Broker Check
What a Year!

What a Year!

| January 14, 2018
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2017 Highlights include:

  1. Politics – Continued to produce major headlines.
  2. Tax Reform – Approved at the 11th hour, and provided last-minute tax planning for accountants everywhere.
  3. Double-digit market returns –In the face of significant uncertainty, double-digit returns in the global equity markets was not something that anyone was predicting.  This is why we pick a strategic asset allocation for your long-term money and stay the course; we never know what the market has in store for us in the short-term!
  4. Low volatility – 2017 was one of the top five lowest volatility markets in history.  We expect market moving shocks to increase in frequency.
  5. International stocks – While they did very well in 2017, they are still valued less than US stocks on their price to earnings ratios. 

2018 Highlights 

  1. Your tax brackets have changed. 

Rate

Individuals

Married Filing Joint

10%

Up to $9,525

Up to $19,050

12%

$9,526 - $38,700

$19,051 - $77,400

22%

$38,701 - $82,500

$77,401 - $165,000

24%

$82,501 - $157,500

$165,001 - $315,000

32%

$157,501 - $200,000

$315,001 - $400,000

35%

$200,001 - $500,000

$400,001 - $600,000

37%

Over $500,000

Over $600,000

  1. 401k contributions limits have changed, be sure to update your contributions if applicable! 
  • Under age 50 - $18,500
  • Over age 50 - $24,500 
  1. Health Savings Account (HSA) contribution limits have changed. 
  • Single - $3,450
  • Married $6,900
  • Those age 55 or greater can contribute an additional $1,000 as a “catch up” 
  1. Significantly increased Federal Estate Tax exemptions on assets for Estate Planning purposes. 
  1. The standard tax deduction has increased to $24,000 for a married couple and Alternative Minimum Tax (AMT) exemptions have been significantly expanded. 

While many signs point to a continued run in the equity markets, we would like you to brace for return of volatility.  Since 1980, we have seen the market retreat an average of about 14% at some point each calendar year.  That doesn’t mean it ends down 14%, as you can see in the chart below, the market is still positive in more than three out of every four years!

Please give us a call if you have any questions about the markets, your accounts or if you would like to talk about your specific situation.

Have a great 2018!

Your ISC team.

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