Oppenheimer & Co. Inc.The Israelite Group ofOppenheimer & Co. Inc.500 W Madison Suite 4000Chicago, IL 60661312-360-5624dan.israelite@opco.com

July 2019Should You Invest Internationally?

Why Not Do It Now? New Research onProcrastination

Have you checked your tax withholdinglately?

Do I need to pay estimated tax?

The Israelite Group Monthly NewsletterIs It Time to Declare Your Financial Independence?

See disclaimer on final page

Stocks posted their best first half ofthe year since 1997. The G-20summit concluded with PresidentTrump and President Xi agreeing tono more tariffs for now, and thenPresident Trump went to NorthKorea to start nuclear disarmamenttalks.

It was a very busy weekend, cappinga bullish first half of the year.Markets are starting the second halfon an upward trend as hope fuelsinvestor sentiment.

We anticipate there will be someturbulence ahead if the FederalOpen Market Committee does notlower interest rates this year or if thetrade talks with China turn sour.

Enjoy the warm weather and reachout to us anytime.

The Israelite Group

No matter how muchmoney you have or whichlife stage you're in,becoming financiallyindependent starts with adream. Your dream mightbe to finally pay off themountain of debt you'veaccumulated, or to stop

relying on someone else for financial support.Or perhaps your dream is to retire early so youcan spend more time with your family, travel theworld, or open your own business. Financialindependence, however you define it, isfreedom from the financial obstacles that arekeeping you from living life on your own terms.

Envision the futureIf you were to become financially independent,what would change? Would you spend yourtime differently? Live in another place? Whatwould you own? Would you work part-time?Ultimately, you want to define how you chooseto live your life. It's your dream, so there's nowrong answer.

Work at itUnless you're already wealthy, you may havehad moments when winning the lottery seemedlike the only way to become financially secure.But your path to financial independence isn'tlikely to start at your local convenience store'slottery counter.

Though there are many ways to becomefinancially independent, most of them requirehard work. And retaining wealth isn'tnecessarily easy, because wealth may not lastif spending isn't kept in check. As income rises,lifestyle inflation is a real concern. Becoming —and remaining — financially independentrequires diligently balancing earning, spending,and saving.

Earn more, spend wisely, and saveaggressivelyEarn more. The bigger the gap between yourincome and expenses, the quicker it will be tobecome financially independent, no matter whatyour goal is. The more you can earn, the moreyou can potentially save. This might mean

finding a job with a higher salary, working anextra job, or working part-time in retirement.And a job is just one source of income. If you'reresourceful and able to put in extra hours, youmay also be able to generate regular income inother ways — for example, renting out a garageapartment or starting a side business.

Spend wisely. Look for opportunities to reduceyour spending without affecting your quality oflife. For the biggest impact, focus on reducingyour largest expenses — for example, housing,food, and transportation. Practicing mindfulspending can also help you free up moremoney to save. Before you buy somethingnonessential, think about how important it is toyou and what value it brings to your life so thatyou don't end up with a garage or attic filledwith regrettable purchases.

Save aggressively. Set a wealth accumulationgoal and then prioritize saving. Of course, if youhave a substantial amount of debt, saving maybe somewhat curtailed until that debt is paid off.Take simple steps such as choosinginvestments that match your goals and timeframe, and paying yourself first by automaticallyinvesting as much as possible in a retirementsavings plan. Time is an important ally in thequest for financial independence, so startsaving as early as possible and build your nestegg over time. (Note that all investing involvesrisk, including the possible loss of principal, andthere is no guarantee that any investmentstrategy will be successful.)

Keep goingMake adjustments. Life changes. Unexpectedbills come up. Some years will be tougherfinancially than others. Expect to make someadjustments to your plan along the way,especially if you have a long-term time frame,but keep going.

Track your progress. Celebrate both smallmilestones and big victories. Seeing theprogress you're making will help you staymotivated as you pursue your dream offinancial independence.

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Should You Invest Internationally?Investing in foreign stocks provides access to aworld of opportunities outside the UnitedStates, which may help boost returns andmanage risk in your portfolio. However, it'simportant to understand the unique risk/returncharacteristics of foreign investments beforesending a portion of your money overseas.

Reasons to go abroadHere are some of the potential benefits ofinternational investing.

Additional diversification. Other countriesmay be at a different stage in the businesscycle than the U.S. economy. They couldrecover more quickly (or more slowly) from arecession.

Long-term growth potential. Some of theworld's most rapidly growing economies arelocated in emerging markets that may bereaping the benefits of new technologies, agrowing consumer base, or natural resourcesthat are in high demand.

Possible hedge against a weaker dollar. TheU.S. dollar has been strong in recent years, buthaving some investments denominated inforeign currencies may help offset (or even takeadvantage of) any future dips in its value.

Reasons to proceed with cautionHere are just some of the potential risks.

Politics and economic policies. A nation'spolitical structure, leadership, and regulationsmay affect the government's influence on theeconomy and the financial markets.

Currency exchange. Just as a weak U.S.dollar could work for you, additionalstrengthening in the dollar could work againstyou. That's because any investment gains andprincipal denominated in a foreign currencymay lose value when exchanged back.

Financial reporting. Many developingcountries do not follow rigorous U.S. accountingstandards, which often makes it more difficult tohave a true picture of company and industryperformance.

Risk/return potentialSome international investments may offer thechance for greater returns, but as with otherinvestments, stronger potential comes with agreater level of risk. For example, over the past30 years, foreign stocks have outperformedU.S. stocks, bonds, and cash alternatives 11times. However, they have alsounderperformed 11 times, tying cash for thehighest number of lowest-performing yearsduring the same time period.

Number of highest-performingyears, 1989-2018

Cash 4

Bonds 5

U.S.Stocks

10

Foreignstocks

11

Number of lowest-performingyears, 1989-2018

Cash 11

Bonds 6

U.S.Stocks

2

Foreignstocks

11

If you decide to spread some of yourinvestment dollars around the world, beprepared to hold tight during bouts of marketvolatility. And remember to rebalance yourportfolio periodically to help align your assetallocation with your long-term investmentstrategy.

Performance is from January 1, 1989, to December31, 2018. Cash is represented by the Citigroup3-month Treasury Bill Index. Bonds are representedby the Citigroup Corporate Bond Composite Index.U.S. stocks are represented by the S&P 500Composite Price Index. Foreign stocks arerepresented by the MSCI EAFE Price Index. Allindexes are unmanaged, accurate reflections of theperformance of the asset classes shown. Returnsreflect past performance, which does not indicatefuture results. Taxes, fees, brokerage commissions,and other expenses are not reflected. Investorscannot invest directly in any index.

The principal value of cash alternatives may fluctuatewith market conditions. Cash alternatives are subjectto liquidity and credit risks. It is possible to losemoney with this type of investment. The return andprincipal value of stocks may fluctuate with marketconditions. Shares, when sold, may be worth more orless than their original cost. U.S. Treasury securitiesare guaranteed by the federal government as to thetimely payment of principal and interest, whereascorporate bonds are not. The principal value of bondsmay fluctuate with market conditions. Bonds aresubject to inflation, interest rate, and credit risks.Bonds redeemed prior to maturity may be worth moreor less than their original cost. Diversification is astrategy used to help manage investment risk; it doesnot guarantee a profit or protect against investmentloss.

In April 2019, despite somepositive economicdevelopments, theInternational Monetary Fundcut its outlook for globalgrowth in 2019 to 3.3%, thelowest level since 2009. Atthe time of that report, IMFManaging Director ChristineLagarde said a recessionwas not expected in thenear term.

Source: Bloomberg, April 9,2019

The risks associated withinvesting on a worldwidebasis include differences infinancial reporting, currencyexchange risk, andeconomic and political riskunique to the specificcountry. These risks mayresult in greater share pricevolatility and should becarefully managed in light ofyour goals and risktolerance.

Page 2 of 4, see disclaimer on final page

Why Not Do It Now? New Research on ProcrastinationDo you have a tendency to push off importanttasks? Do you do things at the last minute, ormaybe not do them at all? If so, you're notalone. About one in five adults is a chronicprocrastinator.1

Procrastination can be frustrating in the shortterm for even the simplest tasks. But it canhave far-reaching effects on important activitiesand decisions such as completing workprojects, obtaining medical treatment, andsaving for retirement. Recent research offersinsights that may be helpful if you or someoneyou know has a tendency to procrastinate.

Blame the brainA study using brain scans found that theamygdala, the almond-shaped structure in thetemporal lobe of the brain that processesemotions (including fear), was larger in chronicprocrastinators, and there were weakerconnections between the amygdala and a partof the brain called the dorsal anterior cingulatecortex (DACC). The amygdala warns ofpotential dangers, and the DACC processesinformation from the amygdala and decideswhat action a body will take.2

According to the researchers, procrastinatorsmay feel more anxiety about the potentialnegative effects of an action and be less able tofilter out interfering emotions and distractions.The good news is that it is possible to shrinkthe amygdala and improve brain connectivitythrough mindfulness meditation exercises.3

What's important to you?Another recent study found that people wereless likely to procrastinate about tasks that theypersonally considered important and werewithin their own control, as opposed to tasksthat were assigned to them and/or controlled byothers. This is probably not surprising, but itsuggests that procrastination may not be a"weakness" but rather a result of personalvalues and choices.4

Tips for procrastinatorsHere are a few suggestions that may helpovercome a tendency to procrastinate.

Consider the triggers. One researcher foundthat people are more likely to procrastinate if atask is characterized by one or more of theseseven triggers: boring, frustrating, difficult,ambiguous, unstructured, not intrinsicallyrewarding, or lacking in personal meaning.5You might try to identify the triggers that areholding you back and take steps to addressthose specific problems. For example, if a taskseems too difficult, ambiguous, or unstructured,you could break it down into smaller, moredefinite, and manageable tasks.

Meet your resistance. If you don't want towork on a task for an hour, determine how longyou are willing to work on it. Can you work on itfor 30 minutes? What about 15? If you don'twant to do it today, what day would be better?

List the costs and benefits. For big projects,such as saving for retirement, make a list of allthe negative ways not making progress couldaffect your life and all the positive outcomes ifyou were to achieve your objectives. Imagineyourself succeeding.

Take the plunge. Although a big project mayseem daunting, getting a start — any start — couldreduce the anxiety. This might be just a smallfirst step: a list, a phone call, an email, or someInternet research. For a written project, youmight start with a rough draft, knowing you canpolish and improve it later.

Forgive yourself. If you've postponed a task,don't waste time feeling guilty. In most cases,"better late than never" really does apply!1 Frontiers in Psychology, July 5, 2018

2-3 BBC News, August 26, 2018

4 Psychology Today, January 9, 2018

5 Harvard Business Review, October 4, 2017

Advantage of an Early Start

Saving for retirement may be alow priority when you're young,especially if you're earning alow salary. But starting earlycan make a big difference, asyou can see in theaccompanying chart.

This hypothetical example ofmathematical compounding isused for illustrative purposesonly and does not representthe performance of any specificinvestment. It assumes amonthly deferral of salary andmonthly compounding ofearnings. Fees, expenses, andtaxes were not considered andwould reduce the performanceshown if they were included.Actual results will vary.

Page 3 of 4, see disclaimer on final page

Oppenheimer & Co. Inc.The Israelite Group ofOppenheimer & Co. Inc.500 W Madison Suite 4000Chicago, IL 60661312-360-5624dan.israelite@opco.com

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2019

The content herein should not beconstrued as an offer to sell or thesolicitation of an offer to buy anysecurity. The information enclosedherewith has been obtained fromoutside sources and is not theproduct of Oppenheimer & Co. Inc.("Oppenheimer") or its affiliates.Oppenheimer has not verified theinformation and does notguarantee its accuracy orcompleteness. Additionalinformation is available uponrequest. Oppenheimer, nor any ofits employees or affiliates, does notprovide legal or tax advice.However, your OppenheimerFinancial Advisor will work withclients, their attorneys and their taxprofessionals to help ensure all oftheir needs are met and properlyexecuted. Oppenheimer & Co. Inc.Transacts Business on all PrincipalExchanges and is a member ofSIPC.

Do I need to pay estimated tax?Taxpayers are required to paymost of their tax obligationduring the year by having taxwithheld from their paychecksor pension payments, or by

making estimated tax payments. Estimated taxis the primary method used to pay tax onincome that isn't subject to withholding. Thistypically includes income from self-employment,interest, dividends, and gain from the sale ofassets. Estimated tax is used to pay bothincome tax and self-employment tax, as well asother taxes reported on your income tax return.

Generally, you must pay federal estimated taxfor the current year if: (1) you expect to owe atleast $1,000 in tax for the current year, and (2)you expect your tax withholding and refundabletax credits to be less than the smaller of (a)90% of the tax on your tax return for the currentyear, or (b) 100% of the tax on your tax returnfor the previous year (your tax return for theprevious year must cover 12 months).

There are special rules for farmers, fishermen,and certain high-income taxpayers. If at leasttwo-thirds of your gross income is from farmingor fishing, you can substitute 66-2/3% for 90%in general rule (2)(a) above. If your adjusted

gross income for the previous year was morethan $150,000 ($75,000 if you were marriedand filed a separate return for that year), youmust substitute 110% for 100% in general rule(2)(b) above.

If all of your income is subject to withholding,you probably don't need to pay estimated tax. Ifyou have taxes withheld by an employer, youmay be able to avoid having to make estimatedtax payments, even on your nonwage income,by increasing the amount withheld from yourpaycheck.

You can use Form 1040-ES and its worksheetsto figure your estimated tax. They can help youdetermine the amount you should pay for theyear through withholding and estimated taxpayments to avoid paying a penalty. The year isdivided into four payment periods. After youhave determined your total estimated tax for theyear, you then determine how much you shouldpay by the due date of each payment period toavoid a penalty for that period. If you don't payenough during any payment period, you mayowe a penalty even if you are due a refundwhen you file your tax return.

Withholding and estimated tax payments mayalso be required for state and local taxes.

Have you checked your tax withholding lately?If you were unpleasantlysurprised by the amount of taxyou owed or the amount ofyour tax refund when you filedyour 2018 tax return, it may be

time to check your withholding.

It may also be time if there are changes in yourlife or financial situation that affect your taxliability. For example, have you recentlymarried, divorced, had a child, purchased anew home, changed jobs, or had a change inthe amount of your taxable income not subjectto withholding (e.g., capital gains)?

You can generally change the amount offederal tax you have withheld from yourpaycheck by giving a new Form W-4 to youremployer. You can use a number of worksheetsfor the Form W-4 or the IRS WithholdingCalculator (available at irs.gov ) to help youplan your tax withholding strategy.

If changes reduce the number of allowancesyou are permitted to claim or your marital statuschanges from married to single, you must giveyour employer a new Form W-4 within 10 days.You can generally submit a new Form W-4whenever you wish to change your withholdingallowances for any other reason.

In general, you can claim various withholdingallowances on the Form W-4 based on your taxfiling status and the tax credits, itemizeddeductions (or any additional standarddeduction for age or blindness), andadjustments to income that you expect to claim.You might increase the tax withheld or claimfewer allowances if you have a large amount ofnonwage income. (If you have a significantamount of nonwage income, you might alsoconsider making estimated tax payments usingIRS Form 1040-ES.) The amount withheld canalso be adjusted to reflect that you have morethan one job at a time and whether you andyour spouse both work. You might reduce theamount of tax withheld by increasing theamount of allowances you claim (to the extentpermissible) on the Form W-4.

You can claim exemption from withholding forthe current year if: (1) for the prior year, youwere entitled to a refund of all federal incometax withheld because you had no tax liability;and (2) for the current year, you expect arefund of all federal income tax withheldbecause you expect to have no tax liability.

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