Worley Erhart-Graves Financial Advisors

NEWSLETTERKNOWLEDGE IS YOUR POWER
FIRST QUARTER 2018

Upcoming Workshop: Market Briefing

Last year was one for the record books. Extremely low
stock market volatility and the Dow Jones Industrial Index
closing over 24,700 at year-end have given us reason to
celebrate, but investors have become leery of the current
bull market. If you fall in that camp, join us for our annual
Market Briefing.

We will look at the history of
investing, putting 2017 into
perspective, then we will turn our
focus to 2018 and beyond.

If you have a friend or relative who has lost sleep over
their investments, or wants a financial plan for their
future, feel free to bring them as a guest.

Refreshments will be served. There is no cost for this
event, but space is limited, so call today!

WORKSHOP DETAILS: WHEN: Wednesday, April 25, 6-7:30 p.m.

RSVP: By Wednesday, April 18, 2018 to WHERE: The Pyramids, Pyramid Three,
[email protected] or Lower Level, Conference Room A
by calling 317-872-5090 (3500 DePauw Blvd, Indianapolis, IN 46220)

COST: None, but space is limited.

Worley Erhart-Graves Financial Advisors is a Registered Investment Advisor. Registration as an investment advisor is not an endorsement of the firm by
securities regulators and does not mean the advisor has attained a particular level of skill or ability. All expressions of opinion reflect the judgment of
the authors as of the date of publication and should not be construed as personalized investment advice. Different types of investments involve varying
degrees of risk, and there can be no assurance that any investment will either be suitable or profitable for a client’s portfolio. Worley Erhart-Graves Financial
Advisors is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation.
Worley Erhart-Graves Financial Advisors, Inc., is affiliated with Smitson Erhart-Graves Tax Advisors, LLC, through common control and ownership. Smitson
Erhart-Graves Tax Advisors provides accounting and tax preparation services. If you require such services, we may recommend you use Smitson Erhart-
Graves Tax Advisors, although you are under no obligation to do so. Fees for financial planning and investment advisory services are separate and distinct
from the fees Smitson Erhart-Graves Tax Advisors charges for their services.

The best-laid plans of mice and men often go awry

Juli Erhart-Graves, CFP®

Every single month I manually backup my iPhone to my optimizer programs available to determine the exact age
computer (I know there are automatic backups, but this has you can get the absolute most money out of Social Security,
been my routine). Last weekend I did my monthly backup and there are even financial advisors that build their entire
then installed the phone’s most current update. The next day business around answering this question, the fact remains
I realized my entire calendar was wiped out! Needless to say, I that your plans go awry if you don’t accurately predict the
was panicked. My life is in that calendar! I immediately plugged date of your demise. If your life is cut short or you live longer
my phone in to restore it only to have the phone do another than predicted, another start date would have given you more
automatic backup, replacing the backup that had my calendar money.
with one that didn’t. I couldn’t believe it! I spent the next
five hours researching how to pull the backup file from my Of course, it’s important to consider the age at which you get
computer’s online backup, then restoring my phone from that. the biggest Social Security benefit, but ultimately, it’s a game of
chance. You have to make the best decision at the time given
For me, this ordeal brings to mind the question retirees face, all available information, then hope that your best-laid plans
“When should I start Social Security?” Although there are many don’t go awry.

Yes, you can! We want our reputation to earn your business
and our service to earn your referrals. Please pass
Bonnie Struck, CMFC® our name along if you know someone who needs help

taking control of their financial future.

Your young adult children are juggling rent, car payments, known as dollar-cost-averaging (the same dollar amount is
student loans, etc., and may think they cannot afford to automatically invested monthly). The custodian can assist
add savings to the list. When in fact, most custodians, in selecting the appropriate investment given your child’s
like Schwab and Fidelity, offer fund minimums as low as time goal (home or car purchase, or retirement). It does
$1 and allow automatic monthly or bi-monthly investing not have to be complicated to get started and it can fit
with just $25 (less than most monthly cell phone bills). into their budget. Educating your children on the need to
They can have automatic transfers from their bank to an save and encouraging them to participate in their financial
investment account and establish “auto-pilot” investing, future is the best gift you can give them as a parent.

KNOWLEDGE IS YOUR POWER

2018 Tax Highlights

Pam Smitson, CPA, CGMA, Financial Planner

Major tax reform typically occurs once every decade…or two. of the loan. Interest on home equity lines of credit can no
On December 22, 2017 the Tax Cuts and Jobs Act was ushered longer be deducted. However, current mortgage-holders
in. This tax legislation changes income tax rates, deductions, aren’t affected.
exemptions, credits, and business taxes. To sum it up, it is a
major tax reform, making it simple for some and not so simple • A new cap of $10,000 on the state and local tax
for others. Some highlights of the “over-one-thousand-page” deduction was set.
act include:
• It expanded the medical deduction for 2017 and 2018,
• Seven income tax brackets, with lower tax rates. allowing taxpayers to deduct medical expenses that are
Employees will see these lower tax rates reflected in their 7.5% or more of income, rather than 10% for those under
paycheck withholdings. age sixty-five.

• A standard deduction increase (almost doubling) to • Business owners, depending on the type of business
$24,000 for those filing Married Filing Joint and $12,000 for and Adjusted Gross Income level, may be able to take a
those filing Single. This change significantly increases the deduction on their net income.
number of taxpayers who will take the standard deduction.
• It retained the Alternative Minimum Tax, unfortunately,
• Elimination of the personal exemptions, which subtracted but it increased the exemption threshold and phase out, so
$4,150 from income for each person claimed. To make up fewer taxpayers will be affected.
for those with dependents, the Child Tax Credit increased
from $1,000 to $2,000, with a higher income level threshold I’ve heard many CPAs, including myself, say this is far from
before phasing out. In addition, it is partially refundable for simplified. My recommendation is to stay the course for
parents who do not earn enough to pay taxes. Still, some 2018 and don’t try to “play the system”. Do watch your
families with children will pay higher taxes. withholdings. If you have sources of income other than W2
wages, or earn a higher income, be leery of the extra dollars
• New limitations on mortgage interest to the first $750,000 coming home with you. This could set you up for a higher tax
bill in April 2019.

Is the stock market on fire?

Gail Gill, CFP®

We have some of the most amazing national parks that The stock market also has a natural lifecycle. It “corrects”
are home to the most beautiful forests in the world. The once in a while responding to the economy’s peaks and
Smoky Mountains, Yellowstone, and Yosemite are only troughs. We don’t know when the bull and bear markets
a few. As impressive as these forests are, they are not will begin and end, but we do know through history that
immune to Mother Nature’s fury. the market as a whole has risen since its beginnings in
1792.
Every so often nature takes its course and a fire ensues.
While most fires are started by humans, wildfires are a According to historical records, the average annual
natural part of a forest’s lifecycle. Some ecologists say a return for the S&P 500 since its inception in 1928 is
healthy forest is one that “burns” once in a while to create approximately 10%. Per Investopedia.
standing snags and fallen logs that some species rely
on. Though most people think wildfires are destructive, So, don’t be dismayed by the current volatility. As long as
ecologists disagree and find them necessary. you’re invested in the forest of stocks, and not just one
tree, you’ll do well in the long run.

STANDARD PRESORT
US POSTAGE
PAID

INDIANAPOLIS, IN
PERMIT NO. 937

3500 DePauw Blvd. | Suite 1035
Pyramid One, Third Floor
Indianapolis, IN 46268
317.872.5090 Phone
855.872.5090 Toll Free
317.872.5095 Fax
wefinancialadvisors.com

The greatest spectacle in dog walking
is on the horizon, and we hope you and
your pooch will join our Pet Pack.

For the eighth year, we are putting a team together to help
support the Humane Society of Indianapolis. You will walk the
Mutt Strut course, and enjoy a fun day outdoors with family
and fur friends. Remember, Worley Erhart-Graves will match
your donation and make a donation to Spay-Neuter Services of
Indiana (SNSI), up to $5,000 total!
We invite you to be part of our Pet Pack by walking with our
team or simply making a donation. Call Paige Adkins at
317-872-5090 or email her at [email protected]
to let her know you want to join our team. Please let us know if
you will be joining our team by April 6.

When: Saturday, April 28, 2018
Time: Meet at 11:45 a.m. to start walking at noon.
Where: Indianapolis Motor Speedway, 4790 W. 16th St.,

Indianapolis, IN 46222