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Michael Sceiford

Michael R. Sceiford of the financial services firm Edward Jones recently received a promotion to the position of regional leader, responsible for the health and wellbeing of 40 branch teams. 

In addition to this leadership role, Sceiford will continue to help the people of his community with their investment needs.

Located at 640 Belle Terre Road, Building B, in Port Jefferson, the investment firm helps its customers prepare for retirement, save for education and be a tax-smart investor. For more information, call 631-928-2034.

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By Michael Christodoulou

Michael Christodoulou

In life, you often get second chances — and the same is true with investing. To illustrate: You might not have been able to contribute to a Roth IRA during your working years due to your income level, but you may get that opportunity as you near retirement, or even when you are retired — through a Roth conversion.

Why is a Roth IRA desirable for some people? Here are the key benefits:

 Tax-free withdrawals 

You put in after-tax dollars to a Roth IRA, so you can withdraw your contributions at any time, free of taxes and penalties. And if you’ve had your account for at least five years and you’re at least 59½, you can also withdraw your earnings free of taxes.

No RMDs 

With a traditional IRA, you’ll have to start taking withdrawals — called required minimum distributions, or RMDs — when you turn 73, or 75 if you were born in 1960 or later. But there’s no RMD requirement with a Roth IRA — you can essentially leave the money intact as long as you like.

Tax-free legacy for your heirs 

When your heirs inherit your Roth IRA, they can withdraw the contributions without paying taxes or penalties, and if the account has been open at least five years, they can also withdraw earnings tax free.

But even if you were aware of these advantages, you might not have been able to invest in a Roth IRA for much of your life. For one thing, you might have earned too much money — a Roth IRA, unlike a traditional IRA, has income limits. Also, a Roth IRA has only been around since 1998, so, in the previous years, you were limited to a traditional IRA.

As you approach retirement, though, you might start thinking of just how much you’d like to benefit from a Roth IRA. And you can do so by converting your traditional IRA to a Roth. While this sounds simple, there’s a major caveat: taxes. You’ll be taxed on the amount in pre-tax dollars you contributed to a traditional IRA and then converted to a Roth IRA. (If you have both pre- and after-tax dollars in your traditional IRA, the taxable amount is based on the percentage of pre-tax dollars.)

If you have large amounts in a traditional IRA, the tax bill on conversion can be significant. The key to potentially lowering this tax bill is timing. Generally speaking, the lower your income in a given year, the more favorable it is for you to convert to a Roth IRA. So, for example, if you have already retired, but have not started collecting RMDs, your income may be down.

Timing also comes into play with the financial markets. When the market is going through a decline, and the value of your traditional IRA drops, you could convert the same number of shares of the underlying investments and receive a lower tax bill or convert more shares of these investments for what would have been the same tax bill.

Finally, you could lower your tax bill in any given year by stretching out your Roth IRA conversions over several years, rather than doing it all at once.

You’ll want to consult with your tax advisor before embarking on this conversion — but if it’s appropriate for your situation, you could find that owning a Roth IRA can benefit you and your family for years to come.

Michael Christodoulou, ChFC®, AAMS®, CRPC®, CRPS® is a Financial Advisor for Edward Jones in Stony Brook, Member SIPC.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

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By Britt Burner Esq.

Britt Burner Esq.

The holiday season is upon us!  Year-end often brings questions of gifting, whether it be to charity or to family and friends.  Gifting can be gratifying and can also provide an income tax benefit as the year comes to a close.  State and federal governments handle gifting differently, making it even more confusing and difficult to navigate.  

In New York State, there is no tax imposed on gifts made during your life.  However, if you do not live for three years beyond that gift, the amount given will be added back into your estate upon your death when determining if an estate tax is owed.  The estate tax exemption in New York is $6.94 million in 2024.  So if a person dies in 2024 and had given a gifts for the three preceding years, these would be added together with the other assets they owned at the time of death to see if they are beyond that number.  Staying under the New York exemption is critical because estates that go 5% beyond the exemption will be taxed on the entire amount, this is referred to as a “cliff.” 

The federal government operates under a different scheme when calculating gift taxes.  In 2024, you can give $18,000 per year, per person with no implications or filings required.  Gifts to a single person beyond that trigger a gift tax return filing and the amounts will be applied toward your individual lifetime exemption, currently $13.61 million.  This means that if your total estate is under that amount when you add together taxable gifts made during life and transfers at death, there will never be a gift or inheritance tax imposed by the federal government.  For individuals with estates above the threshold, individualized planning should be considered to minimize or eliminate estate taxes. 

If you are looking to make a charitable donation before the end of the year, there are several ways to accomplish this. One is an outright gift of a set sum of money. This can be done through a one-time or recurring donation to a charitable organization that qualifies as tax exempt under 501(c)(3) of the Internal Revenue Code.  Making a gift to your favorite cause can also provide you with an allowable deduction on your annual income tax returns.  

Gifting during life can also come in the form of a distribution from a tax deferred retirement account.  This gift is a qualified disclaimer and cannot exceed $100,000 in a given year.  The amount of the disclaimer counts towards the account owner’s annual required minimum distribution, providing you with an income tax benefit because it will not be counted as taxable income. 

Donor advised funds are another useful way to transfer assets to charitable organizations to receive an income tax deduction, all without making an immediate determination on the recipient of the funds.  The donor advised fund can be opened with a financial institution and the contribution you make will qualify as a charitable distribution for income tax purposes. 

However, rather than giving to a certain charity, you will actually be transferring the assets to an account that can be invested and enjoy tax-free growth.  Over time you can make distributions from the fund to qualifying charities in varying dollar amounts as you see fit.  The donor advised fund allows you to designate who will be responsible for determining the charities that will benefit from the account after your death. 

Understanding the rules and tax implications surrounding gifts to family, friends and individuals is an important first step.  In addition to gifting that is made while you are alive, it is also important to engage in estate planning to determine what will occur at your death to ensure your assets are distributed the people and organizations you care about most.  If you have not started this process, add estate planning to your list of 2025 resolutions. Happy Holidays! 

Britt Burner, Esq. is a Partner at Burner Prudenti Law, P.C. focusing her practice areas on Estate Planning and Elder Law. Burner Prudenti Law, P.C. serves clients from New York City to the east end of Long Island with offices located in East Setauket, Westhampton Beach, Manhattan and East Hampton.

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By Michael Christodoulou

Now that the calendar has flipped, it’s time for some New Year’s resolutions. You could decide you’re going to exercise more, lose weight, learn a new skill, reconnect with old friends — the possibilities are almost limitless. This year, why not add a few financial resolutions to your list?

Here are a few to consider:

Reduce your debts. It may be easier said than done, but if you can cut down on your debt load, you’ll increase your cash flow and have more money available to invest for your future. So, look for ways to lower your expenses and spending. You might find it helpful to use one of the budgeting apps available online. 

Boost your retirement savings. Try to put in as much as you can afford to your IRA and your 401(k) or other employer-sponsored retirement plan. If your salary goes up this year, you’ve got a good opportunity to increase your contributions to these retirement accounts. And once you turn 50, you can make pre-tax catch-up contributions for your 401(k) and traditional IRA. You might also want to review the investment mix within your 401(k) or similar plan to determine whether it’s still providing the growth potential you need, given your risk tolerance and time horizon.

Build an emergency fund. It’s generally a good idea to maintain an emergency fund containing up to six months’ worth of living expenses, with the money kept in a liquid, low-risk account. Without such a fund, you might be forced to dip into your long-term investments to pay for short-term needs, such as an expensive auto or home repair. 

Keep funding your non-retirement goals. Your traditional IRA and 401(k) are good ways to save for retirement — but you likely have other goals, too, and you’ll need to save and invest for them. So, for example, if you want your children to go to college or receive some other type of post-secondary training, you might want to invest in a tax-advantaged 529 education savings plan. And if you have short-term goals, such as saving for a wedding or taking an overseas vacation, you might want to put some money    away in a liquid account. For a short-term goal, you don’t necessarily need to invest aggressively for growth — you just want the money to be there for you when you need it. 

Review your estate plans. If you haven’t already created your estate plans, you may want to do so in 2025. Of course, if you’re relatively young, you might not think you need to have estate plans in place just yet, but life is unpredictable, and the future is not ours to see. If you have already drawn up estate plans, you may want to review them, especially if you’ve recently experienced changes in your life and family situation, such as marriage, remarriage or the addition of a new child. Because estate planning can be complex, you’ll want to work with a qualified legal professional.

You may not be able to tackle all these resolutions in 2025. But by addressing as many of them as you can, you may find that, by the end of the year, you have made progress toward your goals and set yourself on a positive course for all the years to come.

Michael Christodoulou, ChFC®, AAMS®, CRPC®, CRPS® is a Financial Advisor for Edward Jones in Stony Brook, Member SIPC.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

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There are three different property tax exemptions available to veterans. METRO photo

By Britt Burner, Esq.

Britt Burner Esq.

While a trust technically becomes the owner of your home when you sign a deed transferring ownership to a grantor trust, rest assured that you will still receive the same real estate tax exemptions and/or benefits that you received when your home was owned in your individual name. Both revocable trusts and irrevocable Medicaid asset protection trusts fall under this category of “grantor trusts.”

Many New York residents depend on property tax exemptions/credits to make ends meet. Prime examples of this are the New York State School Tax Relief Program (STAR) and the Enhanced School Tax Relief (E-STAR). The basic STAR program does not have an age requirement, but the property must be the primary residence of at least one owner. Additionally, all owners and their spouses who live on the property must not have an income of more than $250,000 combined.

The Enhanced School Tax Relief (E-STAR) requires that the property must be the primary residence of at least one owner who is 65 or older by the end of the calendar year in which the exemption begins. Surviving spouses may be eligible to retain the Enhanced STAR benefit. For 2025, the combined incomes of all owners (residents and non-residents), and any owner’s spouse who resides at the property must be limited to $107,300 or less to receive the Enhanced STAR benefit.

There are other exemptions available to senior citizens depending on where they reside. Local governments and school districts in New York State can opt to grant a reduction on the amount of property taxes paid by qualifying senior citizens.

Regardless of a homeowner’s age or income, there are also exemptions available to veterans and those who are disabled. There are three different property tax exemptions available to veterans who have served in the U.S. Army, Navy, Air Force, Marines and Coast Guard. Local governments and school districts may also lower the property tax of eligible disabled homeowners by providing a partial exemption for their legal residence. Those municipalities that opt to offer the exemption also set an income limit.

Knowing that the property tax benefits will be preserved in a Revocable Trust or a Medicaid Asset Protection Trust can ease the concerns about engaging in this type of planning. Transferring your house to one of these trusts will prevent your estate from going into probate at your death. Probate is the Court process of validating your Last Will and Testament. The process can take time and delay the distribution of your estate. Beyond probate avoidance, depending on the type of trust you create, it may also provide the additional benefit of protecting the property from being counted as an asset for Medicaid eligibility. 

While the concept of transferring your house can feel complicated and the word “irrevocable” seems daunting, there is much that can be gained from this type of planning without the loss of valuable benefits.

Britt Burner, Esq. is a Partner at Burner Prudenti Law, P.C. focusing her practice areas on Estate Planning and Elder Law. Burner Prudenti Law, P.C. serves clients from New York City to the east end of Long Island with offices located in East Setauket, Westhampton Beach, Manhattan and East Hampton.

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Photo from StatePoint

By Michael Christodoulou

Michael Christodoulou
Michael Christodoulou

As we enter the holiday season, your life may well become busier. Still, you might want to take the time to consider some financial moves before we turn the calendar to 2025.

Here are a few suggestions:

Review your investment portfolio. As you look at your portfolio, ask these questions: Has its performance met my expectations this year? Does it still reflect my goals, risk tolerance and time horizon? Do I need to rebalance? You might find that working with a financial professional can help you answer these and other questions you may have about your investments.

Add to your 401(k) and HSA. If you can afford it, and your employer allows it, consider putting more money into your 401(k) before the year ends — including “catch-up” contributions if you’re 50 or older. You might also want to add to your health savings account (HSA) by the tax-filing deadline in April. 

Use your FSA dollars. Unlike an HSA, a flexible spending account (FSA) works on a “use-it-or-lose-it” basis, meaning you lose any unspent funds at the end of the year. So, if you still have funds left in your account, try to use them up in 2024. (Employers may grant a 2½ month extension, so check with your human resources area to see if this is the case where you work.) 

Contribute to a 529 plan. If you haven’t opened a 529 education savings plan for your children, think about doing so this year. With a 529 plan, your earnings can grow tax deferred, and your withdrawals are federally tax free when used for qualified education expenses — tuition, fees, books and so on. And if you invest in your own state’s 529 plan, you might be able to deduct your contributions from your state income tax or receive a state tax credit.

 Build your emergency fund. It’s generally a good idea to keep up to six months’ worth of living expenses in an emergency fund, with the money held in a liquid, low-risk account. Without such a fund in place, you might be forced to dip into your retirement funds to pay for short-term needs, such as a major car or home repair. 

Review your estate plans. If you’ve experienced any changes in your family situation this year, such as marriage, remarriage or the birth of a child, you may want to update your estate-planning documents to reflect your new situation. It’s also important to look at the beneficiary designations on your investment accounts, retirement plans, IRAs and insurance policies, as these designations can sometimes even supersede the instructions you’ve left in your will. And if you haven’t started estate planning, there’s no time like the present.

Take your RMDs. If you’re 73 or older, you will likely need to take withdrawals — called required minimum distributions, or RMDs — from some of your retirement accounts, such as your traditional IRA. If you don’t take these withdrawals each year, you could be subject to penalties.

These aren’t the only moves you can make, but they may prove helpful not only for 2024 but in the years to come.

Michael Christodoulou, ChFC®, AAMS®, CRPC®, CRPS® is a Financial Advisor for Edward Jones in Stony Brook, Member SIPC.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

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Brandon Liff

Morgan Stanley (NYSE: MS) has announced that Brandon A. Liff, a Financial Advisor Associate, in the Firm’s Wealth management office in Hauppauge, has been promoted to Financial Advisor.

Liff, who has been with Morgan Stanley Wealth Management since 2021, is a native of
Setauket. He holds a bachelor’s degree from Empire State College. LIff currently lives
in Setauket with his family.

Morgan Stanley Wealth Management, a global leader, provides access to a wide range of
products and services to individuals, businesses and institutions, including brokerage and
investment advisory services, financial and wealth planning, cash management and lending
products and services, annuities and insurance, retirement and trust services.

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing investment
banking, securities, wealth management and investment management services. With offices in
more than 42 countries, the Firm's employees serve clients worldwide including corporations,
governments, institutions and individuals. For more information about Morgan Stanley, please
visit www.morganstanley.com.

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From left, Harlan Fischer, Kristen Domiano, Stephanie Gress, and Michael Brescia. Photo courtesy of Branch Financial Services, Inc.

Branch Financial Services, Inc. of Setauket is celebrating 50 years of serving clients this month. 

President Harlan J. Fischer founded Branch Financial Services, Inc., a registered investment advisor, on Oct. 1, 1974. According to a press release from the financial business, Fischer “is as committed to its success today as he was in those early days of business.”

“As its founder and principal, the mission he set forth for Branch Financial Services, Inc. 50 years ago was simple—to help clients achieve their personal and financial goals,” read the release. “Beyond this mission, Harlan and his staff are committed to providing a level of service that is rare to find today. They are so serious about this that they trademarked ‘You Can’t Hug an 800 Number’ ™ as their motto.”

Fischer said he takes tremendous pride in Branch Financial Services, Inc., its fiduciary status and independence, which he said carries through to every aspect of the business. The office, located at 21 Bennetts Road, is known for looking more like an art gallery full of contemporary sculptures and paintings.

Before moving the office to Setauket in 2020, Branch Financial Services, Inc. was located in Hauppauge for 21 years and Smithtown for 25 years. The financial business has been a member of the Smithtown Chamber of Commerce since 1995 and the Three Village Chamber of Commerce since 2020.

Several clients have been with Fischer for most of his 50-year career, and their children and extended families have become clients in many cases as well.

Mia and Jerry Vogt, of Massapequa, have traveled to Suffolk County for more than 15 years to consult with Fischer.

“Harlan’s approach to financial planning seamlessly blends traditional values with the demands of a fast-paced modern world,” Mia Vogt said. “His commitment to time-honored principles—such as integrity, long-term vision and personal responsibility—provides a solid foundation for navigating today’s complex financial landscape.”

According to the press release, the “team understands the importance of a personal touch in investment. In an era dominated by impersonal, automated services, the firm’s dedication to understanding each client’s unique needs offers a deeply personalized experience. For Harlan and his colleagues, it’s not just about guiding clients through financial decisions, but also about fostering a trusting relationship.”

Fischer’s colleagues currently include Michael Brescia, Kristen Domiano and Stephanie Gress, who have worked beside him and have known him for many years. According to the press release, “He makes it clear to them that he values and appreciates them every day.”

Brescia provides financial and legal services to his Branch Financial Services, Inc. clients, while Gress is a service associate, and Domiano supervises the office administration, compliance and back office for the firm.

While 50 years may sound like a long time to some, Fischer said, “I feel like I’m just getting warmed up.”

Over the years Fischer has served on many boards for professional and arts organizations. He and his wife Olivia have funded several historic restoration projects in the Three Village area, and they sponsor events and public programming. Currently, Fischer serves as Chairman of the Village of Head of the Harbor Planning Board. 

In 2024 alone, he was named a Best in State Wealth Advisor by Forbes and received the Corporate Citzenship Award by the Long Island Business News.

As he reflects on his years in business, the financial advisor is deeply grateful to Bill Weidner, his mentor from early in his career, and the clients of Branch Financial Services, Inc.

“My career journey has been enriched by the wonderful people I have worked with and for through the decades,” Fischer said. “I eagerly look forward to working with everyone for years to come.”

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By Michael Christodoulou

Michael Christodoulou

You can find several ways to make charitable gifts — but if you’re looking for a method that can provide multiple tax benefits, along with an efficient platform for giving year after year, you might want to consider a donor-advised fund.

Once you open a donor-advised fund (DAF), you can contribute many types of assets, including cash, publicly traded stocks, bonds, CDs or non-cash items such as closely held business interests, art or collectibles. You can then decide how to invest the money, possibly following a strategy suggested by the DAF sponsor organization you’ve selected. The next step involves choosing which charities to support, how often to provide support (such as once a year) and how much to give each time. You’re essentially free to direct the money to any charities you like, provided they’re IRS-approved charitable organizations.

Now, let’s look at the possible tax advantages offered by a DAF:

IMMEDIATE TAX DEDUCTION

A few years ago, changes in tax laws resulted in a vastly increased standard deduction, which, in turn, led to far fewer people itemizing on their tax returns and having less incentive, at least from a tax standpoint, to contribute to charities. But if you don’t typically give enough each year to itemize deductions, you could combine several years’ worth of giving into one contribution to a DAF and take a larger deduction in that tax year. And you can claim that deduction, even though the DAF may distribute funds to charities over several years.

TAX-FREE GROWTH OF EARNINGS

Once you contribute an asset to a DAF, any earnings growth is not taxable to you, the DAF or the charitable groups that receive grants from the DAF. 

AVOIDANCE OF CAPITAL GAINS TAXES

When you donate appreciated stocks or other investments — or for that matter, virtually any appreciated asset — to a DAF, you can avoid paying the capital gains taxes that would otherwise be due if you were to simply sell the asset and then donate the proceeds to charitable organizations. Plus, by receiving the appreciated asset, rather than the proceeds from a sale, the charitable groups can gain more from your contribution. And you can also take a tax deduction for your donation. 

While these potential tax benefits can certainly make a DAF an attractive method of charitable giving, you should be aware of some potential tradeoffs. Once you contribute assets to a DAF, that gift is irrevocable, and you can’t access the money for any reason other than charitable giving. Also, your investment options are limited to what’s available in the DAF program you’ve chosen. And DAFs can incur administrative costs in addition to the fees charged on the underlying investments.  

You may want to consult with your financial professional about other potential benefits and tradeoffs of DAFs and whether a DAF can help you with your charitable giving goals. Also, different DAF sponsors offer different features, so you will want to do some comparisons. And because DAFs can have such significant implications for your tax situation, you should consult with your tax professional before taking action.

If a DAF is appropriate for your situation, though, consider it carefully — it might be a good way to support your charitable giving efforts for years to come. 

Michael Christodoulou, ChFC®, AAMS®, CRPC®, CRPS® is a Financial Advisor for Edward Jones in Stony Brook, Member SIPC.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

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By Britt Burner, Esq.

Britt Burner Esq.

Turning 18 is a right of passage. According to New York State law, you are now and adult! With the reward and freedom of adulthood also comes responsibility. 

You may be on a continued education path to college or starting a new job. Some new adults are still receiving monetary and housing support from their families while others find themselves navigating on their own. Either way, on the “adulting to-do list” you should also add the basics of estate planning. Whether you are 18 or 81, there are four key documents you should consider: health care proxy, HIPAA release form, living will, and power of attorney.

Once adulthood is reached, a parent no longer has the authority to make medical decisions on behalf of their child. Since you are no longer under your parents’ care, they do not have an automatic right to access your medical records; no one has that right. It is important to designate who may receive this information if you should become incapacitated and, further, who you want to make medical decisions for you if you cannot do so for yourself. 

A health care proxy allows you to appoint an agent to make medical decisions for you in the event you cannot do so. You must choose a primary agent but can nominate alternates in case your primary is unable or unwilling to act. If you are in the hospital and have not signed a health care proxy, the law has a default regarding who can make medical decisions. Is this who you would choose? 

Beyond the proxy, a HIPAA release form should also be considered. HIPAA is the Health Insurance Portability and Accountability Act. It is the law that protects your personal medical information. A HIPAA release authorizes others to obtain your medical information. Executing these documents will ensure that your parent (or whomever you designate to make such medical decisions) will not face resistance when it comes to inquiring about the status of your health or providing care instructions to your doctor.  

In contrast, the power of attorney is a document that has to do with your financial and other non-medical information. This document will name an agent to make financial decisions on your behalf. The power of attorney does not strip you of your financial powers but rather duplicates them so that your agent can act on your behalf. A power of attorney can be beneficial if you need someone to pay a bill, apply for financial aid, or hire a professional, such as an accountant or lawyer. 

You may also want to consider a living will. A living will is a guide to your agents regarding end-of-life decisions, such as whether you want to be kept alive by artificial means if you have an incurable disease or are in a persistent vegetative state. 

Although these are questions that you will hopefully not face for decades, planning for your future is an important way of taking control of your life. The decisions you make today are not set in stone; these documents can be changed at any time. Anyone entering the first phase of adulthood should become familiar with these documents. 

Britt Burner, Esq. is a Partner at Burner Prudenti Law, P.C. focusing her practice areas on Estate Planning and Elder Law. Burner Prudenti Law, P.C. serves clients from New York City to the east end of Long Island with offices located in East Setauket, Westhampton Beach, Manhattan and East Hampton.

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