You may want to consider adding a trusted contact to your account. A trusted contact is simply someone disconnected from your accounts that you believe will act in your best interests in special circumstances. This person could include a family member, a close friend, or legal counsel. Locate this agreement form on Wealthport place #25 to designate a Trusted Contact or on the Client Financial Suitability Form.  This option authorizes us, but does not require us to reach out to your trusted contact if exceptional circumstances arise, such as:

·        Questions about your well-being or health are immediately raised

·        Potential financial exploitation has been recognized

·        We cannot reach you

Here are some important things to know regarding your decision to set up a trusted contact:

·        The trusted contact for a single client may DIFFER for two separate account types.

·        A trusted contact IS NOT authorized to contact the advisor or Cambridge to transact business or obtain private information related to the client without legal (e.g. POA)

·        A trusted contact will be used primarily as a RESOURCE in cases of financial exploitation. It is highly recommended that the person NOT be someone already authorized on the client’s account, such as a joint owner. The purpose of a trusted contact is to permit Cambridge to notify someone that is not already a party to the information in case they suspect financial exploitation.

·        Cambridge needs the following information on a trusted contact: name, address, relationship, and phone number.

If you would like more information regarding the Trusted Contact process, please reach out to your advisory team.

Dear friends,

One of Dave’s favorite historical fun facts is that John Adams and Thomas Jefferson died on the same day, July 4 th , 1926 – exactly 50 years after the signing of the Declaration of Independence. These two great Presidents and Founding Fathers shared a common goal of American independence but differed vastly on the role government would play in maintaining that independence once secured. Despite these differences in approach, they were able to provide an impressive model to all citizens to follow on how to work together to accomplish mutual goals for the greater good of our country. It seems appropriate that they would leave this earth on the same day.

Likewise, Darrell and Dave share a commitment stated in our DFS mission “to help our clients experience freedom in their financial lives and then impact those whom they care about the most.”

Nevertheless, we undoubtedly approach this goal differently not only because we have different personalities but because each client plan should be tailored to each client’s unique situation.

As we gather to celebrate the 4th, let us remember and never take for granted the freedom our country continues to afford each of us. Let us look at the wonderful example of Adams and Jefferson’s partnership as our guide in approaching issues and problems of the day; that is to commit ourselves to their ideals of grace, compromise, respect, and trust serving to unite us rather than pull us apart.

Happy Independence Day everyone!!!

Darrell & Dave

When you change jobs, the following four options for your 401(k) or other retirement plans (like 403b or SIMPLE plans) are available to you:

1. Leave It with Your Former Employer

If you have a substantial amount saved and like your plan’s investment options, then leaving
your 401(k) with a previous employer may be a good idea. If you leave your 401(k) with your old employer, you will no longer be allowed to make contributions to the plan. Also, you will have to withhold a mandatory 20% for taxes from any distributions you take from the plan.

2. Roll It Over to Your New Employer

If your new employer offers a 401(k), when you are eligible to participate, and allows rollovers then this might be your best option especially if you are several years from retirement.

Consolidating old 401(k) accounts into a current employer’s 401(k) program makes sense if your current employer’s 401(k) is well-structured and cost-effective.

3. Roll It Over Into an IRA

If your new employer doesn’t offer a retirement plan or if the new plan is not to your liking, this is a good option. One of advantages of this option is the freedom to invest how you want, where you want, and in what you want as there are few limits on an IRA rollover. Another advantage of this option is that your investment continues to be tax deferred and you can decide what you want to withhold for tax from distributions.

4. Cash It Out

Liquidating an old 401(k) and taking a lump-sum or partial distribution is the final option but this reduces your retirement savings unnecessarily, and on top of that, you will be taxed on the entire amount. If you have a large sum in an old account, then the tax burden of a full withdrawal may not be worth the windfall. Plus, you probably will be subject to the 10% early withdrawal penalty if you are under age 55.

The weather is starting to warm up so it’s time to get outside and start exploring! Here are some local activities scheduled for this summer. Check out their websites/Facebook pages for more details.

• Music, Wine & Craft Beer Festival at Mackinaw Valley Vineyard & Winery

• Baby Animal Days at Rader Family Farms

• Glorious Garden Festival at David Davis Mansion

• Wine Down Wednesday at Hoffman House in Fairbury

• Castle Home & Garden Tour in Lexington

• Bloomington Farmers Market

• Medici Country BBQ & Music

• Sunday Funday at Vrooman Mansion with Gill Streat Eatz Food Truck

• PK Unkorked Wine Shop & Tasting Room in Pontiac for live music
  
  

Currently, the federal estate tax exemption for an individual is $11,580,000 and $23,160,000 for married couples. While this federal exemption will increase with inflation until 2025 if Congress does not renew this bill, the estate tax exemption limit will fall to around $3,500,000 per individual. The following are three simple steps you might consider now to reduce or avoid the federal estate taxes.

1. Gift Assets While you are Alive either to a family member or charity

Minimize your estate tax liability by gifting or transferring some of your assets while you are still alive. You can also donate any amount to charity and receive tax breaks for these contributions. You are permitted to gift up to $15,000 per donor and per recipient tax-free each year.

2. Buy Life Insurance Now and Use the Benefit to Pay the Tax

The earlier you purchase this insurance, the better as you can secure a death benefit amount to cover the majority of any estate taxes you may have to pay. Though this estate planning strategy does not help you avoid estate taxes, it makes paying the tax easier for your family.

3. Set up a Donor Advised Fund

A Donor Advised Fund is a great estate planning tool as any assets you put in this trust are not counted towards your total estate value. This account allows your investments to grow tax-free as they are set aside for a charity. However, unlike a normal trust, you remain in control of the money in this account until you decide you want to donate it.