RMR Wealth Management, LLC

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Dear John,

First and foremost, I hope that you and your family are all safe and sound! I hope that there was no serious damage to your home or injuries to your loved ones in the aftermath of Hurricane Sandy.  I believe we are defined by the trials and tribulations that we overcome each and every day.  Life has its ups and downs, and a person is defined by his/her persistence to overcome and never give up.  That is how I feel about New Yorkers, as I see us donating food, clothing, money, time, and most importantly our love and support to those most in need!   My thoughts and prayers go out to you and your family during this challenging time.

As I was going to write about protecting your portfolios by using various alternatives to combat the upcoming changes in our tax code, I could not help to think about all the lives that have been impacted by Hurricane Sandy.  As a financial advisor I believe it is my job to assist you in any financial issues.   With that being said, I would like to take the opportunity to impress on you the importance of reassessing your financial situation.  One of the most important issues I believe everyone should take a deeper look into is making sure they have the right insurance coverage in place.  For example, homes were destroyed due to massive flooding, and folks did not have flood insurance.  It is hard enough to lose all those memories and valuables, but even more difficult if you did not have the proper coverage to assist in the rebuilding efforts.  

Please take some time to evaluate the risks in your life by reviewing your insurance policies (homeowners, liability, disability, life insurance), and the risk in your portfolio with the ever changing tax codes.   I have included a year end planning checklist below:

1. Donate to charity (Great time to give back to the victims that were affected due to Hurricane Sandy).
2. Use your FSA (Flexible Spending Account) – Use it or lose it!
3. Review your insurance policies – have you gotten married? Had a baby?  Has your insurance company given you a hard time about paying a claim due to the storm?  Make sure you have the right coverage.
4. Review your tax situation
  • Finish energy efficiency home improvement projects
  • Pay an extra mortgage payment – make January mortgage payment early to be able to deduct interest paid on your mortgage
  • If you freelance or consult – delay invoicing or extend due date until January
  • Increase contributions to retirement accounts such as 401(k), IRA, SEP-IRA, etc…
5. Review your investments
  • Make adjustments to your asset allocation.
  • Sell investments for tax lost harvesting.  You can offset your losses against any capital gains.
  • Think about taking gains.  With expectations on the tax code increasing it may be beneficial to take positions with significant gains now rather than later because taxes may be increased from 15% to up-to 40%.
Please contact John J. Fiorito at 212-785-4377 x224 to schedule your year-end review.  

I wish you and your family a Happy Thanksgiving!

Be Prepared, Be Educated, and Be Proactive



John J. Fiorito
Financial Advisor
“Retire Comfortably and Remain Comfortably Retired”

Securities offered through Dinosaur Securities, LLC Member FINRA, SIPC, NFA.

Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.  RMR Wealth Management, LLC does not provide legal, tax, or estate-planning advice. For questions about a specific situation, please consult a qualified adviser.   

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