Darrell Financial Services,LLCEmily Darrell Mascio, CFPMark J. Darrell, CFP2200 Baltimore BoulevardFinksburg, MD 21048410-857-7610888-795-8954mark@darrellfinancial.com

January - February 2019Key Retirement and Tax Numbers for 2019

Reviewing Your Estate Plan

How can I protect my personal andfinancial information from credit fraud andidentity theft?

Cartoon: Happy New Year

Money Matters NewsletterA Solid Foundation For Your Financial Future

Investing in Yourself for a Change

See disclaimer on final page

Hi Everyone,

We hope you had a wonderful holidaydespite the market volatility weexperienced during the 3rd quarter of2018. Consider making a resolution thisyear to clarify what is important to youabout your financial future. Having aplan, and sticking to it, is essential duringtimes of economic and marketuncertainty.

Save the date : Annual Darrell FinancialShred Event: Saturday, April 13th.8:30am - 11am

If any of the following articles sparkquestions or concerns, give us a call. Westand ready to serve. Also, pleaseconsider forwarding this newsletter toany of your friends and family who mightbe interested in our services. We wouldcertainly welcome the introduction!

Until next time, take care.

Mark Darrell, CFP

Emily Darrell Mascio, CFP

Retirement. College. Anemergency fund. A newhome or home improvementproject. Check, check,check, and check. If you'vebeen saving faithfully eachmonth for some or all ofthese things, you might feel

that you're on a never-ending financialtreadmill. It takes discipline, perseverance, andsacrifice to maintain a robust savings effortmonth after month, all while meeting yourday-to-day financial obligations.

But with such planning and focus, it's possibleto get into a rut of always saving for the futurewith nothing left for today. If so, it might be timeto take a step back and focus on the present. Ifyou can't remember the last time you feltenergized or inspired in your daily life, considerinvesting in a new asset: yourself. Focusing onyourself from time to time might just give youthe extra motivation you need to stick with yourlong-term savings plan. Think of it as seeing thetrees instead of the forest for a change.

If you find yourself with a small windfall from atax refund, bonus, flexible spending accountreimbursement, or simply a cut in discretionaryspending, here are some ideas for spending it.

Focus on your health and well-beingAre you feeling sluggish or stressed out?Having trouble sleeping? Watching the poundscreep on little by little each year? It might betime to focus on your health and well-being.Staying active is critical to maintaining goodphysical and mental health. Regular exercisecan help control your weight; prevent disease;improve your mood, sleep, and energy levels;and generally make it easier for you to tackle allthe things — financial and otherwise — on yourplate each day.

To get on the health track, you could join agym; work with a personal trainer or nutritionist;or sign up for a yoga, weight, or other fitnessclass. Or start on your own personal fitnesspath by purchasing home exercise equipmentand workout gear for training trips around theblock or a 5K.

Sore muscles? Chronic backache? Neck painfrom working at a computer all day? Maybe it'stime to see a physical therapist and invest in anergonomic office chair, a stand-up desk, or anew bed and pillows.

What about your diet? Do your eating habitsneed improvement? Consider investing in somenew kitchen equipment/appliances, cookbooks,a food delivery service, or even a cooking classso you can try new recipes and discoverhealthy dishes you enjoy.

Along with better physical health, maybe youcould benefit from some inner peace and quiet,too. Consider creating a meditation spot insideor outside your home where you can go to relaxand reflect on your day: a bench under afavorite tree, a new chair next to the fireplace,or a small desk near a window.

Expand your horizons, literally andfigurativelyDo you feel as though you're living the sameday over and over again? Doing somethingoutside your normal routine can shake out thecobwebs and give you fresh inspiration and anew perspective. Possibilities include taking atrip to a new destination, participating in a shortvolunteer vacation, enrolling in an adulteducation class, or getting involved in a newproject or hobby and seeing how much fun acreative outlet can be. You don't have to limityourself to one!

Get up-to-dateStill sporting clothes, eyeglasses, or a hairstylefrom your younger days? Carrying a wornbriefcase or bag to work every day? Trying toaccomplish tasks on an old laptop? Maybe it'stime to update your wardrobe and accessories.

When you have many financial obligations, it'seasy to put yourself last. But occasionally, it'simportant to put yourself first. In addition to theimmediate benefits, investing in your health andinterests might pay off in the future in the formof lower health-care costs, a wider socialnetwork of friends, fulfilling hobbies, and a newperspective on life.

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Key Retirement and Tax Numbers for 2019Every year, the Internal Revenue Serviceannounces cost-of-living adjustments that affectcontribution limits for retirement plans andvarious tax deduction, exclusion, exemption,and threshold amounts. Here are a few of thekey adjustments for 2019.

Employer retirement plans• Employees who participate in 401(k), 403(b),

and most 457 plans can defer up to $19,000in compensation in 2019 (up from $18,500 in2018); employees age 50 and older can deferup to an additional $6,000 in 2019 (the sameas in 2018).

• Employees participating in a SIMPLEretirement plan can defer up to $13,000 in2019 (up from $12,500 in 2018), andemployees age 50 and older can defer up toan additional $3,000 in 2019 (the same as in2018).

IRAsThe combined annual limit on contributions totraditional and Roth IRAs increased to $6,000in 2019 (up from $5,500 in 2018), withindividuals age 50 and older able to contributean additional $1,000. For individuals who arecovered by a workplace retirement plan, thededuction for contributions to a traditional IRAis phased out for the following modifiedadjusted gross income (AGI) ranges:

2018 2019

Single/headof household(HOH)

$63,000 -$73,000

$64,000 -$74,000

Married filingjointly (MFJ)

$101,000 -$121,000

$103,000 -$123,000

Married filingseparately(MFS)

$0 - $10,000 $0 - $10,000

Note: The 2019 phaseout range is $193,000 -$203,000 (up from $189,000 - $199,000 in2018) when the individual making the IRAcontribution is not covered by a workplaceretirement plan but is filing jointly with a spousewho is covered.

The modified AGI phaseout ranges forindividuals to make contributions to a Roth IRAare:

2018 2019

Single/HOH $120,000 -$135,000

$122,000 -$137,000

MFJ $189,000 -$199,000

$193,000 -$203,000

MFS $0 - $10,000 $0 - $10,000

Estate and gift tax• The annual gift tax exclusion for 2019 is

$15,000, the same as in 2018.• The gift and estate tax basic exclusion

amount for 2019 is $11,400,000, up from$11,180,000 in 2018.

Kiddie taxUnder the kiddie tax rules, unearned incomeabove $2,200 in 2019 (up from $2,100 in 2018)is taxed using the trust and estate income taxbrackets. The kiddie tax rules apply to: (1)those under age 18, (2) those age 18 whoseearned income doesn't exceed one-half of theirsupport, and (3) those ages 19 to 23 who arefull-time students and whose earned incomedoesn't exceed one-half of their support.

Standard deduction

2018 2019

Single $12,000 $12,200

HOH $18,000 $18,350

MFJ $24,000 $24,400

MFS $12,000 $12,200

Note: The additional standard deductionamount for the blind or aged (age 65 or older)in 2019 is $1,650 (up from $1,600 in 2018) forsingle/HOH or $1,300 (the same as in 2018) forall other filing statuses. Special rules apply ifyou can be claimed as a dependent by anothertaxpayer.

Alternative minimum tax (AMT)

2018 2019

Maximum AMT exemption amount

Single/HOH $70,300 $71,700

MFJ $109,400 $111,700

MFS $54,700 $55,850

Exemption phaseout threshold

Single/HOH $500,000 $510,300

MFJ $1,000,000 $1,020,600

MFS $500,000 $510,300

26% rate on AMTI* up to this amount, 28%rate on AMTI above this amount

MFS $95,550 $97,400

All others $191,100 $194,800

*Alternative minimum taxable income

Page 2 of 4, see disclaimer on final page

Reviewing Your Estate PlanAn estate plan is a map that explains how youwant your personal and financial affairs to behandled in the event of your incapacity ordeath. Due to its importance and becausecircumstances change over time, you shouldperiodically review your estate plan and updateit as needed.

When should you review your estateplan?Reviewing your estate plan will alert you to anychanges that need to be addressed. Forexample, you may need to make changes toyour plan to ensure it meets all of your goals, orwhen an executor, trustee, or guardian can nolonger serve in that capacity. Although there'sno hard-and-fast rule about when you shouldreview your estate plan, you'll probably want todo a quick review each year, because changesin the economy and in the tax code often occuron a yearly basis. Every five years, do a morethorough review.

You should also review your estate planimmediately after a major life event or changein your circumstances. Events that shouldtrigger a review include:

• There has been a change in your maritalstatus (many states have laws that revokepart or all of your will if you marry or getdivorced) or that of your children orgrandchildren.

• There has been an addition to your familythrough birth, adoption, or marriage(stepchildren).

• Your spouse or a family member has died,has become ill, or is incapacitated.

• Your spouse, your parents, or another familymember has become dependent on you.

• There has been a substantial change in thevalue of your assets or in your plans for theiruse.

• You have received a sizable inheritance orgift.

• Your income level or requirements havechanged.

• You are retiring.• You have made (or are considering making) a

change to any part of your estate plan.

Some things to reviewHere are some things to consider while doing aperiodic review of your estate plan:

• Who are your family members and friends?What is your relationship with them? Whatare their circumstances in life? Do any havespecial needs?

• Do you have a valid will? Does it reflect yourcurrent goals and objectives about whoreceives what after you die? Is your choice ofan executor or a guardian for your minorchildren still appropriate?

• In the event you become incapacitated, doyou have a living will, durable power ofattorney for health care, or Do NotResuscitate order to manage medicaldecisions?

• In the event you become incapacitated, doyou have a living trust or durable power ofattorney to manage your property?

• What property do you own and how is it titled(e.g., outright or jointly with right ofsurvivorship)? Property owned jointly withright of survivorship passes automatically tothe surviving owner(s) at your death.

• Have you reviewed your beneficiarydesignations for your retirement plans and lifeinsurance policies? These types of propertypass automatically to the designatedbeneficiaries at your death.

• Do you have any trusts, living ortestamentary? Property held in trust passesto beneficiaries according to the terms of thetrust. There are up-front costs and oftenongoing expenses associated with thecreation and maintenance of trusts.

• Do you plan to make any lifetime gifts tofamily members or friends?

• Do you have any plans for charitable gifts orbequests?

• If you own or co-own a business, haveprovisions been made to transfer yourbusiness interest? Is there a buy-sellagreement with adequate funding? Wouldlifetime gifts be appropriate?

• Do you own sufficient life insurance to meetyour needs at death? Have those needs beenevaluated?

• Have you considered the impact of gift,estate, generation-skipping, and incometaxes, both federal and state?

This is just a brief overview of some ideas for aperiodic review of your estate plan. Eachperson's situation is unique. An estate planningattorney may be able to assist you with thisprocess.

An estate plan should bereviewed periodically,especially after a major lifeevent. Here are some ideasabout when to review yourestate plan and some thingsto review when you do.

Page 3 of 4, see disclaimer on final page

Darrell FinancialServices, LLCEmily Darrell Mascio, CFPMark J. Darrell, CFP2200 Baltimore BoulevardFinksburg, MD 21048410-857-7610888-795-8954mark@darrellfinancial.com

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2018

Securities offered throughFounders Financial Securities LLC

Member FINRA/SIPC andRegistered Investment Advisor

How can I protect my personal and financial informationfrom credit fraud and identity theft?In today's digital world,massive computer hacks anddata breaches are commonoccurrences. And chances

are, your personal or financial information isnow susceptible to being used for credit fraudor identity theft. If you discover that you are thevictim of either of these crimes, you shouldconsider placing a credit freeze or fraud alert onyour credit report to protect yourself.

A credit freeze prevents new credit andaccounts from being opened in your name.Once you obtain a credit freeze, creditors won'tbe allowed to access your credit report andtherefore cannot offer new credit. This helpsprevent identity thieves from applying for creditor opening fraudulent accounts in your name.

To place a credit freeze on your credit report,you must contact each credit reporting agencyseparately either by phone or by filling out anonline form. Keep in mind that a credit freeze ispermanent and stays on your credit report untilyou unfreeze it. This is important, because ifyou want to apply for credit with a new financialinstitution in the future, open a new bankaccount, or even apply for a job or rent an

apartment, you will need to "unlock" or "thaw"the credit freeze with each credit reportingagency.

A less drastic option is to place a fraud alert onyour credit report. A fraud alert requirescreditors to take extra steps to verify youridentity before extending any existing credit orissuing new credit in your name. To request afraud alert, you only have to contact one of thethree major reporting agencies, and theinformation will be passed along to the othertwo.

Recently, as part of the Economic Growth,Regulatory Relief and Consumer Protection Actof 2018, Congress made several changes tocredit rules that benefit consumers. Under thenew law, consumers are now allowed to"freeze" and "unfreeze" their credit reports freeof charge at all three of the major creditreporting bureaus, Equifax, Experian, andTransUnion. In addition, the law extends initialfraud alert protection to one full year.Previously, fraud alerts expired after 90 daysunless they were renewed.

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