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2017 Financial TipsAre you financially prepared for 2017? Our financial experts are here to help!

Kelly SaVaTSKi, Senior PorTfolio Manager

Start the financial planning process today, whether that’s planning for retirement, long-term health care, insurance or college savings. Studies have shown that many Americans are falling short when it comes to taking steps to improve their finances. As a result, people feel deflated and think, “Why start now?” However, any decisions made today that follow a plan are better than decisions left unmade. Contact the Prairie Financial Group professionals who specialize in the financial planning process and start improving your financial picture.

Terry Doyle, Senior DirecTor of fiDuciary SaleS

Make sure your estate plan is up-to-date, even if you will not have an estate large enough to be subject to estate tax. If your will is more than 10-years-old, take time to review it, and have an attorney make whatever changes are needed. Keep in mind that Prairie Financial Group can be a personal representative to settle your estate, providing professional expertise and unbiased assistance to make sure your wishes are carried out.

Though the new administration is proposing the elimination of the federal estate tax, such a change is far from certain. Therefore, there is a need to plan based on current law. So, for those who potentially have larger estates (such as owners of successful closely-held businesses):

• In 2017, there is a $5,490,000 federal estate tax exemption (increased from $5,450,000 in 2016) and a 40% top federal estate tax rate.

• In 2017, there is a $5,490,000 GST tax exemption (increased from $5,450,000 in 2016) and a 40% top federal GST tax rate.

• In 2017, the lifetime gift exemption is $5,490,000 (increased from $5,450,000 in 2016) and a 40% top federal gift tax rate.

• In 2017, the annual gift tax exclusion remains $14,000 (no change from 2016).

These increased exemptions create opportunities to make slightly larger lifetime gifts, leverage more assets through a variety of estate planning techniques (such as a sale to a grantor trust) and to shift income producing assets to individuals, such as children or grandchildren, who may be in lower income tax brackets and/or reside in states with a low income tax rate or no state income tax.

Consider increasing your retirement plan contribution percentage. If you received a 2% raise, you could increase your contribution by 1% and still have a higher net check this year. Also, be sure you are at least contributing the minimum amount to get the full match from your employer (if they offer it). Remember, if you retire at 65, you’ll need enough money to live for 20-30 years (or more!). Like many financial experts, we recommend saving 10%-20% of your income to maintain your standard of living in retirement.

liSa PerSohn, VP - Manager of accounTing anD BuSineSS oPeraTionS

56% of Americans have made financial resolutions for 2017, including saving more, spending less and paying down debt, according to a LearnVest 2016 Money Habits & Confessions Survey.

While keeping resolutions can be difficult for everyone, these tips can help:

1. It is easier to stay motivated when you are not doing it alone. 74% of survey respondents said they would be more likely to stick with a financial resolution if they talked about it with others - one great benefit of a financial planning professional!

2. Focus on incremental progress. You wouldn’t train for a marathon by running the full distance on day one, so break apart your financial goal into manageable benchmarks and celebrate your victories as you reach each one.

3. Sometimes you might need a fresh set of eyes or ideas when you don’t seem to be reaching your goals. You might need a professional to take a look at what you could be doing differently.

4. Think about your financial past and what worked and didn’t work. Is there anything you can learn that can help you tackle your current goals?

5. Keep your goals in sight. Write them down and refer to them on a regular basis.

6. Expect roadblocks and some level of change. You might be stuck in a pattern and change is not easy, but if you give yourself realistic expectations of bumps along the way, it will make them easier to handle and bounce back from.

anneTTe Klare, VP - reTireMenT SerViceS relaTionShiP Manager

Bernie fieDler, WealTh ManageMenT conSulTanT

1. Figure out and control where your money is being spent. Utilize a simple, inexpensive online program like www.youneedabudget.com, and for about $50 per year you can find out where your money is being spent.

2. Protect yourself with one of the best and least expensive methods to stop identity theft. Freeze your credit (and your spouse’s) with the three credit reporting agencies. Information to accomplish this is online and cost is minimal. Once your credit is frozen, nobody can obtain additional credit in your name because only you have the code to unfreeze your credit. It’s very simple and effective in today’s world of information breaches.

3. This is just for parents of a child about to turn 18 or 18 and older. Yes, they can be on your health insurance. No, you cannot get any information on their health care or make decisions for them if they’re in an accident and can’t speak for themselves. You need to have your child execute a Health Care Power of Attorney with you being named to receive information and make decisions if they can’t. Many parents send their children to college without addressing this and then find they are helpless when a medical emergency occurs.

Brian cayon, VP - Manager of inVeSTMenT SerViceS

Review your risk tolerance - time goes by quickly and as an investor, it’s easy to become complacent, especially when the stock market is rising. A bull market, that stretches a number of years, could turn your once balanced investment portfolio to one with a clear growth bias and you’re now that much closer to retirement. Periodic re-balancing can help avoid this type of portfolio “drift” and is even more useful when performed in conjunction with a review of your overall investment risk and return objectives. If you are close to reaching your goal, have had a major life change, or there has been a significant change to your net worth or income, it may be time to revisit your tolerance for risk and perhaps consider enlisting the help of a fiduciary.

Pay it Forward - if you plan on making a significant gift to charity this year, consider giving appreciated stocks or mutual fund shares that you’ve owned for more than one year. Doing so boosts the savings on your tax return as your charitable deduction is the fair-market value of the securities on the date of the gift, not the amount you paid for the asset. What’s more, you never have to pay tax on the profit.

This commentary was written and prepared by Prairie Financial Group, a division of Waukesha State Bank. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.