Pacific Wealth Management Insights

by Ryan Fentin-Thompson on December 1, 2016

Anticipated Tax Reform

With the election behind us and the Republicans soon to be in control of the White House, Senate and House, anticipation is building for 2017 to be a year of major tax reform.   These changes in the tax code could easily be the most significant our country has seen since Reagan.

We believe the final outcome will be a significant simplification from the current 7 tiers of tax brackets and, ultimately, a likely compromise between the competing  Congressional and Trump proposals.  We will likely end up with just 3 income tax brackets: 12%, 25% and a top rate of 33% for married couples earning $225,000 or $112,500 for individuals.  Both proposals will retain the reduced rates for capital gains and qualified dividends.

Deductions are where the proposals diverge substantially, with the House of Representatives version eliminating most every individual tax deduction except mortgage and charitable deductions (combined with an expanded standard deduction).  President-elect Trump’s proposal would keep the current deduction rules, but cap itemized deductions at $200,000 for joint filers and $100,000 for individuals.  Only time will tell whether Washington can make this tax reform a reality in 2017.  The minority Democrats still retain the ability to filibuster legislation so the Republicans will be incented to compromise.


This commentary contains forward looking statements and opinions. These opinions may not develop as predicted. It is our goal to help investors by identifying changing market conditions. However, investors should be aware that no investment advisor can accurately predict all of the changes that may occur in the market.

Pacific Wealth Management Insights

by Ryan Fentin-Thompson on November 14, 2016

Truth and Consequences: Election Impact

Much has been written and said in the short time since the unexpected election of Donald Trump as the 45th President of the USA. Political passions normally run high in elections and the one thing we can all agree on is that this election was anything but normal. For that reason, although it may be difficult for us to set our politics aside, we contend it is even more important to move forward and focus on what a Trump Presidency is likely to mean for our finances and investments.

Speculation abounds as to what the new administration’s stance will be in many areas because of the comparatively small amount of attention paid to policy discussion in the campaign.  However there are a number of areas where significant policy changes are inevitable if Trump follows through on his main campaign promises.  To that end, we will be publishing a series of articles over next several weeks that outline our take on the impact of the election in the following arenas:

~ Anticipated Tax Cuts
~ Outlook for Inflation & Interest Rates
~ Energy Winners and Losers
~ Protectionist Trade Policies
~ The Global Wave of Populism
~ The Future of Health Insurance

If you have a particular interest in another policy change topic, please let us know and we will attempt to address it.


 

This commentary contains forward looking statements and opinions. These opinions may not develop as predicted. It is our goal to help investors by identifying changing market conditions. However, investors should be aware that no investment advisor can accurately predict all of the changes that may occur in the market.

Post 2016 Election Commentary

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PACIFIC WEALTH MANAGEMENT ANNOUNCES NEW FINANCIAL ADVISOR

May 20, 2016

DEL MAR, CA, May 20, 2016 – Pacific Wealth Management®, an independent wealth management firm providing intelligent solutions for affluent investors, today announced that Nicholas D. Castellano has joined the firm as a Financial Advisor.  With the firm continuing to grow, Mr. Castellano will be expanding Pacific Wealth Management’s retirement planning services for high-net-worth business […]

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Financial Market Comment

April 20, 2016

Investors who only check market prices at the end of every quarter, may easily conclude the first three months of 2016 were uneventful, as stock market values finished March relatively close to where they began in January. However, as you are likely aware, global stock markets in early 2016 were unusually volatile, declining over 10% […]

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