Tax Cuts & Jobs Act Bill Highlights

On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act (TCJA), HR1, into law. The complex nature and last-minute timing of the bill make year-end strategic decisions challenging to evaluate. Depending on your circumstances, you may want to consult with your accountant to ascertain if any tax-minimization strategies should be completed before December 31of this year. Below, we highlight some of the tax bill's major changes:
 

Tax Rates:

Four major changes to the individual tax code go into effect on Monday, January 1 and end on December 31, 2025 due to sunset provisions: Lower tax brackets, an expanded child tax credit, an increased exemption amount for the alternative minimum tax, and a doubled exemption for estate taxes.

The final version of the TCJA cuts the top tax rate to 37%. The proposed rate had been 38.5% rate in the Senate version of the bill or the 39.6% rate in the House version. While many of the bracket thresholds are adjusted, the TCJA preserves the seven tax brackets:

• 10% retained

• 15% lowered to 12%

• 25% lowered to 22%

• 28% lowered to 24%

• 33% lowered to 32%

• 35% retained

• 39.6% lowered to 37%

Cambridge Insight: To the extent that a standard deduction can be considered a "zero tax bracket," then it should be noted that a "zero tax bracket" under the TCJA can be as large or even larger when considering personal exemptions.

Individual and Family Incentives

• The standard deduction for tax filers moves from $6,350 for singles, $9,350 for heads of Household, and $12,700 for joint filers to $12,000, $18,000, and $24,000 respectively.
  

• The personal exemption (currently $4,050 per eligible exemption) is eliminated.
  

• The Affordable Care Act (ACA, also referred to as “Obamacare”) mandate is eliminated, and no penalty can be imposed on individuals who do not wish to enroll in a health insurance plan effective starting in 2019.

• The TCJA repeals the "kiddie tax" that applies parents' tax rates to the children's unearned income once income reaches a specific threshold. After December 31, 2017, the unearned income of children will be taxed at the trust and estate rates.

• The tuition waiver benefit is preserved by the final bill. The House Bill would have taxed tuition waivers as ordinary income.

Cambridge Insight: Most taxpayers will have no need to itemize with the doubling of standard deductions, simplifying their tax returns and making it easier to file.

Tax credits

• The $7,500 credit for the purchase of an electric car is gone, starting in January 2018.

• The child tax credit is doubled from $1,000 to $2,000 per eligible child. Additionally, the phase-out is increased from $110,000 to $400,000 of adjusted gross income for those who are married filing jointly.
  

Individual alternative minimum tax (AMT)

AMT is retained but with higher thresholds and phaseouts ensuring the wealthy pay some form of tax. Beginning in 2018, the exemption amounts are increased and the phaseout thresholds rise to $1 million for joint filers and $500,000 for all other taxpayers. These figures are indexed for inflation before the AMT reverts back to the current law in 2026.
 

Federal Estate, Gift, and GST Tax

The TCJA doubles the estate and gift tax exemption for decedents dying between January 1, 2018 and December 31, 2025. The increased, inflation- adjusted exemption amounts for 2018 are doubled to $11.2 million for single filers and $22.4 million for joint filers. After December 31, 2025, the exemption amounts would revert to the prior 5 million amounts plus inflation adjustments.
 

Itemized Deductions:

The TCJA make important changes to itemized deductions:

• Mortgage interest deductions are eliminated on home equity loans.

• Mortgage interest on home loans is limited to $750,000 for any home acquisition after December 15, 2017. The provision would expire in 2026.

• Medical expenses: The AGI threshold for deducting medical expenses is reduced from 10% to 7.5%.

• Charitable deductions: The AGI limit on cash contributions is increased from 50% to 60% from 2018 through 2025.

• The state and local tax deduction (SALT): Under the new law, taxpayers are limited to deducting a combined $10,000 in state, real estate, and sales taxes.

Cambridge Insight: Some homeowners will be able to pre-pay some or all of their 2018 real estate taxes if the local tax authority permits and one does not escrow payments with a mortgage. This is a thorny issue so reach out to your accountant or local tax authority for guidance.

Capital Gains:

There are slight changes to income thresholds for the 0%, 15%, and 20% rates beginning in 2018, and they do not match up with the TCJA tax rate brackets. Under previous tax law, the 0% rate was applied to the two lowest tax brackets, the 15% rate to the next four brackets and the 20% rate was applied to the highest tax bracket.

The TCJA retains the 3.8% Affordable Care Act tax on net investment income for certain high income earners with the same income thresholds.

The awful Senate draft bill “back door" capital gains hike on individual investors did not make it into the final bill. Taxpayers will continue to be able to select which shares of securities they sell or gift using the first in, first out (FIFO) rule from a pool of identical securities with different bases.
 

Business Income Tax:

One of the most significant changes under the TJCA is the tax treatment of businesses. U.S. corporate tax rates are now competitive with many other countries, and it’s expected to spur investment in equipment, buildings, and labor. 

• The TJCA permanently cuts the corporate tax rate from 35% to a flat rate of 21% after December 31, 2017.

• Pass-through entities are allowed a new deduction for the lesser of 20% for qualified pass-through income or 50% of W-2 wages paid with respect to the business income to bring the rate lower. The deduction is not affected whether the owner is active or passive. However, it can get tricky since the deduction is subject to new restrictions and limits.

• Certain service businesses are prohibited from benefiting from the lower rate. Disqualified service businesses are defined as: law, health, investment management, partnership interests, engineers, and architects to name a few.
  
  For a closer look at how the new rules will affect various pass-through entities, check out this piece by Forbes contributor, Kelly Phillips Erb.

The Bottom Line

Going forward in 2018, there are considerable areas of ambiguity in the TCJA that will create planning challenges for many tax filers (and additional revenue for large accounting and tax law firms). As with any sweeping legislation changes, possible amendments to rectify unintended consequences of the new law will evolve as practitioners become familiar with the TCJA.

You should strongly consider what year-end planning opportunities may be possible. Here are a few to contemplate:

• Consider potential changes in income and personal circumstances in light of potential tax law changes.

• Consider bunching itemized deductions.

• Accelerate or prepay deductions in 2017. Why? Higher tax rates this year = more valuable deductions plus potential complete loss of certain tax deductions in 2018.

• Prepay your 2018 property taxes (the new threshold is $10,000) if the local tax authority permits and you do not escrow payments with a mortgage.

• Pay down your home equity line or refinance your home mortgage.

• Consider AMT: Defer or accelerate income and bonuses to the extent possible.

If you would like to read the conference report here (downloads as a large pdf - 1097 pages).

Sources: The Tax Cut and Jobs Act of 2017, H.R.1, 115th Congress; Wall Street Journal Online; Bloomberg News; Forbes.com; CNBC News; The Heritage Foundation.org; Reuters News.

The information contained in this piece is intended for information only and should not be considered investment or tax advice. Please contact your financial adviser with questions about your specific needs and circumstances.

The information and opinions expressed herein are obtained from sources believed to be reliable, however their accuracy and completeness cannot be guaranteed. All data are driven from publicly available information and has not been independently verified by Cambridge Wealth Management, LLC. Opinions expressed are current as of the date of this publication and are subject to change. Certain statements contained within are forward-looking statements including, but not limited to, predictions or indications of future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties.

The Tax Cut Plan: What’s in it for you?

In Brief:

• The proposed Tax Cut and Jobs Act (TCJA), which is making its way through Congress, would be the first major tax reform in over 30 years.
  

• Under TCJA, corporate tax rates would move from 35% to 20%.
  

• Trump’s tax plan called for collapsing seven tax brackets to three. The proposed plan in the House has four tax brackets, and the Senate’s plan still has seven brackets.
  

• Standard deductions are doubled in the both plans, and itemized deductions are eliminated except for charitable and home mortgage interest on loans up to $500,000.
  

• The Affordable Care Act (ACA, also referred to as “Obamacare”) mandate would be eliminated, and no penalty would be imposed on individuals who do not wish to enroll in a health insurance plan.

The sweeping tax code rewrite that President Trump promised during his campaign has finally passed the Senate, and it’s headed for final reconciliation with the House version of the plan. As expected, Republican fiscal conservatives, except for Senator Corker, set aside their principles and gave Trump what he wanted: “massive tax reduction.” While the reduction in the business tax rate is substantial, marginal rates should have been reduced significantly in the Senate version of the plan.

Here is a list of some key provisions of the tax cut plan (TCJA) that, if enacted, will have the greatest impact on individual taxpayers:

Brackets & Rates For Married-Joint Filers:

Note: the Senate version of the plan does not reduce the number of tax brackets - a goal of the Congressional plan and President Trump.

Brackets for single files are one-half married taxpayers:

The standard deduction for joint filers moves to $24,000 for married taxpayers and $12,000 for individuals; the personal exemptions will be eliminated.

Capital Gains:

No change: 0,15, and 20% rates

The TCJA retains the 3.8% Affordable Care Act tax on net investment income.

The Senate bill “back door" capital gains hike on individual investors is awful and it should be eliminated. Mutual funds got a carve out and are exempt from first in, first out (FIFO) while individuals will be forced to sell their most highly appreciated assets using FIFO.

Alternative minimum tax (AMT) remains partially in place ensuring the wealthy pay some form of tax.
 

Deductions:

Itemized deductions are eliminated other than charitable and mortgage interest. Most taxpayers will have no need to itemize with the doubling of standard deductions, simplifying their tax returns and making it easier to file.

• There is an increase in the child tax credit. TCJA increases credit to $1,600 but only $1,000 is refundable. TCJA increases income levels at which Child Tax Credit phases out. Credits are complex and do not help simplify tax return filing.

• Property tax deductions are capped at $10,000 annually under both bills.

• Mortgage interest deductions are eliminated on home equity loans. Mortgage interest on home loans is eliminated at $500,000. According to the Home Depot CEO in a recent CNBC interview: “Only 5% of Americans have a mortgage greater than $500,000.”

• The state and local tax deduction (SALT) is eliminated completely in both proposals. This is a very thorny issue and still under intense discussion.
  

Business Income Tax:

As we stated in our January piece entitled, “Trump’s Tax Plan: The Simplified Facts": “Fundamental tax reform is needed to promote economic growth, job creation, and international competitiveness. Our corporate tax rate is 10 points higher than the global average."

U.S. corporate tax rates are now competitive with many other countries, and it’s expected to spur investment in equipment, buildings, and labor. The TJCA cuts the corporate tax rate from 35% to 20%. The corporate alternative minimum tax remains in place although Representative McCarthy of California is calling for a uniform corporate AMT. Technology companies, which benefit from research and development deductions, are hurt the most, hence the recent sell-off in the tech sector.

• Supporters of the Senate plan point out that corporate income is generally taxed twice — once at the company level and a second time when earnings are paid out to shareholders — so the proposal is fair.

• The TCJA will provide a deemed repatriation of corporate profits held offshore at a one-time tax rate of 10%.

• Enhanced expensing for manufacturers and Real Estate Investment Trusts: No surprise here — the new tax law favors Trump and his son-in-law’s business entities. In fact, commercial real estate may be the biggest winner under the proposed plan.

Our tax code will no longer penalize small business owners in America — the backbone of our economy and the real job creators.

• Pass-throughs in the House plan move from a top tax rate of 39.6% to 25%, while prohibiting anyone providing professional services (e.g., lawyers and accountants) from benefiting from the lower rate.

• The Senate plan allows for a 23% tax deduction. Under the Senate plan, the deduction begins to phase out for anyone in a service business except those with taxable incomes under $500,000. Above $600,000, there's no deduction at all.
  

Year-end tax planning:

It’s easy to feel overwhelmed when it comes to the subject of tax planning. While we don’t yet have a clear understanding of the details of the final bill, it's very likely that some combination of the above highlights from the TCJA Plan will become part of our tax law by Christmastime. Therefore, some traditional tax planning strategies may still apply. Here are a few to contemplate:

• Consider changes in income and personal circumstances in light of potential tax law changes.

• Accelerate or prepay deductions in 2017. Why? Higher tax rates this year = more valuable deductions plus potential complete loss of certain tax deductions in 2018.

• Prepay your 4th quarter 2017 state income taxes and 2018 property taxes (the new threshold is $10,000).

• Pay down your home equity line or refinance your home mortgage.

• Harvest tax losses to offset capital gains. Pay attention to the "wash sale" rule and wait 31 days to buy back the same security.

• Consider gifting a portion of your required minimum distribution (RMD) from your IRA direct to a charitable institution by December 31. Note: Charitable gifts to hurricane relief are deductible even for those who do not itemize.

• Delay retirement plan distributions and Roth IRA conversions.

• Consider AMT: Defer or accelerate income and bonuses.

The end goal of tax reform is to make our tax system as fair as possible for everyone and promote growth. While these bills are far from perfect, especially for individual taxpayers, the business tax cuts are expected to spur investment in equipment, buildings, and labor. And that's good for all of us.

We will keep you informed of material changes to our tax laws that may go into effect by Christmas.

Sources: The Wall Street Journal Online; Bloomberg News; Forbes.com; CNBC News; Business Insider; Reuters News.

The information contained in this piece is intended for information only and should not be considered investment advice. Please contact your financial adviser with questions about your specific needs and circumstances.

The information and opinions expressed herein are obtained from sources believed to be reliable, however their accuracy and completeness cannot be guaranteed. All data are driven from publicly available information and has not been independently verified by Cambridge Wealth Management, LLC. Opinions expressed are current as of the date of this publication and are subject to change. Certain statements contained within are forward-looking statements including, but not limited to, predictions or indications of future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties.

The Equifax Data Hack: To lock or Freeze your File?

Updated September 20, 2018

The recent revelation of a massive data breach at Equifax potentially affecting 143 million consumers brought back memories of my own 2001credit fraud experience in Boston; it was an unnerving and horrific experience. Upon hearing the news of this most recent breach, I immediately checked out the link at Equifax.com and learned that, unfortunately, my credit file was among those compromised.

In light of the shocking news of the Equifax data hack and having been a victim of ID theft in the past, I thought I would share some “do’s and don'ts" to help calm your concerns and provide clarity on the differences between a credit freeze, credit lock, and fraud alert.

Do this first: Go to the official link being provided by Equifax

www.equifaxsecurity2017.com.

Type this address into your browser yourself. Click on:
1. "Read" button, 
2. "Enroll" button, and,
3. "Begin Enrollment" button.

You will be prompted to type in your last name and the last six digits of your Social Security Number (SSN). The next screen will inform you if your personal information has been compromised. Even if Equifax says your file wasn't compromised, assume it was and take the necessary steps to protect yourself.

Equifax is offering free identity theft protection and credit file monitoring to all U.S. consumers for one year only. The offering is called "TrustedID Premier" and includes a lock (not freeze) on your credit file.

Credit Freeze, Credit Lock or Fraud Alert?

Equifax has revised its botched response to their data breach since last week and is now waiving the typical "freeze" fee if you act before November 21. Even if you miss the deadline, many states allow you to add or lift a freeze, (not “lock") for free as long as you're a victim of ID theft. Given Equifax’s numerous missteps since announcing the breach on September 7, waiving fees to freeze your credit file is the least management can do.

While a credit freeze and credit lock have similarities, the difference between the two is highlighted below:

• Credit freeze: Locks your credit file to creditors and should prevent bad people from taking out loans and opening credit card accounts in your name. A security freeze remains on your credit file until you remove it. While a freeze may be the best option to guard against fraud, it may involve fees to add or lift it from your account — the cost of which varies by state but generally costs between $5 - $10. credit-freeze-information-by-state. (*see footnote: New legislation allows consumers to lift or add a freeze without charge as of May 24, 2018).

  If you're applying for credit, you will also need to plan in advance and notify a credit bureau to lift your freeze. It takes about 3 days for your freeze to thaw. Equifax and Experian have a link in their footers to add a security freeze under the heading “Support.” Type this link in you browser to add a security freeze to your TransUnion credit file: https://www.transunion.com/credit-freeze.
  
  

• Credit lock: Locking your account prevents unauthorized credit activity and puts you in control with no waiting, no PIN to remember, and no additional paperwork. You can unlock your credit report at any time with ease. TransUnion makes it easy to find their credit report lock on their home page under a big, blue button. Type this link into your browser to compare Experian's offerings: https://www.experian.com/consumer-products/compare-to-lifelock.html
  
  

• Fraud alert: When placed on your credit file, an alert merely cautions creditors that your information may have been stolen. But many creditors don't even check this; it’s also temporary.

The breach at Equifax has led many experts to recommend that consumers lock their credit reports. The three credit bureaus may also encourage you to "lock" instead of “freeze” your credit file. Why? Because it's easier and credit freezes are regulated by law while locks aren't; no waiver terms or binding arbitration can be imposed on consumers who request a credit report freeze. Plus, if your credit file is frozen, the bureaus can’t sell your information to creditors and other companies for marketing purposes.

Do keep this in mind: The breach at Equifax is severe, and criminals will be able to use the information they've obtained five years from now and beyond — one year of protection being offered through Equifax's Trusted ID Premier is a start, but it isn't enough. Also, Equifax does not notify other national consumer credit reporting agencies of your request to lock or freeze your credit report. You will need to contact them separately to add a lock or freeze to your file.
 

Now for Some Don'ts

• Don’t click online ads or links you see in news stories related to the Equifax hack; always re-type a link into your browser. There are links being circulated by data theft rings. Beware of phishing and malicious links. Urgent-sounding, legitimate-looking emails are intended to tempt you to accidentally disclose personal information or install malware. Don’t open links or attachments from unknown sources. Enter the web address in your browser. The only links you should click on are on the Equifax.com, TransUnion.com, or Experian.com websites.
  

• Don’t provide information to companies that send you emails or call you on the phone. Fraudsters move quickly and never miss an opportunity to take advantage of a crisis like the historic Equifax data breach. They may try to fool you because they will know your Social Security number and other personal information. Remember, your bank, personal financial advisor, and credit card companies do not need to contact you to confirm personal information or ask you for money – they already have it.
  

• Don't worry about changing your investment, checking, or savings account numbers. These numbers are not in your credit files. It's also not necessary to cancel your credit card accounts. However, you still need to regularly monitor your bank and credit card accounts just in case thieves use your stolen information to impersonate you and gain access to your accounts.
  

• Don’t leave bill payment envelopes in your mailbox with the flag up for pick up. Promptly remove incoming mail to guard against theft. And, do not drop off bill payment envelopes in the big blue USPS mailboxes after pickup hours - fraudsters can monitor your patterns and “fish out” your mail with rodent glue traps.
  

• Don't believe that if you freeze or lock your account, you can now relax. The overwhelming majority of fraud involves existing accounts, not new ones.
  
  

More on best practices

Cybercrime and fraud are constant threats in today’s digital, age and vigilance is key. Since being a victim of credit fraud in 2001, I regularly monitor my personal and business credit card accounts, bank accounts, and credit report. I've set up alerts on my checking and credit card accounts, so anytime there's activity over a certain dollar amount, I'm notified.

I encourage you to follow the best practices highlighted in this post and apply caution when sharing information or executing transactions. It will make a big difference in protecting your financial information and give you peace of mind.

Visit these sites for more information and best practices:

• StaySafeOnline.org: Review the STOP. THINK. CONNECT™ cybersecurity educational campaign.

• OnGuardOnline.gov: Focused on online security for kids, it includes a blog on current cyber trends.

• FDIC Consumer Assistance & Information, https://www.fdic.gov/consumers/assistance/protection/idtheft.html
  
   

For a free copy of your annual credit report, only go to:

www.annualcreditreport.com

Call: 877-322-8228

Send a request via certified mail: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, Georgia 30348-5281.

Equifax dedicated call center: 866-447-7559, every day (including weekends) from 7:00 a.m. – 1:00 a.m. Eastern Time.

Footnote:

*On May 24, 2018, President Trump signed the Economic Growth, Regulatory Relief and Consumer Protection Act. The new legislation will allow consumers to “freeze” their credit files at the three major credit reporting bureaus — Equifax, Experian and TransUnion — without charge. Consumers can also lift a security freeze temporarily or permanently, without a fee.

Disclosure:
The information contained in this piece is intended for information only, and should not be considered financial planning advice. The information and opinions expressed herein are obtained from sources believed to be reliable, however their accuracy and completeness cannot be guaranteed. All data are driven from publicly available information and has not been independently verified by Cambridge Wealth Management, LLC. Opinions expressed are current as of the date of this publication and are subject to change. Certain statements contained within are forward-looking statements including, but not limited to, predictions or indications of future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties.

Should you convert to a Roth IRA?

In Brief:

Investors at any level of income can convert assets from a traditional IRA to a Roth IRA. This article explains the potential benefits and tax implications of a conversion.

There are several key differences between a traditional IRA and a Roth IRA that can impact your wallet. So, are there benefits to converting all or a portion of your traditional IRA assets into a Roth? The answer to this query likely depends on:

• The amount of time you plan to leave the assets invested,
• Your estate planning strategies, and
• Your willingness to pay the federal income tax bill that a conversion is likely to trigger.
   

Two Types of IRAs

Each type of IRA has its own specific rules and potential benefits. These differences are summarized in the table below.

Conversion: Potential Benefits ...

Potential benefits of converting from a traditional IRA to a Roth IRA include:

• A larger sum to bequeath to heirs. Since lifetime RMDs are not required for Roth IRAs, investors who do not need to take withdrawals may leave the money invested as long as they choose which may result in a larger balance for heirs.
   
• Additional planning consideration – estate taxes: State estate taxes do not provide an IRD deduction (income in respect of decedent). Therefore, estate tax savings must be balanced against future income tax rates for you and your heirs. In short, estate tax benefits are greater at the state level, and only relevant at the Federal level for IRA-centric estates. Note: After an account owner's death, beneficiaries must take required minimum distributions, although different rules apply to spouses and non spouses.
   
• Tax-free withdrawals. Even if retirees need withdrawals for living expenses, withdrawals are tax free for those who are age 59½ or older and who have had the money invested for five years or more.
   

... As Well as a Potential Drawback

• Taxes upon conversion. Investors who convert proceeds from a traditional IRA to a Roth IRA are required to pay income taxes at the time of conversion on investment earnings and any contributions that qualified for a tax deduction. If you have a nondeductible traditional IRA (i.e., your contributions did not qualify for a tax deduction because your income was not within the parameters established by the IRS), investment earnings will be taxed but the amount of your contributions will not.
   
• The conversion will not trigger the 10% additional tax for early withdrawals.
   

Which Is Right for You?

If you have a traditional IRA and are considering converting to a Roth IRA, here are a few factors to consider:

• A conversion may be more attractive the further you are from retirement. The longer your earnings can remain invested, the more time you have to help compensate for the associated tax bill. Pay the tax when your tax rate is anticipated to be the lowest.
   
• Tax equivalency principle: Your current and future tax brackets will affect which IRA is best for you. If you expect to be in a lower tax bracket during retirement, sticking with a traditional IRA could be the best option because your RMDs during retirement will be taxed at a correspondingly lower rate than amounts converted today. On the other hand, if you anticipate being in a higher tax bracket, the ability to take tax-free distributions from a Roth IRA could be an attractive benefit.

There is no easy answer to the question "Should I convert my traditional IRA assets to a Roth IRA?" As with any major financial decision, careful consultation with your financial advisor and accountant is a good idea before you make your choice.

Source/Disclaimer:

1. IRA account holders (both traditional and Roth) may avoid the 10% additional federal tax on withdrawals before age 59½ only if they meet specific criteria established by the IRS. See Publication 590-A for more information.

Because of the possibility of human or mechanical error by Wealth Management Systems Inc. or its sources, neither Wealth Management Systems Inc. nor its sources guarantees the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. In no event shall Wealth Management Systems Inc. be liable for any indirect, special or consequential damages in connection with subscriber's or others' use of the content. Cambridge Wealth Management rewrote parts of the introduction, closing paragraph, and added the section titled "Additional planning consideration – estate taxes," and the term "tax equivalency principle." © 2016 DST Systems, Inc. Reproduction in whole or in part prohibited, except by permission. All rights reserved. Not responsible for any errors or omissions.

Investors should carefully consider their own investment objectives and never rely on any single chart, graph or marketing piece to make decisions. The information contained in this piece is intended for information only, is not a recommendation and should not be considered investment advice. Please contact your financial adviser with questions about your specific needs and circumstances. All data are driven from publicly available information and has not been independently verified by Cambridge Wealth Management, LLC. Certain statements contained within are forward-looking statements including, but not limited to, predictions or indications of future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties.

Trump's Tax Plan: The Simplified Facts

“We have what it takes to take what you have.”

— Suggested IRS motto

In Brief:

• The current bullish case for a Trump presidency is that corporate tax cuts will unleash animal spirits and spur investment in equipment, buildings, and labor. Investors are drawing parallels with Reagan’s “trickle-down economics.”
   
• Trump wants to collapse 7 tax brackets to 3 brackets. The tax brackets are similar to those in the House GOP tax blueprint.
   
• Repeal of the death tax: Trump has stated that he wants to repeal the estate tax. It’s not clear whether he would also propose to repeal the gift and generation-skipping transfer tax.

The markets have experienced a euphoric rally and are currently betting that fiscal conservatives will set aside their principles and give Trump what he wants when it comes to tax cuts. The collision of hope and reality is likely to happen as soon as March, when the suspension of the ceiling on the federal debt ends. Republicans in Congress who used the debt ceiling as a weapon against Obama are unlikely to rollover.

President Trump’s vision, according to his website, is to “reduce taxes across-the-board, especially for working and middle-income Americans who will receive a massive tax reduction.”

Here is a list of the key provisions of the Trump tax plan that, if enacted, will have the greatest impact on individual taxpayers:

Brackets & Rates For Married-Joint Filers: 12, 25, 33%

Less than $75,000: 12%
More than $75,000 but less than $225,000: 25%
More than $225,000: 33%
*Brackets for single filers are one-half of these amounts
 

Capital Gains:

No change: 0,15, and 20% rates
The Trump plan will retain the existing capital gains rate structure (maximum rate of 20%). Carried interest will be taxed as ordinary income.

The 3.8% Affordable Care tax on net investment income will be repealed, as will the alternative minimum tax under Trump’s tax plan. The House Republicans’ plan proposes lowering the effective top tax rate applicable to capital gains, interest and dividends to 16.5%
 

Deductions:

Standard deduction for joint filers moves to $30,000 from $12,600; $15,000 from $7,500 for single filers. The personal exemptions will be eliminated

Itemized deductions capped at $200,000 for married-joint filers; $100,000 cap for single filers. Most taxpayers will have no need to itemize, simplifying their tax returns and making it easier to file. This limitation would impose a significant restriction on the use of the charitable deduction. The House Republicans’ proposal eliminates all itemized deductions other than the deduction for home mortgage interest and charitable gifts.
 

Business Income Tax:

Trump’s plan cuts the corporate tax rate from 35% to 15% and eliminates the corporate alternative minimum tax. This rate is available to all businesses, both small and large, that want to retain the profits within the business.

• It will provide a deemed repatriation of corporate profits held offshore at a one-time tax rate of 10%.
   
• Enhanced expensing for manufactures: Firms engaged in manufacturing in the US may elect to expense capital investment and lose the deductibility of corporate interest expense.
   
• Small businesses would also have the option of continuing to pay their taxes through the individual side of the code, as they do today, or elect to file their taxes as if they were incorporated, whichever is more advantageous for them. The House Republican’s current plan proposes the top rate applicable to the business income of individuals who earn this income directly or receive it from pass-through entities to 25%.

Our view is that Trump, the deal maker, will ask Congress to meet him half-way and split the difference between his plan's corporate tax rate of 15% and the current 35% tax rate. Subsequently, we think that the market, being a forward-looking discounting mechanism, has already priced in a 25% tax rate which equates to an 8 -10% increase in corporate America's 2017 earnings. Only time will tell if markets have become overly optimistic about anticipated tax cuts.

The Bottom Line:

Fundamental tax reform is needed to promote economic growth, job creation, and international competitiveness. Our corporate tax rates are 10 points higher than the global average. The business and investment income of individuals is now subject to a tax rate as high as 43.4% versus the corporate tax rate of 35%! Simply put, our tax code is unfair and penalizes the small business owners in America — the backbone of our economy. The Trump Tax Plan would lower that top tax rate to 33%.

While we don’t yet have yet have a clear understanding of the details of his proposals, it is very likely that some combination of the Trump Tax Plan and the House Republicans’ Plan will become part of our tax law sometime this year. We will keep you informed of material changes to our tax laws as we journey through the uncharted territory of a Trump Presidency.

Sources: Donald J. Trump.com, The Wall Street Journal Online; Bloomberg News; Forbes.com; CNBC News; Reuters News.

The information contained in this piece is intended for information only, is not a recommendation to buy or sell any securities, and should not be considered investment advice. Please contact your financial adviser with questions about your specific needs and circumstances.

The information and opinions expressed herein are obtained from sources believed to be reliable, however their accuracy and completeness cannot be guaranteed. All data are driven from publicly available information and has not been independently verified by Cambridge Wealth Management, LLC. Opinions expressed are current as of the date of this publication and are subject to change. Certain statements contained within are forward-looking statements including, but not limited to, predictions or indications of future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties.

Planning for Retirement - Explore what's possible

CWM's newly redesigned retirement section

“Happiness is when what you think, what you say, and what you do are in harmony.”

— Mahatma Ghandi

Achieving your dream of a secure, comfortable retirement takes proper planning and commitment. Today's retirees are faced with, among others, two key risks:

Investment risk: the possibility that an actual return on investment will be lower than your expected return.
Longevity risk: the probability that you will outlive your savings. We’re living longer, healthier lives and will spend more time in retirement than our parents did.

Our approach provides you with the guidance you need to add clarity to your financial future. Partnering with you and best-in-class experts, we bring together all the facets of your financial life, ensuring that the four cornerstones of a smart wealth management strategy — asset management, estate planning, retirement planning, and tax planning — are working in harmony so you can get the most out of your retirement life.
 

Some of the important retirement questions we can help you answer are:
 

Am I investing properly for a comfortable retirement?

Determining a proper asset allocation is critical and it should reflect the goals you are trying to attain as well as your tolerance for risk. With access to more than 12,000 investment options, the flexibility of an open architecture platform allows us to build an extraordinarily competitive investment portfolio for both growth and protection.
 

What will happen to my assets upon my death?

You want to create a lasting legacy for the people and causes that you care about. With smart, holistic planning, we can help ensure that your wealth passes as you want it to and a significant portion doesn't end up in the hands of unintended heirs or go to the government.
 

Will I have enough money to live my ideal retirement life?

Retirement planning has two phases: accumulation and actual retirement. During the accumulation phase, we help clients in setting goals and implementing financial strategies to achieve them. Our retired clients rely on our ongoing expert advice so they can continue to enjoy the lifestyle they’ve earned.

Social Security maximization strategies: There are many combinations of Social Security claiming strategies and rules on benefits are complex. We can help you avoid making a filing mistake that could end up costing you thousands of dollars annually for the rest of your retirement life.
 

 How can I minimize taxes on my retirement income?

Taxes can generally be one of your larger expenses in retirement. We help you take advantage of tax avoidance strategies by reviewing your tax returns and implementing smart, tax efficient strategies, such as placing higher-yielding taxable assets in tax-deferred IRA accounts.

The better we understand you, the better advice we can give
 

First, we'll have a conversation about your most important priorities, the values that inspire you, and uncover your vision for retirement. 

Next, we'll agree on the areas that you would like us to review. We'll gather your financial data, analyze your current position, and design your retirement plan.

Lastly, we will suggest strategic recommendations and provide guided implementation of your plan. With our ongoing monitoring, we're always there for you to adjust your strategy when your personal situation changes or the markets shift. Learn more >>

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Find Clarity with a Cambridge Wealth plan

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Retiree Healthcare: What will it cost you?

“I’ve been thinking about our healthcare problem and how to pay for healthcare….If we took all the money Republicans have spent trying to stop healthcare reform and all the money Democrats have spent trying to get healthcare reform, we all could afford healthcare.”

— Jay Leno

I first learned about the complexities and limitations of Medicare when I was 30 years of age due to a family tragedy. On September 22, 1994, my father was diagnosed with pancreatic cancer. He passed away a few months later on December 11, just prior to his 62nd birthday. I contacted our family financial advisor, a commission-based Certified Financial Planner (CFP®), and asked her what I should do regarding my mother’s healthcare insurance coverage. She replied:  “Just sign her up for a Medigap plan with Blue Cross of New York; your mother qualifies for Medicare under a widow’s benefit.”— that was it! 

When I became a CFP® in 2007, I discovered that my mother and I had received poor financial guidance after my father’s death. Needless to say, it upset me, and that’s why I’m writing today about this subject. I never want any of you to go through what I went through due to my lack of understanding of Medicare healthcare choices, poor advice, and blind trust. More on this subject in the coming months in a case study post devoted to Social Security and Medicare strategies (SSA link) for the surviving spouse. It can be very complicated, as I will illustrate, especially for grieving widows or widowers. In my mother’s case, like many women of her generation, she never wrote a check or selected her healthcare plan. Complicating matters further was the fact that my mother is Japanese, and English is her second language.
 

The Medicare Supplemental Plan Maze

In January 1995, I found the Medicare coverage options very confusing, and I had no idea what a Medigap plan would cost my mother. It took weeks of research in my spare time to find the answers I needed, and to get my mother appropriate coverage (at least what I thought was appropriate) -- a supplemental plan that overcame the limitations of Medicare.  

Now, 20 years later, even with great Internet resources, people are still confused about the coverage they need once they're eligible for Medicare. And the costs have skyrocketed -- I have seen my mother’s Medigap plan cost rise over 10% annually on average over the past 20 years. My mother is now nearly 82 and, thankfully, very healthy. I have modified her original Medigap plan over the past 20 years a few times in an effort to keep costs under control. Her current plan is Plan N (one of many letters used by Medicare to categorize Medigap plans). Her plan premiums just went up again in 2015 to $548.64 per quarter from $497.28, and in 2013, it was $429.83 quarterly --- that’s a 15% year-over-year increase!

Click here (www.medicare.gov) and type:  “A quick look at Medicare” in the search field, upper right [or scroll down] for a quick primer on Medicare coverage choices.
 

A Startling Statistic

According to a recent Nationwide Insurance survey, 4 out of 5 people approaching retirement said they could not estimate how much they expect to pay for healthcare in retirement.1 That’s not a surprise; insurance coverage options remain maddeningly complex, and costs have been rising at more than twice the rate of inflation, averaging 6.9% annually since 1960.2  Adding to retiree anxiety are ongoing changes to our national healthcare coverage -- the Affordable Care Act. 

So how much will healthcare really cost you in retirement?  Here's a rough idea:
Fidelity’s annual Retiree Health Care Costs Estimate suggests that a 65-year-old couple retiring in 2014 would need $220,000 in total to pay for medical expenses throughout their retirement.  (This is assuming the husband lives to 82 and the wife lives to 85.)  If a husband and wife live to 92 and 94, respectively, the cost estimate grows to $335,000.3 This estimate does not account for the cost of a long-term care facility.

That quarter-million figure is an essential part of the calculus when you're setting up your retirement plan, and it’s often overlooked. However, it's just an average estimate and this figure will vary depending on your health. For a look at Medicare costs-at-a-glance, click here.

Fortunately, there are three concrete steps you can take to ease your mind and your retirement budget. These steps are:

1.  Discovery

Understand your health-related needs based on your history and current health. Research insurance plans that fit your needs.
 

2.  Planning

Take the information from your discovery work and develop a written plan that factors healthcare costs into your retirement income planning.
 

3.  Implementation

Be a smart healthcare consumer. It's vitally important to get informed, and above all, stay proactive about choosing your healthcare providers.

1. Discovery:  Understand your health insurance options

If current trends continue, in just a few years, healthcare will likely be your second largest expense in retirement, more than food.  

Medicare is a key part of the equation because it's typically the primary source of health coverage for retirees. However, Medicare only covers about half of your healthcare costs. That means that it's up to you to be able to fund the other half. But before you can assess how to do that, it's important to understand what I like to call the A, B, C, and Ds of Medicare.
 

Medicare Part A – Hospital Insurance
Helps pay for inpatient hospital care, limited coverage in a skilled nursing facility, and full coverage for eligible home health care and hospice care.

This is the original, basic Medicare coverage, first introduced in 1965. Most people automatically qualify for Hospital Insurance, also known as Medicare Part A, as soon as they reach age 65. It's important to note that the 1983 Social Security Amendments included provisions to raise the full retirement age (FRA) beginning with people born after 1938. If your were born between 1943 - 1954, your FRA is 66. And for those who were born after 1960, FRA moves to age 67. 

Since you paid into it through Medicare taxes during your working years, it doesn’t cost you anything.

There is a brief window—three months before you turn 65, the month you turn 65, and three months after you turn 65, for a total of seven months—to enroll in Medicare. This is referred to as the Initial Enrollment Period. 
 

Medicare Part B – Medical Insurance
Helps pay for  physicians' services, outpatient hospital services, durable
medical equipment, and other services like physical therapy.

Medicare Part B is a different story. It’s not free. You pay a monthly premium for it that's based on your Modified Adjusted Gross Income (MAGI), and your Social Security income is reduced by your Part B premium.
 

2015 Medicare Part B premiums based on income

Your Annual Income                                                             2015 Premium

Individual Tax Return             Joint Tax Return                          You Pay

$85,000 or less                           $170,000 or less                             $104.90

$85,001 up to $107,000           $170,001 up to $214,000              $146.90

$107,001 up to $160,000         $214,001 up to $320,000              $209.80

$160,001 up to $214,000         $320,001 up to $428,000             $272.70

Over $214,000                            Over $428,000                               $335.70
 

Part B Late Enrollment Penalty (clickable)
If you miss this window, your Medicare medical insurance (Part B) and prescription drug coverage (Part D) may cost you more as you can incur penalties. Simply put, if you do not sign up for Part B when first eligible, "your monthly premium for Part B may go up 10% for each full 12-month period that you could have had Part B, but didn't sign up for it," states the Medicare Part B enrollment rules.

While the late enrollment penalty can be very costly for you, a gap in coverage can be financially devastating since there’s no limit on out-of-pocket expenses. This is where private insurance comes into play. Remember, Medicare only covers about half of your healthcare costs.

There are two routes to adding health insurance to basic Medicare:

• Unbundled - Medigap plans or,

• Bundled - Medicare Advantage plans

Medigap policies may be the best choice for people who want to keep their original Medicare Part A & B but want more choice in providers. As the term suggests, Medigap policies fill in coverage gaps. You can choose any doctor or facility you like, but there is a higher premium for this privilege. Because they are unbundled, Medigap policies do not cover prescription drug coverage. You still will need to purchase prescription drug coverage, Medicare Part D, with a Medigap plan.
 

Medicare Part C – Medicare Advantage plans

Medicare Advantage Plans, also known as Managed Care Plans, are bundled plans. They are designed for people who want an “all-in-one” plan that's similar to an HMO. To enroll in a Part C plan, you need to already have Part A & Part B coverage in place. These plans often include prescription drug plans (Medicare Part D).

Medicare Advantage plans are popular with seniors and were introduced in 2003 as part of the Medicare Modernization Act of 2003; enrollees now represent about 30% of all Medicare beneficiaries.  

Medicare Part D – Prescription Drug Plans

While Part C bundled plans commonly offer prescription drug coverage, insurers sell Part D plans separately to those who have Medigap plans or original Medicare. As per Medigap and Part C coverage, you need to keep paying Part B premiums in addition to the premiums for the prescription drug plan you choose in order to keep Part D coverage.

There are many private insurance options available. Although it can be time- consuming to select supplemental coverage, it can make a big difference in your $$ outlay. The good news is that the government’s Medicare site, www.medicare.gov, provides tools that make objective and straightforward coverage comparisons. Once you’re in the Medicare site, select “Find health & drug plans.” The site is user-friendly and can help you compare plans in your state that offer the best value for your unique health-related needs.

It’s important to ask the tough questions to insurers, as well, on how you can keep costs down.  

More advice can come from your county's State Health Insurance Assistance Program (SHIP) office at no cost to you. Find your closest one by visiting www.eldercare.gov and typing in your zip code. I was very impressed with the help I received from the Rensselaer County SHIP office when I shopped for new Part D drug plans for my mother in November 2012.
 

2. Retirement Income Planning: Factor in your healthcare costs

Once you have an idea on the cost of a supplemental plan that best suits your needs, you can model in healthcare spending along with your other retirement expenses. This is an important step often overlooked by financial professionals.

Make sure you factor the appropriate costs and inflation rates into your retirement plan. Healthcare spending is expected to grow at 5.8% annually through 2022.4  Inflation rates for healthcare coverage also vary based on your health. For example, someone with type 2 diabetes could have an inflation rate of 10% annually vs. the 5.8% average. So it’s possible to get a fairly accurate present value of your future healthcare costs.
 

3. Implementation: Be a smart healthcare consumer

We research cars, electronics, vacation resorts, and countless other retail items prior to purchase, but for some strange reason, we don't conduct the same due diligence for our healthcare needs. It's vitally important to get informed, and above all, stay proactive about choosing your healthcare providers. There's a huge disparity in prices, which means smart decisions can save you a lot of money. 

If you identify the best providers for safe and cost-effective solutions before care is needed, you can save a significant amount of time and money later. Start with knowing the types of providers to turn to in different situations:

•    Primary care physicians
•    A specialist for any existing conditions or special needs
•    An urgent care provider
•    A full-service hospital

Take the case of someone who breaks his arm. An emergency room visit could run $2,000 or more, while an urgent care facility might cost $250-500 for the very same care.  

This brings up another point, especially when you travel during retirement, whether on vacation or to visit friends and family. If you have a Medicare Advantage Part C plan, it doesn’t travel with you, since you're restricted to using in-network providers.

There is some progress being made to partner with out-of-state/out-of-network providers. But for now, if you get sick or injured when you're away from home, you'll have to pay out-of-pocket for the full tab unless you purchase a travel policy.

Bottom line: Do your research before you go on vacation, because it can get very expensive quickly if you don't.   

Wherever you are, if you do fall ill, don't hesitate to ask questions about treatment options, because they will have wildly varying costs. If you're facing surgery, for example, investigate whether an outpatient procedure could be a safe, effective, and lower-cost alternative to traditional in-patient surgery. An additional note: carry a copy of your healthcare proxy in your car's glove box or upload it to a secure file in the cloud.

Remember that if you’re paying a larger portion of costs yourself with a high-deductible plan, these decisions have an immediate effect on your healthcare budget. 

Also very important: Know what the charges, fees, and out-of-pocket costs you should expect for the recommended treatment plan before you authorize treatment. Healthcare facilities are "for profit" institutions and you shouldn’t be surprised by the cost of your care when you receive your healthcare bill!

Prescriptions also can cost thousands of dollars a year. Don’t assume you’re getting the best price with your plan’s distributor. Costs can vary, and there usually are lower-cost generic brands.  (The www.medicare.gov website can help you in this area of comparison.)5  Also know that healthcare costs can vary widely based on geographical region. That may be an important factor in deciding where to retire. Regional costs comparisons can be found on the Centers for Medicare and Medicaid Services website.6

As stated earlier, if current trends continue, healthcare will likely be your second largest expense in retirement. Therefore, covering healthcare expenses is an essential part of retirement income planning. As life expectancies continue to increase, the money set aside for healthcare costs will have to last longer. In a recent Fidelity survey, 9 in 10 people approaching retirement said they were worried about outliving their savings due to the effect of inflation and the cost of medical care.7  By taking the time now to plan for your retirement healthcare expenses, you'll likely have the confidence and peace of mind to manage healthcare costs in retirement.
 

For more information on resources or an analysis of your healthcare budget based on your personal health needs, please contact our office at info@cwllc.com or 518.677.3781.

Footnotes:

1.  Nationwide Survey “Health Care Costs in Retirement.” Consumer study of 801 respondents, 2013.

2.  Centers for Medicare & Medicaid Services, National Health Expenditures; Aggregate and Per Capita Amounts, Selected Calendar Years, 1960 -2011.

3.  Fidelity Investments, “How to tame retiree health costs," May 2013.

4.  “National Health Expenditure Projections, 2012-22: Slow Growth Until Coverage Expands And Economy Improves.” Health Affairs, September 2013.

5.  The Patient Protection and Affordable Care Act requires pharmaceutical companies to offer a 50% discount on brand-name drugs that fall into the so-call “donut hole.”

6.  Centers for Medicare & Medicaid Services: Total All Payers Per Capita State Estimates by State of Residence 2013, and State Health Expenditure Accounts by Residence Location Highlights, http://www.cms.gov. Percentages were calculated by Fidelity.

7.  Fidelity Advisor 2013 Survey of Investors at Retirement, July 2013. Conducted by Research Now on behalf of Fidelity Investments, this survey included 1,886 investors between the ages of 50 and 75 with investable assets of $100,000 or more.  Fidelity Investments was not identified as the survey’s sponsor.

Pre-retirement Anxiety

“Cultivate your intuition to improve your decision making.”

— Herbie Hancock

On February 23, I had a second meeting with a couple nearing retirement. One spouse, whom I will call Sarah, is retiring the end of April.

It was another brutally cold February evening. We were finally meeting again after two major snowstorms had postponed our second meeting.

We began our initial meeting on December 29 by talking about Sarah’s retirement concerns.

 #1 CONCERN:  You may have guessed it already…Sarah is retiring at age 62 and will not have a steady paycheck for the first time in many years. She's concerned about being able to maintain her standard of living. The uncertainty is creating anxiety and keeping Sarah up at night lately.

GOAL:  Create a steady income at 70-80% of her current net salary.
Sarah and her husband agreed to a financial planning engagement after our initial meeting that included an analysis of their budget, liabilities, Sarah’s retirement income plan, and their investment portfolio. Her husband, whom I will call Bob, is retiring in 2017 at age 64. Bob has a six-figure income, and when he retires, he will earn about 75% of his final pay. Bob is one of the few retirees today who has a guaranteed pension that includes health care coverage. Besides a few small student loans from their son and daughter’s education, they only have $35,000 remaining on their mortgage. 

So, you might be asking, what’s the issue? Change of any kind is unsettling, and retirement is a significant life transition. Sarah has a case of pre-retirement anxiety. It’s well founded in reality as she’s unsure about:
•    Which pension option out of five choices to take — she has small defined benefit plan
•    ESOP options
•   401k options — where, how, and if to roll over the balance
•   Social Security — Sarah filed for Social Security in November to have some form of an income
•   Student loans from her son and daughter’s college education are still being paid — Sarah is concerned about meeting their cash-flow needs

SOLUTION:  At the core of Sarah’s anxiety, like many pre-retirees, is fear…the fear of making the wrong decisions with all the above options and not having a steady paycheck. And like many couples, Sarah and Bob have been too busy with life to address Sarah’s retirement planning needs. Fear, as we know, stems from a lack of knowledge, confidence, and trust. Sarah and Bob have worked with a few advisors over the years. However, their advisors were not Certified Financial Planners nor interested in completing a formal “cash flow-based” financial plan. Note: Many advisors use “goals-based” planning software - it’s takes less time and expertise.

I analyzed their budget and learned that $700 of their $1,200 monthly student loan payment would be paid off in two months. The remaining student loan balance at an 8% APR is only $8,000. After analyzing their current investment portfolio, I suggested rebalancing in line with Sarah's current risk profile and retirement income goal. Next, I suggested selling a Rochester NY municipal bond holding (a great time to sell as it holds Puerto Rico bonds) to pay off the remaining student loan balance, solving an immediate retirement cash-flow concern. Further, the muni bond sale will generate minimal capital gains. We addressed all of the above bullet points and created five actionable steps for Sarah's pre-retirement meeting with her company HR department.

I also suggested consolidating existing IRA's and other investment accounts with Cambridge to implement Sarah's immediate retirement income plan. Sarah and Bob agreed with my recommendations — they have accounts in many different places.

I will be setting up a monthly electronic funds transfer (EFT) into Sarah's bank account from an existing annuity and one of her smaller IRAs (another tax-advantaged strategy). Sarah's perceived need to generate 70% of her income is no longer necessary as $1,200 of debt payments will be paid off over the next 60 days. Once the EFT plan and her defined benefit plan payment are implemented, Sarah can suspend her Social Security and wait until age 64 to file for her benefit.

At the end of our meeting, Sarah smiled and looked as if a huge burden had just been lifted from her life. She said, “I've been worrying about my retirement income — I should be able to sleep much better now.” I had helped Sarah cure her pre-retirement anxiety by defining a clear, practical retirement income strategy.

Please stop by again. Ill share with you the solution I designed for Sarah and Bob’s Social Security strategy…it will surprise many of you!

Welcome...

“I have just three things to teach: simplicity, patience, compassion. These three are your greatest treasures.”

— Lao Tzu

Thank you for taking the time to visit our site today. We will always begin a post with a favorite quote. This week's quote embodies some of the core values of Cambridge's business model.  

In the future, we will be posting financial life management case studies and tips. We will also share our market thoughts and strategy under our "Insights" tab. As time goes on, we will build out an interactive resource center at this location.

We promise that the content presented will be relevant, devoid of industry jargon, and educational. It's our goal that we can encourage, educate, and thereby empower you to take action in your financial life with our posts.

We welcome your feedback and look forward to helping you prosper by creating harmony in your financial life.

It's good to have you here and please stop by again.