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TAX CUTS
THE WORK LAW THAT OFFERS TAX CUTS The Trump Administration achieved one of its top legislative goals by helping to pass the first comprehensive tax reform legislation in over 30 years. The Tax Cuts´ Jobs Act delivers tax cuts to middle-income families and makes American businesses more competitive. Treasury played a critical role in developing this legislation, and is now working to implement it. Secretary Mnuchin worked with Members of Congress throughout the legislative process to develop and refine a plan to cut taxes for hardworking Americans and their families. The Tax Cuts´ Jobs Act doubles the standard deduction taken by most taxpayers so that the first $24,000 of earnings for families and $12,000 for individuals are tax free, referred to as the “zero bracket.” Among other efforts, the legislation also expands the Child Tax Credit to provide additional relief to working families. In addition to cutting taxes, the legislation simplifies the tax code to make it fairer by eliminating many special interest loopholes, which benefit the well-connected at the expense of everyday Americans.
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Under the Tax Cuts Jobs Act, most taxpayers will be able to file their taxes on a single sheet of paper. Tax reform is also about making american business rates more competitive so that companies will create jobs, increase wages, and invest here in America. That is why the Tax Cuts´ Jobs Act moves the United States from the “Offshoring Model,” which has been harmful to American workers and families, to the “American Model.”
and sole-proprietorships. Secretary Mnuchin and his team have met with hardworking americans and business leaders across the country to discuss these policies. Treasury will continue working with Congress to implement these reforms to provide relief to american families and make America’s businesses more competitive.
The legislation cuts the tax rate on C-Corporations from 35% to 21%, to level the playing field that currently favors other industrialized countries. It also helps small and familyowned businesses, which are the engines of job creation in America by cutting rates for pass-through entities like LLC´s, partnerships,
Source: https://www.forbes.com.mx/tag/economia-y-finanzas-estados-unidos/
CONTENT REPORT 2
TAX CUTS
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H&G FINANCIAL HISTORY
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The 9 most powerful ďŹ nancial brands in the world .
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Knowing the Financial System in the USA 16 THAT SCARE PEOPLE.
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5 Recommendations to Invest in the Financial Market
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H&G Financial LLC, was born on 2017 in Massachusetts as a company created for those who want to grow and expand their business, and people who dream of having their own business. Our clients are our main priority, which is why we strive to give clients the best service experience. Our highly trained and specialized staff will help you understand and facilitate all the information needed as they guide you through the processes needed to boost your business. At H&G Financial, we know what you need to grow your business, and that is why we offer each of the following services to you:
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· Loans · Accounting · Income Tax Services · Financial Advisory · Commercial Loan Licenses · Business Insurance · Payroll Services · Car Loans · Real Estate
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H&G Financial, LLC. had the community in mind since the beginning, this is why we offer a 5% interest rate for each investor. Those who have investments with us, can withdraw their money at any time, without any penalties. All earnings are outside taxes because our company pays taxes each year.
· Web Design · Advertising 5
The 9 most powerful financial
brands in the
world 3.- Goldman Sachs / Country: United States / Brand Value: US $7,6 Billion Dollars - After becoming a commercial bank after the 2008 financial crisis, the Goldman Sachs Group has experienced a negative response from the global financial community. The company was devalued by 2.1 billion dollars in a single day and in that same year it registered a decrease of -16% compared to 2011.
1.- American Express / Country: United States / Brand Value: US $15,7 Billion - The financial institution has more than 1,700 offices in 130 countries worldwide. Last year they launched an initiative to improve its online services designed to improve the experience of its customers. Part of their success lies in a wide range of services and credit cards designed for each type of business and consumer. It is ranked as the best credit company in the United States and showed an 8% growth compared to last year.
4.- Citi / Country: United States / Brand Value: US $7,5 billion dollars - Citi Group is considered by many as the largest financial services firm in the world. However the reputation of its brand has been affected in recent years due to the economic crisis. The brand that combines credit services with insurance suffered a devaluation of - 12%.
2.- HSBC / Country: United Kingdom / Brand Value: US $11,3 Billion Dollars - The firm that boasts of being the “Local Bank of the World” has more than 10 thousand offices in 82 countries. Their headquarters are currently in London, but a couple of decades ago they were in Hong Kong. It was one of the first banks to work in China with debit services, but was also involved in several irregularities that have caused serious damage to its reputation. It showed a decrease of -4%.
5.- Morgan Stanley / Country: United States / Brand Value: US $7,2 billion dollars - The firm entered position 54 of the most valuable brands of Interbrand for the second year in a row, and is now one of the few financial brands to show growth; in their case, one of 6
Brands in the World”. It is the leading mobile payment company and continues to gain ground against its main rivals, Visa and American Express.
9%. However, people will remember Morgan Stanley for mishandling Facebook´s IPO in May of this year, whose shares fell dramatically after opening at US $38 each.
9.- Credit Suisse / Country: Switzerland / Brand Value: US $3,8 billion dollars - After the recent economic turbulence, Europe´s Credit Suisse launched a powerful advertising campaign with the aim of positioning the brand as a luxury firm, however this could not prevent a loss in the brand value of -5%.
6.- Visa / Country: United States / Brand Value: US $4,9 billion dollars. - One of the most popular card firms in the world. Visa helps users around the world to stop using checks and eliminate the risk of carrying cash. With a growth of 10%, the brand continues to develop technologies for its mobile platforms. During the past Olympic Games the firm was one of the main sponsors. 7.- Santander / Country: Spain / Brand Value: US $4,7 billion dollars - After two decades, Santander has emerged as one of the most widespread banks in Europe and was named the “Best Retail Bank” in the world by Euromoney in 2012. The firm has demonstrated its commitment to increase the level of satisfaction of its customers by developing a special program to meet their financial needs. However, the crisis also affected them image of the brand has fallen 6% over last year. 8- MasterCard / Country: United States / Brand Value: US $3,8 billion dollars. This year, MasterCard debuted 94th in Interbrand´s ranking of “The Best
Source: https://www.informabtl.com/las-10-marcas-financierasmas-poderosas-del-mundo/n
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Knowing the Financial System in the US. The financial system in the United States is a separate world if we compare it to the European Union or the United Kingdom. While the European Union concentrates power in a number of consolidated entities and leaders, the United States have a large number of financial institutions operating. The United States underwent a change in its economic model in the 1980´s. This change implied a high level of indebtedness and a progressive deterioration of financial institutions. procedure related to the Central Banks. We are reviewing the most frequent operations and the way to access them.
Border restrictions prevented banks from moving beyond their borders, which made competitiveness impossible. Today, after almost 30 years, the situation is already balanced and mergers, agreements and strategic alliances have increased dramatically, and only in Hawaii has the ban on interstate banking still in effect. In the rest of the country, it is allowed to operate in different states under a single brand.
Bank accounts As a general rule, you will need 100 dollars of income, your insurance card and one form of ID. Accepted forms of ID can be a passport and/or driver´s license. Various forms of accounts are contemplated in order to satisfy all the needs of the clients, depending on what use you plan to give the account.
Federal Reserve It is convenient to remember that, in spite of the economic crisis and the slow recovery of the american economy, it is one of the largest financial powers in the world. The financial system in the United States is controlled through the Federal Reserve, a government entity that operates under the
Types of bank accounts • Checking Account: An account that is characterized by the ability of the use of checks. This type of accounts, allows the 10
linking of a debit card. Most entities do not charge interest for the maintenance of this type of accounts.
or protected, so they do not guarantee the stability of their savings. If you have the possibility, we recommend that you prioritize entities with e-banking platforms; You can perform basic operations with your account and your credit and debit cards, without having to pay for commissions and interest.
• Money Market: This type of accounts also allow the use of checks and are savings accounts in which the customer deposits their savings in exchange for a payment. They are not liquid accounts in their totality since it only allows six monthly withdrawals, three of them with a check.
Bank cards Once you determine the type of bank you need and the bank account that suits your needs, you should evaluate the possession of a bank card, because of it´s convenience. There are several types of bank cards designed to suit the different needs of customers:
• Savings Account: Another type of bank account for saving. In this case, a more exhaustive type of savings since they don´t allow the use of checks, although a debit card may be issued. • Certificates of Deposit: This is a savings and investment product in which the collection of interests for a predetermined period of fixed time is guaranteed. During this period, funds cannot be withdrawn. There are entities that allow the recovery of funds before the expiration of the product but they have a commission known as a “penalty commission”.
Debit cards or ATM cards - These cards are those whose operations are immediately loaded into the customer´s bank account. Credit cards - This type, on the other hand, carries out credit transactions and is paid the following month on the agreed payment date at the time of signing the contract. It contemplates the possibility of splitting the payment in installments and minimum amounts to those in which the entity applies an interest rate on the loan and advance of the funds.
• Free Accounts: This type of accounts offers the most common banking operations in the Low Cost banking line. Low cost and total liquidity. Choice of bank
Purse cards - A relatively recent form of card containing a rechargeable chip. This type of card is ideal for young people and is considered an original gift, since the chip is charged with a certain amount and the card will be operative until the available funds are exhausted.
The first thing you must be very clear on before you start looking for a bank to work with in the United States is what type of operation you need and what you are looking for. As general advice and regardless of your specific circumstances, we recommend that you opt for an entity with a large ATM network to minimize the costs applied to cash withdrawals.
Business cards - This type of cards are issued by commercial stores, supermarkets, travel agencies, gas stations, etc. With bank cards issued by US banks, cash withdrawals and purchases can be made in all countries of the world.
Make sure it is a federal and insured entity, do not opt for off-shore entities that, although they can offer very attractive interests and conditions, they are not regulated 11
well as a credit history without unpaid debts.
You should know that, if you travel to the United States, banks have adapted their network of ATMs and POS terminals to Visa, American Express, Discover Card and Master Card.
Final recommendations Now that you know the characteristics of the most used financial products and their guidelines, you can make the right choice of bank work you want to work with. As a final recommendation, we remind you to evaluate in a responsible manner and analyze your current economic situation as much as possible.
Travel cards - This financial instrument allows you to exchange it for cash in the currency of the country where you are located. They are issued by banks and their money conversion is also made through banks, although in some countries, hotels and shops are also authorized to exchange them. To change a traveler´s check, you only need to prove who you are with your passport. As with bank cards, travelers checks are money, so in the event of theft or loss you must immediately notify your bank so that they proceed to the cancellation and credit the amount back in your checking account.
Concentrate on the financial instruments that adapt to your needs, since it is the only way to optimize the expenses and commissions that the financial entities charge for the banking services provided.
As a main disadvantage, the inherent commissions to its emission stand out and, unlike the US, not all the countries accept them. How to Apply for a card in the United States The basic requirements are having reached age majority, being able to present an insurance card, proof of residency in the United States, having a work contract, as
Source: https://coyunturaeconomica.com/finanzas/sistema-financiero-usa
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FINANCIAL TOPICS
THAT SCARE PEOPLE. These are fears that affect in such a way that people tend to be motivated to save or want to make money for a better future. Like it or not, there will always be common fears that will terrify most people. Ingrid Quezada, PR & marketing manager of FOL, online fund investment platform Mutual, took advantage of the upcoming celebration of Halloween to draw up a list of fears, or the most common problems that affect people when thinking about their future or financial issues, which motivates them to save or want to capitalize on their money for a better future. These are the most common fears, according to the specialist:
Fear number 1: It consists of “not having enough money for retirement� and it is a widespread fear in the population for the low pensions that many Chileans face today.
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Fear number 2 “Not having money to pay for a serious health problem”. This is when it´s fundamental to think of the word ‘savings’ and that each person can mentalize and try to save, because it will serve them in case of emergencies, added Quezada.
Fear number 3 According to Quezada, it is the one that affects young people when they become independent and then put together a family. There is a fear of not being able to maintain the standard of living they had when they lived at home with their parents.
Fear number 4 “Spending more than what you earn and then not having money to pay expenses and credits of consumption.” This is usually a planning mistake, so the ideal thing to do is to create a monthly budget and prioritize all your needs and know what is is that you wish to have someday, said the PR & Marketing manager of FOL.cl.
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Fear number 5 This one is a bit more common in people: “Fear of not having money for health, life, fire or any type of insurance.” There are studies that indicate that, a person would be happier in their life, if they had the opportunity to be insured, not just personally, but also by having their asssets insured, said the professional.
Fear number 6 Another fear that affects almost everyone is that of losing their jobs and, therefore, losing their source of income. “This affects us because many times we don´t know how to get ahead in this difficult situation, and especially if there is a family who depends on us; it causes a lot of fear and anguish” she said. Quezada suggests to avoid these fears or to try to face them in a better way, to make an effort is saving “I know it’s hard, but you should save, not what you have left over after paying all expenses. Take a small portion of your income and link it to a goal or an achievable purpose, so that every month you motivate yourself to go deposit more and more.” she said.
Source: https://mba.americaeconomia.com/articulos/ notas/6-temas-financieros-que-asustan-las-personas
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5 RECOMMENDATIONS TO INVEST IN THE FINANCIAL MARKET The decision to invest is usually preceded by a process of uncertainty and expectation about the success that will be had. Many times investors tend not to act simply because they have some fear of failure. These 5 recommendations are the basis for participating in the market.
1- Diversified portfolio It is mainly related to investor protection. You must invest in different sectors and different types of assets (stocks, bonds, futures, options, etc.) With a diversified portfolio in sectors and industry, if a fall occurs in any of the assets of your investment portfolio, the negative effect will not be so great, because the other assets that make up the portfolio will compensate for the loss. It is directly linked to the “negative correlation of assets�, which indicates that if an asset moves in one direction the other then it will have the opposite reaction, so if one suffers a fall then the other asset will compensate the fall with a increase in its price.
2- Determine the trend It is important to determine the direction in which the market is moving. Many individual investors are taken out of their position or lose the opportunity to have higher profits simply because the market makes a correction and they opt out because of fear. So the determination of the trend is one of the main and basic tools to succeed in the stock market. We know that the market will always be bigger than the investors, but this does not mean that it is unbeatable. Betting against the market is a move that can be attractive to many investors, so they would be willing to accept greater risk for their investments. So if the investors want to make a decision on how their investment will be made, they must recognize the market trend and then determine the direction in which they want to set their money outlay. For example, if you want to invest in Apple, you must first determine how your price is behaving (in the last year, month or week) and where it is going, taking into account the relevant aspects that affect that company (sales, production, etc.) 22
3-Analyze the “momentum” Momentum reflects in an asset and its current behavior and can give references of what the trend will follow later. This tool can tell you if an asset that is having a great performance, will follow that same path or not. It shows exactly the rate of change in the price of the asset. The theories associated with this tool have as referenced such phrases as “stay with the trend” or “the trend is your friend”, and what they mean is that you should not go against the direction where the market is going, as we explained in the previous point. So if they stay aligned both the market trend and its momentum it is a positive sign for investors. Basically we could define “momentum” as the acceleration in the price of an asset, which can increase or decrease, thus affecting its price. As happened a couple of weeks ago the action of Snap that fell precipitously, this asset for those days had a “bearish momentum” as its price slowed to the point that it was receding.
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4- Evaluate the macroeconomic environment normally Usually, the market is a great indicator of how the economy is doing, but the macroeconomic policy of different countries certainly affects the different markets. Rise of interest rates, application of taxes and regulations may be some of the policies that affect the market. In addition to this, the environment where the economy operates is extremely important. If we are in an environment of prosperity, appetite for investment and growth expectations, we will surely have a set of policies that support the economic environment in which we find ourselves. It could also be the opposite, if we are in a negative environment, which causes inconvenience and does not generate favorable conditions to make investments in the market. It is essential to know what surrounds us when making an investment in the market and what we are prone to in the investment environment.
5- Reliable sources of information and updated data The market is constantly moving, so the investor must be aware of everything that may affect their investments. Reliable tools and sources are needed to support the movement of the market. It should be noted that the instruments for analyzing asset´s behaviors are very important when evaluating and monitoring investments. There are different tools and sources that can support investors such as Bloomberg, Trading View, Investopedia, Yahoo Finance, among many others.
Source: http://www.bancaynegocios.com/5re comendaciones-p ara-inver t ir-en-elmercado-financiero/
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