CFS, Inc.Michael Butler, CFA® InstitutePresident/Financial Advisor3190 Whitney AvenueBuilding 6, Suite 2Hamden, CT 06518203-248-1972cfs@cooperfinservices.comwww.cooperfinservices.com

November 2018

Building Confidence in Your Strategy forRetirement

Ten Year-End Tax Tips for 2018

How can I protect my personal and financialinformation from credit fraud and identity theft?

How can I safely shop online this holidayseason?

CFS Advisory NewsletterPlanning Your Financial Future

What to Do If Your Term Life Insurance Policy Is About to Expire

See disclaimer on final page

One advantage of term lifeinsurance is that it isgenerally the mostcost-effective way toachieve the maximum lifeinsurance protection youcan afford. Many peoplefirst purchase term life

insurance to protect their family's financialinterests after a significant life event, such asgetting married or the birth of a child.

You may have done the same for your familywhen you purchased your policy years ago.And chances are, other than paying thepremiums, you probably haven't given it muchthought since then. However, if your term lifeinsurance policy is set to expire in the nearfuture, it's important to explore your optionsnow before the coverage runs out.

Before you get started, you first need toreevaluate your life insurance needs anddetermine if anything has changed. Are yourchildren grown and have they graduated fromcollege? Do you have a mortgage? If you havefinancial obligations that you need to take careof, you may still need term life insurance. If youare nearing retirement and have fewer financialobligations than you did when you wereyounger, your need for a term life insurancepolicy may not be as great as it once was.

Purchasing a new policyIf you are in relatively good health and yourcurrent term life insurance policy is about to runout, you might consider purchasing a new termpolicy altogether. When applying for a new termlife insurance policy, you will generally need topass a medical exam. In addition, since you areolder now, your premiums may be higher thanthey were under your old policy. However, youmay not need as large a policy as you did whenyou first purchased term life insurance yearsago. It may pay to shop around and comparebecause premiums can vary among insurers.

Renewing your existing policyWhen the coverage period for your term lifeinsurance ends, you may have the option torenew the policy, depending on the specific

policy and limitations. Though you won't berequired to take a medical exam if you renewyour policy, the rate will generally increaseeach time it is renewed for an additional termbecause your age has increased (as has theinsurance company's risk of paying a deathbenefit). These increased premium costs cansometimes make renewing a term life insurancepolicy an expensive way to cover your lifeinsurance needs.

Converting your policy to permanentlife insuranceIf you have a convertible term life insurancepolicy, you may be able to convert it to apermanent life insurance policy, such as wholeor universal life insurance. Permanentinsurance continues throughout your life aslong as you pay the premiums. As with terminsurance, permanent insurance pays a deathbenefit to your beneficiary at your death, but italso contains a cash value account funded byyour premium dollars. When you convert yourpolicy, you won't need to prove your insurabilityby taking a medical exam. However, there isusually a conversion deadline, which is the dateby which you must convert, typically beforeyour term life insurance is set to expire.

The cost and availability of life insurancedepend on factors such as age, health, and thetype and amount of insurance purchased. Aswith most financial decisions, there areexpenses associated with the purchase of lifeinsurance. Policies commonly have mortalityand expense charges. In addition, if a policy issurrendered prematurely, there may besurrender charges and income tax implications.Any guarantees are contingent on theclaims-paying ability and financial strength ofthe issuing company.

The rules governing 1035 exchanges arecomplex and you may incur surrender chargesfrom your "old" life insurance policy. In addition,you may be subject to new sales and surrendercharges for the new policy.

Page 1 of 4

Building Confidence in Your Strategy for RetirementEach year, the Employee Benefit ResearchInstitute (EBRI) conducts its RetirementConfidence Survey to assess both worker andretiree confidence in financial aspects ofretirement. In 2018, as in years past, retireesexpressed a higher level of confidence thantoday's workers (perhaps because "retirement"is less of an abstract concept to those actuallyliving it). However, worker confidence seems tobe on the rise, while retiree confidence is on thedecline. A deeper dive into the research revealslessons and tips that can help you build yourown retirement planning confidence.

Create a foundation of predictablesources of incomeWorkers surveyed expect to rely less ontraditional sources of guaranteed income — adefined benefit pension plan and SocialSecurity — than today's retirees. More than 40%of retirees say that a traditional pension planprovides them with a major source of income,and 66% say that Social Security is a primarysource. Yet just one-third of today's workersexpect either a pension or Social Security toplay a big role.

Understand how Social Security works.Although nearly half of today's workers say theyhave considered how their Social Securityclaiming age could affect their benefit amount,the median age at which they plan to claimbenefits is 65. Moreover, less than a quarter ofrespondents say they determined their futureclaiming age with benefit maximization in mind.Why does this matter? It's because the vastmajority of today's workers won't be able tocollect their full Social Security retirementbenefit until sometime between age 66 and 67,depending on their year of birth. Claimingearlier than that results in a permanentlyreduced benefit amount. To help ensure youmake the most of your Social Security benefits,take the time to understand the ramifications ofdifferent claiming ages and strategies beforemaking any final decisions.

Consider creating your own "pension"income. Eight in 10 workers in the EBRI surveyhope to use their defined contribution planassets [e.g., 401(k) or 403(b)] to purchase aproduct that will provide a guaranteed stream ofincome during retirement. Depending onindividual circumstances, this could be a wisemove. To help provide yourself with a steadystream of income, you might considerannuitizing a portion of your retirement planassets or purchasing an immediate annuity,

a contract that promises to pay you a steadystream of income for a fixed period of time orfor life in exchange for a lump-sum payment.1

When combined with your Social Securitybenefits, the payments received from animmediate annuity can help ensure that youreveryday "fixed" expenses are covered. Anyadditional assets can then be earmarked forfuture growth potental and "extras," such astravel and entertainment.

Pay attention to your health — andhealth-care costsHealth. The EBRI survey revealed a correlationbetween health and retirement planningconfidence. For example, 60% of today'sworkers who are confident in their retirementprospects also report being in good or excellenthealth, while only a little more than a quarter ofthose who are not confident report similar levelsof health. Moreover, 46% of retirees who saythey are confident also say they are in goodhealth, compared with just 14% of those whoare not confident.

The lesson here is pretty straightforward:Healthy habits may pay off in healthy levels ofconfidence. Eat plenty of fruits and vegetables,exercise, get enough sleep, and take steps tominimize stress. And don't skip importantpreventive checkups and lab tests. Keep inmind that even the most diligent savingsstrategies can be thrown off track byunexpected medical costs.

Health-care costs. The percentage of retireeswho are at least somewhat confident that theywill have enough money to cover medicalexpenses in retirement has dropped from 77%in 2017 to 70% in 2018. And four out of 10retirees say that health-care expenses are atleast somewhat higher than they expected.However, retirees who have estimated theirhealth-care costs (39% of respondents) aremore likely to say their expenses are aboutwhat they expected them to be. On the otherhand, just 19% of workers have calculated howmuch they will need to cover their healthexpenses in retirement.

If you have not yet thought about how much ofyour retirement income may be consumed byhealth-care costs, now may be the time to startdoing so. Having at least a general idea of whatyour medical expenses might be will help youmore accurately project your overall retirementsavings goal.

In 2018, 64% of workerssurveyed were eithersomewhat or very confidentin their ability to affordretirement, up from 60% in2017. Among retireessurveyed in 2018, 75% wereconfident, down from 79% in2017.

Source: 2018 RetirementConfidence Survey, EBRI1 Guarantees are contingenton the claims-paying abilityand financial strength of theannuity issuer. Generally,annuity contracts have feesand expenses, limitations,exclusions, holding periods,termination provisions, andterms for keeping theannuity in force. Mostannuities have surrendercharges that are assessed ifthe contract ownersurrenders the annuity.Withdrawals of annuityearnings are taxed asordinary income.Withdrawals prior to age59½ may be subject to a10% federal income taxpenalty.

Page 2 of 4, see disclaimer on final page

Ten Year-End Tax Tips for 2018Here are 10 things to consider as you weighpotential tax moves between now and the endof the year.

1. Set aside time to planEffective planning requires that you have agood understanding of your current taxsituation, as well as a reasonable estimate ofhow your circumstances might change nextyear. There's a real opportunity for tax savingsif you'll be paying taxes at a lower rate in oneyear than in the other. However, the window formost tax-saving moves closes on December31, so don't procrastinate.

2. Defer income to next yearConsider opportunities to defer income to 2019,particularly if you think you may be in a lowertax bracket then. For example, you may be ableto defer a year-end bonus or delay thecollection of business debts, rents, andpayments for services. Doing so may enableyou to postpone payment of tax on the incomeuntil next year.

3. Accelerate deductionsYou might also look for opportunities toaccelerate deductions into the current tax year.If you itemize deductions, making payments fordeductible expenses such as medicalexpenses, qualifying interest, and state taxesbefore the end of the year, instead of payingthem in early 2019, could make a difference onyour 2018 return.

4. Factor in the AMTIf you're subject to the alternative minimum tax(AMT), traditional year-end maneuvers such asdeferring income and accelerating deductionscan have a negative effect. Essentially aseparate federal income tax system with itsown rates and rules, the AMT effectivelydisallows a number of itemized deductions. Forexample, if you're subject to the AMT in 2018,prepaying 2019 state and local taxes probablywon't help your 2018 tax situation, but couldhurt your 2019 bottom line. Taking the time todetermine whether you may be subject to theAMT before you make any year-end movescould help save you from making a costlymistake.

5. Bump up withholding to cover a taxshortfallIf it looks as though you're going to owe federalincome tax for the year, especially if you thinkyou may be subject to an estimated tax penalty,consider asking your employer (via Form W-4)to increase your withholding for the remainderof the year to cover the shortfall. The biggest

advantage in doing so is that withholding isconsidered as having been paid evenly throughthe year instead of when the dollars are actuallytaken from your paycheck. This strategy canalso be used to make up for low or missingquarterly estimated tax payments. With all therecent tax changes, it may be especiallyimportant to review your withholding in 2018.

6. Maximize retirement savingsDeductible contributions to a traditional IRA andpre-tax contributions to an employer-sponsoredretirement plan such as a 401(k) can reduceyour 2018 taxable income. If you haven'talready contributed up to the maximum amountallowed, consider doing so by year-end.

7. Take any required distributionsOnce you reach age 70½, you generally muststart taking required minimum distributions(RMDs) from traditional IRAs andemployer-sponsored retirement plans (anexception may apply if you're still working forthe employer sponsoring the plan). Take anydistributions by the date required — the end ofthe year for most individuals. The penalty forfailing to do so is substantial: 50% of anyamount that you failed to distribute as required.

8. Weigh year-end investment movesYou shouldn't let tax considerations drive yourinvestment decisions. However, it's worthconsidering the tax implications of any year-endinvestment moves that you make. For example,if you have realized net capital gains fromselling securities at a profit, you might avoidbeing taxed on some or all of those gains byselling losing positions. Any losses over andabove the amount of your gains can be used tooffset up to $3,000 of ordinary income ($1,500if your filing status is married filing separately)or carried forward to reduce your taxes in futureyears.

9. Beware the net investment incometaxDon't forget to account for the 3.8% netinvestment income tax. This additional tax mayapply to some or all of your net investmentincome if your modified adjusted gross income(AGI) exceeds $200,000 ($250,000 if marriedfiling jointly, $125,000 if married filingseparately, $200,000 if head of household).

10. Get help if you need itThere's a lot to think about when it comes to taxplanning. That's why it often makes sense totalk to a tax professional who is able toevaluate your situation and help you determineif any year-end moves make sense for you.

Timing of itemizeddeductions and theincreased standarddeduction

The Tax Cuts and Jobs Act,signed into law in December2017, substantially increasedthe standard deductionamounts and made significantchanges to itemizeddeductions, generally startingin 2018. (After 2025, theseprovisions revert to pre-2018law.) It may now be especiallyuseful to bunch itemizeddeductions in certain years; forexample, when they wouldexceed the standard deduction.

IRA and retirement plancontributions

For 2018, you can contributeup to $18,500 to a 401(k) plan($24,500 if you're age 50 orolder) and up to $5,500 to atraditional or Roth IRA ($6,500if you're age 50 or older). Thewindow to make 2018contributions to an employerplan generally closes at theend of the year, while youtypically have until the due dateof your federal income taxreturn (not includingextensions) to make 2018 IRAcontributions.

Page 3 of 4, see disclaimer on final page

CFS, Inc.Michael Butler, CFA® InstitutePresident/Financial Advisor3190 Whitney AvenueBuilding 6, Suite 2Hamden, CT 06518203-248-1972cfs@cooperfinservices.comwww.cooperfinservices.com

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2019

IMPORTANT DISCLOSURES

Cooper Financial Services, Inc. doesnot provide investment, tax, or legaladvice. The information presentedhere is not specific to any individual'spersonal circumstances. Securitiesoffered through our affiliateBroker/Dealer, CFS Securities, Inc.,Member FINRA & SIPC.

To the extent that this materialconcerns tax matters, it is notintended or written to be used, andcannot be used, by a taxpayer for thepurpose of avoiding penalties thatmay be imposed by law. Eachtaxpayer should seek independentadvice from a tax professional basedon his or her individualcircumstances.

These materials are provided forgeneral information and educationalpurposes based upon publiclyavailable information from sourcesbelieved to be reliable—we cannotassure the accuracy or completenessof these materials. The information inthese materials may change at anytime and without notice.

How can I safely shop online this holiday season?Shopping online is especiallypopular during the holidayseason, when many peopleprefer to avoid the crowds andpurchase gifts with a few clicks

of a mouse. However, with this conveniencecomes the danger of having your personal andfinancial information stolen by computerhackers.

Before you click, you might consider thefollowing tips for a safer online shoppingexperience.

Pay by credit instead of debit. Credit cardpayments can be withheld if there is a dispute,but debit cards are typically debited quickly. Inaddition, credit cards generally have betterprotection than debit cards against fraudulentcharges.

Maintain strong passwords. When you orderthrough an online account, you should create astrong password. A strong password should beat least eight characters long, using acombination of lower-case letters, upper-caseletters, numbers, and symbols or a randomphrase. Avoid dictionary words and personalinformation such as your name and address.Also create a separate and unique password

for each account or website you use, and try tochange passwords frequently. To keep track ofall your password information, consider usingpassword management software, whichgenerates strong, unique passwords that youcontrol through a single master password.

Beware of scam websites. Typing one wordinto a search engine to reach a particularretailer's website may be easy, but it sometimeswon't bring you to the site you are actuallylooking for. Scam websites may contain URLsthat look like misspelled brand or store namesto trick online shoppers. To help you determinewhether an online retailer is reputable, researchsites before you shop and read reviews fromprevious customers. Look for https:// in the URLand not just http://, since the "s" indicates asecure connection.

Watch out for fake phishing and deliveryemails. Beware of emails that contain links orask for personal information. Legitimateshopping websites will never email you andrandomly ask for your personal information. Inaddition, be aware of fake emails disguised aspackage delivery emails. Make sure that alldelivery emails are from reputable deliverycompanies you recognize.

How can I protect my personal and financial informationfrom credit fraud and identity theft?In today's digital world,massive computer hacks anddata breaches are commonoccurrences. And chances

are, your personal or financial information isnow susceptible to being used for credit fraudor identity theft. If you discover that you are thevictim of either of these crimes, you shouldconsider placing a credit freeze or fraud alert onyour credit report to protect yourself.

A credit freeze prevents new credit andaccounts from being opened in your name.Once you obtain a credit freeze, creditors won'tbe allowed to access your credit report andtherefore cannot offer new credit. This helpsprevent identity thieves from applying for creditor opening fraudulent accounts in your name.

To place a credit freeze on your credit report,you must contact each credit reporting agencyseparately either by phone or by filling out anonline form. Keep in mind that a credit freeze ispermanent and stays on your credit report untilyou unfreeze it. This is important, because ifyou want to apply for credit with a new financialinstitution in the future, open a new bankaccount, or even apply for a job or rent an

apartment, you will need to "unlock" or "thaw"the credit freeze with each credit reportingagency.

A less drastic option is to place a fraud alert onyour credit report. A fraud alert requirescreditors to take extra steps to verify youridentity before extending any existing credit orissuing new credit in your name. To request afraud alert, you only have to contact one of thethree major reporting agencies, and theinformation will be passed along to the othertwo.

Recently, as part of the Economic Growth,Regulatory Relief and Consumer Protection Actof 2018, Congress made several changes tocredit rules that benefit consumers. Under thenew law, consumers are now allowed to"freeze" and "unfreeze" their credit reports freeof charge at all three of the major creditreporting bureaus, Equifax, Experian, andTransUnion. In addition, the law extends initialfraud alert protection to one full year.Previously, fraud alerts expired after 90 daysunless they were renewed.

Page 4 of 4