1. SPRING 2013
Message from the
Managing Partner
Telemus Q2 2013 Global
Outlook
Equities
Fixed Income
Fund Spotlight:
Salient MLP & Energy
Infrastructure
Telemus Wealth
Advisors
INSIGHTS
It is with great pride and excitement that we introduce our new
quarterly newsletter that we’re calling Insights. In these informative
pieces you’ll hear from us, and others, regarding the current market
environment as well as a variety of investment and financial topics.
In this first issue you’ll hear from Jim Robinson, CIO and CEO of
Robinson Capital Management, on his current views of the global
economy and markets. Our U.S. equity market commentary is from
Evercore Wealth Management, the sub-advisor of our core equity
strategy. Mary Bakhaus, the portfolio manager of our Beacon bond
strategy, will explain senior bank loans and their use in our portfolios.
Our Chief Wealth Officer, Andy Bass, will discuss the recent tax
law changes. Finally Ted Gardner, the investment manager of the
Salient MLP complex that includes mutual funds and a hedge fund
will discuss why MLPs are set to out perform this year.
Long ago, when I first entered the investment business, someone
gave me a framed quote that I’ve kept. It reads, “The secret to
investing is not to know the future, but rather to be prepared for
any contingency.” I’ve always remembered this and at Telemus
we invest accordingly. We believe that prudent investing across a
variety of asset classes increases your expected return and lowers
your expected risk under normal circumstances. By investing in a
variety of asset classes and strategies we believe we stand a better

2. RecommendingRecommending
AskingAsking
PlanningPlanning
FindingFinding
HelpingHelping
MonitoringMonitoring
HE ELEMUS ROCESST T P
What is our proven Telemus
process?
Asking questions and listening
Helping identify needs and
goals
Finding or creating
customized solutions
Planning and implementing
Monitoring and evaluating
progress and results
Recommending and making
changes when necessary Our Client
2 | Telemus Capital | Spring 2013
chance of protecting our client’s principal in down markets but
participating fully when markets are moving up. At Telemus we’re
in the “keep rich” business not the “get rich” business. We’re more
concerned with losing money than making money. As a result we
play defense first and offense second. Our goal is to match the
markets in good times but deliver those returns with less risk than
the market. In bad times we want to significantly outperform the
markets again with less risk than the market as a whole.
We hope that you enjoy this first issue of Insights. With over $2
billion in assets under management or advisement we have clearly
established ourselves as one of the wealth management firms of
choice, not only in Michigan, but around the country as well.
If you have any questions regarding anything contained herein
please contact us.
A Message From The Managing Partner
Gary Ran
Chairman and Partner
The Telemus Process

3. Telemus Capital | Spring 2013 | 3
U.S. Overview
Economy
The delay in resolution of the Fiscal Cliff certainly
had a negative impact on consumer spending
in the fourth quarter and will likely have an
adverse effect on Q1 2013 GDP growth as many
corporations postponed initiatives awaiting the
outcome. Even though the first leg of the Fiscal
Cliff resolution preserved the Bush-era tax cuts
for all but the wealthiest Americans, everyone
will be paying higher taxes than a year ago
as the temporary payroll tax holiday expired.
The second leg of the Fiscal Cliff debate, the
automatic spending cuts, will likely further
dampen growth prospects in the second quarter.
Congress appears to be addressing the third leg
of the debate, the debt ceiling, which should
allow us to avoid a government shutdown. While
we are confident a compromise will eventually be
reached between Republicans and Democrats,
we suspect the bickering and haggling between
now and then could further erode consumer and
corporateconfidence. Inshort,weseeapolitician-
induced difficult economic environment over the
first half of 2013; but, once the politics are behind
us we expect an improving economy over the
second half of the year.
Inflation
The Federal Reserve has tied its accommodative
monetary policy to the unemployment rate.
Specifically, the Federal Open Market Committee
(FOMC) agreed to maintain its asset purchase
programs and 0% Federal Funds rate policies
until such time as the unemployment rate falls
below 6.5%. The Fed wants higher inflation. For
those of us who were raised in this business on the
adage “don’t fight the Fed”, we believe the Fed
will eventually get its way—lower unemployment
but higher inflation.
Interest Rates
As noted above, short-term interest rates will
remain low for some time. The Fed has publicly
stated that short-term interest rates will likely
remainlowuntilatleast2015. Longerterminterest
rates will benefit from the Fed’s asset purchase
programs but will face more upward pressure
from the aforementioned inflation outlook.
Moreover, bond investors are not comforted by
fiscal irresponsibility—tax revenue was increased
with the expiration of the Bush-era tax cuts for
the wealthiest, and expenses were reduced,
at least temporarily, with the automatic cuts
triggered by the sequestration agreement; but,
bondholders will want to see more logical and
sustainable fixes to the government’s spending
policies.
Domestic Equity Markets
Ultimately stock prices track corporate earnings—
we believe the corporate earnings environment
remains positive even as the overall economic
environment remains fragile. That, coupled
with an accommodative monetary policy, makes
domestic equities attractive. Dividend and
long-term capital gains tax rates were bumped
modestly for the wealthiest Americans, but not
as much as many feared (back to the ordinary
income tax rate). On an after-tax basis, even
for those paying the highest rates, the 2.2%
dividend yield of the S&P 500 is much higher
than the 1.75% yield on the investment grade
corporate bond market or the 1.25% yield on
the intermediate municipal bond market. We
are also starting to see retail investors rotate
their bond holdings to equities. These rotations
typically take months/years to complete, which
should provide sufficient fuel for another leg up
in the equity indices.
Telemus Q2 2013 Global Outlook
Provided By Jim Robinson, Robinson Capital Management

4. 4 | Telemus Capital | Spring 2013
Domestic Bond Market
We expect short-term interest rates to remain
low for some time; but, as we noted above, we
do expect the Fed to ultimately win its fight to
reduce the unemployment rate and increase
the inflation rate—that isn’t a good scenario
for longer-term bonds. Corporate bond yield
spreads relative to US Treasury debt remain
attractive particularly when one considers the
increasing supply of US Treasury debt relative
to corporate debt. In our tax-exempt portfolios
we continue to emphasize higher quality issuers
as declining property values and tax bases are
having an adverse effect on many state and local
municipalities. Non-traditional fixed income
securities such as senior bank loans, convertible
bonds and preferred stocks continue to provide
the most attractive risk/reward characteristics.
International Overview
Economy
Europe is in a recession, but there are signs of little
green shoots popping up—we believe the worst
may be behind the European Union. Likewise, the
newly elected Japanese Premier Shinzo Abe is
putting pressure on the Bank of Japan to pursue
the same accommodative policies as our own
Federal Reserve Bank to stimulate growth in that
country. The emerging market economies are
showing signs of renewed strength, as evidenced
by the fact Macau saw gambling revenues
balloon 20% this past December. Longer term
we still expect the emerging economies and the
emerging middle classes within those economies
to fuel significant growth over the coming
decades.
Inflation
Since most of the world’s major central banks
are pursuing inflationary policies similar to our
own Federal Reserve Bank we would expect
inflationary pressures to increase in most major
economies. Europe could be an exception to this
as the austerity measures pursued there probably
pose a greater risk for deflation than inflation.
Interest Rates
As with the domestic market, we expect global
short-term interest rates to remain low; but, due
to inflationary pressures we would expect some
upward pressure on longer-term interest rates.
Again, the exception is probably the European
rate environment where longer-term rates
probably still have room to fall, particularly in
some of the periphery states.
Currencies
The dollar remains the unquestioned global
reserve currency but oddly enough, since last
summer the Euro has been the world’s strongest
currency. This is largely due to Europe’s austerity
measures as opposed to our inflationary
monetary stimulus policies. Japan is now also
pursuing those same policies, which has led to
a10% devaluation in the yen versus the US dollar.
We would expect the dollar/euro relationship to
stabilize, but we expect further declines in the
yen.
Natural Resources
Global central banks’ inflationary policies will be
positive for natural resource prices. Renewed
economic growth in the emerging markets will
be a huge positive for natural resource prices.
Longer-term, increased global demand without
a comparable increase in supply will keep
natural resource prices on their upward sloping
trajectory.
Global Equity Markets
We’ve become much more constructive with
regard to developed and emerging international
markets. At present we have a neutral weighting
but the next move is likely to be an overweight.
Valuations in developed international markets
remain attractive; and, emerging and frontier
market valuations are attractive relative to their
high growth rates.
Global Bond Markets
While we remain concerned about the seemingly
never-ending sovereign debt crisis in Europe, we
believe current yield levels offered by some of
the periphery states compensate investors for
those risks. Longer term we believe developed
foreign government bonds will outperform U.S.
Treasury bonds due to their higher yields and
less inflationary central bank policies. We would
underweight emerging market debt as we believe
those yields no longer compensate investors for
the inherent inflation and credit risks.

5. Telemus Capital | Spring 2013 | 5
Equities
The upcoming year will be an interesting one.
The US seems in relatively good shape versus
much of the world. Signs of life in housing and
strong benefits in the industrial sector from low
natural gas prices are positively impacting the
economy. While increased taxes may be a drag,
we are hopeful that slow but steady growth in
the US is maintained. China also seems to be
stable and Europe does not appear to getting
worse although growth will likely be very low
at best. Equities are very attractive relative to
bonds and fairly priced on an absolute basis if
growth is as we expect.
We are in the midst of calendar year-end 2012
earnings reports and, to date, have been generally
pleased with how our companies are performing.
We are hopeful that the early operational and
market strength of our portfolio companies
continues for the balance of 2013.
For the fourth quarter the equities in the Partner’s
Account declined 0.40% roughly in-line with
the S&P 500 which declined 0.38%. For the full
year 2012, the equities returned 13.0% versus the
S&P 500 up 16.0%. The account, including cash
returned 12.5%. These figures are gross of fees.
Despite solid absolute returns, the account trailed
the S&P 500. Our shortcomings in 2012 were
from both omission and commission. We had
and continue to avoid balance sheet financials –
banks and investment banks. Despite “looking
cheap” last year, we find it very difficult to
assign value to these businesses and also believe
that the regulatory environment is fraught
with hazard. That said, they are a significant
part of the S&P and were up over 25%. On the
commission side, we entered too early in one
situation (CarboCeramic) and stayed too long
in another (TempurPedic). These two positions
cost approximately 175bps of performance.
For the YTD some our best performing equities
were Western Digital up 39% and Mastercard,
Apple and Roper each up about 30%. On the
downside our energy holdings hurt us, and
Apache, Oil States and Marathon each declined
10-15%. Intel, which was added early in the year,
ended the year down 20% from our purchase
price.
During the fourth quarter we made several
changes to the Partner’s Account. We added
Beam (BEAM) the purveyor of high end spirits
and Michael Kors (KORS) the designer and
retailer of clothing and accessories. To finance
these purchases we sold DuPont and Apache.
Each of these companies had been disappointing
operationally and were sold at a loss.
Provided By Timothy Evnin, Portfolio Manager, Evercore Equities

6. 6 | Telemus Capital | Spring 2013
Senior bank loans are a sub-set of the high-
yield market with unique characteristics that
afford investors the opportunity to pick up
yield, diversify away duration risk and hedge
against inflation. Bank loans are denoted as
high-yield because the corporations issuing
them tend to be highly leveraged. Unlike most
corporate bonds, bank loans are syndicated or
underwritten by large banks and offered in pools
to financial institutions; they are not offered
directly to or held by individuals. Participation by
the individual investor is through the ownership
of mutual funds or specialized Exchange Traded
Funds (ETF’s).
As their name implies, senior bank loans are
generally the most senior debt in a company’s
capital structure as they are “secured” by the
firm’s assets. This securitization is collateralized
by assets such as; equipment, inventory, real
estate or account receivables. In the event of
a corporate default, the loans have the highest
priority of claim on a borrower’s assets and
cash flow. Because of their senior status, bank
loans are considered safer that traditional high-
yield debt. Historically, their senior position in
the capital structure has lead to higher recovery
rates relative to junior claims. Not only has the
default rate on bank loans been lower than
traditional high-yield but the recovery rate for
defaulted senior loans has historically averaged
80% of par (80 cents on the dollar) versus an
average of 44% for traditional high-yield which is
dominated by senior unsecured bonds.1
Another unique feature of bank loans is their
variable-interest rate. Their rate adjusts every
30 to 90 days and is based upon a fixed-
percentage spread over a floating base rate--
typically the London Interbank Offered Rate,
or more commonly referred to as LIBOR. The
fixed-spread, or risk premium, is determined by
the credit quality of the issuer and the market’s
appetite for more highly leveraged credits. Risk
premium, or spread, refers to the increased yield
an investor receives above a risk-free rate; in the
case of bank loans it is LIBOR. On average, given
their senior status, spreads on bank loans have
been approximately 70% of the spread of high-
yield bonds.2
As a point of reference, high-yield
bond spreads have averaged 450 basis points
(4.5%) over ten year Treasuries for the past
twenty years.3
The duration (or the sensitivity to changes in
interest rates) of a bank loan is near zero because
of the regular adjustment of interest rates.
Because their interest rates effectively reset to
keep pace with the prevailing-yield environment,
bank loans aren’t vulnerable when interest rates
trend higher. In a rising interest environment,
variable rate loans tend to outperform fixed-rate
securities. They are viewed by many as a hedge
against inflation; in periods when inflation heats
up interest rates tend to move higher and those
higher rates flow through to bank loan holders.
What is not well understood is that in a flat-rate
environment, bank loans also tend to outperform
the broad bond market. The main reason is the
yield advantage or spread the securities provide
over higher quality bonds.
As with all corporate debt, high-grade or high-
yield, spreads can contract or widen depending
upon the market’s assessment of credit risk. The
obvious risk or Achilles’ heel of bank loans is a
severe, protracted economic environment where
businesses struggle and defaults increase. During
the financial crisis of 2008, amidst the panic,
liquidity dried up and hedge funds were forced to
dump loans on the market to meet margin calls;
bank loans lost, on average, 29% of their value.4
Prior to and since the financial crisis, the available
data shows that bank loans have provided stable
returns with relatively low volatility. Since 1989,
even during recessionary periods, banks loans
Fixed Income
By Mary Bakhaus, Partner and Senior Advisor

7. 5.25% 5.50% 5.75% 6.00% 6.25% 6.50% 6.75% 7.00% 7.25% 7.50% 7.75%
0.0% 31.7% 26.0% 20.8% 16.1% 11.7% 7.6% 3.9% 0.4% -2.8% -5.8% -8.7%
1.0% 33.0% 27.3% 22.0% 17.2% 12.8% 8.7% 4.9% 1.4% -1.9% -4.9% -7.8%
2.0% 34.3% 28.5% 23.2% 18.3% 13.9% 9.7% 5.9% 2.4% -0.9% -4.0% -6.9%
3.0% 35.6% 29.7% 24.4% 19.5% 14.9% 10.8% 6.9% 3.3% 0.0% -3.1% -6.0%
4.0% 36.8% 30.9% 25.5% 20.6% 16.0% 11.8% 7.9% 4.3% 0.9% -2.2% -5.1%
5.0% 38.1% 32.2% 26.7% 21.7% 17.1% 12.9% 8.9% 5.3% 1.9% -1.3% -4.3%
6.0% 39.4% 33.4% 27.9% 22.8% 18.2% 13.9% 9.9% 6.3% 2.8% -0.4% -3.4%
6.5% 40.1% 34.0% 28.5% 23.4% 18.7% 14.4% 10.4% 6.7% 3.3% 0.1% -2.9%
7.0% 40.7% 34.6% 29.1% 24.0% 19.3% 15.0% 10.9% 7.2% 3.8% 0.5% -2.5%
8.0% 42.0% 35.8% 30.2% 25.1% 20.4% 16.0% 12.0% 8.2% 4.7% 1.4% -1.6%
9.0% 43.3% 37.1% 31.4% 26.2% 21.4% 17.0% 13.0% 9.2% 5.6% 2.3% -0.7%
10.0% 44.6% 38.3% 32.6% 27.3% 22.5% 18.1% 14.0% 10.1% 6.6% 3.3% 0.2%
11.0% 45.8% 39.5% 33.8% 28.5% 23.6% 19.1% 15.0% 11.1% 7.5% 4.2% 1.0%
12.0% 47.1% 40.8% 34.9% 29.6% 24.7% 20.2% 16.0% 12.1% 8.5% 5.1% 1.9%
13.0% 48.4% 42.0% 36.1% 30.7% 25.8% 21.2% 17.0% 13.1% 9.4% 6.0% 2.8%
MLP Total Returns at Different Growth and Yield Scenarios
Alerian MLP Index Yield in 12 Months
2013DistributionGrowth
Index performance shown is for illustrative purposes only. Past performance is not indicative of future results. Index performance does
not reflect the deduction of fees or expenses. Note that an investor cannot invest directly in an index.
1
Figures are estimates only and may vary significantly.
5.25% 5.50% 5.75% 6.00% 6.25% 6.50% 6.75% 7.00% 7.25% 7.50% 7.75%
0.0% 31.7% 26.0% 20.8% 16.1% 11.7% 7.6% 3.9% 0.4% -2.8% -5.8% -8.7%
1.0% 33.0% 27.3% 22.0% 17.2% 12.8% 8.7% 4.9% 1.4% -1.9% -4.9% -7.8%
2.0% 34.3% 28.5% 23.2% 18.3% 13.9% 9.7% 5.9% 2.4% -0.9% -4.0% -6.9%
3.0% 35.6% 29.7% 24.4% 19.5% 14.9% 10.8% 6.9% 3.3% 0.0% -3.1% -6.0%
4.0% 36.8% 30.9% 25.5% 20.6% 16.0% 11.8% 7.9% 4.3% 0.9% -2.2% -5.1%
5.0% 38.1% 32.2% 26.7% 21.7% 17.1% 12.9% 8.9% 5.3% 1.9% -1.3% -4.3%
6.0% 39.4% 33.4% 27.9% 22.8% 18.2% 13.9% 9.9% 6.3% 2.8% -0.4% -3.4%
6.5% 40.1% 34.0% 28.5% 23.4% 18.7% 14.4% 10.4% 6.7% 3.3% 0.1% -2.9%
7.0% 40.7% 34.6% 29.1% 24.0% 19.3% 15.0% 10.9% 7.2% 3.8% 0.5% -2.5%
8.0% 42.0% 35.8% 30.2% 25.1% 20.4% 16.0% 12.0% 8.2% 4.7% 1.4% -1.6%
9.0% 43.3% 37.1% 31.4% 26.2% 21.4% 17.0% 13.0% 9.2% 5.6% 2.3% -0.7%
10.0% 44.6% 38.3% 32.6% 27.3% 22.5% 18.1% 14.0% 10.1% 6.6% 3.3% 0.2%
11.0% 45.8% 39.5% 33.8% 28.5% 23.6% 19.1% 15.0% 11.1% 7.5% 4.2% 1.0%
12.0% 47.1% 40.8% 34.9% 29.6% 24.7% 20.2% 16.0% 12.1% 8.5% 5.1% 1.9%
13.0% 48.4% 42.0% 36.1% 30.7% 25.8% 21.2% 17.0% 13.1% 9.4% 6.0% 2.8%
MLP Total Returns at Different Growth and Yield Scenarios
Alerian MLP Index Yield in 12 Months
2013DistributionGrowth
1
|7Telemus Capital | Spring 2013
Fund Spotlight: Salient MLP &
Energy Infrastructure
have posted positive returns every year except
2008.5
As with all of high-yield, we view the inclusion
of senior bank loans as a diversifier in client
portfolios, whether they are fixed or balanced
portfolios. Over the last 25 years, bank loans
have had a zero correlation to investment grade
bonds (Barclays Aggregate Index) and a low
correlation of .4 to equities (S&P 500).6
This
low correlation to other asset classes allows us
to build efficient portfolios that can help reduce
volatility while enhancing potential returns.
In 2012, the Alerian MLP Index lagged the S&P
500 for the first time in 12 years. The AMZ
generated a total return of 4.8% -- more than 11%
behind the SPX total return of 16.0%. Distribution
growth in 2012 came in above our expectations
(7.7% actual vs. 6.5% expected) but MLP prices
fell, driving the yield on the index from 6.1% at
the end of 2011 to 6.6% at the end of 2012.
MLPs lagged the S&P 500 all year long, but
almost half of the relative underperformance for
2012 occurred over the last two months. In fact,
the AMZ was down 3.9% while the S&P 500 was
up 1.5% during the November-December time
frame. We believe a major culprit of the recent
weakness was the expected change in long-term
capital gains tax rates, which moved from 15% in
2012 to 20% plus the 3.8% Medicare surcharge on
January 1 (for a total tax rate of 23.8%) for those
with income above a certain threshold. Since
MLPs have been up cumulatively over 100% on
a price basis since the end of 2008, we believe
that some investors may have locked in the 15%
tax rate before year-end. Not surprisingly, MLPs
Provided By Ted Gardner, Senior Portfolio Manager, Salient
1
2
3
4,5
6
Source: Moodys
Source: Credit Suisse
Source: KDP
Source: Morningstar
Source: BlackRock

8. 8 | Telemus Capital | Spring 2013
have had a significant bounce thus far in 2013 as
the tax selling abated.
Due to the relative weakness in 2012, we believe
that total returns in 2013 could potentially be
strong. The yield of the AMZ was ~6.6% on
December 31 and analysts currently expect 6.5%
to 7.0% distribution growth in 2013. Using a
growth estimate of 6.5%, we believe that total
returns may be in the 6% range on the low end,
with a possibility of a 23-24% total return. We
believe that yields may return to the 6.0-6.25%
range than increase further at this point. At a
6.25% ending yield, the index could return 18.7%
for the year; at a 6.0% yield, the total return could
be 23.4%.
The risk factors that may impact MLP and
midstream company volumes, cash flow, and
valuations this year include (but are not limited
to) potential economic weakness, questions
regarding the tax status of MLPs, a decline in
crude oil, natural gas, and natural gas liquids
(NGL) prices, and widening credit spreads.
Telemus Wealth Advisors
With the passage of the American Taxpayer
Relief Act of 2012 (“ATRA”) there was a collective
sigh of relief as the crippling fiscal uncertainty
was behind us. The fear that taxes would revert
back to what was in place in 2001 impacted the
ability to make long term decisions for both
businesses and individuals. Resolution of the so-
called “fiscal cliff” in the form of ATRA, was one
of the factors that led to a strong 2013 start in the
financial markets and will hopefully be followed
by a quick and fair resolution of the current
budget discussions.
The U.S. tax code will always be in flux, as is
being demonstrated by the current budget
negotiations, but there is finally a sense that
for the majority of taxpayers, the estate tax
structure put in place by ATRA will remain
relatively constant going forward. In addition,
based on the current structure the estate tax will
only impact those with significant accumulated
wealth exempting the majority of taxpayers from
its thrust. For those still subject to the estate tax,
the planning done in 2012, when there was fear of
a major estate tax overhaul is still valuable given
the increase in the estate tax rates, as indicated
below.
All of the above exemptions are now adjusted
for inflation which will protect many more in the
future from being subject to estate taxes. ATRA
also made permanent “portability” or the ability
of a married couple to use the unused exemption
of a deceased spouse, thus allowing a couple
to effectively exempt $10.5 million from estate
taxes.
By Andrew Bass, CWM, CPA Chief Wealth Officer and Senior Advisor
Research and advisory services are provided by Salient Capital Advisors, LLC, a wholly owned subsidiary of Salient Partners,
L.P. and a U.S. Securities and Exchange Commission Registered Investment Adviser. Salient research has been prepared
without regard to the individual financial circumstances and objectives of persons who receive it. Salient recommends
that investors independently evaluate particular investments and strategies, and encourage investors to seek the advice
of a financial advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual
circumstances and objectives.
Salient is the trade name for Salient Partners, L.P., which together with its subsidiaries provides asset management and
advisory services.
2012 2013 and Beyond
Estate Tax Exemption and Top Rate $5,120,000
35%
$5,250,000
40%
Gift Tax Exemption and Top Rate $5,120,000
35%
$5,250,000
40%
GST Tax Exemption and Top Rate $5,120,000
35%
$5,250,000
40%

9. Telemus Capital | Spring 2013 | 9
2012 2013
Top Ordinary Income Tax Rate 35% 39.6%
Short Term Capital Gain Rate 35% 39.6%
Long Term Capital Gain Rate and Qualified Dividend Tax Rate (for taxpayers
with taxable income below $400K/$450K)
15% 15%
Long Term Capital Gain Rate and Qualified Dividend Tax Rate (for taxpayers
with taxable income above $400K/$450K)
15% 20%
Wage Surtax (for taxpayers with compensation income above $200K/$250K) n/a 0.9%
Investment (Health Care) Surtax (most taxpayers with investment income over
$200K/$250K)
n/a 3.8%
Limitation on itemized deductions & personal and dependent exemptions
(taxpayers with AGI over$250K/$300K)
None Yes
Going forward, the focus for many will be on
income preservation and risk management
with the goal of keeping and protecting what
one creates and accumulates. Below is a brief
summary of the ATRA income related tax
changes effective in 2013.
The above changes, when added together can
significantly increase the taxes of the “wealthy”
with a potential marginal rate in excess of 43.4%
and when including one’s state income tax, such
marginal rate could rise to over 50%.
In addition to the above changes the Alternative
Minimum Tax (“AMT”) has been permanently
“patched” with the base exemption being fixed
($78,750/$39,375) and with the exemption being
indexed for inflation so as to prevent inflation
causing more people to be impacted by the
AMT. This provision of ATRA will have the single
largest impact on government revenue, being
estimated to result in a revenue reduction of $1.8
trillion over the next ten years.
Thus for many, the focus looking forward has
shifted significantly towards current after tax
cash flow planning in addition to estate and
asset preservation planning. Some areas that will
receive greater focus are:
• Maximizing income deferral or exemption
techniques
• Maximizing income shifting techniques
between family members and entities
• Maximization of qualified and non-
qualified compensation plans
• Structuring how and when income is
realized including use of tax sheltering
vehicles.
• Tax sensitive investment management
including the use of tax favored
investments
• Utilization of asset protection strategies
and trusts that depending on the
structure can have tax advantages as well
as protection benefits.
The key is timely and thought out planning
which is best accomplished through effective
communication and coordination between your
tax, financial and legal advisory team members.

10. southfield, michigan
two towne square, suite 800
southfield, Michigan 48076
248.827.1800
fax 248.827.1808
ann arbor, michigan
110 Miller avenue, suite 300
ann arbor, Michigan 48104
734.662.1200
fax 734.662.0416
800.827.3519
telemuscapital.com