduction for each person age 65 and older. If you are single and age 65 or older, an additional deduction of $1,650 can be made.

Increased Child Tax Credit

For 2019, the maximum child tax credit is $2,000 per qualifying child. Up to $1,400 of the Child Tax Credit is refundable; that is, it can reduce your tax bill to zero and you might be able to get a refund on anything left over.

There is also a non-refundable credit of $500 for dependents other than children. The modified adjusted gross income threshold at which the credit begins to phase out is $200,000 and $400,000 if married filing jointly.

State and Local Tax (SALT) Deduction

2019 also continues the changes to state and local tax deductions that cap a taxpayer’s state and local tax (SALT) deduction at $10,000. This includes both state income and property taxes. This change affected a large number of taxpayers who live in states with high property taxes and those who pay larger state income tax bills.

Medical Expense Deduction

In late December 2019, legislation retroactively made the 7.5% threshold available to taxpayers in 2019 and 2020. The 10% threshold amount was postponed until 2021.

Investment Income

Long-term capital gains are taxed at more favorable rates compared to ordinary income. For qualified dividends, investors will continue to be taxed at 0, 15 or 20%.

One tax strategy is to review your investments that have unrealized long-term capital gains and sell enough of the appreciated investments in order to generate enough long-term capital gains to push you to the top of your federal income tax bracket. This strategy could be helpful if you are in the 0% capital gains bracket and do not have to pay any federal taxes on this gain. Then, if you want, you can buy back your investment the same day, increasing your cost basis in those investments. If you sell them in the future, the increased cost basis will help reduce long-term capital gains. You do not have to wait 30 days before you buy back this investment—the 30-day rule only applies to losses, not gains.

Note: This non-taxable capital gain for federal income taxes might not apply to your state.

TAX TIP: Remember that marginal tax rates on long-term capital gains and dividends can be higher than expected. The 3.8% surtax can raise the effective rate to 18.8% for single filers with income from $200,000 to $434,550 and 23.8% for single filers with income above $434,550. It can raise the effective rate to 18.8% for married taxpayers filing jointly with income from $250,000 to $488,850 and to 23.8% for married taxpayers filing jointly with income above $488,850.

Calculating Capital Gains and Losses

With all of these different tax rates for different types of gains and losses in your marketable securities portfolio, it’s probably a good idea to familiarize yourself with some of the rules:

• Short-term capital losses must first be used to offset short-term capital gains.
• If there are net short-term losses, they can be used to offset net long-term capital gains.
• Long-term capital losses are similarly first applied against long-term capital gains, with any excess applied against short-term capital gains.
• Net long-term capital losses in any rate category are first applied against the highest tax rate long-term capital gains.
• Capital losses in excess of capital gains can be used to offset up to $3,000 ($1,500 if married filing separately) of ordinary income.
• Any remaining unused capital losses can be carried forward and used in the same manner as described above.

TAX TIP: Please remember to look at your 2018 income tax return Schedule D (page 2) to see if you have any capital loss carryover for 2019. This is often overlooked, especially if you are changing tax preparers.

Please double-check your capital gains or losses. If you sold an asset outside of a qualified account during 2019, you most likely incurred a capital gain or loss. Sales of securities showing the transaction date and sale price are listed on the 1099 generated by the financial institution. However, your 1099 might not show the correct cost basis or realized gain or loss for each sale. You will need to know the full cost basis for each investment sold outside of your qualified accounts, which is usually what you paid for it, but this is not always the case.

3.8% Medicare Investment Tax

The year 2019 is the seventh year of the net investment income tax of 3.8%. It is also known as the Medicare surtax. If you earn more than $200,000 as a single or head of household taxpayer, $125,000 as married taxpayers filing separately or $250,000 as married joint return filers, then this tax applies to either your modified adjusted gross income or net investment income (including interest, dividends, capital gains, rentals, and royalty income), whichever is lower. This 3.8% tax is in addition to capital gains or any other tax you already pay on investment income.

A helpful strategy has been to pay attention to timing, especially if your income fluctuates from year to year or is close to the $200,000 or $250,000 amount. Consider realizing capital gains in years when you are under these limits. The inclusion limits may penalize married couples, so realizing investment gains before you tie the knot may help in some circumstances. This tax makes the use of depreciation, installment sales, and other tax deferment strategies suddenly more attractive.

Medicare Health Insurance Tax on Wages

If you earn more than $200,000 in wages, compensation, and self-employment income ($250,000 if filing jointly, or $125,000 if married and filing separately), the Affordable Care Act levies a special 0.9% tax on your wages and other earned income. You’ll pay this all year as your employer withholds the additional Medicare Tax from your paycheck. If you’re self-employed, plan for this tax when you calculate your estimated taxes.

If you’re employed, there’s little you can do to reduce the bite of this tax. Requesting non-cash benefits in lieu of wages won’t help—they’re included in the taxable amount. If you’re self-employed, you may want to take special care in timing income and expenses (especially depreciation) to avoid the limit.

Charitable Gifts and Donations

When preparing your list of charitable gifts, remember to review your checkbook register so you don’t leave any out. Everyone remembers to count the monetary gifts they make to their favorite charities, but you should count noncash donations as well. Make it a priority to always get a receipt for every gift. Keep your receipts. If your contribution totals more than $250, you’ll also need an acknowledgement from the charity documenting the support you provided. Remember that you’ll have to itemize to claim this deduction, but when filing, the expenses incurred while doing charitable work often is not included on tax returns.
You can’t deduct the value of your time spent volunteering, but if you buy supplies for a group, the cost of that material is deductible as an itemized charitable donation. You can also claim a charitable deduction for the use of your vehicle for charitable purposes, such as delivering meals to the homebound in your community or taking your child’s Scout troop on an outing. For 2019, the IRS will let you deduct that travel at .14 cents per mile.

Child and Dependent Care Credit

Millions of parents claim the child and dependent care credit each year to help cover the costs of after-school daycare while working. Some parents overlook claiming the tax credit for childcare costs during the summer. This tax break can also apply to summer day camp costs. The key is that for deduction purposes, the camp can only be a day camp, not an overnight camp. So, If you paid a daycare center, babysitter, summer camp, or other care provider to care for a qualifying child under age 13 or a disabled dependent of any age, you may qualify for a tax credit of up to 35% of qualifying expenses of $3,000 for one child or dependent, or up to $6,000 for two or more children.

Contribute to Retirement Accounts

If you haven’t already funded your retirement account for 2019, consider doing so by April 15, 2020. That’s the deadline for contributions to a traditional IRA (deductible or not) and a Roth IRA. However, if you have a Keogh or SEP and you get a filing extension to October 15, 2020, you can wait until then to put 2019 contributions into those accounts. To start tax-advantaged growth potential as quickly as possible, however, try not to delay in making contributions. If eligible, a deductible contribution will help you lower your tax bill for 2019 and your contributions can grow tax deferred.

To qualify for the full annual IRA deduction in 2019, you must either: 1) not be eligible to participate in a company retirement plan, or 2) if you are eligible, there is a phase-out from $64,000 to $74,000 for singles and from $103,000 to $123,000 for married taxpayers filing jointly. If you are not eligible for a company plan but your spouse is, your traditional IRA contribution is fully-deductible as long as your combined gross income does not exceed $193,000. For 2019, the maximum IRA contribution you can make is $6,000 ($7,000 if you are age 50 or older by the end of the calendar year). For self-employed persons, the maximum annual addition to SEPs and Keoghs for 2019 is $56,000.

Although contributing to a Roth IRA instead of a traditional IRA will not reduce your 2019 tax bill (Roth contributions are not deductible), it could be the better choice because all qualified withdrawals from a Roth can be tax-free in retirement. Withdrawals from a traditional IRA are fully taxable in retirement. To contribute the full $6,000 ($7,000 if you are age 50 or older by the end of 2019) to a Roth IRA, you must earn $122,000 or less a year if you are single or $193,000 if you’re married and file a joint return.

If you have any questions on retirement contributions, please call us.

Roth IRA Conversions

A Roth IRA conversion is when you convert part or all of your traditional IRA into a Roth IRA. This is a taxable event. The amount you converted is subject to ordinary income tax. It might also cause your income to increase, thereby subjecting you to the Medicare surtax. Roth IRAs grow tax-free and qualified withdrawals are tax-free in the future, a time when tax rates might be higher.

Whether to convert part or all of your traditional IRA to a Roth IRA depends on your particular situation. It is best to prepare a tax projection and calculate the appropriate amount to convert. Remember—you do not have to convert all of your IRA to a Roth. Roth IRA conversions are not subject to the pre-age 59½ penalty of 10%.

Many 401(k) plan participants can convert the pre-tax money in their 401(k) plan to a Roth 401(k) plan without leaving the job or reaching age 59½. There are a number of pros and cons to making this change. Please call us to see if this makes sense for you.

Required Minimum Distributions (RMD)

If you turned age 70½ during 2019, you still have until April 1, 2020, to take out your first RMD. This is a one-time opportunity in case you forgot the first time. The deadline for taking out your RMD in the future will be December 31 of each year. If you do not pay out your RMD by this deadline, you may be subject to a 50% penalty on the amount you were supposed to take out. Starting in 2020 the SECURE Act changed the starting RMD age to 72. If you have any questions on your Required Minimum Distributions please call us.

Other Overlooked Tax Items and Deductions

Reinvested Dividends – This isn’t a tax deduction, but it is an important calculation that can save investors a bundle. Former IRS commissioner Fred Goldberg told Kiplinger magazine for their annual overlooked deduction article that missing this break costs millions of taxpayers a lot in overpaid taxes.

Many investors have mutual fund dividends that are automatically used to buy extra shares. Remember that each reinvestment increases your tax basis in that fund. That will, in turn, reduce the taxable capital gain (or increases the tax-saving loss) when you redeem shares. Please keep good records. Forgetting to include reinvested dividends in your basis results in double taxation of the dividends—once in the year when they were paid out and immediately reinvested and later when they’re included in the proceeds of the sale.

If you’re not sure what your basis is, ask the fund or us for help. Funds often report to investors the tax basis of shares redeemed during the year. Regulators currently require that for the sale of shares purchased, financial institutions must report the basis to investors and to the IRS.

Student-Loan Interest Paid by Parents – Generally, you can deduct interest only if you are legally required to repay the debt. But if parents pay back a child’s student loans, the IRS treats the transactions as if the money were given to the child, who then paid the debt. So as long as the child is no longer claimed as a dependent, the child can deduct up to $2,500 of student-loan interest paid by their parents each year. (The parents can’t claim the interest deduction even though they actually foot the bill because they are not liable for the debt).

Charitable Gift Directly made from IRA – Individuals at least 70½ years of age can still exclude from gross income qualified charitable distributions (QCD) from IRAs of up to $100,000 per year. Please remember to double check on what counts as a qualified charity and distribution before using this tax strategy.

Helpful Tax Time Strategies

Although many deductions were eliminated under the new laws, it might still be helpful to write down or keep all receipts you think are even possibly tax-deductible. Sometimes, taxpayers assume that various expenses are not deductible and do not even mention them to their tax preparer. Don’t assume anything—give your tax preparer the chance to tell you whether something is or is not deductible.

Be careful not to overpay Social Security taxes. If you received a paycheck from two or more employers and earned more than $132,900 in 2019 you may be able to file a claim on your return for the excess Social Security tax withholding.

Don’t forget items carried over from prior years because you exceeded annual limits, such as capital losses, passive losses, charitable contributions and alternative minimum tax credits.

Check your 2018 tax return to see if there was a refund from 2018 applied to 2019 estimated taxes.

Calculate your estimated tax payments for 2020 very carefully. Many computer tax programs will automatically assume that your income tax liability for the current year is the same as the prior year. This is done to avoid paying penalties for underpayment of estimated income taxes. However, in some cases this might not be a correct assumption, especially if 2019 was an unusual income tax year due to the sale of a business, unusual capital gains, the exercise of stock options, or even winning the lottery! A qualified tax preparer could be able to help you with a tax projection for 2020.

Remember that IRS.gov is a valuable online resource for tax information.

Always double check your math where possible and remember it is always wise to consult a tax preparer before filing.

Proactive Tax Planning for 2020

As you know, with the passage of the Tax Cuts and Jobs Act (TCJA), tax brackets, thresholds, and tax rates changed for many filers in 2018. In 2019, taxpayers are still adjusting to some of these changes. For 2020, we will continue to keep our clients updated on any new tax law changes and strategies that could potentially be helpful. For now, please review the 2020 tax tables and it’s never too early to start thinking ahead.

Click tables to view larger

Items Taxpayers Should Consider to Proactively Tax Plan for 2020

1. Prepare a 2020 tax projection – Taxpayers already know the 2020 rates and by reviewing their 2019 situation and all 2020 expectations of income, a qualified tax preparer could be able to help you with a tax projection for 2020.

2. New contribution limits for retirement savings – For 2020, the contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $19,000 to $19,500. The limit on annual contributions to an IRA remains $6,000 ($7,000 for those 50 or older). The catch-up contribution limits for those 50 and over remain unchanged at $1,000.

3. Explore if a potential Roth IRA conversion is helpful for your situation – A Roth IRA can be beneficial in your overall retirement planning. Investments in a Roth IRA have the potential to grow tax-free and they don’t have required minimum distributions during the lifetime of the original owner. Also, Roth IRA assets may pass to your heirs tax-free. Roth conversions include complex details and are not right for everyone, so please call us to see if this makes sense for you.

4. Take advantage of annual exclusion gifts – For 2020, the maximum amount of gift tax exemption is $15,000. This means you can give up to that amount to a family member without having to pay a gift tax. Ideas for gifting can include, contributing to a working child (or grandchild’s) IRA, or gifting to a 529 plan, which is a tax-sheltered plan for college expenses.

5. Consider bunching your charitable donations into a Donor Advised Fund (DAF) – Now is the time to explore if it is helpful for your tax situation to deposit cash, appreciated securities or other assets in a Donor Advised Fund, and then distributing the money to charities over time. Up to 60% of your adjusted gross income can be deductible if given as donations to typical charities.

6. Look into Health Savings Accounts (HSAs) – In general, to qualify to contribute to a health savings account in 2020, you must have a health insurance policy with a deductible of at least $1,350 for single coverage or $2,700 for family coverage. You can contribute up to $3,550 to an HSA if you have single coverage or up to $7,100 for family coverage in 2020, which is slightly more than the 2019 limits. If you’re 55 or older anytime in 2020, you’ll continue to be able to contribute an extra $1,000. HSA’s include complex details and are not right for everyone, so please call us to see if this makes sense for you.

The New SECURE Act and Proactive Tax Planning for 2020

The Setting Every Community Up for Retirement Enhancement (SECURE) Act, was passed by the Senate on December 19, 2019. This bill increased access to retirement plans and also includes some reforms to Defined Contribution (DC) Plans, Defined Benefit (DB) plans, Investment Retirement accounts (IRAs) and 529 plans. Open Multiple Employer Provisions (MEP’s) will be effective January 1, 2021, but many of the other provisions in the law become effective January 1, 2020. The SECURE Act also brought changes for retirement plan holders. We will try to help you with updates as your situation requires this year.

Among the many changes the SECURE Act included, we feel there are three major areas that could affect many client’s retirement planning strategy. These are:

1. One of the most impactful provisions of the SECURE Act is the “death” of the stretch IRA as an estate planning tool for most non-spousal beneficiaries.

If the original owner of an IRA passes away after December 31, 2019, fewer beneficiaries will be able to extend distributions from the inherited IRA over their lifetime. Many will instead need to withdraw all assets from the inherited IRA within 10 years following the death of the original account holder. Exceptions to the 10-year distribution requirement include assets left to a surviving spouse, a minor child, a disabled or chronically ill individual, and beneficiaries who are less than 10 years younger than the decedent. Please note that this new rule will only apply to IRAs inherited after the January 1st, 2020 effective date. All existing inherited IRAs are grandfathered in under the old rules. This NEW change will result in us taking a look at all clients that have accumulated retirement assets to discuss potential strategies that could be best for their situation.

2. Another notable change is the RMD age moved from 70½ to 72.

The Act states that this change applies beginning with IRA account owner who will attain age 70½ on or after January 1, 2020. This was in response to the fact that Americans are currently working and living longer. Congress updated RMD rules to reflect changes in life expectancies.

3. Allowing anyone with earned income the ability to contribute to an IRA after age 70½.

The SECURE Act permanently removes the age limit at which an individual can contribute to a traditional IRA. Previously, an individual could only contribute to ROTH IRAs after age 70½, as they have no age limit. Starting in 2020, the SECURE Act allows anyone that is working and has earned income to contribute to a traditional IRA regardless of age.

Another notable change the SECURE Act will bring is to 529 Plans. These tax-advantaged 529 plans will be allowed to help pay off qualified student loan repayments (up to $10,000 lifetime).

Many provisions of the SECURE Act will be subject to the interpretation of the IRS or other authorities. As always, clients should consider consulting with their personal tax advisor regarding their specific situation.

Determining the most efficient ways to either withdraw or pass to your beneficiaries your accumulated wealth is always an important decision. Our goal is to remain aware of changes that affect our clients and then share those changes with them.

We firmly believe in proactive tax planning and we will review the SECURE Act for proactive tax planning opportunities and share our findings with our clients.

Our goal is to work with clients to explore efficient ways to drawdown retirement savings and transfer wealth. If you would like to discuss your retirement plan and withdrawal strategy, please call us. As always, we appreciate the opportunity to assist you in addressing your financial goals.

Conclusion

Filing your 2019 taxes will continue to include the new tax rates set forth with the Tax Cuts and Jobs Act (TCJA) enacted in 2018 (currently set to expire after 2025). An essential part of maintaining your overall financial health is attempting to keep your tax liability to a minimum.

When filing your 2019 taxes, the rules and laws currently in place did not vary too much from your 2018 taxes. One of our primary goals is to keep you informed of the changes that will be affecting investors like you. We believe that taking a proactive approach is better than a reactive approach — especially regarding income tax strategies!

How long should I keep my records?

This information is not intended to be a substitute for specific individualized tax, legal or investment planning advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

Registered Representative offering securities and advisory services through Independent Financial Group, LLC (IFG), a registered broker dealer and a registered investment adviser. Member FINRA/SIPC. Financial 1 Wealth Management Group and IFG are unaffiliated entities. Note: The views stated in this letter are not necessarily the opinion of through Independent Financial Group, LLC (IFG), and should not be construed, directly or indirectly, as an offer to buy or sell any securities mentioned herein. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Please note that statements made in this newsletter may be subject to change depending on any revisions to the tax code or any additional changes in government policy. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results. Please note that individual situations can vary. Unless certain criteria are met, Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted. Additionally, each converted amount is subject to its own five-year holding period. Investors should consult a tax advisor before deciding to do a conversion. Sources: www.IRS.gov, turbotax.com. Contents Provided by The Academy of Preferred Financial Advisors, Inc 2020© All rights reserved. Reviewed by Keebler & Associates

The post Filing 2019 Income Taxes and Planning for 2020 appeared first on Financial 1 Tax.

After some concerns and declines during the summer, major equity markets showed advances in the month of September and finished positive for the third quarter of 2019. The S&P 500 ended the month about 1.7% higher, and up by 1.2% for the quarter. The Dow ended 1.9% and 1.2% higher for the month and quarter, respectively. (Source: Yahoo Finance 9/30/2019)

Some prominent investment themes from earlier in the year continued to surface in the third quarter producing volatile trading, but at the quarter’s end had no real impact. The U.S.-China trade conflict continued to capture investors’ attentions and fluctuated equity markets. The quarter also included the Federal Reserve’s lowering of rates in September for the second time this year. The combination of these events with slowing global economic growth and interest rates produced an inverted yield curve, which is a sign for some of economic downturns. Despite all of this, equity markets still rewarded patient investors. (Source: Morningstar.com 9/30/2019)

In a quarter ending news release, the NASDAQ stated that, “As investors prepare for U.S. corporations to report financial results next month, they could look past recent sluggish growth and find comfort as earnings look set to rebound after the third quarter.” Some strategists argue that just a small amount of economic growth should be enough to support better profit growth, which could help justify high market valuations. “People are overestimating the negative from trade and underestimating the lagged response from a lot of policy easing,” said Jim Paulsen, chief investment strategist at The Leuthold Group in Minneapolis. “It could affect what corporations say when they look ahead,” he said. Recent economic data has been mixed, with reports on U.S. labor and housing upbeat, but others disappointing. (Source: NASDAQ.com 9/30/2019)

Investors are still enjoying the longest bull market ever, but two camps of thought still continue to exist. One camp points to the fact that based on historical numbers, like price earnings, that equities are highly overvalued and overpriced. The other camp insists that we are still in a “TINA” market, meaning, There Is No Alternative to stocks. This group feels that until rates rise significantly, this will remain true and that means there could be significant upside in the current market. Equities are not cheap and even the savviest of investors need to have a watchful eye on risk. As financial professionals, we assist clients by providing ideas and suggestions based on their personal circumstances. Short-term interest rates and cash equivalent yields are still historically low. Our goal is to focus on each client’s timeframes and goals.

Key Points

1. Volatility continued to be elevated in Q3 and looks to remain for Q4.

2. Interest rates are still in the spotlight as Fed cuts rates twice in Q3.

3. Consumer confidence remains strong but tariffs bring caution and concern.

4. Trade war and tariffs between China and the U.S. bring market anxieties.

5. U.S. and global political uncertainty remain a key item to watch.

6. Now is the ideal time to revisit your personal objectives and the strategies to achieve them.

Interest Rates Are Still in the Spotlight

On Wednesday, September 18, the Federal Reserve lowered interest rates for the second time in the third quarter by 25 basis points down to a range of 1.75-2%. This reduction was after a similar rate cut as a result of their July session. Prior to July, the Fed had raised rates over nine times since December 2015. The reasoning for this most recent rate cut was weakening exports and low inflation. This quarter’s two rate cuts were the first time in over a decade that the Fed lowered interest rates.

Despite low unemployment rates, robust job gains and strong household spending, the central bank’s monetary policy committee stated, “…business fixed investment and exports have weakened. On a 12-month basis, overall inflation and inflation for items other than food and energy are running below 2 percent.” (foxbusiness.com 9.18.2019)

Fed Chairman Jerome Powell reaffirmed that the Fed will, “act as appropriate to ensure that the expansion remains on track.” It appears that the Fed made this recent rate cut as a proactive move toward ensuring the economy remains on the road to recovery.

Interest rates will continue to be on the forefront of our “watch” list.

Consumer Confidence

A notable point for the third quarter is that in September, U.S. consumer confidence fell to 125.1, down from 134.2 in August. This drop was the biggest in nine months. Lynn Franco, Senior Director of Economic Indicators at the Conference Board stated, “The escalation in trade and tariff tensions in late August appears to have rattled consumers.” He continued, “However, this pattern of uncertainty and volatility has persisted for much of the year and it appears confidence is plateauing.” Franco continued, “Consumers were less positive in their assessment of current conditions and their expectations regarding the short-term outlook also weakened. While confidence could continue hovering around current levels for months to come, at some point this continued uncertainty will begin to diminish consumers’ confidence in the expansion.” (CNBC.com; 9/24/19; Bloomberg.com 9/24/19)

Despite the dip in consumer confidence, the trend still appears to be that the consumer will support the current U.S. expansion, although spending may be more moderate.

Media Magnification and The Inverted Yield Curve

A quick way to spook many investors is to utter these three words, “inverted yield curve.” The third quarter of 2019 experienced the demonized inverted yield curve, sparking fears of a recession.

In brief, a “normal” yield curve has an upward arc. An inverted yield curve is just that, a curve that slopes downward. This shows that interest rates on short-term bonds is higher than some longer-term bonds.

In August, for the first since 2007, the spread between the 2-year and 10-year treasury yields turned negative. The 30-year treasury bond yield dropped below 2%. Historically, this has transpired prior to every U.S. recession in the last 50 years. (foxbusiness.com 9.18.2019)

This inverted yield curve lasted briefly but the theory behind what it potentially hails has resonated in the minds of many investors. The media is doing an excellent part in keeping the fear of a recession at the forefront of many investor’s thoughts. With talks of economic slowdowns and future concerns, investors need to prepare and proceed with caution.

Global Economy and Political Concerns

The third quarter of 2019 opened with the yuan, China’s currency, falling below 7 yuan to the U.S. dollar. This was the first time since 2008. This drop was as a result of President Trump threatening to add an additional 10% tariff on over $300 billion worth of Chinese imports. This set the stock market into a fast plunge of over 950 points on August 5, the steepest drop yet in 2019. This dive also marked the sixth biggest point drop in the DJIA’s 123-year history. (nypost.com, 8/2019)

Then in September, the President excluded hundreds of items from the 25% duty imposed on Chinese imported goods. This brought a calmer response from traders. (Bloomberg.com 9/30/19)

Tariffs and trade issues could affect equities, so investors should continue to monitor them. The U.S. and China are the world’s largest economies and a disruption in their symbiotic relationship could affect economies globally.

In addition to the ongoing trade wars, the United Kingdom is set to leave the European Union (EU) on October 31. How Brexit may affect global markets is still of concern and an item that needs to be carefully watched.

Political uncertainty, including the 2020 elections, also need to be watched. As financial professionals, our primary focus is on how the political landscape affects investment markets. We will be keeping an eye on global activities and how it may affect you.

Corporate Earnings

Corporate earnings are still a key factor in stock market performance. Stock prices typically rise when quarterly earnings reports meet or exceed market expectations and conversely, tends to lower prices when reports show unrealized expectations in earnings.

Weak corporate profits could be what finally convince investors to start pulling back on stocks, especially if companies start to lower their outlooks for the fourth quarter and 2020. The ripple effect of the trade war and tariffs is seeping into U.S. corporate earnings and therefore they need to be watched carefully. (CNN Business 9/30/2019)

Market Outlook for Q4

The month of October has seen five of the stock market’s worst 10 days, including 1987’s more-than 20% single day drop. However, overall, October typically ends as an average month for the market.

What will the last quarter of 2019 bring?

As shown in the chart of monthly market volatility, which tracks the standard deviation of daily returns of the S&P 500 dating back to 1928, October has historically been the most volatile month for U.S. equity markets. November is also one of the most volatile months. Seasoned investors understand that volatility is a part of the investment experience. They also understand that more important than the volatility is an investor’s response to that volatility. Sometimes volatility is a sign of heightened risk, but at other times volatility is just a normal part of investing. Market volatility is possibly one of the most misunderstood concepts in investing. Simply put, market volatility is a statistical measure of when the equity markets rise or fall sharper than usual within a short period of time.

Once again, we are suggesting that in these confusing times it is best to proceed with caution.

Strategies for Investors During Market Volatility

With fall being a historically volatile time period, we think it could be helpful to continue our theme of sharing strategies to consider during volatile times.

Revisit your financial goals and objectives.

Always allocate your investments to match your risk tolerance.

• If possible, add money to your investments regularly and try to increase your additions during downfalls.
• It’s nearly impossible to time the market right (sell when you think the markets at its peak), so have a strategy.
• Accept that volatility is inherent to investing.
• Consider avoiding or ignoring daily financial news.
• Always try not to make any emotional decisions.
• Don’t obsessively check your investments. Much like opening the refrigerator over and over again isn’t going to change what’s inside it, checking your investments obsessively isn’t going to alter whether or not your stocks are going up or down.

During volatile times, it is always wise to have realistic time horizons and return expectations for your own personal situation and to adjust your investments accordingly.

Now is the time to make sure you are confident, comfortable and consistent with your plan.

A financial plan is only as good as your ability to consistently follow it.

We are here for you!

Our advice is not one-size-fits-all. We will always consider your feelings about risk and the markets and review your unique financial situation when making recommendations. If you would like to revisit your specific holdings or risk tolerance, please call our office or bring it up at our next scheduled meeting. If you ever have any concerns or questions, please contact us!

Call 410-908-9293.

Note: The views stated in this letter are not necessarily the opinion of Independent Financial Group and should not be construed, directly or indirectly, as an offer to buy or sell any securities mentioned herein. Investors should be aware that there are risks inherent in all investments, such as fluctuations in investment principal. With any investment vehicle, past performance is not a guarantee of future results. Material discussed herewith is meant for general illustration and/or informational purposes only, please note that individual situations can vary. Therefore, the information should be relied upon when coordinated with individual professional advice. This material contains forward looking statements and projections. There are no guarantees that these results will be achieved. All indices referenced are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. The S&P 500 is an unmanaged index of 500 widely held stocks that is general considered representative of the U.S. Stock market. Dow Jones Industrial Average (DJIA), commonly known as “The Dow” is an index representing 30 stock of companies maintained and reviewed by the editors of the Wall Street Journal. Past performance is no guarantee of future results. CD’s are FDIC Insured and offer a fixed rate of return if held to maturity. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Sources: yahoofinance.com; Morningstar.com; Barron’s; bigcharts.com; marketwatch.com; foxbusiness.com; Bloomberg.com; cnbc.com; CNNBusiness.com. Contents provided by the Academy of Preferred Financial Advisors, 2019©

The post Quarterly Economic Update: Third Quarter 2019 appeared first on Financial 1 Tax.

Identity theft occurs when a criminal takes your personal information (such as your social security number, address, birth date, bank account number, credit card number, etc.) and uses it to steal money or obtain services under your name. With every advance in technology, it seems there are those who will quickly find a way to put it to use for their own unlawful gain. For example, some thieves access your information by hacking into personal or business computer systems or stealing laptops that contain personal data. But even more often, they use good old-fashioned techniques like stealing your purse or wallet. Copies of bank or credit card statements, bills or other personal papers can be stolen out of your home, your trash, the trash of businesses you’ve patronized, or your incoming or outgoing mail. Some thieves simply talk people into giving them information by posing as someone who would have a right to know it or claiming they need you to verify your account information.

Identity theft is a serious crime!

Once thieves have this information, they can wreck havoc with your good financial name. They can run up charges on your credit card, changing the billing address so it will be awhile before you realize what has happened. They can open new accounts in your name, including bank, phone and utility accounts; write counterfeit checks; drain your bank account; pay taxes or file for bankruptcy in your name; or get official ID issued in your name. It has even been known to happen that an identity thief will give the victim’s name if they get arrested, and when they don’t show up for court, the police come after you! In addition to the expense of resolving the problem, identity theft victims can also be harassed by collections agents, have their utilities cut off, or have trouble obtaining loans, credit or new bank accounts. They may also be unable to access their existing bank accounts or use their existing credit cards. The bottom line is identity theft can have a serious negative impact on the victim so you need to be informed.

FINANCIAL 1 WEALTH MANAGEMENT GROUP
Financial 1 Tax Services

10211 Wincopin Circle, Suite 620
Columbia, MD 21044-3431
(410) 908-9293

3701 Old Court Road, Suite 24
Baltimore, MD 21208-3901
(410) 908-9293

Tatyana Bunich, CEP, provides financial and tax services through Financial 1 Wealth Management Group and Financial 1 Tax Services.

How Bad Is The Problem?

Identity theft remains the top category of fraud affecting consumers. In the Federal Trade Commission’s “Consumer Sentinel Network Complaint Data Book” report for 2012, it shows the number of identity thefts remained high last year from 278,385 in 2009 to 279,156 in 2011. Identity theft represents 14% of all consumer fraud complaints, followed by third-party and creditor debt collection (10%), banks and lenders (7%), and imposter scams (6%). And while contemplating this enormous number, keep in mind that it doesn’t include those victims who chose not to file a claim, or filed under other categories, such as theft or mail or internet fraud.

With numbers on the rise again, it is even more important that you refresh your memory on the signs of identity theft and the simple precautions you can take to lessen your chance of becoming one of the statistics! Still don’t think it’s all that important? Read on.

The average cost to the consumer stayed in the thousands from $2,297 in 2011 to $2,294 in 2013. Luckily, a full 44% paid nothing at all, because in most cases, victims are not legally responsible for unauthorized charges or accounts. Looking only at victims who did have to pay out-of-pocket expenses, the median amount paid was $535.

The list below is a nationwide ranking of states by number of identity theft complaints for January 1 – December 31, 2013.

Age-wise, people under 50 bear the brunt of identity theft fraud. The graph below shows that nationwide, people are less likely to be victimized the older they get. Of all 2013 victims, 63% of victims were under 50, 17% were in their 50s, 12% were in their 60s, and 8% were over 70.

Government documents or benefits fraud was the most common form of reported identity theft (34%). Credit card fraud was second (17%) followed by phone or utilities (14%) and bank fraud (8%). Other significant types of identity theft reported by victims were employment related (6%) and loan fraud (4%).

It’s no wonder so many people across the nation are becoming slightly paranoid about their personal information and who has access to it. Almost everyone has heard at least one person’s horror story of the long and difficult path to clearing their name (and credit rating!) after identity theft has occurred, and after hearing it, my guess is that everyone shared the same thought—“I hope that never happens to me!”

A New Method For Identity Thieves – Stimulus Scams

Stimulus scams are a new way identity thieves are acquiring your personal information and stealing your money. The Federal Trade Commission sent out an FTC Consumer Alert informing us that the promise of stimulus money in return for a fee or financial information is always a scam. These scams occur primarily via email, an online ad or website saying you are eligible to get an economic stimulus payment. The FTC urges you to ignore it, delete it and throw it out! They strongly suggest you do not even click onto any links or open any emails or attachments. This may cause the installation of spyware, a harmful program which could send your personal information to an identity thief. The IRS does not send emails like this asking for personal information and these emails or websites should not be trusted, regardless of how legitimate it sounds.

What Can I do To Protect Myself?

We understand your concerns on this issue and we wanted you to know that there are things you can do to help protect yourself from identity theft. The following steps are very simple and could save you a huge headache down the road!

Don’t give out personal information.

Don’t ever provide personal information over the phone, by mail or on the internet unless you have initiated the contact and know exactly how the information will be used and whether it will be shared with others. If someone contacts you and you think it might be legitimate, break the contact and use a listed phone number or web address that you know to be valid to reestablish contact. Never use a number or email link that they provide, as these may be traps set up to look or sound like the real website or automated phone system.

Protect your social security number.

Never have it printed on your checks or driver’s license, and never carry your card in your wallet. Only give out your number when necessary, such as applying for store credit, where it is used to perform a credit check. Even then, ask if you may give your number verbally without putting it in writing.

Don’t leave personal or financial information out in the open.

The latest data in the FTC’s most recent Identity Theft Survey Report shows a shocking 16% of identity theft victims personally knew the thief—family members, friends, neighbors, in-home employees and coworkers were all implicated in these cases. With that in mind, it is always best to keep all personal or financial information in a safe place in your home. Don’t leave it lying around, especially if you are having work done on your home or hire outside help.

Don’t carry unnecessary personal information.

We just discussed not carrying your social security card in your wallet, but there are other documents people sometimes carry with them that identity thieves would just love to get their hands on. Bank account numbers, PIN numbers, passports, birth certificates and blank checks can all provide a huge amount of information to a thief. Don’t carry them unless absolutely necessary.

Destroy personal documents before disposal.

Before throwing anything in the trash, shred or otherwise destroy documents such as credit card receipts, old credit cards, credit offers, or bank, medical or insurance statements. You don’t want these documents lying around on the curb waiting for trash collection.

Protect your mail.

Collect your mail promptly, and use a post office collection box for outgoing bills. Whenever you go on vacation, ask the post office to hold your mail or get a post office box.

You can reduce the amount of unsolicited credit offers arriving in your mailbox (which an identity thief could snatch and use as their own). Call 1-888-5-OPTOUT (1-888-567-8688) and ask them to stop any pre-screened offers from being sent to you. Or, on the Direct Marketing Association’s website (www.the-dma.org, in the section “For Consumers”) you can opt out of direct mail marketing, email marketing or telephone marketing conducted by many companies. You can also write to them at PO Box 643, Carmel, NY 10512.

Pay close attention to your bills.

Know your billing cycles. If your bills are even a couple days late, contact your creditor. Late or missing bills could mean that an identity thief has changed the mailing address on an account to avoid detection.

Review your credit card bills and checking account statements as soon as they arrive, and look into any suspicious checks or charges right away.

Have any cards you don’t need or use? Consider canceling them. A thief could get access to that dormant account, and you would only find out about it once bills started arriving in your mailbox. For those of you worried about possibly hurting your credit score by closing dormant accounts, Liz Pulliam Weston from MSN Money suggests not closing your oldest account (as credit scores are based partly on length of credit history) and not closing several accounts at once. Credit scores are also partly based on your debt as a percentage of your available credit, so closing several accounts would greatly reduce your available credit without changing the size of your debt.

Make a backup list.

If you ever do have a wallet stolen or lose other personal information, you’ll need to act quickly to minimize any damages. Some people suggest making a photocopy of the front and back of your credit cards and debit cards. A simple list is also sufficient, as long as you record account numbers and the phone numbers to call if the card is lost or stolen. However, as you can imagine, it is absolutely necessary to keep this list in a safe but accessible place. If you need to report your cards lost or stolen, you don’t want to risk having it locked up in a safe deposit box, as the bank may not be open when you need to get your list! If you’re going on vacation, take only a list of the toll-free numbers you would need to call to report all your cards lost or stolen, and keep that list in a safe place other than your purse or wallet.

Use creative passwords.

Creative passwords better protect your information. Select intricate passwords on your credit cards, debit/bank cards, phone accounts and internet accounts. Stay away from obvious choices such as your mother’s maiden name, a pet’s name, your birth date, or anything else that might be easily available.

Use caution when using the internet.

The internet provides a wealth of information, financial offers, shopping and other services. However, at the same time, it opens consumers to an array of online scammers and identity thieves. A few ways online scammers commit identity theft is through phising. Phising is when a pop-up or email claims they are from a business that you may deal with, such as your bank, and they ask you to update, validate of confirm account information. These are bogus and can be costly. Make it a policy to never respond to emails or pop-ups that ask for personal or financial information. You should also protect yourself from spam. Many internet providers offer filtering software to help limit the amount of spam that gets through to email users. Some tactics to help prevent identity theft through the internet are:

• Use creative passwords.
• Protect your personal information. Share your information only with companies you know and trust.
• Know who you are dealing with.
• Take your time. Resist the urge to “act now” despite tempting offers.
• Read the small print.
• Never pay for a “free” gift.

Access free annual copies of your credit report.

You can access free annual copies of your credit reports from all three national consumer reporting companies at www.annualcreditreport.com or by calling 877-322-8228. You are legally entitled to one free copy per year, so make use of that. (Note that if you choose to go through the reporting companies individually they can charge you up to $8 for a copy of your report.)

FTC statistics from their June 2014 report show that people over 65 are the least likely to make use of this important method of protecting your identity. Don’t follow the crowd! These reports are free and easy to obtain. Most importantly, they can help you detect suspicious activity on your existing accounts or find any new accounts opened in your name, allowing you to stop identity thieves and minimize losses.

These ten steps do not require much time or effort on your part, but they will make things more difficult for anyone who wants to illegally access your personal information.

Should I Pay For An Identity Theft Protection Service?

The answer to this is in many cases is you may not have to. Many companies now exist that offer to lock, flag or freeze your credit reports; track your credit report and alert you of suspicious activity; help you rebuild your credit if you do become a victim; remove your name from mailing lists or pre-screened offers; limit your liability, etc. However, as you may have already guessed, you can do most of these things yourself for free!

You can put your own fraud alert on your credit report, and this is free if you have reason to believe you have been or will become a victim of identity theft. You can also check your own credit reports for free once a year. The companies that offer to help you rebuild your name typically do so by obtaining a limited power of attorney, which enables them to deal with creditors and others on your behalf. We have already told you how easy it is to remove your own name from mailing offers. And under the law, unauthorized credit card charges can be disputed and unauthorized debit or ATM charges are limited to a $50 liability if you report the fraudulent charges within 2 days of discovery. So if you are considering one of these services, be sure to read the fine print and understand exactly what it is you’re paying for.

Also, remember that criminals love to take advantage of our paranoia! Beware of offers of credit protection which might be scams, charging you money for protection you are legally entitled to for free.

How Will I Know If Someone Is Using My Personal Information?

How and when you find out you are a victim of identity theft depends on several factors. According to the most recent statistics on the FTC website, 40% of victims discover the misuse of their information within one week. However, in cases where the thieves used existing credit cards or withdrew from existing accounts, the victims were twice as likely to find out the very day it started than in cases where the thieves used the information to open new accounts or commit other types of fraud. This is because, as the FTC explains, “the most common way victims discovered the misuse of their personal information was by monitoring the activity in their accounts.” 24% of victims whose information was used to open new accounts did not discover the problem for six months or more (as opposed to only 3% of those having issues with existing cards or accounts).

If your purse, wallet or other personal information has been lost or stolen, that does not necessarily mean you are a victim of identity theft. However, it does mean that your personal information has been compromised. Even a regular “old-fashioned” thief may choose to use this information once he or she has it, or sell it to others who will.

According to the FTC, the good news is that the quicker the identity theft was discovered, the less money the thieves got and the lower the victims’ out-of-pocket expenses. The sobering news is that over half of identity theft victims have no idea how the thieves got their information. What this means is that you need to be on the lookout for signs of identity theft even when you have no reason to suspect your information has been stolen!

So, what should you look for? Some of the more common red flags are bills that are late or do not arrive, unexpected credit cards or account statements, being denied credit or offered very poor credit terms, or calls or letters about unknown purchases.

5 Common Ways ID Theft Happens

Skilled identity thieves use a variety of methods to steal your personal information, including:

1. Dumpster Diving. Someone rummages through your trash looking for bills or other paper with your personal information on it.

2. Skimming. Someone steals credit/debit card numbers by using a special storage device when your card is processed.

3. Phishing. Someone pretends to be a financial institution or company and sends you spam or pop-up messages to get you to reveal your personal information.

4. Changing of Address. Someone diverts your billing statements to another location by completing a “change of address” form.

5. “Old-Fashioned” Stealing. Someone steals your wallet or purse; mail; bank and/or credit card statements; pre-approved credit offers; and/or new checks or tax information. Someone can also steal personnel records from your employers or bribe employees who have access to this information.

I Am A Victim of Identity Theft. What now?

If you do determine that you have become a victim of identity theft, it can feel overwhelming. You may not have much idea of what damage they have done, or what steps you need to take to stop them and start regaining your good financial standing. Of course, you can always turn to our office as a resource. I hope you will also choose to file this letter so that you can pull it out if you ever need it (although I hope you never do!). The FTC website (www.ftc.gov/idtheft) has comprehensive information as well.

The key is to take action as fast as possible. Below, we have provided you with a step-by-step action list that will help you (or someone you know) resolve issues relating to identity theft in an efficient and hopefully less costly manner.

Get organized.

Make a list of who you need to contact. Start a file where you can keep all your paperwork together in one easily accessible place, and keep this file even after you believe all your disputes have been settled. Whenever you make phone calls, write down the date and time and the name of the person you talked to, along with any notes from the call, and keep these notes in your file.

Place an initial fraud alert on your credit reports.

This alert, which will stay active for 90 days, will ensure that creditors must verify your identity before making any changes to your accounts or opening new accounts. It is only necessary to call one of the three consumer reporting companies. Their toll-free numbers are:

Equifax 1-800-525-6285
Experian 1-888-397-3742 (1-888-EXPERIAN)
TransUnion 1-800-680-7289.

When you place a fraud alert, you can get a free copy of your credit report regardless of how long it’s been since you last requested a free report. Check it carefully for any companies you don’t recognize, accounts you didn’t open or unknown charges on your accounts. Remember to check your own name, SSN, and employer also, as thieves will sometimes change basic information to suit their own purposes.

After you’ve completed the rest of the steps, you can go back and get an extended alert on your credit report. An extended alert stays active for seven years. To get this, you will need to provide a copy of an identity theft report. You will also receive two free credit reports during the first year after placing the extended alert, and the consumer reporting companies will automatically remove your name from all marketing lists for pre-screened credit offers for five years (unless you ask for your name to be put back on before then).

Close any account that may have been tampered with.

Close any account that may have been tampered with or opened without your knowledge. Ask to speak with someone in the security or fraud department at each company or institution. Ask for fraud dispute forms to dispute any charges made by an identity thief. If they don’t have special forms, send a letter to the address given for “billing inquiries.” If new accounts have been opened in your name, ask if the company accepts the ID Theft Affidavit. (Instructions for completing an ID Theft Affidavit can be found at www.ftc.gov/idtheft.) If not, use their fraud dispute forms or send a letter. Be aggressive and persistent. If someone is not giving you the help or the answers you need, ask to speak to a supervisor.

Follow up any phone calls in writing, especially to banks and credit card companies, and use certified mail, return receipt requested, to keep a record of what the company received from you and when. Keep copies of all correspondence in your file.

Once you have resolved any disputed charges or accounts with a company, ask them to put it in writing for you to confirm that the disputes have been settled. This letter may prove very helpful if any errors crop up later on down the road relating to the fraudulent debt or accounts.

Take precautions with new accounts.

When opening new accounts, use a password that is not obvious. Avoid using your mother’s maiden name, your birth date, a pet’s name or other information that is easily available.

File appropriate reports and complaints.

Whenever you have a problem with identity theft, please file a police report (in person, if possible) and provide as much information as you can. Get a copy of it for your file.

File a complaint with the Federal Trade Commission (www.ftc.gov/idtheft or call 1-877-438-4338) to give law enforcement more information to help fight identity theft nationwide.

To file an identity theft report with the consumer credit reporting agencies in order to get an extended fraud alert put on your credit report, you will need to submit a copy of your police report or report to the FTC, along with any other requested proof of your identity.

Where Can I Get More Information?

If you need additional information about specific problems related to identity theft, such as dealing with stolen ATM cards, credit cards, fraudulent checks, etc., the Federal Trade Commission website has an enormous amount of detailed information. To learn more about Identity Theft and how to deter, detect and defend against it, visit their site at www.ftc.gov/idtheft or write to:

Consumer Response Center
Federal Trade Commission
600 Pennsylvania Ave., NW, H-130
Washington, D.C. 20580

Again, we hope that you never need to use the action list for identity theft victims, but we do encourage you to take the simple precautionary actions listed earlier in this letter to help make it more difficult for identity thieves to access your personal information.

If you have any questions about the safety of your financial information, I am happy to discuss that with you, along with any other aspect of identity theft. I hope this report has helped you. I look forward to talking with you at our next meeting. Our goal is to continuously keep you as our client aware of all important financial issues and topics that can help you.

We appreciate the confidence you have shown in our firm. As always, we thank you for the opportunity to work with you.

Sources: “Consumer Sentinel Network Data Book for January – December 2008 – Federal Trade Commission February 2009”on the website (http://www.ftc.gov/opa/2008/02/fraud.pdf); and “FTC Consumer Alert: Seeing Through Stimulus Scams”; OnGuard Online, Your Safety net (www.onguardonline.gov); “Consumer Sentinel Network Data Book for January – December 2013” as posted on the Federal Trade Commission website (www.ftc.gov/idtheft); Copyright 2015.

Source for graphs: www.ftc.gov/idtheft

If you would like a copy of this report for a friend or family member, please call our office at (410) 908-9293 and we will be happy to mail one to them.

Financial 1 Wealth Management Group
10211 Wincopin Circle
Suite 620
Columbia, MD 21044-3431

The post How to Protect Yourself appeared first on Financial 1 Tax.