Rosenthal Review Aug '19

Aug 2019 MISSION STATEMENT MINDER IS OFF TO MISSISSIPPI To always be an industry leading independent advisory firm for Over the past year many of our clients have those seeking life-long retirement had the opportunity to speak with our solutions through disciplined investment strategies and Administrative Assistant, Jennifer Minder. superior client service. During this time she has become a valuable Peek Inside part of our team. Recently, she notified us that she and her husband, John felt called to pursue positions as houseparents at a local children's home in Mississippi. Please join us in wishing her well in this new adventure. (More on pg. 5) Social Security Quiz (pg. 2) GOMEZ HAS A GRAND-BABY This July, at 9 lbs 8.7 oz and 22 in, Linda and her husband, Chris welcome their first grand- baby, Leighton, into the world. Mom, Meghin and Father, Austin (their son) met their happy and healthy baby boy July 5 at 11:50 AM.  (More on pg. 6) Summer Time Facebook.com/RosenthalRetirement at Rosenthal Pg. 1 (pgs. 5-7)

Pg. 2 Facebook.com/RosenthalRetirement | (817) 336-2000 | www.rrp.com      Pg. 2 Answers from Quiz 1. b.About 10% of the approximately 62 million Social Security beneficiaries in December 2017 were receiving survivor benefits.1 2. c.Both your current and former spouse may be able to receive survivor benefits based on your earnings record if certain conditions are met. Regardless of age, both may be able to receive a benefit if they're unmarried and caring for your child who is under age 16 or disabled before age 22 and entitled to receive benefits on your record. At age 60 or older (50 or older if disabled), both may be able to receive a survivor benefit even if not caring for a child (a length of marriage requirement applies). 3. a.That's true. To be eligible, your parent must be age 62 or older and receiving at least half of his or her financial support from you at the time of your death. In addition, your parent cannot be entitled to his or her own higher Social Security benefit and must not have married after your death. 4. b.The Social Security Administration (SSA) may pay a one-time, $255 lump-sum death benefit to an eligible surviving spouse. If there is no surviving spouse, the payment may be made to an eligible dependent child. The death benefit has never increased since it was capped at its current amount in a 1954 amendment to the Social Security Act.2 This is just an overview. For more information on survivor benefits and eligibility rules, visit the SSA website,ssa.gov. 1Fast Facts & Figures About Social Security, 2018 2Research Notes & Special Studies by the Historian's Office, Social Security Administration QUIZ ANSWERS 4. How much is the Social Security lump-sum 2. Which person may be able to receive death benefit? survivor benefits based on your Social a. $155 Security earnings record? b. $255 a. Your spouse b. Your former spouse c. $355 c. Both a and b (See Below) 3. Your parent may be able to receive survivor 1. What percentage of Social Security benefits based on your Social Security beneficiaries receive survivor benefits? earnings record. a. 5% a. True b. 10% b. False c. 15% Questions Did you know that Social Security may pay benefits to your eligible family members when you die, helping to make their financial life easier? Take this quiz to learn more. Social Security Survivor Benefits

Charitable Giving After Tax Reform Tax reform changes to the standard deduction and itemized deductions may affect your ability to obtain an income tax benefit from charitable giving. Projecting how you'll be affected by these changes while there's still time to take action is important. Income tax benefit of charitable giving If you itemize deductions on your federal income tax return, you can generally deduct your gifts to qualified charities. However, many itemized deductions have been eliminated or restricted, and the standard deduction has substantially increased. You can generally choose to take the standard deduction or to itemize deductions. As a result of the changes, far fewer taxpayers will be able to reduce their taxes by itemizing deductions. Taxpayers whose total itemized deductions other than charitable contributions would be less than the standard deduction (including adjustments for being blind or age 65 or older) effectively have less of a tax savings incentive to make charitable gifts. For example, assume that a married couple, both age 65, have total itemized deductions (other than charitable contributions) of $15,000. They would have a standard deduction of $27,000 in 2019. The couple would effectively receive no tax savings for the first $12,000 of charitable contributions they make. Even with a $12,000 charitable deduction, total itemized deductions of $27,000 would not exceed their standard deduction. Taxpayers whose total itemized deductions other than charitable contributions equal or exceed the standard deduction (including adjustments for being blind or age 65 or older) generally receive a tax benefit from charitable contributions equal to the income taxes saved. For example, assume that a married couple, both age 65, have total itemized deductions (other than charitable contributions) of $30,000. They would be entitled to a standard deduction of $27,000 in 2019. If they are in the 24% income tax bracket and make a charitable contribution of $10,000, they would reduce their income taxes by $2,400 ($10,000 charitable deduction x 24% tax rate). However, the amount of your income tax charitable deduction may be limited to certain percentages of your adjusted gross income (AGI). For example, your deduction for gifts of cash to public charities is generally limited to 60% of your AGI for the year, and other gifts to charity are typically limited to 30% or 20% of your AGI. Charitable deductions that exceed the AGI limits may generally be carried over and deducted over the next five years, subject to the income percentage limits in those years. Year-end tax planning When making charitable gifts during the year, you should consider them as part of your year-end tax planning. Typically, you have a certain amount of control over the timing of income and expenses. You generally want to time your recognition of income so that it will be taxed at the lowest rate possible, and to time your deductible expenses so they can be claimed in years when you are in a higher tax bracket. (Cont. Pg. 8) Facebook.com/RosenthalRetirement | (817) 336-2000 | www.rrp.com      Pg. 3

Getting to Know You What was your First Job or a funny story from a past job that you'd like to share? \"I worked at McDonald's flipping burgers for my first job.\" - Burk Rosenthal, CFP®, ChFC®, CRC®, CFS, President \"My first job was working as a dishwasher at a local Asian restaurant. My first day in the ‘workforce’ I slipped on the kitchen tile and ended up with a black eye from hitting a bucket. I worked the rest of Father’s Day weekend washing off curry, sushi, and lo mein noodles with a nice reminder of my first step into the working world.\" - Cory Bruntz, Financial Advisor, CFP® \"My second job out of college was working as an office manager for Burk during his early years, and thus its been neat to have come back to work for him as an Advisor these 20 years later. For my part its exciting to see that the firm has been successful in growing, but in doing so by valuing its clients, and to remember how Burk and I used to pile into his SUV back then, with a table, and Rosenthal Banner, and other items to setup for a Live Seminar that we would have in local hotel conference rooms around DFW, to share about Retirement and Investment Planning and how we could help clients pursue their retirement goals…thus, its neat to see many clients who have been with Burk for 18, 20 and even up to 25 years, since back in those days, some of whom became clients as a result of those Seminars, and to see that our Company has been able to help guide those clients through many retirement years!\" - Stewart Leafblad, Financial Advisor \"I worked at a data management company cataloging medical records. Needless to say, I wasn’t too productive because I would get stuck reading the files.\" - Linda Gomez, Director of Administration \"My first job was at Wet & Wild (Hurricane Harbor) as a lifeguard.\" - Emily Hadley, Senior Client Service Representative \"For my first job when I was 17, in 1977, I was a sales girl in a little boutique in an office complex in Dallas. It was a fun job and I learned a LOT about life while working there. One of my favorite customers was Peggy, a retired Las Vegas showgirl. She was around 60 and about 6’2 and amazing looking with long platinum blonde hair and still perfect long legs. She could tell some fantastic (and racy!) stories about life in Vegas and in Dallas. She’d come sashaying in, light up a cigarette, and say in her loud, husky voice, “So, Baby Girl, show Peggy what’s new here!” She was a whole education for my teenage self!\" - Gayle Watson, Client Service Representative \"I worked retail (clothing store) & it was so boring!!!\" - Debbie Hadley, Administrative Specialist Facebook.com/RosenthalRetirement | (817) 336-2000 | www.rrp.com      Pg. 4

Share YOUR Summer Time Pictures with us on Facebook: #RosenthalRetirement \"On Saturday of the 4th of July weekend, we went to McKinney and wandered around the square where they have some great stores and had lunch at a fantastic burger place called Square Burger. Then our son, Cameron, proposed to his girlfriend, Caroline, on 07/11. He took her to a fabulous place, had a photographer who just happened to have a cancellation, “run into them” and offer to take pics and then he got down on one knee – the whole fabulous storybook shebang. She, of course, accepted. We are so happy for them AND I’m proud of him for working so hard to make the moment extra special for her.\" - Gayle Watson \"I passed the CFP® Exam last week so finally excited to have ‘free’ time once again (July 4th plans consisted of studying).\" - Cory Bruntz \"My husband and I, along with our (almost) 14 year old daughter, will be moving to Mississippi to begin working as houseparents at a children’s home. While moving away from our current occupations, children, grandchildren and extended family, we know that we are doing what God has equipped us for! We are excited to answer God’s call on our lives, and begin this ministry.\" - Jennifer Minder pg. 5

Share YOUR Summer Time Pictures with us on Facebook: #RosenthalRetirement \"We recently did a little beach vacation and we have just been wedding planning this summer (October wedding).\" - Emily Hadley \"We spent the 4th of July waiting for the arrival of our first grandson, Leighton (born July 5th)!\" - Linda Gomez \"I spent Memorial Day having fun with my daughter, Amoria and we happened to catch a rainbow.\" Stewart Leafblad \"We took a road trip (including Harley) to visit family during the 4th.\" - Debbie Hadley Pg. 6

\"Alisha and I vacationed in Australia with the girls (Natalie & Regan) where Regan just finished a semester at The University of Sydney through the LSU Study Abroad program. \" - Burk Rosenthal Michael Abbott is no longer with our firm. We wish Michael the best of luck in his future endeavors. Share YOUR Summer Time Pictures with us on Facebook: #RosenthalRetirement Facebook.com/RosenthalRetirement LAND OF THE THANK YOU TO ALL OF OUR FREE VETERANS AND BECAUSE OF THE FIRST BRAVE RESPONDERS. Facebook.com/RosenthalRetirement | (817) 336-2000 | www.rrp.com      Pg. 7

Charitable Giving After Tax Reform (Cont) For example, if you expect that you will be in a higher tax bracket next year, it may make sense to wait and make the charitable contribution in January so you can take the deduction next year when the deduction results in a greater tax benefit. Or you might shift the charitable contribution, along with other itemized deductions, into a year when your itemized deductions would be greater than the standard deduction amount. And if the income percentage limits above are a concern in one year, you might consider ways to shift income into that year or shift deductions out of that year, so that a larger charitable deduction is available for that year. A tax professional can help you evaluate your individual tax situation. Qualified charitable distribution (QCD) If you are age 70½ or older, you can make tax-free charitable donations directly from your IRAs (other than SEP and SIMPLE IRAs) to a qualified charity. The distribution must be one that would otherwise be taxable to you. You can exclude up to $100,000 of these QCDs from your gross income each year. And if you file a joint return, your spouse (if 70½ or older) can exclude an additional $100,000 of QCDs. You cannot deduct QCDs as a charitable contribution because the QCD is excluded from your gross income. In order to get a tax benefit from your charitable contribution without this special rule, you would have to itemize deductions, and your charitable deduction could be limited by the percentage of AGI limitations. QCDs may allow you to claim the standard deduction and exclude the QCD from income. QCDs count toward satisfying any required minimum distributions (RMDs) that you would otherwise have to receive from your IRA, just as if you had received an actual distribution from the plan. Your QCD cannot be made to a private foundation, donor-advised fund, or supporting organization. Further, the gift cannot be made in exchange for a charitable gift annuity or to a charitable remainder trust. A REFERRAL IS THE GREATEST COMPLIMENT WE CAN RECEIVE, SO PLEASE FEEL FREE TO TELL YOUR FAMILY, FRIENDS AND COLLEAGUES ABOUT US. Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Rosenthal Advisory Services, LP, a Registered Investment Advisor. Rosenthal Advisory Services, LP and Rosenthal Retirement Planning, LP are separate entities from LPL Financial. This information is not intended to be a substitute for specific individualized tax advice.We suggest that you discuss your specific tax issues with a qualified tax advisor. Pg. 8