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CLIENT NEWSLETTER
Volume 4, Issue 4
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Inside This Issue:
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Feature Story:
No Wonder Tax Laws Are So Confusing
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Did You Know?
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Success Story Of The Month
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Financial Tip Of The Month
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Health Tip Of The Month
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Client Quiz
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 Developing A Beautiful Landscape That Saves Water…
Xeriscaping is a practice of landscaping with drought-tolerant plants, which conserve water and save maintenance time. The name comes from the Greek word zeros, which means dry. Using this theme, you place plants that need more water closest to the house. Those that need little or no irrigation can be planted farther away or at the lot's farthest points. Xeriscaping makes use of many plants you may already have, such as hen & chickens, yucca, sedum, Coronation Gold or Moonshine yarrow, sagebrush and lavender, all of which are perennials. Winter-hardy succulents that thrive in USDA Hardiness Zone 5 and 6 (Middle America) include agaves. Agaves, with their fleshy, wide leaves, are an attractive choice. Harvard's Century Plant is one example. It can make an architectural statement in a garden. It can reach 36 inches high at maturity and makes a dramatic statement with low-growing flowering plants in front of it. Container plantings and annuals need more water and should be planted closest to the house and the water source. To xeriscape more of your property, consider increasing the size of a patio, creating a stone walkway, or turning one or more sections of your lawn into an area for attractive, drought-resistant bushes and plants.
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“Your imagination is your preview of life's coming attractions.”
~ Albert Einstein ~
“Progress involves taking risks. You can't steal second base and keep your foot on first.”
~ Frederick Wilcox ~
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 One question we continually get asked…and we continue to ask is: “ Why are taxes so complicated - and what can we do about it?” Well, let’s break this up and deal with the first part of this question first. Why are taxes so complicated?
As you can imagine, we work very hard keeping up to date on financially related news that could affect your financial situation. This covers a huge amount of information. A partial list includes:
• “Too Big To Fail” banks still doing the same exact garbage they did that almost brought the world crashing down.
• Health care “reform” that may or may not happen. (As of this writing anyway.) And how it may be paid for with taxes on the “rich”.
• Interest rate changes.
• Stock market roller coaster.
• Global economic conditions.
• The War on Terrorism/Homeland security,
• Wars in Iraq, Afghanistan, Pakistan, etc.
• Political gridlock and Congressional incompetence/indifference.
• Proposed or actual budget changes, along with
proposed or actual tax law changes.
• Updates and changes to all kinds of financial products and services, such as the new Credit Card Protection law that went into effect Feb 22. (And that the banks have already found loopholes in to hit us with more ways to screw us.)
• Regulatory changes (or lack of them).
• And on and on and on.
We do this research through daily reading of newspapers, trade magazines, professional journals, continuing education seminars and classes, the Internet, and all kinds of specialized publications and newsletters.
This month in organizing our research material, we were overwhelmed at the number of issues our government – particularly the Congress is dealing with. Let’s look at what they’re doing now. In going over just a few months of the issues facing Congress, this is what we ran across: Health Care reform, bank/corporate fraud, derivatives, bailouts/stimulus, Congressmen’s unethical behavior in office, homeland security, funding of the 2,3,or 4 wars we appear to be in, gun control, waterboarding, Iran and nuclear weapons, Israel and the Palestinians, domestic terrorism, the failing war on drugs, the Federal Reserve and the shrinking dollar, prescription drugs from Canada, Guantanamo prison and detention/trials of top alleged Al Qaeda leaders, immigration, endangered species, children’s’ health programs, Mexico drug cartel wars, China spy and trade issues, affirmative action, H1N1 virus, “Don’t Ask Don’t Tell”, Gay marriage, prayer in public sponsored events, free speech, stem cell research, approvals of appointees being held hostage by one
Senator, earthquakes in Haiti/Chile, etc., etc….
And these are just the issues that come up as things develop! We didn’t even mention all the time spent on entrenched, permanent problems that never go away like funding for Medicare, Medicaid, Social Security; campaign contribution reform, tort reform, and on and on.
(Speaking of huge money holes like Medicare and the rest, no one talks about how the hundreds of billions of dollars a year price tag on the wars in Afghanistan, Iraq and the shadow wars in Yemen and Pakistan, are going to be paid for, for example. But, we assure you that YOU are going to pay for it! In fact, many Congress people are talking about the “rich” being taxed more heavily to pay for these ongoing wars! The definition of “rich” by the way, keeps changing as they discuss what to do.)
You have to understand how all this affects the first part of our question about the complication of the tax system! With all the out of control programs and irreconcilable differences on both sides of the aisle regarding these problems, and the resulting arguing and necessary compromises that must exist…they use the tax code to create the means to pay for everything!
They say, “You give me this and I’ll vote for that, and we’ll increase taxes to pay for it all.” With this ridiculous system of personal agendas dictating national policy, it’s no wonder we have a tax code that is so complicated that it is impossible for professionals, let alone the average taxpayer to figure out! Last we read, the tax code was up to 14,000 pages. Ugggh.
However, there are a few things we do know for sure. There will be changes. There will be new tax laws. At this time there are dozens of proposals of how to extract your hard earned money from your wallet…and place it in Washington’s capable hands for them to spend instead of you!
Now, to answer the second half of our question, What can you and I do about the Congress using taxation to direct policy? As much as we hate to say this, we can’t do anything about it. We can’t force common sense on our government. Not any more. Not unless a miracle person with the combination of Abraham Lincoln’s common sense and tenacity, Thomas Jefferson’s complete dedication to our God given civil rights and personal liberties, Mother Theresa’s humanity and compassion for the truly down trodden…and Thomas Edison’s unshakeable spirit of creating a better world no matter what the personal cost!
As far as personal financial planning concerns, our advice is to take a pro-active approach. Be aware of the changes in the laws and how they affect you and your own unique situation. By far the most common mistake we see our clients make is not taking advantage of (or incorrectly utilizing) tax laws as they apply to their situation.
No matter what happens, we will know about it and keep you informed. Your part of the job is to stay in touch with us so we can do our best to help you…and to let us know when you’re THINKING about making a financial decision…NOT AFTER YOU’VE ALREADY MADE IT! Please don’t call us and tell us what you’ve already done. We’d rather you call us and tell us what you’re considering. It works much, much better! We can and want to help you decide what you should be doing in the context of your financial planning for 2010 and beyond!
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- REMEMBER -
WE WANT YOU TO CONTACT US WITH YOUR "HERE'S WHAT WE'RE THINKING ABOUT DOING" QUESTIONS, NOT YOUR "GUESS WHAT WE JUST DID!" COMMENTS!
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| Our monthly feature of tidbits of news and info to make your life easier and your money work harder, so you're healthy all the time! |
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 1.)How To Make Traveling Easier…Whether it's vacation or holiday travel, just getting from point A to point B and back can be a source of stress--leaving you feeling like you need a vacation from your vacation when you get back home. There are some simple things you can do however to make things easier and less stressful. Here are some tips that may help:
First, it's helpful to create a list of items you're going to need for the trip. If you Google "travel packing list," you'll get several base lists that are already made and that you can customize to your own needs. Inspect your luggage from your previous trip, checking the pockets and compartments for anything you won't need for this trip and will just be getting in the way.
If this is your first time flying or first time on an international flight, make sure to read up on regulations as far as what you can and can't take. This includes certain sizes and weights of luggage--most of the time it's not going to be an issue, but the one time that it is will be likely be when you're in a hurry. Be sure to insure your luggage, and take at least 1 day's items in your carry-on bag in case your luggage unfortunately is late or lost. Similar situations can even happen by bus--my husband's uncle took a bus from Chicago to Knoxville, TN, and at some point the luggage was not transferred over to the same bus he was on. It ended up arriving 3 days later. Though it was annoying, he was reasonably prepared with what he had in his carry-on that it didn't ruin his whole trip.
Do some research on your destination before you go, especially if you have a limited amount of time and want to do a lot of activities. For example, my husband and I would not have known you have to get tickets to go up in the Washington Monument around 8 A.M. (regardless to the time of day you're wanting to go up) if we had not seen it on a website. Guidebooks are handy as well--check used bookstores first, since many people take the trip and then sell the guidebook afterwards.
 2.) Springtime allergies: Nip them in the bud…Spring means flower buds and blooming trees — and for the millions of people who have springtime allergies, it means sneezing, congestion, runny nose and other signs and symptoms. In the early spring, the major culprit is wind-borne pollen from trees. In late spring, grasses start to cause trouble. The worst springtime allergy signs and symptoms occur during hot, dry or windy days when there's a lot of pollen and mold in the air.
But before you settle for plastic flowers and artificial turf, try these simple and effective strategies. You can't completely avoid springtime allergies — but you can reduce your signs and symptoms by being prepared. Here are some tips that can help.
Reduce your exposure to pollen
There are a number of things that you can do to reduce your exposure to your allergy triggers:
• Stay indoors on dry, windy days — the best time to go outside is after a good rain, which helps clear pollen from the air.
• Delegate lawn mowing, weed pulling and other gardening chores that stir up allergens.
• Remove clothes you've worn outside; you may also want to shower to rinse pollen from your skin and hair.
• Ban your pets from your bed or couch — pollen clings to pet fur.
• Don't hang laundry outside — pollen can stick to sheets and towels.
• If you do outside chores, wear a dust mask.
Keep indoor air clean
There's no miracle product that can eliminate all allergens from the air in your home, but these can all help:
• Run the air conditioning in your house and car.
• Use a micron allergy-grade filter in your ventilation system.
• Keep indoor air dry with a dehumidifier.
• Use a high-efficiency particulate air (HEPA) filter in your bedroom.
• Clean floors with a vacuum cleaner that has a small-particle or HEPA filter.
 3.) Video conferencing at home…At the Consumer Electronics Show, Cisco Systems showed its videoconferencing system for the home. It's similar to Cisco's TelePresence, a high-end videoconferencing system for businesses. The home version lets consumers do the same on high-definition TVs. The system is not available yet, but home trials are beginning.
Internet-enabled TVs are a big trend. An estimated 45 million will be enabled by 2014, according to ABI Research. This year, there are 32 million U.S. households with broadband connects that can support videoconferencing. In the meantime, TV makers Panasonic and LG are adding Skype, the free online telephone service, to internet-connected high-definition televisions. Users with a Web camera and microphone can create live video chats and phone calls.
Make your cloud with a Palm:
Verizon Wireless is embracing Palm's webOS mobile operating system. Palm's Pre and Pixi phones have been well received but overshadowed by the iPhone and Google's
Android devices. Both the Pre and Pixi have touch screens, standard keyboards and can incorporate data from several sources into a single view. Their most interesting feature: A downloadable app in Palm's catalog lets you use Verizon's 3G network and turn the phone into a mobile hotspot. That lets you share a "personal Wi-Fi cloud" with up to five Wi-Fi-equipped devices, including notebooks, cameras and portable media players.
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| (Note: The details of these stories have been changed to maintain confidentiality, and some compilations are used to accomplish anonymity.) |
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When Jack and Carla first came in to see us, they weren’t very happy. As a matter of fact, they were pretty scared. Here was the situation.
Jack, age 63, was being forced into retirement in three months due to the company’s horrible performance, courtesy of the Great Recession. They “asked” several people who had been there more than 25 years, including Jack, to take an early retirement package.
Jack was forced into accepting the early retirement option that they offered him.
Carla, on the other hand, had worked full time for a discount retail chain that is still doing OK in spite of the recession. Carla worked there for 15 years, and at age 63 herself, was tired of the grind, and decided that it was time to hang it up. She had finished working about two months prior to coming into our office.
They had been referred to us by their brother-in-law, who had recently retired and was also very nervous about running out money in his retirement. He had lost over 50% of his retirement funds during the crash of ’08, and was told by Jack that he and Carla were just as worried about their retirement.
The plan of diversification we had worked on with their brother-in-law has been working very well. He has regained some of his losses he experienced before he came in to see us, and has even been able to save a little dough in his retirement…instead of running out as he feared! So, when Jack and Carla, came into see us they had high expectations, but also a lot of fears.
Their income was going to be made up from the following sources, Approximately $1,412 from Social Security, Jack’s pension was going to be $675 per month and Carla’s pension was much smaller, only $185 per month. All in all it totaled $2,272 per month.
What they were worried about was that they had a mortgage payment on their condo they had purchased a few years ago, of $798 a month, plus they had $140 a month assessment which included their annual dues, association cost, and so forth. (The condo has dropped over $75,000 in value they told us, but they still think they have some equity left.)
 In addition, they had two cars. One was paid for, and the other, they had just bought a year ago. It had a $286 monthly payment attached to it.
Another problem: Jacks’ employer’s forced retirement package included wiping out the promised paid for health insurance plan for retirees, so they were both going to need to buy health insurance on their own. The best plan that they could get, is over $950 a month. On top of that they had normal bills for groceries, utilities, gas, gifts and so forth.
Bottom line: their monthly budget was several hundred bucks more than they were taking in.
They were quite worried about this and when they came in to see us, Carla expressed a big concern that the $197,000 that they had saved in their personal and retirement plans, in addition to their pensions, would be eaten up very quickly by having to dip into their principle to the tune of several thousand dollars a year. They were also saddened and terrified about their portfolio, because in the recent stock market roller coaster trip south, they had lost over $120,000 in their combined 401(k) plans!
This did not allow them any extras, such as vacations, new furniture and so forth. Although Jack was concerned about the same things as Carla, he was also disappointed that they wouldn’t be able to live the lifestyle they had worked so hard for.
We took a look at their current planning scenario. We found they had made very costly mistakes that lots of people going into retirement do.
For example, through some diligent shopping and helping to change some of their health insurance parameters they weren’t even aware of, we were able to save them $185 per month right there. (With better coverage!)
Secondly, we took a look at their tax situation and found that by the way they had money invested - they were actually wasting about $360 per month in totally unnecessary income taxes from the investment side of things.
Third, we took a look at the way they were spending their money on their mortgage payments, car payment’s etc…. The way they were set up, was causing them to miss out on getting tax deductions for the monthly payment on their new car. We pointed out that their condo could have been financed differently, much better than what they had done. (They listened to their neighbor, a retired plumber and now self styled money expert about getting an adjustable loan back in 2005. He had read about what he suggested Jack and Carla do in “Money Magazine”.)
Through restructuring the way their debts were set up, we were able to save them $147 on the actual mortgage payment itself, plus they picked up another $87 in tax savings from the refinancing. The total from all these savings, when added up, was $779 per month, or $9,348 per year!
Finally, we took a look at how to reposition their savings and 401(k) money into a much safer portfolio, one that has some upside potential…but virtually no downside risk if the market returns to its slide into hell!
So, like their brother-in-law, they’d be able to not only make ends meet through retirement, but also have a little extra money to set aside, to put towards the retirement lifestyle they had worked so hard for.
Their retirement financial problems would not have been solved, had they just done things the way most people do. For example:
1.) Do nothing, or,
2) Take the advice of well-meaning relatives or strangers, or,
3) Apply general advice from magazine articles or news shows to their own individual situation.
The only way they could see their retirement dreams come true was by doing the right kind of planning with professional knowledge. Knowledge is the key! Knowledge that you cannot get from your barber, brother-in-law, magazine articles, radio talk shows or well meaning but clueless neighbors!
So, the moral of the story is always the same. If you are prepared, and get the right professional help with your financial planning…your future has the best shot at being safe and secure!
It just goes to show you it’s never too early or too late to plan! (Are you getting your planning going right now? Are you going to waste lots of money by procrastinating? Don't delay. Call us up for your annual review, RIGHT NOW, while this is fresh on your mind. We'll take care of the rest!)
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About 41 percent of Americans don't have a will. If you are one of them, you could be leaving a tangled legal hassle to your family. Wills affect only probate
property, which is whatever you individually own. A house owned jointly by spouses is not probate property. If you and your wife own a home together, when one of you
dies, the house passes directly to the other.
If you share ownership of investment property with an uncle or a couple of cousins, you need to have a will in order to designate who gets your share. One advantage of
probate is that it allows a certain amount of time for creditors to come forward. Then there is a cutoff. Any other claims are barred. Note that there are a number of
things a will won't do. Life insurance goes to the person named as the beneficiary. Saying in your will that someone else gets it has no effect. Bank accounts and
certificates of deposit can have a pay-on-death designation. A will can't change that POD designation.
A will probably won't let you avoid probate entirely. It's a state court procedure that oversees the administration of your probate property.
The more complex the family is, including children of various marriages, adopted children and children with special needs, the more important it is to have an estate-
planning lawyer draft a will and possibly a trust. If your real estate is in more than one state, it's wise to create a trust so the estate won't have to be probated
in each state. When funded with properly titled assets, a trust can also provide for beneficiaries with special needs and could help minimize any estate taxes. A trust
is not as expensive to set up as people think it is. If a will costs $250, a trust will probably cost $750 and up, depending on what you put into it.
If you haven’t had your estate planning reviewed recently, and/or if your life situation has or is going to change, you are urged to talk to us about your situation,
so we can assist you in working with a qualified attorney to update your plan. If you want the best chance to leave your estate to your heirs the way you want things
to end up, you really need to have your estate planning updated now!
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| Please keep in mind that this tip is designed to be of help for you, but is not to be relied upon as advice. It is merely a reminder that there are many choices you have available to you, and that planning is the only way to find the right answers for your situation! As with any financial issues, make sure you get the right information before making a decision! If you have any questions, we'll be glad to help you! |
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| These tips are not for everybody and should not be taken as specific recommendations. Before you take any action regarding yours or anyone's health, we strongly suggest you consult a qualified physician! |
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 No matter what your age, protecting your skin from sun damage will keep it healthier and better-looking. Whether you're young or not-so-young, and even if you already have wrinkles, exposure to the sun will cause damage, or further damage, and increase your risk of developing skin cancer.
* Doctors at the Mayo Clinic recommend applying sunscreen with a sun protection factor (SPF) of 30 or higher at least once a day to areas that are exposed to sunlight.
* Wear clothing to block sunlight and wear a broad-brimmed hat whenever you can. Try to avoid being in the sun from about 10 a.m. to 3 p.m., and try to stay in the shade when you are outside for more than a few minutes.
* Bathe with warm water, not hot water, which can deplete natural oils from your skin. Use a mild, fatted or glycerin soap and only use soap on your face, underarms, genital area, hands and feet.
* Moisturize. After a bath, pat your skin dry and immediately apply a moisturizing lotion to trap moisture in your skin. For very dry skin, a product in which petrolatum is one of the top three ingredients is advised. Products containing glycerin, lactic acid or urea provide an extra boost.
* Drink enough water. Being well hydrated moisturizes your skin from the inside out.
Skin cancer update
In spite of all advice about prevention of skin cancer, about 1 million cases are diagnosed annually. Of those, the American Cancer Society projects 60,000 cases of melanoma this year, which will cause 8,100 deaths.
Dermatologists are seeing more melanoma among women 20 to 29 years old who used tanning beds.
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Q. Matt and Eric are young men. Each has a good credit history. They work at the same company and make approximately the same salary. Matt has borrowed $6,000 to take a foreign vacation. Eric has borrowed $6,000 to buy a car. Who is likely to pay the lowest finance charge?
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Q. The FDIC has put a new law into affect in regards to our banks. They now will guarantee deposits up to $250,000…which is a much larger amount than was guaranteed before. When does this guarantee come to an end?
A. Most people think that this guarantee ended on December 31st, 2009. That is not the case. The guarantee actually stays in affect until December 31st, 2013! So, if you have $250,000 or less in one bank, it’s insured, and you have nothing to worry about until after the deadline at the end of 2013!
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Baton Rouge, LA - Did you know that all financial advisors are not the same? And, if you need to get some help with your money, you will need to know what to ask a financial professional before you make any moves!!
Most people really don't know what questions to ask, or what things they should be aware of. When it comes to your money, you had better know!
Picking the right advisor can help you, and picking the wrong advisor can be a big mistake!
Make sure you know which is which! In today's messed up economy, you cannot afford to take any chances. If you are like most of us, these days of world crisis, economic slowdown, and general confusion have you downright worried.
You know what? You should be! Managing money was always tough, but this last year has set records for government foul-ups and totally unpredictable markets.
These are scary times. And, therefore, you must be sure to use an advisor that will be right for you!
To help you, we have prepared a FREE REPORT called "Ten Questions You Must Ask A Financial Advisor BEFORE YOU HIRE THEM!"
To get your FREE REPORT, and learn the secrets some advisors would prefer you never knew, call toll-free 1-888-6INVEST, 24 Hrs., for your free copy of this eye-opening report will be sent to you immediately. Call NOW!
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YES! I'd like more FREE information on the following:
FREE Reports Available!
Call Toll-Free 888-6INVEST, 24 hrs., or Email us To Get Any Of These Free Reports!
- “The Tax Savings Secrets The IRS Doesn’t Want You To Know!”
- “The Secret Alternatives To Lousy, Low Yielding CD’s…What Banks Don’t Want You To Know!”
- “The 10 Biggest Mistakes People Make Before Or After Retiring…And How You Can Avoid Them!”
- “The 14 Questions You Must Ask BEFORE You Hire A Financial Advisor!”
Please email or call us if you would like to set up a FREE "Financial Check-Up" of your insurance, assets and overall financial well-being!
Please email or call us if you would like to add a FREE subscription to your monthly newsletter for the following people. I understand you will send them a note explaining I suggested they get this FREE subscription, and that all they have to do is contact you if they wish to cancel.
Thanks, and don't forget to send in your Client Quiz answers to win a FREE DINNER!
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