The “Great One”, Wayne Gretzky, has a famous quote that seems appropriate for the wealth management industry as well, “I skate to where the puck is going to be, not where it has been.” In my opinion, the next five to ten years will provide wonderful opportunities for those who can anticipate what the future holds and will be fraught with anxiety for those who can’t or won’t accept the realities that are taking shape today. Recently, a Mercedes executive stated that their competition is no longer other car companies, but instead technology companies like Google, Apple, Tesla, and Amazon.

In this new environment, the largest taxi company in the world is Uber, and they don’t own any cars. Uber is a software tool. The biggest hotel company in the world does not own any properties. It’s called Airbnb. I spend a lot of my time and energy these days studying what’s next, attending webcasts, speaking to futurists that have earned our respect because of their accurate predictions, and attending conferences about the disruptive, yet exciting, rapid changes taking place.

Since most of you have expressed your wishes to become and stay financially independent, it’s critical to to keep an eye on what’s coming down the pike. This does not just benefit your lifestyle sustainability, but also helps your loved ones, whether they are your children, grandchildren, friends, or other family members.

Without getting into the details of the whys and when’s, I wanted to mention some of the fields that will be negatively impacted if they don’t adapt rapidly and make an investment in the future. Some are obvious, like transportation. Going from point A to point B will be a service and owning a car will be unnecessary. Car manufacturers that culturally direct their focus on making a better auto, will get crushed by those that have the mindset that the most popular transportation will be an incredible computer with wheels. The legal profession will also be disrupted, especially the entry level law school graduate who may have not yet developed a specialized niche. Insurance companies and the real estate industry will have massive trouble adapting. After 30 or 40 years of development, progress, and innovation, solar energy and 3D-printing have become so affordable that it is reasonable to call them substantial changes at this point. Other areas that we will continue to address with you going forward, since they are integral components of a solid financial plan, include: Human longevity, Education, Health Care, Jobs that will disappear and Jobs that will be created.

Overall, this rapid progress is exciting stuff, if we allow it to be! I believe a lot of these trends will have implications on the thoughtful advice we give you and your family, now and well into the future. I hope you agree.

Sincerely,

Spring 2018 Newsletter | www.rebyadvisors.com

President’s Letter

WHAT’S INSIDE: ADVISORY CORNER 2 | THE MORE YOU KNOW... | OUR TEAM 4

“I skate to where the puck is going to be, not where it has been.”

The Tax Cuts & Jobs Act: Key Provisions Affecting Businesses

ADVISORY CORNER

The Tax Cuts & Jobs Act is the biggest federal tax law change in over 30 years.

Below are some significant changes affecting businesses.

• Flat corporate tax rate of 21% replaces the graduated corporate tax rates ranging from 15% to 35%.

• Repeal of the 20% corporate alternative minimum tax (AMT).

• Doubling of bonus depreciation to 100% and expansion of qualified assets to include used assets.

• Doubling of the Section 179 expensing limit to $1 million and an increase of the expensing phaseout threshold to $2.5 million.

• Disallowance of deductions for net interest expense in excess of 30% of the business’s adjusted taxable income.

• New limit for the deduction of net operating losses (NOLs) to 80% of taxable income and elimination of the two-year carryback provision. NOLs will be allowed to be carried forward indefinitely.

• New 20% qualified business income deduction for owners of flow-through entities (such as partnerships, limited liability companies and S corporations) and sole proprietorships — through 2025.

SECTION 199A: QUALIFIED BUSINESS INCOME DEDUCTIONUnder the new law, an individual taxpayer generally may deduct 20% of qualified business income from a partnership, S corporation, LLC, or sole proprietorship. In the case of a partnership or S corporation, the deduction applies at the partner or shareholder level. The business must be conducted within the United States.

The deduction reduces taxable income, not adjusted gross income (AGI), so the deduction does not affect limitations based on AGI. Also, it does not reduce self-employment income (or self-employment tax). The deduction is available to both non-itemizers and itemizers.

Generally, the deductible amount for each qualified trade or business is 20% of the taxpayer’s qualified business income with respect to that trade or business. The deduction cannot exceed taxable income (computed without regard to this deduction) reduced by net capital gain.

For pass-through entities other than sole proprietorships, the QBI deduction generally can’t exceed the greater of the owner’s share of:

• 50% of the amount of W-2 wages paid to employees by the qualified business during the tax year, or

• The sum of 25% of W-2 wages plus 2.5% of the cost of qualified property.

Another restriction is that the QBI deduction generally isn’t available for income from specified service businesses. A specified service trade or business means any trade or business involving the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, or any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees or owners. The new law specifically excludes engineering and architecture services from the definition of a specified service trade or business.

The W-2 wage limitation and the specified service business limitation don’t apply as long as your taxable income is under the applicable threshold. In that case, you should qualify for the full 20% QBI deduction.

For 2018, the threshold amounts are when the taxpayer’s taxable income exceeds $157,500 ($315,000 MFJ). The phase-in range is $50,000 ($100,000 MFJ). The full wage and specified service limitations apply once taxable income exceeds $207,500 ($415,000 MFJ). The threshold amount is indexed each year for inflation.

This 20% qualified business income deduction is one of the most talked about provisions of the entire tax law. It has the potential to be of significant value to many individuals. Its application at the owner/shareholder level means it will affect each person’s tax situation differently. Many of its elements have not been sufficiently defined and we expect additional guidance to be forthcoming.

Howard D. Burtis, CPA and Kate Johnson, CPA, www.HBurtisCPA.com

If your information has been exposed, visit IdentityTheft.gov/databreach for detailed advice about your particular situation. Depending on the type of information exposed, the following steps below tells you what to do right away. You’ll find these steps – and more – at IdentityTheft.gov/databreach.

WHAT INFORMATION WAS LOST OR EXPOSED?Social Security number• If a company responsible for exposing your information offers

you free credit monitoring, take advantage of it.• Get your free credit reports from annualcreditreport.com.

Check for any accounts or charges you don’t recognize.• Consider placing a credit freeze. A credit freeze makes it harder

for someone to open a new account in your name. If you decide not to place a credit freeze, at least consider placing a fraud alert.

• Try to file your taxes early – before a scammer can. Tax identity theft happens when someone uses your Social Security number to get a tax refund or a job.

Online login or password• Log in to that account and change your password. If possible,

also change your username. If you can’t log in, contact the company. Ask them how you can recover or shut down the account.

• If you use the same password anywhere else, change that too.• Is it a financial site, or is your credit card number stored?

Check your account for any charges that you don’t recognize.

Bank account, credit or debit card information• If you bank information was exposed, contact your bank to

close the account and open a new one.• If credit or debit card information was exposed, contact your

bank or credit card company to cancel your card and request a new one.

Coming next quarter: Identity Theft – What to know, What to do.

Source: Federal Trade Commission IdentityTheft.gov

THE MORE YOU KNOW...

Data Breaches – What to Know, What to Do

IT IS WITH MIXED EMOTIONS that we announce that Frank Lecardo is leaving Reby Advisors to “set sail” for a new opportunity. Many of our clients and visitors got to know Frank as the welcoming voice on the phone, the helpful and calm Portal Guru and the first to warmly greet them when they came into the office. Frank contributed a great deal to Reby over the years and always brought his sense of humor and commitment to work with him.

While we will greatly miss Frank, and all that he gave to his position and to the Reby team over the years, we are excited for him to be working in a field that he is passionate about; boating. Frank will be taking on the role of Director of Training for the Freedom Boat Club, based out of Stratford, CT.

We wish Frank all the best in his new journey and can’t wait to see what the future holds for him!

Did you recently get a notice that says your personal information was exposed in a data breach? Did you lose your wallet? Or learn that an online account was hacked? Depending on what information was lost, there are steps you can take to help protect yourself from identity theft.

We proudly recognize our employees celebrating service anniversaries:

Published by Reby Advisors | Main Telephone: 203-790-4949 | Toll Free: 800-769-9963 | Fax: 203-743-3381Connecticut: 44 Old Ridgebury Road, Danbury, CT 06810 | Florida: 3801 PGA Boulevard, Palm Beach Gardens, FL 33410New York: 250 Park Ave, 7th floor, New York, NY 10167 | Email: info@rebyadvisors.com | Website: www.rebyadvisors.com

Securities offered through Triad Advisors member FINRA/SIPC. Advisory services offered through Reby Advisors. Reby Advisors is not affiliated with Triad Advisors. Material discussed is meant for general illustration and/or informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon when coordinated with individual professional advice. There are risks inherent in all investments, such as fluctuations in investment principal. Past performance of any index, investment or strategy cannot be relied upon as a guarantee of future results. This material contains forward looking statements and projections. There are no guarantees that these results will be achieved. The views expressed are not necessarily the opinion of Triad Advisors and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. © 2018 Reby Advisors

OUR TEAM

Rosanne Schepis Client Service ManagerApril 3 – 12 years

Danielle Hayes, Client Service Manager June 2 – 14 years

Reby Advisors Sponsors Youth of the Year Program at The Exchange Club of DanburyThis year’s honoree is Connor W. McNerney, a Senior at Immaculate High School in Danbury. Connor is an exceptional student and involved in many activities, including Passport to Sandy Hook, where he grew up, Hurricane Relief, and the Dorothy Day Hospitality House, just to name a few of his charitable community activities.

Rosanne Schepis, Client Service Manager, presented the award to Connor on behalf of Reby Advisors. Rosanne was very impressed with Connor and spoke with him at length. Connor will be heading to Holy Cross in the fall, studying Political Science and Law. We wish him the best!

From left to right: Billy Murray and Al Mead, Past Presidents of the Danbury Exchange Club, Connor W. McNerney and Rosanne Schepis.

2018 Tax Reform PresentationGeorge Koeltl, CFP® gave a lively presentation on March 29th titled “How 2018 Tax Reform Impacts You”.

He covered the Tax Cuts and Job Act; who benefits, and who will pay more. George went through a list of companies, including Lockheed Martin, J.P. Morgan, FedEx, AT&T, and Exxon Mobile, and what these companies are doing with their tax cuts. These five companies alone are spending over $200 billion in employee and domestic capital investments.

Investments positively and negatively impacted by Tax Reform were also covered in the presentation.

To view the entire presentation please go to www.rebyadvisors.com/tax-reform.