2017 A Year of Change Review of 2016 Looking to 2017 Strategies to Consider Questions amp answers All examples provided are hypothetical and meant for illustrative purposes only State income tax laws can be different from Federal income tax laws depending on your state Be ID: 697511
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Presented by:AdvisorName of Firm
2017
A Year of
ChangeSlide2
Review of 2016
Looking to 2017
Strategies to Consider
Questions & answers
All examples provided are hypothetical and meant for illustrative purposes only. State income tax laws can be different from Federal income tax laws depending on your state. Be sure to take this into account before making any decisions. Individual situations will vary so please consult a tax advisor to address your specific situation.
Tonight’s AgendaSlide3
Protection
Retirement PlanInvestments
Tax Planning
Estate Planning
Five Key Areas of Financial PlanningSlide4
2016 was a year of surprises.
The Dow Jones Industrial Average (DJIA) is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. Past performance may not be indicative of future results. It is not possible to invest directly in an index.Slide5
In 2015 Federal Reserve forecast four rate hikes. We only had one
In February 2016, analysts forecast potential mass oil company bankruptcies and US recession
Neither happened
United Kingdom was expected to remain in European Union
BREXIT
Polls predicted Hillary Clinton would easily win election
Donald Trump was elected President
2016 defied predictionsSlide6
Equity Markets Ended
2016 With Strong ResultsSlide7
%
Change
DJIA
+13.4%
S&P 500
+9.5%
NASDAQ
+7.5%
Indexes cannot be invested in directly, are unmanaged, and do not incur management fees, costs and expenses.
The Dow Jones Industrial Average (DJIA) is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The NASDAQ Composite Index is an unmanaged index of all stocks traded on the NASDAQ over-the-counter market. The S&P 500 is an unmanaged index of 500 widely held stocks.
Source: MorningstarSlide8Slide9
Compared against historical standards,
2016 was a better-than-average year for the DJIA.
Winners Included:
39.81%
42.04%
38.37
%
37.28
%
38.70
%
This material is for informational purposes only and is not a recommendation, offer or solicitation to buy or sell any specific security.Slide10
In contrary –
Many big companies had a rough year in 2016
Dow laggards included:
-0.82%
-3.49%
-18.7%
0.61%
1.38%Slide11
up
or
down?
In 2017, do you think the market will go: Slide12
2017 Outlook
1
Analysts are expecting low but positive returns.
2
Investors need to be watchful of potential interest rate increases.
3
Interest rates in foreign countries still unpredictable.Slide13
2017 Outlook
4
Global issues could potentially create challenges.
5
Changing political dynamic could cause uncertainty.
6
Investors could expect more VOLATILITY.Slide14
Modest Returns A
USA TODAY review of predictions from 15 Wall Street strategists concluded:
The group’s average year-end 2017 price target for the Standard & Poor’s 500 should produce a gain of approximately 4.5%.
Not one of the 15 strategists sees the stock market posting losses next year
. (Source: USA TODAY 12/27/2016)Slide15
Modest Returns
Source: www.cnbc.comSlide16Slide17
Interest RatesSlide18
Fixed Rates Are Low
Source: www.depositaccounts.comSlide19
Interest Rates
Negative rates in Europe and Japan -
Will central bank keep markets stable
as Fed tries to lift rates
OR
Will the markets erupt and force
the central bank to reduce rates
back down toward zero?Slide20
Global Issues
Potential global recession
China
Shift from export to consumption economy
Seeking stability
Europe
Change of power with election
Italy (Europe’s 3rd largest economy)
faces potential bank failuresSlide21
More Greece Financial troubles
Trade Agreement and Currency Issues
World unrest
Other Global Issues
to Watch in 2017 Include: Slide22
Changing Political LandscapeSlide23
The DJIA closed at NEW highs on January 24 at over 20,000
Slide24
CAUTION is WARRANTED
The title of a recent Forbes article sums
up the general consensus for 2017:Slide25
Safety is not guaranteedSlide26
Dow’s Latest 1K-Point Advance Ties Record
The Dow Jones Industrial Average (DJIA) traded and closed
above the 21,000 milestone on Wednesday March 1st
for the first time ever in what was one of the fastest
1,000-point advances in the blue-chip index’s history. Apple (AAPL), Goldman Sachs (GS), Boeing (BA),
3M (MMM), and Johnson & Johnson (JNJ)
helped carry the Dow to 21,000.
Those top five gainers accounted for
half of the Dow’s rally since January 25
th
when the index first closed above 20,000.
Source: www.foxbusiness.comSlide27Slide28
What Should YOU do in 2017?
Revisit your strategy.
Focus on your personal objectives.
Make sure you are comfortable with your investments.
Discuss any concerns with us.Slide29
29Investors need to prepare
for any environment!Slide30
Strategies for the Unforeseen
Consider diversification
Faster growth + inflation =
positive for equity exposure and real assets
Slower growth + political unrest =
positive for bonds and portfolio stability Slide31
Monitor Your Portfolio RegularlySlide32
Investment Timeline
5 year
10 year
15 year Slide33
Your Risk ToleranceSlide34
The Stock Market vs. Your Portfolio
An index, whether S&P 500 or the Dow Jones, isn’t a measure of your portfolio.
It’s what your portfolio is doing, not what “the market” is doing - that is important.
Your portfolio doesn’t always move in lock step with any single market or index.
Indexes cannot be invested in directly, are unmanaged and
do not incur management fees, costs and expenses. Slide35
Making smarter financial decisions can potentially lead to better outcomes!Slide36
Income tax reform to lower tax ratesPossible repeal of the estate tax in favor of taxing capital gains
Significant changes to “bring home” corporations overseas earnings
Tax Reform
What to Watch for in 2017Slide37
Political theme: Tax relief for middle class AmericansSimplify the tax code from 7 brackets to 3 brackets
10%, 25%, and 35%
Double the standard deduction
Lower corporate tax rate to 15% from 35%
Eliminate the marriage penalty, the NIIT & the AMT.
Eliminate the “death tax” in favor of recognizing capital gains at death for estates over $10,000,000.
Tax Reform
President Trump’s Tax Reform ProposalSlide38
Other Tax Strategies
Maximizing Retirement
Plan contributions
Tax loss or gains harvesting
Tax exempt solutions
Tax advantaged solutions
Roth IRA conversionsSlide39
What else can you do?
Analyze sources of income and cash flow requirements.
Review overall tax planning strategies.
Review emergency fund needs.
Fund retirement accounts early in year.Slide40
We review changes for our clients regularly!
40Slide41
What can you expect from us?
Constant communication
More frequent discussions
We are constantly reviewing
economic, tax, estate and
investment issues for our clientsSlide42
42We will maintain a non-emotional objective
We will avoid knee-jerk reactionsWe will assist you in making decisions that are always in your best interest! - and
WE WILL BE HERE FOR YOU!!!
42
Our Role As Your AdvisorSlide43
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44
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Thank You!Slide47Slide48
The views expressed are not necessarily the opinion of Insert Broker-dealer name. Information is based on sources believed to be reliable, however, their accuracy or completeness cannot be guaranteed.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.
This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice.
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