Mattson Financial Services January 2018

Mattson Financial Services January 2018

F I N A N C I A L S E R V I C E S , L L C

616-514-3831

www.MattsonFinancial.com

January 2018

A Year of Tax Relief?

90 — and that includes taking the required minimum distributions starting at age 70 1/2. At age 90, you have a much higher RMD percentage and a much higher account value that will equate to a higher tax burden for the rest of your life. That’s why you now want to consider converting IRA money to Roth IRA even if it’s a little bit each year. As you look toward the year ahead, take this tax season to get your ducks in a row. Think about how your taxes might change for the next tax year and before you file in 2019 for the new tax plan. When you take the time to think about your future and take the time to strategize, you’ll put yourself in the best position possible. You’ll live a thought-out retirement, perhaps the retirement you’ve dreamed about, all while reducing your tax burden. –Gary Mattson

that could later be used for travel or similar expenses. How is this behavior different than how you might behave during a non-tax relief year? If you’re in a higher tax bracket, you may want to harvest losses. Sell securities that performed the worst. Carry tax losses forward. Another thing to consider is moving money from an IRA to a Roth IRA. If you do not have earned income, you cannot contribute to a Roth IRA. However, you can convert money from an IRA to a Roth at any age if you pay the appropriate tax. A Roth IRA will never be taxed for growth. This eliminates any future income tax and capital gains. As an added bonus, you can pass it on, tax-free, to family members when you’re gone. That’s one less thing they have to worry about in the years to come. As you look at your current situation, say your IRA or 401(k) does well. You do not take withdrawals. Later in life, that could be a huge tax burden to you. An IRA with $500,000 at age 60 may become an IRA with $1.1 million at age

As the Republicans and the president finalize their tax relief plan, a lot of folks across the country want to know what it will mean for them. As it stands, it’s a front-loaded plan, meaning you’ll see the biggest benefit — that is to say relief — over the next few years. Then, as time goes on, those benefits will be reduced. This gives you a chance to prepare for the future, at least in terms of taxes. January is a great month to analyze the previous tax year. As you prepare for the new year, use the opportunity to go over 2017 taxes to see where you stand. It can inform you of where you need to go in the years ahead, including the 2018 tax year, which will introduce the new tax landscape. For instance, if you expect significant capital gains, 2018 is the year you want to take advantage of the associated higher tax deductions. Harvest the items that made money. Reinvest or hold these assets for future consumable purposes. This is income

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Use filters to search for the type of class you want, from CrossFit to barre workouts. Once you’ve selected a class, you can secure a spot with the in-app reservation feature. There’s no need to fall behind in your Bodypump class. For ThoseWho Aren’t Morning People An app that lets you finish your morning workout in bed? Yes, please! Yoga Wake Up does exactly what the name suggests: It wakes you up with a short yoga or meditation routine. From“Reach and Root Wake Up” to “Spirit Wake Up,” you can select each morning routine’s intensity. Choose a wake up, set your wake up time, and let the gentle voice of your instructor clear away the morning’s inevitable grogginess. Forget breakfast in bed; you’ll feel so much better waking up this way.

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Bitcoin is in the news more than ever. Month after month, the value of the digital currency has done nothing but climb, and 2017 was its best year yet. The question is, is bitcoin worth the hype? Since its value began to climb last year, bitcoin gained the attention of just about everybody. It’s become something of an investment darling. But before you climb aboard the bitcoin express, you need to know what you’re getting into. relies on a form of cryptography to keep users’ transactions secure. On top of that, what many users find attractive about bitcoin is the lack of centralized regulation. There is no Federal Reserve or regulatory body overseeing the currency. Everything is completely decentralized, relying on a peer- to-peer system to function. If you’re not familiar with bitcoin, it’s a cryptocurrency. In other words, the currency Do all your early morning workout plans blast out of the jet engine when you travel? New time zones and ill- equipped hotel gyms may make you want to put off training. But now, with the internet just a tap away, there’s no excuse to miss a workout. Being away from home doesn’t mean you have to abandon your fitness goals. Check out these apps (most of them are available for free from iTunes or Google Play) and work out wherever your travels take you. For the Marathon Trainer If you forget your Fitbit and need to track your miles, Moves has your back. With automatic tracking capabilities and features that tell you how far you’ve walked, cycled, or run, this app will help you stick

THE QUESTION OF BITCOIN Is the Digital Currency Worth Your Time and Money?

paper puts it, “[Bitcoin’s] value is completely dependent on the confidence it inspires.”

There are many services online you can use to add bitcoin to your portfolio. You should do as much research as possible before taking the plunge. But beyond that, you need to be aware of the challenges that come with buying bitcoin. The biggest difficulty is volatility. The KBC Group, a Brussels-based bank and asset management firm, says the risk associated with bitcoin is too high. For one, as an investment, bitcoin does not generate interest, and when you cash out, you do have to pay capital gains. Returns come directly from its value at the time of sale and nothing more. As a recent KBC white

Bitcoin also comes with the challenge of security. Because bitcoin has the attention of so many people and its value keeps going up, >Page 1 Page 2 Page 3 Page 4

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