Millennium AdvisoryServices, Inc.Antonio T. Kitt, CFP®Investment Advisor Representative5340 Twin Hickory RoadGlen Allen, VA 23059877-435-2489mas@mcmva.comwww.mas-edu.com

1st Quarter 2017Key Retirement and Tax Numbers for 2017

Top Financial Concerns of Baby Boomers,Generation Xers, and Millennials

How can technology help me manage mymoney?

How can I pay off the credit card debt I rackedup over the holidays?

Millennium Financial FocusFinancial Education for Plan Participants

Playing Catch-Up with Your 403(b) or IRA

See disclaimer on final page

A recent survey of babyboomers (ages 53 to 69)found that just 24% wereconfident they wouldhave enough money tolast throughoutretirement. Forty-fivepercent had noretirement savings at all,and of those who did

have savings, 42% had saved less than$100,000.1

Your own savings may be on more solidground, but regardless of your current balance,it's smart to keep it growing. If you're 50 orolder, you could benefit by making catch-upcontributions to tax-advantaged retirementaccounts. You might be surprised by how muchyour nest egg could grow late in your workingcareer.

Contribution limitsThe federal contribution limit in 2016 and 2017for all IRAs combined is $5,500, plus a $1,000catch-up contribution for those 50 and older, fora total of $6,500. An extra $1,000 might notseem like much, but it could make a bigdifference by the time you're ready to retire (seetable). You have until the April 18, 2017, taxfiling deadline to make IRA contributions for2016. The sooner you contribute, the more timethe funds will have to pursue potential growth.

The deferral limit in 2016 and 2017 foremployer-sponsored retirement plans such as401(k), 403(b), and most 457(b) plans is$18,000, plus a $6,000 catch-up contribution forworkers 50 and older, for a total of $24,000.However, some employer-sponsored plans mayhave maximums that are lower than the federalcontribution limit. Unlike the case with IRAs,contributions to employer-sponsored plansmust be made by the end of the calendar year,so be sure to adjust your contributions earlyenough in the year to take full advantage of thecatch-up opportunity.

The following table shows the amount that a50-year-old might accrue by age 65 or 70,based on making maximum annualcontributions (at current rates) to an IRA or a401(k) plan:

Potential Savings a50-Year-Old CouldAccumulate

WithoutCatch-Up

WithCatch-Up

IRA By Age 65 $128,018 $151,294

By Age 70 $202,321 $239,106

401(k) By Age 65 $418,697 $558,623

By Age 70 $662,141 $882,854

Example assumes a 6% average annual return.This hypothetical example of mathematicalcompounding is used for illustrative purposesonly and does not represent any specificinvestment. It assumes contributions are madeat end of the calendar year. Rates of returnvary over time, particularly for long-terminvestments. Fees and expenses are notconsidered and would reduce the performanceshown if they were included. Actual results willvary.

Special 403(b) and 457(b) plan rules403(b) and 457(b) plans can (but aren'trequired to) provide their own special catch-upopportunities. The 403(b) special rule, availableto participants with at least 15 years of service,may permit an additional $3,000 annual deferralfor up to five years (certain additional limitsapply). A participant can use this special ruleand the age 50 catch-up rule in the same year.Therefore, a participant eligible for both couldcontribute up to $27,000 to his or her 403(b)plan account (the $18,000 regular deferral limit,plus the $3,000 special catch-up, plus the$6,000 age 50 catch-up).

The 457(b) plan special rule allows participantswho have not deferred the maximum amount inprior years to contribute up to twice the normaldeferral limit (that is, up to $36,000 in 2016 and2017) in the three years prior to reaching theplan's normal retirement age. (However, theseadditional catch-up contributions can't exceedthe total of the prior years' unused deferrals.)457(b) participants who elect to use this specialcatch-up rule cannot also use the age 50catch-up rule in the same year.1 "Boomer Expectations for Retirement 2016,"Insured Retirement Institute.

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Key Retirement and Tax Numbers for 2017Every year, the Internal Revenue Serviceannounces cost-of-living adjustments that affectcontribution limits for retirement plans,thresholds for deductions and credits, andstandard deduction and personal exemptionamounts. Here are a few of the keyadjustments for 2017.

Retirement plans• Employees who participate in 401(k), 403(b),

and most 457 plans can defer up to $18,000in compensation in 2017 (the same as in2016); employees age 50 and older can deferup to an additional $6,000 in 2017 (the sameas in 2016).

• Employees participating in a SIMPLEretirement plan can defer up to $12,500 in2017 (the same as in 2016), and employeesage 50 and older will be able to defer up to anadditional $3,000 in 2017 (the same as in2016).

IRAsThe limit on annual contributions to an IRAremains unchanged at $5,500 in 2017, withindividuals age 50 and older able to contributean additional $1,000. For individuals who arecovered by a workplace retirement plan, thededuction for contributions to a traditional IRAis phased out for the following modifiedadjusted gross income (AGI) ranges:

2016 2017

Single/headof household(HOH)

$61,000 -$71,000

$62,000 -$72,000

Married filingjointly (MFJ)

$98,000 -$118,000

$99,000 -$119,000

Married filingseparately(MFS)

$0 - $10,000 $0 - $10,000

Note: The 2017 phaseout range is $186,000 -$196,000 (up from $184,000 - $194,000 in2016) when the individual making the IRAcontribution is not covered by a workplaceretirement plan but is filing jointly with a spousewho is covered.

The modified AGI phaseout ranges forindividuals making contributions to a Roth IRAare:

2016 2017

Single/HOH $117,000 -$132,000

$118,000 -$133,000

MFJ $184,000 -$194,000

$186,000 -$196,000

MFS $0 - $10,000 $0 - $10,000

Estate and gift tax• The annual gift tax exclusion remains at

$14,000.• The gift and estate tax basic exclusion

amount for 2017 is $5,490,000, up from$5,450,000 in 2016.

Personal exemptionThe personal exemption amount remains at$4,050. For 2017, personal exemptions beginto phase out once AGI exceeds $261,500(single), $287,650 (HOH), $313,800 (MFJ), or$156,900 (MFS).

Note: These same AGI thresholds apply indetermining if itemized deductions may belimited. The corresponding 2016 thresholdamounts were $259,400 (single), $285,350(HOH), $311,300 (MFJ), and $155,650 (MFS).

Standard deductionThese amounts have been adjusted as follows:

2016 2017

Single $6,300 $6,350

HOH $9,300 $9,350

MFJ $12,600 $12,700

MFS $6,300 $6,350

Note: The 2016 and 2017 additional standarddeduction amount (age 65 or older, or blind) is$1,550 for single/HOH or $1,250 for all otherfiling statuses. Special rules apply if you can beclaimed as a dependent by another taxpayer.

Alternative minimum tax (AMT)AMT amounts have been adjusted as follows:

2016 2017

Maximum AMT exemption amount

Single/HOH $53,900 $54,300

MFJ $83,800 $84,500

MFS $41,900 $42,250

Exemption phaseout threshold

Single/HOH $119,700 $120,700

MFJ $159,700 $160,900

MFS $79,850 $80,450

26% on AMTI* up to this amount, 28% onAMTI above this amount

MFS $93,150 $93,900

All others $186,300 $187,800

*Alternative minimum taxable income

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Top Financial Concerns of Baby Boomers, Generation Xers, andMillennialsMany differences exist among baby boomers,Generation Xers, and millennials. But one thingthat brings all three generations together is aconcern about their financial situations.

According to an April 2016 employee financialwellness survey, 38% of boomers, 46% of GenXers, and 51% of millennials said that financialmatters are the top cause of stress in theirlives. In fact, baby boomers (50%), Gen Xers(56%), and millennials (60%) share the sametop financial concern about not having enoughemergency savings for unexpected expenses.Following are additional financial concerns foreach group and some tips on how to addressthem.

Baby boomersBaby boomers cite retirement as a top concern,with 45% of the group saying they worry aboutnot being able to retire when they want to.Although 79% of the baby boomers said theyare currently saving for retirement, 52% of thesame group believe they will have to delayretirement. Health issues (30%) andhealth-care costs (38%) are some of thebiggest retirement concerns cited by babyboomers. As a result, many baby boomers(23%) are delaying retirement in order to retaintheir current health-care benefits.

Other reasons reported by baby boomers fordelaying retirement include not having enoughmoney saved to retire (48%), not wanting toretire (27%), and having too much debt (23%).

Generation XWhile baby boomers are concerned aboutretiring when they want to, Gen Xers are morespecifically worried about running out of moneyin retirement, with 50% of the surveyed groupciting this as a top concern. More Gen Xers(26%) than baby boomers (25%) or millennials(21%) have already withdrawn money held intheir retirement plans to pay for expenses otherthan retirement.

Besides worrying about retirement, 25% of GenXers are concerned about meeting monthlyexpenses. Forty-four percent find it difficult tomeet household expenses on time each month,and 53% consistently carry balances on theircredit cards.

Being laid off from work is another financialworry among Gen Xers, cited by 22% of thosesurveyed--more than cited by baby boomers ormillennials.

Gen Xers (26%) report that better job securitywould help them achieve future financial goals,which may help explain their worry about bothfuture (retirement) and current (living)expenses.

MillennialsUnlike baby boomers and Gen Xers who worryabout future financial needs, millennials seemto be more concerned about meeting currentexpenses. This concern has grownsubstantially for millennials, from 23% in thesame survey conducted in 2015 to 35% in2016. Millennials are also finding it increasinglydifficult to pay their household expenses ontime each month, with the number jumping from35% in 2015 to 46% in 2016.

Considering the amount of debt that millennialsowe, it's probably not surprising that they worryabout making ends meet. Specifically, 42% ofthe millennials surveyed have a student loan(s),with 79% saying their student loans have amoderate or significant impact on their ability tomeet other financial goals.

In an attempt to make ends meet, 30% ofmillennials say they use credit cards to pay formonthly necessities because they can't affordthem otherwise. But 40% of those whoconsistently carry balances find it difficult tomake their minimum credit-card payments ontime each month.

How each generation can address theirconcernsFocusing on some basics may help babyboomers, Gen Xers, and millennials addresstheir financial concerns. Creating and stickingto a budget can make it easier to understandexactly how much money is needed forfixed/discretionary expenses as well as helpkeep track of debt. A budget may also be auseful tool for learning how to prioritize andsave for financial goals, including adding to anemergency savings account and retirement.

At any age, trying to meet the competingdemands of both short- and long-term financialgoals can be frustrating. Fortunately, there isstill time for all three generations to develophealthy money management habits andimprove their finances.

In its survey,PricewaterhouseCoopersdefined the generations ashaving these birth years:baby boomers: 1943-1960;Generation X: 1961-1981;millennials: 1982-1997. TheU.S. Census Bureau andother groups often definethese generational rangesdifferently.

Source:

"Employee FinancialWellness Survey,"PricewaterhouseCoopersLLP, April 2016

Page 3 of 4, see disclaimer on final page

Millennium AdvisoryServices, Inc.Antonio T. Kitt, CFP®Investment AdvisorRepresentative5340 Twin Hickory RoadGlen Allen, VA 23059877-435-2489mas@mcmva.comwww.mas-edu.com

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2017

This information is provided byMillennium Advisory Services, Inc. andis for information purposes only. Thecommentary was not drafted byMillennium Advisory Services, Inc. andtherefore we cannot guarantee theaccuracy, although we believe it to becorrect.

Broadridge Investor CommunicationSolutions, Inc. does not provideinvestment, tax, or legal advice. Theinformation presented here is notspecific to any individual's personalcircumstances.To the extent that this materialconcerns tax matters, it is not intendedor written to be used, and cannot beused, by a taxpayer for the purpose ofavoiding penalties that may be imposedby law. Each taxpayer should seekindependent advice from a taxprofessional based on his or herindividual circumstances.These materials are provided forgeneral information and educationalpurposes based upon publicly availableinformation from sources believed to bereliable—we cannot assure the accuracyor completeness of these materials.The information in these materials maychange at any time and without notice.

How can I pay off the credit card debt I racked up overthe holidays?It's a common occurrenceonce the holiday season windsdown — you reluctantly look atyour credit card statement and

wince at all the purchases you made over theholidays. Fortunately, there's no need to panic.Consider using one of the following strategiesto help pay it off.

Make a lump-sum payment. The best way topay off credit card debt is with a singlelump-sum payment, which would allow you topay off your balance without owing additionalinterest. Look for sources of funds you can usefor a lump-sum payoff, such as an employmentbonus or other windfall. However, mostindividuals find themselves getting into creditcard debt due to a lack of cash on hand in thefirst place, so this may not be an option foreveryone.

Pay more than the minimum due. If it's notpossible for you to pay off your balance entirely,always be sure to pay more than the requiredminimum payment due. Otherwise, you'llcontinue to carry the bulk of your balanceforward without actually reducing your overallbalance. You can refer to your monthly

statement for more information on the impactthat minimum payments will have on your creditcard balance.

Prioritize your payments. If you have multiplecredit cards that carry outstanding balances,another payoff strategy is to prioritize yourpayments and systematically pay off your creditcard debt. Start by making a list of your creditcards and prioritize them according to theirinterest rates. Send the largest payment to thecard with the highest interest rate. Continuemaking payments on your other cards until thecard with the highest interest rate is paid off.You can then focus your repayment efforts onthe card with the next highest interest rate, andso on, until they're all paid off.

Transfer your balances. Another option is totransfer your balances to a card that carries alower interest rate. Many credit card companiesoffer highly competitive balance transfer offers(e.g., 0% interest for 12 to 24 months). Balancetransfers may enable you to reduce interestfees and pay more against your existingbalance. Keep in mind that credit cards oftencharge a fee for balance transfers (usually apercentage of the balance transferred).

How can technology help me manage my money?It may seem that there's anapp or software program forevery purpose, and thatincludes managing yourmoney. Here are some

examples where technology may be useful inhelping you get a handle on your money.

Creating a budget: There are multiple appsavailable that enable you to input your monthlyincome and expenses to generate a budget thatfits your needs. Plus, some programs are ableto categorize and track transactions, whichcould help you see exactly how much youspend in certain areas on a month-to-monthbasis.

Setting reminders: Do you occasionally forgetto pay a particular bill? Or are you looking for aregular reminder to keep an eye on youraccount balances? Look for an app that letsyou schedule reminders that suit your needs,whether it's an alarm that goes off for monthlybills or a service that automates payments youmight otherwise forget to make.

Digitizing services: You're probably aware ofyour bank's direct-deposit services, but did youknow that you can send payments, request

refunds, and view transaction history using yourbank's mobile app? You can also find apps thatfeature calculators designed to help you makeinvestment decisions, as well as determine yournet worth, calculate the time value of yourmoney, and estimate your insurance needs,among other things.

Shopping (and saving): Some apps aredesigned specifically to help you save money ina variety of ways, from searching for the bestlocal deals to calculating the cost of drivingfrom point A to point B. If you'd like to dial backyour spending, look for an app that can helpyou cut costs. For example, apps can comparethe cost of groceries at one store againstanother, or help you find the lowest gas pricesin your area. That way, you can put the extramoney you have from being a savvy shoppertoward a long-term goal, such as retirement.

With some exploration, you may find additionalmoney-related apps. But bear in mind that eventhough many apps and services promisesecurity, technology isn't always reliable, andyou could fall victim to hackers. Think carefullybefore you provide information pertaining toyour bank account and income/spendinghistory.

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