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Meet our newest Investor Coach!


HFM Investment Advisors, LLC expanded its growing firm with the recent hiring of Catherine Allen-Carlozo, CERTIFIED FINANCIAL PLANNER.

Allen-Carlozo is an experienced financial professional, serving clients needs for more than 30 years. She joined the firm in late, 2018.

“I have been impressed with Catherine’s integrity and intelligence for a quite a long time. Her reputation, the genuine relationships she has with her clients and her stick-to-it-iv-ness are all virtues we value here at HFM,” said Michael Pallozzi, president the firm located in Glassboro, NJ.

Allen-Carlozo serves clients, many of whom are women growing or reclaiming their independence from a divorce or loss.

“At this moment in their lives, many of my clients want more than a snapshot view of their financial picture. It is my passion and goal to change the conversation about personal finance for women and help them experience lasting financial freedom. The culture Mike has established at HFM allows me to do that,” Allen-Carlozo said.

HFM Investment Advisors, LLC is an independent, fee-based investment management and financial planning firm that empowers our clients through coaching and discipline to reach a higher level of investing peace of mind. The firm has served clients South Jersey and the Greater Philadelphia region since 1989.


New Year, New Plan Limits!

IRS Limits on
Retirement Benefits & Compensation

The Internal Revenue Service has announced the 2019 deferral limits to save for your retirement. Below is a table outlining 401(k), SIMPLE IRA and IRA deferral limits. See if you can increase your deferral limit for the 2019 calendar year!

*If you are considered a Highly Compensated Employee, you may face restrictions on the amount you can defer. Talk with an HFM Investor Coach if you have questions about your deferral limits.




401(k), 403(b), 457 Elective Deferral Limit
 $ 18,500
Catch-up Contribution
(age 50 or older)
 $ 6,000
 $ 12,500
SIMPLE IRA Catch-up contribution (age 50 or older)
 $ 3,000
IRA Contribution Limit
 $ 5,500
IRA Catch-up Contribution
(age 50 or older)
 $ 1,000

All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful.

HFM is not in the business of providing legal advice with respects to ERISA or any other applicable law. The materials and information do not constitute, and should not be relied upon as, legal advice. HFM Investment Advisors LLC are not tax advisors and none of the information provided should be considered tax advice. Please consult your tax advisor for additional guidance relating to your personal tax situation.

New Team Member!

It is our pleasure to announce we are expanding our HFM team to include Investor Coach, Catherine Allen-Carlozo.

For more than 30 years, Catherine’s passion has been working in financial services focusing on the unique needs of women and helping small business owners develop and implement their individual financial plans. As a CERTIFIED FINANCIAL PLANNER ® for more than 10 years, Catherine is highly qualified to provide HFM’s excellent level of service to our clients.

Her involvement in the community on both the professional and personal level is extensive. Catherine is the president of South Jersey Women in Business group. She is also a member of NAWBO (National Association of Women Business Owners), the Society of Financial Service Professionals, the Estate and Financial Planning Council of Southern New Jersey, the National Association of Professional Women and the Financial Planning Association, local and national chapters. Other charities she supports include Habitat for Humanity, Camden County Women’s Center, and Operation Yellow Ribbon.

Catherine is also an accomplished speaker and will represent HFM well by providing her expertise in Financial Planning, Retirement Planning, Investment Management and many financial topics specific to women throughout our region.

We are constantly looking to improve our value and high level of service for our clients. Catherine’s experience, expertise and service philosophy make her a perfect addition to our HFM team. She has lived our mission to educate and empower clients to make wise financial decisions even before she joined our firm.

We are thrilled to welcome Catherine and look forward to introducing you to her the next time you visit the office.

New Tax Laws – What Has Changed

Here is a easy-to-read-summary of  the new tax laws:

Congress has just passed the most sweeping tax code overhaul in decades. The majority of its provisions kicked in on January 1st and many of the changes will expire after 2025. The tax law changes should have almost no effect on your 2017 tax return.

Let’s take a look at some of the more important provisions within the new law, and the likely effect on your taxes:

1. Tax brackets have changed.

The new law keeps seven tax brackets but changes the tax rates, which shifts income into lower tax brackets. The long-term capital gains tax rates remain essentially unchanged, and short-term capital gains will be taxed at the new ordinary income tax rates.

Most (although not all) taxpayers will owe less under the new rules, according to analyses by various independent think tanks, including the Tax Foundation and the Tax Policy Center. The impact of the changes will vary based on each taxpayer’s income level, amount of itemized deductions and other factors.

Former ordinary income tax brackets compared with brackets in the new law for tax year 2018.


Currently, the top tax bracket for married couples filing jointly is 39.6% and applies to incomes over $480,050. In the final tax bill the top rate would still be 37%, but it would apply to incomes over $500,000 for singles filers and $600,000 for married/joint filers.
Formerly, the top tax bracket for married couples filing jointly was 39.6% and applied to incomes over $480,050. Under the new tax code the top rate is 37% and applies to incomes over $500,000 for single filers and $600,000 for married/joint filers.

Source: Schwab Center for Financial Research.

2. The standard deduction has increased.

The new law nearly doubles the standard deduction, to $12,000 from $6,350 for single filers, and to $24,000 from $12,700 for married filers. About 70% of taxpayers claim the standard deduction, so most taxpayers claiming this deduction likely will benefit from this change.

If you’re a low- or middle-income household, an increased standard deduction combined with an increased child tax credit should lower your tax bill.

3. Some itemized deductions have been reduced or eliminated.

The new law reduces or eliminates many itemized deductions in favor of a higher standard deduction. These include:

  • Limiting the deduction for state and local income taxes, property taxes, and real estate taxes to $10,000.
  • Limiting the mortgage interest deduction to $750,000 of indebtedness.
  • Eliminating all miscellaneous itemized deductions.

Here are the itemized deductions that remain relatively unchanged:

  • Medical expenses: The new law preserves the deduction for medical expenses and temporarily reduces the limitation from 10% to 7.5% of adjusted gross income for tax years 2017 and 2018. Beginning in 2019, only medical expenses that exceed 10% of adjusted gross income are deductible.
  • Charitable donations: The new law preserves all the major charitable donation deductions, with the exception of few specific deductions (such as the deduction for payments made in exchange for college athletic event seats).

All else being equal, if you’re in a high-income household in a high-tax state, with a mortgage and high property taxes, these changes could end up increasing your tax liability. However, if you don’t normally itemize your deductions these changes won’t be an issue, and the increased standard deduction should end up benefiting you.

4. The child tax credit has increased.

The new law increased the child tax credit to $2,000 from $1,000, and the income level of households eligible for the credit. The tax credit is fully refundable up to $1,400, and begins to phase out for married/joint filers at income of $400,000 and for single filers at $200,000.

Tax credits are generally better than tax deductions, because credits reduce your taxes dollar-for-dollar, while deductions only lower your taxable income. This change should benefit low- and middle-income households with children.

5. The personal exemption and dependent deduction have been eliminated.

The new law eliminates the $4,050 personal exemption and dependent deduction. When combined with the increased standard deduction and increased child tax credit, lower- and middle-income households should see a net benefit despite the elimination of these deductions.

However, higher-income taxpayers could see an increased tax bill from this proposal if they have large families and don’t qualify for the child tax credit, because of the income phase-outs within the tax bill.

6. The alternative minimum tax (AMT) was changed but not eliminated.

The new law increases both the exemption and the exemption phase-out amount for the individual AMT. Beginning in 2018 and ending in 2025, the AMT exemption amount is increased to $109,400 for married taxpayers filing a joint return and $70,300 for all other taxpayers. The phase-out thresholds are increased to $1 million for married taxpayers filing a joint return, and $500,000 for all other taxpayers.

These changes should benefit many middle- and high-income households that were previously affected by this tax.

7. Treatment and calculation of cost basis on investment sales remains unchanged.

The Senate tax bill had a provision that would have required investors to use the “first-in, first-out” (FIFO) method to calculate cost basis for investment sales. Investors can breathe a sigh of relief, as this provision was not included in the new tax law.

8. Changes to the taxation of income from pass-through entities.

This is a complex area of tax law, and the new law includes numerous changes to the taxation of income from pass-through entities such as S corporations, limited-liability corporations and partnerships. In general, the new law allows businesses to exclude 20% of their net income from taxation, subject to certain limitations. The deduction could also be limited or disallowed for specified service trades—such as lawyers, doctors and accountants—based on an income threshold.

Overall the changes to the taxation of pass-through entities will be beneficial to many business owners, but a lot of service businesses won’t get to enjoy all the benefits of these changes.

9. The corporate tax rate has declined.

The new tax law reduces the corporate tax rate to flat 21% from the highest 35% rate in the prior system. Lowering the corporate tax rate will increase the profits of many companies, which could provide additional capital for business expansion, increase dividends to shareholders and make the U.S. a more attractive place for foreign businesses to open operations.

10. There were no changes to tax-deferred retirement accounts.

Early on in the tax debate, it was rumored that there could be changes to the deductions taxpayers receive for contributing to tax-deferred retirement accounts, such as IRAs or 401(k) retirement plans. The new tax law did not include changes to tax deferred accounts.

Bottom line:

It’s important to remember that the impact of any of these changes on your personal tax liability will depend on your specific circumstances. In addition, the individual components of your tax bill, including earned income, credits, deductions and other factors work together, like interacting cogs. Therefore, each factor should not be assessed solely in isolation.


Questioning Your Financial Future?

…many people do.

Even if you have an investment strategy it may not bring you true investing peace of mind. The vast majority of investment choices are driven by emotional and psychological factors rather than on logic and rational thought.

Our Investors Dilemma Report outlines the process investors go through when facing important financial decisions and how your emotions could trip you up along the way.

Read about how uncertainty plays a large role in dictating how investors feel as well as how they behave. Bonus: Learn the three simple rules of investing and much more.

At HFM we believe the difference–maker to helping clients have a successful investing experience is sensible investor coaching from a experienced Advisor. Coaching can help guide you to make non-emotional financial decisions.

Click HERE to download our free report today!