SALEM FIVE
MUTUAL INTEREST

Information to keep you moving forward.

May 2023

Digital

Go Green and Go Paperless!

Money Isn't The Only Green We Help Grow For each of the first 5,000 paper account statements eliminated through the end of May, the Salem Five Charitable Foundation will plant a tree! We’ve partnered again with onetreeplanted.org who will plant trees to help re-forest our National Forests. If you haven’t already, enroll in eStatements via Online Banking. eStatements make it easy and convenient to view your account statements and notices online. Once you enroll, you’ll get notified via email when the eStatement is available to view. And, you can view up to 7 years of statement history. So, let’s get as many trees planted as we can!

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Great Rates to Grow Your Savings

Salem Five CDs and Money Market accounts are great ways to grow your money. Check out our competitive rates. Or, visit a Salem Five branch near you.

Partnership

Salem Five & NESN Collaboration Going Strong!

With our partnership in its second year, Salem Five was thrilled to watch the Bruins throughout their historic season (and mourn the end of it) and kick off Sox season in style. Be sure to tune in to Sox away games on NESN from the beautiful Salem Five NESN Studio. We’ve enjoyed collaborating with NESN over the year and thankful for the relationship we’re building. See below for some recent images/clips of the studio in action.

Red Sox jersey hanging at the NESN studio

Economic Insight

Who Wants to be a Millionaire? Maybe not as many as before.

By Sean Tesoro, President
Salem Five Wealth Management and Trust

Pile of cash money

With the 2022 tax filings behind us, the temptation is there for people and businesses to forget about next year’s filings for a while and enjoy the arrival of spring here in Massachusetts. That, unfortunately, could be a costly mistake, thanks to the new Massachusetts Millionaires Tax, or what is sometimes called the Fair Share Amendment. Approved by state voters in 2022, the tax adds a 4% income tax on the portion of annual income in excess of $1 million. However, it isn’t just high earners who are affected by this new tax. On a one-time basis, it could also impact the sale of a home, a business, securities or other assets. It’s unlikely that voters realized how widespread this tax would be applied. In 2022, 88,723 homes were sold in Massachusetts and 13,165, or 15% sold for more than $1 million. In Essex County, 1,206 homes sold for $1 million.

The new law has several potential consequences as people and business owners try to minimize its impact on their tax obligation, including changes to how property sales are structured, installment sales for business owners, changes in filing status – particularly for married couples – and the possibility that residents and businesses will relocate to another state.

We’ve also seen a renewed interest in Trust and Estate planning, given the possibility of these vehicles being used to offset the impact of the tax. In other words, people and business owners are already planning. And that’s a good thing. Taxpayers need to ask:

⋅ Will I be impacted and, if so, when?
⋅ Have I explored options with my financial partners, such as my spouse or co-owners of a business?

Regrettably, there are many unanswered questions, such as the tax’s long-term effect on the state, its residents and its businesses. New wealth taxes in California, among other states, are driving some residents and businesses to more "tax friendly” states, such as Texas and Florida. Moreover, the expected revenue from the new tax was projected to be $1.3 billion. Will it reach that amount? Will it be more? And what will the lawmakers on Beacon Hill do if it doesn’t generate the expected income for the state?

Further complicating the matter for taxpayers are proposed changes to other taxes made by Gov. Maura Healey, such as the elimination of the estate tax for all estates valued up to $3 million and the reduction of the short-term capital gains tax from 12% to 5%. It’s unclear whether the House and Senate will embrace these changes and, if they don’t, how hard the governor will push back. If the governor is successful, however, these changes could possibly offset the increases brought about by the Millionaires’ tax.

Despite the uncertainty, we do know that our partners in the accounting industry are working on tailored solutions for their clients. Indeed, whether you are an accountant or an individual looking to preserve assets, the key to having a successful 2023 tax filing next year is to begin planning now.

Sean Tesoro, Investment Services

Sean Tesoro, President
Salem Five Wealth Advisors

Contact Salem Five Wealth Advisors

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Salem Five Bank and Salem Five Wealth Advisors are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using the name Salem Five Wealth Advisors, and may also be employees of Salem Five Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of Salem Five Bank or Salem Five Wealth Advisors. Securities and insurance offered through LPL or its affiliates are:

The LPL Financial registered representatives associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.

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Heads Up!