to receive cpe credit - bkd · source: factset, frb, ibes, robert shille r, standard &...

2/1/2018

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• Participate in entire webinar

• Answer polls when they are provided

• If you are viewing this webinar in a group Complete group attendance form with

• Title & date of live webinar• Your company name• Your printed name, signature & email address

All group attendance sheets must be submitted to [email protected] within 24 hours of live webinar Answer polls when they are provided

• If all eligibility requirements are met, each participant will be emailed their CPE certificate within 15 business days of live webinar

To Receive CPE Credit

2/1/2018

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Our Presenters

Damien Martin, CPANational Tax Assistant Director

Jeffrey A. Layman, CFAPrincipal & Chief Investment

Officer

Tax Reform Update


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Tax Reform Update



Officer

Economic Update

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Manufacturing Momentum

Source: Markit, JP Morgan Asset Management. Data as of 12/31/17.

Employment

Source: J.P. Morgan Asset Management, BLS, FactSet. Data as of 12/31/2017.

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Officer

Economic Update

Common Questions

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• Individual tax changes generally sunset after 2025• Reduced top rate from 39.6 percent 37 percent• Curtailed itemized deductions

How are affluent families affected by tax reform?

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• Limitation on cash contributions increased to 60 percent of adjusted gross income

• Deduction for contributions made for university athletic seating rights repealed

• Plan & time charitable contributions

Do the changes affect philanthropic strategies?

• Corporate tax rate cuts are most significant From 35% to 21% This alone is expected to boost S&P 500 profits 8–9% Improves the global competitiveness of our companies Two options to deploy tax savings

• Invest (in people, plant, technology, etc.)• Return capital to shareholders (share buybacks, dividend increases)

How will tax reform affect investors?

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S&P 500 Earnings Estimates

Source: Compustat, FactSet, Standard & Poor’s, JP Morgan Asset Management. Data as of 12/31/17.

Is the rally in stocks sustainable, or a speculative bubble about

to burst?

Sustainable Speculative bubble

What Do You Think?

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• Stock market returns exceeded most expectations • U.S. stock market valuations are above average

Is the rally in stocks sustainable?

Source: FactSet, FRB, IBES, Robert Shiller, Standard & Poor’s, JP Morgan Asset Mngmt. Avrg P/E & std. dev. calculated using 25 years of FactSet history. Shiller’s P/E uses trailing 10 years of infltn-adj earnings as reported by companies. Dividend yield is next 12-month consensus dividend divided by most recent price. P/B ratio is price divided by book value per share. Data as of 12/31/2017.

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Stock Valuation Measures: S&P 500 Index

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• Stock market returns exceeded most expectations • U.S. stock market valuations are above average• Other positive developments

Is the rally in stocks sustainable?

• New excess loss limitation• Changes to net operating loss rules• New pass-through business deduction

What are key changes for families with investments in flow-through businesses?

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• Transfer tax changes 40 percent rate

$10 million (inflation adjusted) lifetime exemption(1)

$15,000 annual exclusion(2)

Is estate planning still relevant?

(1)Expires after December 31, 2025, & reverts back to amounts provided prior to January 1, 2018, except amounts would continue to be indexed for inflation using chained measurement of the consumer price index where applicable(2)Exclusion amount adjusted for inflation annually

• Review & understand your tax situation bkd.com/taxreform bkd.com/simplytax bkd.com/thoughtware

• Evaluate timing of income & deductions• Revisit wealth transfer strategies

Are there any planning ideas for the new law?

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• Federal Reserve expected to raise its short-term Fed Funds in 2018

• Ten-year Treasury note yields finished flat in 2017• In 2018, expect longer term rates to rise along with short rates

What path will interest rates take in 2018?

• Economic data & corporate profits continue to improve• Stock markets rarely experience a bear market when economy &

corporate profits are expanding• International stocks have room to run• Volatility could change in 2018

What should investors expect in the New Year?

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Annual Returns & Intra-year Declines

Source: FactSet, Standard & Poor’s, J.P. Morgan Asset Management. Returns are based on price index only & do not include dividends. Intra-year drops refers to the largest market drops from a peak to a trough during the year. For illustrative purposes only. Returns shown are calendar year returns from 1980 to 2016, over which time period the average annual return was 8.5%. The 2017 bar represents the year-to-date return & is not included in the average annual return calculation. Data as of 12/31/2017.

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• Fed Policy Rate hikes Reduction in bond purchases

• Inflation• Economic growth vs. government debt

Important Risk Factors for 2018

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Closing Comments



Officer

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The information contained in these slides is presented by professionals for your information only & is not to be considered as legal advice. Applying specific information to your situation requires careful consideration of facts & circumstances. Consult your BKD advisor or legal counsel before acting on any matters covered.

BKD, LLP is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org

• CPE credit may be awarded upon verification of participant attendance

• For questions, concerns or comments regarding CPE credit, please email the BKD Learning & Development Department at [email protected]

CPE Credit

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Damien Martin | 417.831.7283 | [email protected]

Jeffrey Layman | 417.866.5822 | [email protected]

BKD Family Office 2018 Webinar Series

MARCH

Structuring Property & Casualty Insurance for

Family Offices

APRIL

What You Should Consider Before a

Business Transaction

MAY

Curating a Financial Education Program for

Your Family

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to receive cpe credit - bkd · source: factset, frb, ibes, robert shille r, standard &...

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