Greetings!
Now that President Obama has won a second term, we should be thinking about tax planning for 2012 and 2013. You are invited to attend our Lunch & Learn event, Approaching the Fiscal Cliff, on November 29th at 11:30 which will also address this topic.
Here are topics high-income earners may want to discuss with their tax professional and financial advisor as the end of 2012 nears:*
- Consider the pros and cons of pushing income into 2012 to potentially avoid at least 2 increases in income tax: the 0.9% medicare surtax and 3.8% Medicare tax on unearned income. Additionally, the 35% maximum tax rate is subject to increase in 2013.
- Consider the best timing for charitable donations and mortgage payments.
- Consider the timing for medical deductions, such as elective procedures.
- Consider a Roth Conversion in 2012.
- Discuss the potential benefit of selling appreciated assets in 2012.
Tax planning techniques will be unique to your personal situation. We recommend that you consult with your tax professional and advisor to discuss recommendations specific to your tax situation.
Learn about the changing tax landscape, the Fiscal Cliff and what you can do to prepare for it. Give us a call at (303) 690-5070! Click here for more info. |
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Save the Date:
Friday, December 7th 4:30pm to 7:30pm |
A&I Financial Services' annual holiday party is approaching quickly. Please put the date on your calendar and watch for your invitation coming soon. |
| Lunch & Learn Event |
As 2012 comes to a close, Americans are dealing with more uncertainty in their tax situation than in any time in recent history.
Unless Congress can reach a compromise prior to year-end, the U.S. economy will tumble over a "fiscal cliff," a term for the simultaneous increase in tax rates and drastic cuts in federal spending.
Please join Karl Frank, CFP and other members of our expert team for an open panel discussion.
Discussing the Fiscal Cliff & 2013 Tax Strategies
Date: Thursday November 29th, 11:30am - 12:30pm
Location: Our office, 9800 Mt. Pyramid Court, Suite 450
Englewood, CO 80112
Lunch will be provided.
or call 303-690-5070. Seating is limited.
Friends and colleagues are welcome to attend!
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| Weekly Economic Update | |
A FISCAL CLIFF DEAL SOONER RATHER THAN LATER?
House Speaker John Boehner and Senate Majority Leader Harry Reid both called Friday's fiscal cliff meeting with President Obama and the White House economic team "constructive". Speaker Boehner noted that he had introduced a framework for tax reform, adding that tax increases might be accepted if "accompanied by serious spending cuts". President Obama is in Asia this week; members of his senior team will continue talks with leaders of Congress. House Minority Leader Nancy Pelosi urged lawmakers to set "a deadline before Christmas" to resolve the dilemma, emphasizing the need to "send a message of confidence to consumers [and] the markets" in the coming weeks. Friday, the Wall Street Journal published reports of "advanced talks" at the White House about a deal to postpone January's planned $100 billion in spending cuts for 6-12 months while smaller and more targeted cuts and tax increases are made in the interim.1,2
DID SUPERSTORM SANDY DENT RETAIL SALES?
The storm may have had an effect. The Commerce Department noted a 0.3% overall drop in retail purchases for October, with core retail sales down 0.1%. This follows a (revised) 1.3% gain for September and a 1.0% advance in August.3
TAME INFLATION IN OCTOBER
Consumer prices ticked up but 0.1% last month, compared to 0.6% in September. Wholesale inflation lessened for the first time in five months in October; the Producer Price Index retreated 0.2% after rising 1.1% in the prior month. Annual consumer inflation was running at 2.2% in October.4
STOCKS MOVE SOUTH
The Dow lost 1.77% last week, while the NASDAQ and S&P 500 respectively lost 1.78% and 1.45%. On Friday, the Dow closed at 12,588.31, the NASDAQ at 2,853.13 and the S&P at 1,359.88. COMEX gold settled Friday at $1,712.30 per ounce; NYMEX crude ended the trading week at just $86.62 a barrel.5,6,7 |
| Market Summary |
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% Change |
Y-T-D |
1Yr Chg |
5-Year Avg | |
DJIA |
+3.03 |
+5.73 |
-0.89 | |
NASDAQ |
+9.52 |
+8.09 |
+1.64 | |
S&P 500 |
+8.13 |
+9.94 |
-1.36 |
(Source: msn.money.com, bigcharts.com, treasury.gov, treasurydirect.gov -11/16/12). Past performance is no guarantee of future results. Indices are unmanaged, and investors cannot invest in them directly. |
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Create a beautiful week!
Karl Frank, MBA, MSF
Certified Financial Planner (R)
A & I Financial Services LLC
303.690.5070
Citations:
* The information provided does not constitute tax advice. he information on this newsletter should not be used in any actual transaction without the advice and guidance of a professional Tax Adviser who is familiar with all the relevant facts. The information contained herein may not be applicable to or suitable for the individuals' specific circumstances or needs and may require consideration of other matters
1 - whitehouse.blogs.cnn.com/2012/11/16/congressional-leaders-
strike-postive-tone-after-constructive-white-house
-meeting/ [11/16/12]
2 - www.cnbc.com/id/49852886/ [11/16/12]
3 - blogs.wsj.com/economics/2012/11/14/worries-that-retail-weakness-extends-beyond-sandy/ [11/14/12]
4 - www.bloomberg.com/news/2012-11-15/consumer-prices
-in-u-s-increased-at-a-slower-pace-in-october.html [11/15/12]
5 - www.cnbc.com/id/49853571 [11/16/12]
6 - markets.on.nytimes.com/research/markets/commodities
/commodities.asp [11/16/12]
Securities offered through Geneos Wealth Management, Inc., member FINRA/SIPC. Investment advisory services offered through A & I Financial Services LLC, registered investment advisor.
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| Words for Thought |
"Life is like a ten-speed bicycle. Most of us have gears we never use."
Charles Schulz |
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Riddle of the Week
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Rhyming Riddle: My first is twice in apple but not once in tart. My second is in liver but not in heart. My third is in giant and also in ghost. Whole I'm best when I am roast. What am I?
Last week's riddle:
It has no body, but it has a copper head and copper tail. It can be found in the street and in just about any store. What is it?
Last week's answer:
A penny. |
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