FootnotesF I N A N C I A L I D E A S F O R T O D A Y A N D T O M O R R O W

W I N T E R 2 0 1 9 HOGAN - HANSEN, P.C., CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS

Auditing and AccountingBusiness ManagementConsultingBusiness Strategies forTaxes and Succession PlanningBusiness ValuationsCafeteria Plan Design and AdministrationEmployee Benefit PlanServicesFinancial Planning Payroll Management QuickBooks Support Tax Preparation

A s your trusted advisor, a complete array of servicesthat integrates tax planning and investment planningto deliver a personal, guided experience for your

financial journey is available at Hogan - Hansen, P.C. We provide an independent, objective approach with your needs at the forefront.

GUIDANCE• Experienced advisors working in partnership with

your CPA• Knowledgeable and dedicated team to help

your advisor and CPA implement your plan• Ongoing account review to help you meet your

financial goals

PLANNING• Establish goals and objectives• Decide on appropriate asset allocation• Make investment selection• Rebalance accounts• Review and adjust contributions

STRATEGIES• Tax-sensitive investment planning integration

with your CPA• Holistic, independent and objective advice for your

entire financial plan• Investment oversight from a dedicated investment

advisory committee• Flexible portfolio design for your unique needs

WHY HOGAN - HANSEN AND HKFS?Hogan - Hansen partners with HKFS, a wealth man-

agement company in Dubuque, Iowa. HKFSworks seamlessly with us to offer you an all-

encompassing and guided approach to financial planning. HKFS is ranked as a top

50 Fastest Growing RIA1 and top 100 WealthManager2 in Forbes magazine.

If you are interested in learning how wecan help, please give us a call.

Lisa Wall is a partner and serves as Directorof Wealth ManagementServices for the firm.

Financial Planning and Wealth Management

1 Forbes magazine dated 11/20162 Forbes magazine dated 5/2016

Investment advisory services offered through HK Financial Services (HKFS), an Independent RegisteredInvestment Adviso r. Commission-based securitiesproducts are sold by ProEquities registered representatives and offered through ProEquities, Inc.,a Registered Broker-Dealer and Member FINRA and SIPC. HKFS, ProEquities and Hogan - Hansen are independent of each other. 8146093

FROM THE PEN OF A PARTNER

If you have children (or grandchil-dren) you have an opportunity to give them a jump-start on their

journey to becoming financially responsible adults. While teachingyour child about money and financesis easier when you start early, it'snever too late to impart your wisdom. Here are some age-relevantsuggestions to help develop a financially savvy young adult.

• Preschool - Start by using bills andcoins to teach them what the value ofeach is worth. Even if you don't get intothe exact values, explain that a quarter is worth more than a dime and a dollar is worth more than a quarter. From there,explain that buying things at the storecomes down to a choice based on how much money you have (you can't buy every toy you see!). Also, get them a piggy bank to start saving coins andsmall bills.

How to Raise a Financially Savvy Child

A ccording to Credit Karma, over $40 BILLION of unclaimedproperty is currently being held by state governments.That's a staggering amount of money - enough to buy half

of the National Football League franchises. Not included in thatfigure is property sitting with federal agencies and other organi-zations. So what exactly is unclaimed property and how do youfind out if you have any? Here is what you need to know:

There are two main types of unclaimed property: Money that is owed to you that you haven't claimed and forgotten fundswhich is money that has been sitting untouched in an accountfor an extended amount of time. Specific types of unclaimedproperty include back wages, life insurance, pensions, tax refunds, bank accounts, money orders, gift certificates and security deposits. For example, many states require banks toturn over funds from checking accounts that have been dormantfor over three years.

Tips for Managing Unclaimed Property1. Search state and federal databases. Unfortunately, thereis no master database to search for unclaimed property. There isa website called Missing Money (https://www.missingmoney.com)endorsed by the National Association of Unclaimed Property Administrators that can search most states at once, but eachstate maintains their own database. Be sure to check all states where you have been a resident. In Iowa, go tohttps://greatiowatreasurehunt.gov. More information is provided online by the U.S. Government to help track down additional types of unclaimed property(https://www.usa.gov/unclaimed-money).

2. Don't pay a company to search for you. Companies are will-ing to search for unclaimed property for you, but will charge a fee.

All unclaimed property data is public information, so anything asearch company can find, you can find as well. In most cases, it's best to conduct the search yourself.

3. Watch out for scams. Be wary of any notices alerting you to unclaimed property that can be yours for a fee. Often timesthese scams will ask you to send them money with the promiseof more money in return.

4. Take steps to avoid having your property become unclaimed. The best way to keep your property is to prevent it from becoming unclaimed in the first place. Some ways to dothis are to actively manage bank accounts, notify companieswhen you move, close old accounts and read all of your mail soyou don't miss a claim notice.

5. File your tax returns. Consider filing a tax return even if yourincome is below the requirements to file. Unclaimed refunds withthe IRS usually happen when a tax return isn't filed with one of twosituations: your employer withheld income tax from your wages oryou qualify for a refundable portion of the Earned Income TaxCredit. The only way to know for sure is by filing a tax return for theyear in question. If you have past tax returns to file, don't wait —overdue tax returns need to be filed within three years.

Any unclaimed property due to you is rightfully yours and shouldalready be in your pocket. Perform regular searches to ensurethat your funds aren't sitting in a government account.

It’s Your Money. Get it Back NOW!

IRS Announces2019 Mileage RatesMileage rates for travel are nowset for 2019. The standard busi-ness mileage rate increased by3.5 cents to 58 cents per mile.The medical and movingmileage rates also increased by 2 cents to 20 cents per mile.Charitable mileage rates remainunchanged at 14 cents per mile.

There are many factors that can causean unfavorable tax swing leaving you with a surprising tax bill in the

spring. Here are six warning signs thatyou might have some unexpected taxeswaiting for you.

1. You didn't update your W-4You may have noticed a change in yourtax withholdings earlier this year. Thesechanges are based on withholding tablesrolled out by the IRS to employers in earlyFebruary. Now, according to the U.S. Government Accountability Office, asmany as 30 million taxpayers may not

have adequate withholdings for 2018. If you have not already done so, reviewyour withholdings in light of the new taxlaws and update your W-4 for 2019.

2. You withdraw funds from an IRA beforeyou're 59½. Situations arise where youneed to dip into your retirement savingsto address an immediate need. When this happens, it might have major tax implications.

This includes:• The withdrawal may be subject to a 10%

early withdrawal penalty.• The funds withdrawn will be taxed at

your highest (marginal) tax rate.• The additional income may push you to

a higher tax bracket or bump you overtax-benefit phase-out thresholds.

3. You receive a large raise early in theyear. While the raise means more incomefor you, it also means more taxes due tothe IRS. Depending on how much more income, it might be taxed at a higher ratethan your income in previous years.

4. You have a second job. Making somemoney on the side is a great thing, butcan be a major tax problem if you don'tplan properly. In addition to being taxedas ordinary income, it might be subject

to self-employment tax of 15.3%! Plus, withholding rules start over for each job and do not account for any other income you receive.

5. Your child turns 17. One of the biggesttax benefits that come by having depend-ent children is the Child Tax Credit. In the year your child turns 17, they are no longer eligible for this potential $2,000credit. What's more, personal exemptionsare suspended for the next few years. So you may not only lose an exemptionfor this child, you now will not receive aChild Tax Credit.

6. Your standard or itemized deduction islower. While the standard deduction isnearly double to $12,000 ($24,000 for married filing jointly) for 2018, personalexemptions are suspended. In addition,many itemized deductions are either limited or eliminated! This can create avastly different amount of taxable incomeversus last year. While tax rates are generally lower, there will be more thanone surprised taxpayer that sees an expected tax refund turn into a tax bill.

So what can you do? If any of these situations apply to you, now is the time toforecast your income and deductions forthe year and estimate your tax liability. If your withholdings are falling short, you may want to update your paycheck allowances for a pay period or two ormake additional estimated tax payments.

Early Warning Signs of a Tax Problem

• Grade School - Consider starting an al-lowance and developing a simple spendingplan. Teach them how to read price tagsand do comparison-shopping. Open a sav-ings account to replace the piggy bank andteach them about interest and the impor-tance of regular saving. Have them partici-pate in family financial discussions aboutmajor purchases, vacations and other sim-ple money decisions.•Middle School - Start connecting workwith earning money. Start simple withbabysitting, mowing lawns or walkingdogs. Open a checking account and transi-tion the simple spending plan into abudget to save funds to make larger pur-chases. If you have not already done so, it

is a good time to introduce the importanceof donating money to church or charity.• High School - Explain the job applica-tion and interview process. Work withthem to get a part-time job to start build-ing work experience. Add additional ex-pense responsibility by transferring directresponsibility for things like gas, lunchesand expenses for going out with friends.Introduce investing by explaining stocks,mutual funds, CDs and IRAs. Talk about financial mistakes and how to deal withthem when they happen - try to use someof your real-life examples. If college is thegoal after high school, include them in thefinancial planning decisions.

• College – Teach them about borrowingmoney and all its future implications. Explain how credit cards can be a goodcompanion to a budget, but warn of thedangers of mismanagement or not paying the bill in full each month. Discussthe importance of their credit score andhow it affects future plans like buying ahouse. Talk about retirement savings andthe importance of building their retire-ment account.

Knowing about money - how to earn it,use it, invest it and share it - is a valuablelife skill. A financially savvy child will hopefully lead to a financially wise adult.

120 East State Street Algona, IA 505111601 Golden Aspen Drive, Suite 107Ames, IA 50010303 East Main Street Belmond, IA 504212750 First Avenue, NE, Suite 150Cedar Rapids, IA 52402605 East J Street, Suite 300Forest City, IA 50436200 North Adams AvenueMason City, IA 504013128 Brockway Road Waterloo, IA 50701

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NOTABLE QUOTES

This newsletter is issued quarterly to provide you with an informative summary of current business, financial and tax planning news and opportunities. Do not apply this general information to your specific situation without additional details and/or professional assistance.

Nick AarsenPrincipalJennifer Decker PrincipalSteve Duggan PrincipalDamian Hurmence PrincipalLaura Monaghan PrincipalDennis Muyskens PrincipalLisa Wall PrincipalKristi WickPrincipal

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PERMIT NO. 54

Kindness is like snow - It beautifies everything it covers.

- KAHLIL GIBRAN

The family is one of nature’s

masterpieces.- GEORGE SANTAYANA

If we had no winter, the springwould not be so pleasant.

- ANNE BRADSTREET

A snowflake is one of God’s most fragile creations, but look what they

can do when they stick together. - ANONYMOUS