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Keep Calm & Gobble Gobble Tech, Tax, Football and Holiday Shopping

The Tech Sector Could Be Dominating Your Portfolio SAGE Private Wealth Group The biggest names in could be surprised by the heavy concentration Khaled A. Taha, AAMS ® technology powered stock of popular technology stocks if they eventually market gains and bouts of fall out of favor and prices fall. CEO & Managing Partner volatility in 2017, and the Wealth Advisor, RJFS Asset allocation and diversification are methods trend continued into 2018. used to help manage risk; they do not 18W140 Butterfield Rd The S&P Information guarantee a profit or protect against investment Suite 1160, Oakbrook Terrace, IL Technology sector index loss. 60181 posted a 13.19% total return from January Mind your sector exposure 630-933-0000 through July 2018, compared with 6.47% for [email protected] Over time, a core portfolio of diversified equity the broader S&P 500 index.1 funds can become overweighted in a sector www.SAGEprivatewealth.com Wall Street analysts and the business media that has been outperforming the broader often refer to well-known technology companies market. Some investors with large positions in Facebook, Apple, Amazon, Netflix, and Google technology stocks may not be aware of the We never stop growing and neither do our (now officially Alphabet) collectively with the concentration level in their portfolios. Others clients. At SAGE Private Wealth Group, we acronym FAANG. Others use FAAMG, which could be ignoring the risk, possibly because empower our clients to continue growing into substitutes Microsoft for Netflix. Apple, they are overly optimistic about the sector's the best versions of themselves. We help Microsoft, Amazon, and Facebook, future prospects. manage the resources. respectively, are the four most valuable Each business cycle is unique, which makes it "This frees our clients to pursue noble companies by market capitalization in the S&P difficult to predict which sectors stand to benefit intentions, leave this world a better place, 500 index; Alphabet is ranked eighth and ninth in the months ahead. Although there's little you enrich the lives of all they touch and serve as (based on two different share classes).2 a catalyst for the greater good while allowing can do about the returns delivered by the them to grow into the best version of These tech giants are household names financial markets, you can control the themselves and create a lasting legacy," says because they already play a huge role in composition of your portfolio. For this reason, CEO and Managing Partner, Khaled Taha. everyday life, but they are also bold innovators you may want to review the sector allocation "SAGE accomplishes this by actively listening with lots of cash on hand. They aim to expand and risk profile of your investment portfolio, if and understanding not only who you are , but their influence further by developing new you have not done so lately. who you aspire to be . We then take these products (such as self-driving cars and virtual All investments are subject to market goals and translate them into a concise plan reality) and disrupting established industries.3 fluctuation, risk, and loss of principal. Shares, that allows you to achieve the results of your when sold, may be worth more or less than dreams." The problem with popularity their original cost. Investments seeking to Most wealth managers create plans by Many benchmark indexes are weighted by achieve a higher return may involve greater looking at three factors in their clients' lives. market capitalization (the value of a company's risk. Sector funds tend to be more volatile than We develop your plan by examining FIVE outstanding shares), which gives larger the market in general and may carry additional different factors of your life. Learn more about companies an outsized role in index risks. the five areas by visiting our Resources page performance. The same large-cap tech stocks and reading "What Makes Us Unique to Our dominate the index mutual funds and Mutual funds and ETFs are sold by prospectus. Clients". exchange-traded funds (ETFs) that track these Please consider the investment objectives, indexes, and can also be found among the risks, charges, and expenses carefully before largest holdings of many actively managed investing. The prospectus, which contains this November 2018 funds. and other information about the investment Ten Year-End Tax Tips for 2018 company, can be obtained from your financial Spreading investments among the 11 different professional. Be sure to read the prospectus Infographic: Financial Lessons from Football sectors is a common way to diversify stock carefully before deciding whether to invest. How can I safely shop online this holiday holdings. However, investors holding a mix of season? different funds for the sake of diversification 1–2 S&P Dow Jones Indices, 2018 How can I protect my personal and financial 3 The Economist, June 2, 2018 information from credit fraud and identity theft?

Page 1 of 4 See disclaimer on final page Ten Year-End Tax Tips for 2018 Here are 10 things to consider as you weigh advantage in doing so is that withholding is potential tax moves between now and the end considered as having been paid evenly through of the year. the year instead of when the dollars are actually 1. Set aside time to plan taken from your paycheck. This strategy can also be used to make up for low or missing Effective planning requires that you have a quarterly estimated tax payments. With all the good understanding of your current tax recent tax changes, it may be especially situation, as well as a reasonable estimate of important to review your withholding in 2018. how your circumstances might change next year. There's a real opportunity for tax savings 6. Maximize retirement savings if you'll be paying taxes at a lower rate in one Deductible contributions to a traditional IRA and year than in the other. However, the window for pre-tax contributions to an employer-sponsored most tax-saving moves closes on December retirement plan such as a 401(k) can reduce 31, so don't procrastinate. your 2018 taxable income. If you haven't 2. Defer income to next year already contributed up to the maximum amount Timing of itemized allowed, consider doing so by year-end. Consider opportunities to defer income to 2019, deductions and the 7. Take any required distributions increased standard particularly if you think you may be in a lower deduction tax bracket then. For example, you may be able Once you reach age 70½, you generally must The Tax Cuts and Jobs Act, to defer a year-end bonus or delay the start taking required minimum distributions signed into law in December collection of business debts, rents, and (RMDs) from traditional IRAs and 2017, substantially increased payments for services. Doing so may enable employer-sponsored retirement plans (an the standard deduction you to postpone payment of tax on the income exception may apply if you're still working for amounts and made significant until next year. the employer sponsoring the plan). Take any changes to itemized 3. Accelerate deductions distributions by the date required — the end of deductions, generally starting the year for most individuals. The penalty for in 2018. (After 2025, these You might also look for opportunities to failing to do so is substantial: 50% of any provisions revert to pre-2018 accelerate deductions into the current tax year. law.) It may now be especially amount that you failed to distribute as required. If you itemize deductions, making payments for useful to bunch itemized 8. Weigh year-end investment moves deductions in certain years; for deductible expenses such as medical example, when they would expenses, qualifying interest, and state taxes You shouldn't let tax considerations drive your exceed the standard deduction. before the end of the year, instead of paying investment decisions. However, it's worth them in early 2019, could make a difference on considering the tax implications of any year-end your 2018 return. investment moves that you make. For example, IRA and retirement plan 4. Factor in the AMT if you have realized net capital gains from contributions selling securities at a profit, you might avoid For 2018, you can contribute If you're subject to the alternative minimum tax being taxed on some or all of those gains by up to $18,500 to a 401(k) plan (AMT), traditional year-end maneuvers such as selling losing positions. Any losses over and ($24,500 if you're age 50 or deferring income and accelerating deductions above the amount of your gains can be used to older) and up to $5,500 to a can have a negative effect. Essentially a offset up to $3,000 of ordinary income ($1,500 traditional or Roth IRA ($6,500 separate federal income tax system with its if you're age 50 or older). The if your filing status is married filing separately) window to make 2018 own rates and rules, the AMT effectively or carried forward to reduce your taxes in future contributions to an employer disallows a number of itemized deductions. For years. example, if you're subject to the AMT in 2018, plan generally closes at the 9. Beware the net investment income end of the year, while you prepaying 2019 state and local taxes probably typically have until the due date won't help your 2018 tax situation, but could tax of your federal income tax hurt your 2019 bottom line. Taking the time to Don't forget to account for the 3.8% net return (not including determine whether you may be subject to the investment income tax. This additional tax may extensions) to make 2018 IRA AMT before you make any year-end moves apply to some or all of your net investment contributions. could help save you from making a costly income if your modified adjusted gross income mistake. (AGI) exceeds $200,000 ($250,000 if married 5. Bump up withholding to cover a tax filing jointly, $125,000 if married filing shortfall separately, $200,000 if head of household). If it looks as though you're going to owe federal 10. Get help if you need it income tax for the year, especially if you think There's a lot to think about when it comes to tax you may be subject to an estimated tax penalty, planning. That's why it often makes sense to consider asking your employer (via Form W-4) talk to a tax professional who is able to to increase your withholding for the remainder evaluate your situation and help you determine of the year to cover the shortfall. The biggest if any year-end moves make sense for you.

Page 2 of 4, see disclaimer on final page Infographic: Financial Lessons from Football

Page 3 of 4, see disclaimer on final page SAGE Private Wealth How can I safely shop online this holiday season? Group Shopping online is especially for each account or website you use, and try to Khaled A. Taha, AAMS ® popular during the holiday change passwords frequently. To keep track of CEO & Managing Partner season, when many people all your password information, consider using prefer to avoid the crowds and password management software, which Wealth Advisor, RJFS purchase gifts with a few clicks generates strong, unique passwords that you 18W140 Butterfield Rd of a mouse. However, with this convenience control through a single master password. Suite 1160, Oakbrook Terrace, IL comes the danger of having your personal and Beware of scam websites. Typing one word 60181 financial information stolen by computer into a search engine to reach a particular 630-933-0000 hackers. retailer's website may be easy, but it sometimes [email protected] Before you click, you might consider the won't bring you to the site you are actually www.SAGEprivatewealth.com following tips for a safer online shopping looking for. Scam websites may contain URLs experience. that look like misspelled brand or store names to trick online shoppers. To help you determine This information, developed by an independent third Pay by credit instead of debit. Credit card party, has been obtained from sources considered to payments can be withheld if there is a dispute, whether an online retailer is reputable, research be reliable, but Raymond James does not guarantee but debit cards are typically debited quickly. In sites before you shop and read reviews from that the foregoing material is accurate or complete. previous customers. Look for https:// in the URL Any information is not a complete summary or addition, credit cards generally have better statement of all available data necessary for making protection than debit cards against fraudulent and not just http://, since the "s" indicates a an investment decision and does not constitute a secure connection. recommendation. The information contained in this charges. report does not purport to be a complete description Watch out for fake phishing and delivery of the securities, markets, or developments referred Maintain strong passwords. When you order to in this material. This information is not intended as through an online account, you should create a emails. Beware of emails that contain links or a solicitation or an offer to buy or sell any security ask for personal information. Legitimate referred to herein. Investments mentioned may not strong password. A strong password should be be suitable for all investors. The material is general in at least eight characters long, using a shopping websites will never email you and nature. Past performance may not be indicative of combination of lower-case letters, upper-case randomly ask for your personal information. In future results. Raymond James does not provide addition, be aware of fake emails disguised as advice on tax, legal or mortgage issues, these letters, numbers, and symbols or a random matters should be discussed with the appropriate phrase. Avoid dictionary words and personal package delivery emails. Make sure that all professional. Securities are offered through delivery emails are from reputable delivery Raymond James Financial Services, Inc., member information such as your name and address. FINRA/SIPC, an independent broker/dealer, and are Also create a separate and unique password companies you recognize. not insured by FDIC, NCUA or any other financial institution insurance, are not deposits or obligations of the financial institution, are not guaranteed by the financial institution, and are subject to risks, including How can I protect my personal and financial information the possible loss of principal.If you prefer not to receive this correspondence, please let us know via from credit fraud and identity theft? email. In today's digital world, apartment, you will need to "unlock" or "thaw" SAGE Private Wealth Group is not a registered massive computer hacks and the credit freeze with each credit reporting broker/dealer and is independent of Raymond James Financial Services, Inc., member FINRA / SIPC. data breaches are common agency. Securities offered through Raymond James Financial occurrences. And chances Services, Inc., member FINRA / SIPC. Investment A less drastic option is to place a fraud alert on Advisory Services offered through Raymond James are, your personal or financial information is your credit report. A fraud alert requires Financial Services Advisors, Inc. and SAGE Private now susceptible to being used for credit fraud Wealth Group. creditors to take extra steps to verify your or identity theft. If you discover that you are the identity before extending any existing credit or victim of either of these crimes, you should issuing new credit in your name. To request a consider placing a credit freeze or fraud alert on fraud alert, you only have to contact one of the your credit report to protect yourself. three major reporting agencies, and the A credit freeze prevents new credit and information will be passed along to the other accounts from being opened in your name. two. Once you obtain a credit freeze, creditors won't Recently, as part of the Economic Growth, be allowed to access your credit report and Regulatory Relief and Consumer Protection Act therefore cannot offer new credit. This helps of 2018, Congress made several changes to prevent identity thieves from applying for credit credit rules that benefit consumers. Under the or opening fraudulent accounts in your name. new law, consumers are now allowed to To place a credit freeze on your credit report, "freeze" and "unfreeze" their credit reports free you must contact each credit reporting agency of charge at all three of the major credit separately either by phone or by filling out an reporting bureaus, Equifax, Experian, and online form. Keep in mind that a credit freeze is TransUnion. In addition, the law extends initial permanent and stays on your credit report until fraud alert protection to one full year. you unfreeze it. This is important, because if Previously, fraud alerts expired after 90 days you want to apply for credit with a new financial unless they were renewed. institution in the future, open a new bank account, or even apply for a job or rent an