Greetings!
The majority of Americans no longer have any worry about the estate tax. The limits were raised in 2013, and now they are as permanent as anything in Washington. They are indexed to inflation, also, so they could and should rise in the future.
Here is a chart that shows the most recent history of the "Applicable Exclusion Amount." If all of your assets, the house, the investments, the jewelry, cars, artwork, land, you name it, is valued at less than approximately $5 million in 2013, then you have no estate tax problem.
With the help of an attorney, a married couple can double this amount, each person taking advantage of the Applicable Exclusion Amount.
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Tax % |
App. Ex. Amt. | | 2007 | 45 | $2 million | | 2008 |
45 | $2 million | | 2009 | 45 | $3.5 million | | 2010 | 0 | N/A | | 2011 | 35 | $5 million | | 2012 | 35 | $5.12 million | | 2013 | 40 | $5.12 million | | Source: Internal Revenue Code |
Additionally, many of our clients have gone through some fairly complex estate planning in the past. Now may be a good time to review these plans to make sure that they are still appropriate in light of the new law changes.
At A&I Financial Services LLC, our Wealth Managers work with a team of experts and hold regular Expert Team Meetings where we discuss these, and other, timely issues. Make sure to keep in touch with your advisors if anything changes in your financial situation. |
| Lunch and Learn: Behind the Smoke |
Last November, Colorado voted to approve the legalization of marijuana. What does this mean for employers? How legal is legal? Do you have a clear cut drug policy in your employee handbook?
Please join Kim Ritter, Employment Law Attorney at Minor & Brown PC, for this discussion.
Behind the Smoke:
What Amendment 64 Means for Your Business
Date: Wednesday, March 6, 11:30 am - 12:30 pm
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 | |
HOME SALES RISE, HOUSING STARTS FALL
January brought a 0.4% improvement in existing home sales, even as the inventory of properties for sale hit a 93-month low. The National Association of Realtors reported a 25% year-over-year decline in existing home inventory, which hasn't been seen since December 1999. The median sales price was $173,600 last month, up 12.9% from a year ago. Turning to new construction, housing starts dropped 8.5% in January after a 15.7% gain in December, but new home permits increased 1.8%. (1,2)
NO CHANGE IN CPI, BUT PRODUCER PRICES ADVANCE
The Consumer Price Index was flat for a second straight month in January, with annualized inflation at just 1.6%. Core CPI (minus food and energy prices) advanced 0.3%, however - the biggest monthly gain since May 2011. The Producer Price Index rose 0.2% in January, with overall yearly wholesale inflation at 1.4%. (3,4)
SEQUESTRATION SEEMS IMMINENT
On March 1, $85 billion in federal budget cuts are set to occur - and with Congress on recess last week, not much more than talk emerged about delaying them further. Friday, President Obama said he did not believe that the cuts were "inevitable" and commented that "this is not a smart way for us to reduce the deficit". At the end of last week, no bipartisan effort to reschedule them was underway. (5)
STOCKS STAGE FIRST WEEKLY RETREAT OF 2013
Pronounced volatility returned to Wall Street last week due to earnings surprises and the January Federal Reserve policy meeting minutes, which raised concerns over the longevity of QE3. How did the key indices do last week? The numbers: Dow, +0.13% to 14,000.57; S&P 500, -0.28% to 1,515.60; NASDAQ, -0.95% to 3,161.82. (6) |
| Market Summary |
|
% Change |
Y-T-D |
1Yr Chg |
5-Year Avg | |
DJIA |
+6.84 |
+8.21 |
+2.62 | |
NASDAQ |
+4.71 |
+7.80 |
+7.45 | |
S&P 500 |
+6.27 |
+11.63 |
+2.40 |
(Source: cnbc.com, usatoday.com, treasury.gov, treasurydirect.gov -02/22/13). 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:
1 - www.marketwatch.com/story/home-sales-inch-up-in-
january-as-inventory-shrinks-2013-02-21 [2/21/13]
2 - blogs.wsj.com/developments/2013/02/20/housing-starts-fall-but-economists-stay-positive/ [2/22/13]
3 - www.foxbusiness.com/economy/2013/02/21/consumer-
prices-flat-in-january/ [2/22/13]
4 - articles.marketwatch.com/2013-02-20/economy/37188507_1_wholesale-prices-vegetable-prices-higher-food-prices [2/22/13]
5 - abcnews.go.com/blogs/politics/2013/02/hope-springs-eternal-for-obama-on-budget-cuts/ [2/22/13]
6 - www.cnbc.com/id/100484753 [2/22/13]
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 |
"A friend is one who walks in when others walk out."
Walter Winchell
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Riddle of the Week
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What can explode slowly, with no smoke or flame?
Last week's riddle:
If a single-engine airplane taxied not onto a runway, but onto an enormous conveyer belt whose speed precisely equaled that of the plane in the opposite direction, could the plane still manage to take off?
Last week's answer:
Yes, eventually. A plane's wheels roll freely, and the thrust generated by the prop or jet engine will still be greater than drag and the lift created by air flowing over the wing will still be greater than the aircraft's weight. |
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