LOHENGRIN GROUP

Client Newsletter

Volume 4, Issue 8

Greening An Older Home Can Save Energy And Reduce Carbon Emissions...

When we think of energy-efficient "green" buildings, new structures usually come to mind.
When considering carbon emissions in the U.S., 43 percent come from powering buildings and our 100 million existing homes. Those built before 1939 use 50 percent more energy per square foot than homes built after 2000. But a huge amount of energy and resources went into building older homes. It would take about 65 years for the reduced carbon emissions from one new energy efficient home to make up for the resources lost by demolishing an old one and rebuilding. So an already built home, in one sense, is already green. The oldest homes, however, are the least energy-efficient. Many have developed tiny cracks and gaps that expand over time and let in more outside air. The stimulus package includes some $8 billion in weatherization programs for low-income households, but that covers only a small part of the country's homes. Analysts at the National Resources Defense Council say energy efficiency projects, such as installing insulation or new windows, could create hundreds of thousands of new jobs if there were a nationwide effort to improve homes and buildings. Tax credits for these projects can be helpful. The Preservation Green Lab, a think tank based in Seattle, is working with members of Congress to pass energy-efficiency legislation that would increase rebates and subsidies to cover as much as half the cost. In the meantime, anyone can make progress toward greening a home. All it takes is a caulking gun and a little effort to plug leaks around walls, doors and windows.

1.) Remember, you can't take it with you... It's not unusual that people who have worked for companies for many years have quit or experienced layoffs. They may be unpleasantly surprised when they have to turn in their BlackBerrys and laptops. Many workers have family photos and personal files on their desktops, laptops and phones. They don't realize that all of this information could be lost to them. Always limit the amount of personal files you keep at work and keep backups at home. Have a copy of your email contact list on your home computer. After is laid off or quits, companies usually delete personal files, wiping the computer clean. So, if you are laid off, ask to take personal files off your computer or work phone before your last day.

2.) There are many options naming a life insurance beneficiary...After you are approved for a life insurance policy, you have a big decision: naming a beneficiary. It's not as simple as it appears to be. Consider these types of beneficiaries as told by New York Life Insurance Co.
* First, second and third beneficiaries: It's wise to name two or three others in addition to the first beneficiary. If one passes on before you do, the second, then the third beneficiary gets the benefit without any further action on your part.
* Irrevocable beneficiary. Irrevocable designations are often used in divorce settlements. They forbid anyone but the designated beneficiary to surrender the policy, take out loans on it, or assign new beneficiaries.
* Per stripes: This is a way of dividing the benefit among family branches. If the beneficiary dies, for example, the benefit goes to his or her children.
* Collateral assignments: When the insurance is used to secure a loan, the assignment gives the creditor the right to claim cash value, dividends, and death benefit should the loan go into default. Any excess benefit is paid to the surviving beneficiaries.
* Beneficiary for value. This designation guarantees that the death benefit will be used to pay for services rendered by a specific business or creditor, such as a funeral home. The benefit covers the exact cost of the service, or services, provided. Once this settlement is made, the remaining benefit will be paid to the surviving beneficiaries.
Beneficiary designations are important during the claims process. They provide specific legal instructions that can help to make sure the policy owner's final wishes are fulfilled as quickly and as easily as possible.

3.) Facilities are safer than ever, but .... as a hotel guest, you should be vigilant...More than a billion travelers stay at U.S. hotels each year. A very small percentage become victims of robbery or an attack. It can happen in spite of locked doors, surveillance cameras and an attentive hotel staff. At Enterprising Securities, a San Antonio company that designs hotel security programs, they say the recession is causing an increase in crime at hotels. Hotel executives deny that crime is rising, and an executive for Marriott International says the incidence of crime in their hotels is far below the rest of society. Most crimes are thefts from hotel rooms or cars, and most occur in the afternoon. As a guest, you should take some responsibility for your own safety.
* You should ask for a room with a deadbolt lock.
* Don't open the door to anyone without verification from the hotel.
* Don't enter an elevator if someone inside seems suspicious.
* At night, if you are concerned about safety, have a hotel staff member take you to your room and inspect it.
* Place all of your valuables in the in-room safe.
* Park in a lighted area or use a valet. Don't leave valuables in the car.
* Hang a do-not-disturb sign on the door when you leave during the day, and turn on the television or radio.
* Know how to dial 911 from your hotel room

Bill just turned 40 and was the picture of good health. He never drank more than socially, quit smoking 19 years ago, ate salmon, rice cakes, low fat everything, and exercised 3 to 4 times a week-religiously.

He worked a lot, but made sure he spent time with his wife, Terri, and his two kids, who are both in grade school. Terri quit working outside the home when their second child was born. Accordingly, their money was tight, yet both parents felt they’d like to keep the kids home as long as possible.

If you looked at Bill and knew him, you'd say he was the least likely person you’ve seen to have coronary heart disease.

(His brother-in law, Greg, who referred Bill and Terri to us, is the same age as Bill, is 75 pounds overweight, smokes like a chimney, lives on fast food, and can put away a six pack before half time.... passed his company's required physical with flying colors.)

Anyway, Bill's 40th birthday prompted him to get a physical.

(Terri thought he was being dramatic. She told him she hopes he isn't going to turn into a raving hypochondriac, like his mother is. But that's a whole 'nother story.) He went to his internist, who had him come to the hospital for the exam, which would include a treadmill stress test.

His prostate was in perfect working order, chest clear, and eyes bright and shiny. Just one thing sort of ruined the morning.

As Bill was on the 4th level of the treadmill test, he went into, full cardiac arrest. He collapsed, unconscious and had to receive two blasts with the electric paddles, and 20 minutes of CPR, before being rushed into surgery for an emergency by-pass operation.

Jump ahead. Thank God, Bill's fine. (As fine as he can be.) After a long convalescence, including time he spent in a nursing home, he's fully recovered, has clean arteries and is back at work. (Terri felt miserable about the fuss she made, and the wise crack about her mother-in-law.)

Anyway, another "Thank God” was uttered by Bill and Terri.

They gave thanks that Terri's sister’s husband, Greg, had referred them into see us last year.

When they came in, they had a totally unorganized financial mess on their hands. Bill had all kinds of financial stuff he'd bought over the eleven years he and Terri have been married.

He had changed jobs twice, so he had a retirement plan mish-mash that was pretty badly managed. His 401(K) and IRA’s had taken a beating over the last year in the great crash of 2008-2009. His insurance and company benefits were so far out of whack, it was amazing. Terri managed the household money, and her retirement plan from her job before she had kids...bur she wasn't much better off than Bill. She had lost over 55% of the money invested in the plan.

We pointed out that they needed to re-arrange many things so they could achieve their long term goals and protect themselves properly.

We prepared a needs analysis, and discovered that Bill was completely exposed, and way underinsured.

Plus, the insurance he did have was the old fashioned kind bought when he and Terri first got married. (One of them was a debit policy Bill’s mom and dad bought for him when he was a baby. The cash value was earning a whopping 1.5% interest, and had matured twenty two years ago. We hadn’t seen one of those in years. It was kind of like looking at a Model-T!)

Anyway, we recommended that they increase their woefully inadequate and ridiculously high priced whole life insurance with the correct amount of the lowest cost, highest benefit insurance available.

In fact, we were able to get them over eight times the amount of insurance they currently had on Bill with only an additional $34 a month in premium! How’s that for modern, up-to-date planning?

(Note- we strongly suggested the each get long term care insurance, since they are so young and wee in great health, and the cost was so low. They listened to us about everything, except this. After Bill's heart attack and surgery, he ended up spending 7 1/2 weeks in a nursing home due to some complications from the surgery. That cost him over $10,000.
Long term care isn't just for senior citizens. Anyone can end up sick or hurt, and find themselves in a nursing home. Bill can't get this coverage for a while, if ever, but he's not so cocky about protecting his family and money.)

So, what's the moral of the story? Same as always. Proper planning is for everyone, even young families.

Can you imagine what would have happened to Bill’s family if he had passed away with only $21,000 of insurance? Their mortgage balance alone was $198,500, with the value of their home having dropped below that amount in the great real estate crash of 2008-2009. What would Terri and the kids have done?

Can you imagine what would have happened to Bill and Terri if he hadn’t bought the life insurance BEFORE getting sick? He’d have no way of getting the right amount of coverage at a cost that would even be remotely affordable!

Don’t forget the older you are, the more planning you have to do, because you have more to lose...and less room for mistakes or disasters! YOU have to take control by planning and knowing your options!

While your situation might not be the same as Bill and Terri’s, you shouldn't take that to mean your planning needs aren't just as critical! PLANNING BEFORE TAKING ACTIONS IS THE MOST FUNDAMENTAL, AND IMPORTANT ELEMENT OF FINANCIAL SUCCESS!! So make sure you take heed, and call us BEFORE making any moves! We're here to help you plan, and make sure you have the best shot at financial security! Especially during these tough economic times!

Americans have a complex relationship with credit cards. They love the convenience of plastic, especially if they need to rent a car or bail an errant relative out of jail. But they detest many credit card company practices, such as raising interest rates for no reason, lowering credit limits or slapping on hefty fees. These practices have increased in recent weeks as credit card issuers prepare for a series of reforms that will take effect in February. Among other things, the new law will limit when issuers can raise rates on existing debt. In the interim, many issuers are raising rates and fees for some of their customers. Some tips on how to cope:

If you're carrying a balance: Do the math before transferring your balance to a low-rate card. Several card issuers are still offering a low introductory interest rate for customers who transfer their balances. But they've also raised their balance-transfer fees, which will eat into the amount you save. For example, Chase plans to raise the maximum balance transfer fee on some of its credit cards to 5% from 3%.

Some credit card issuers cap the maximum amount they'll charge customers to transfer their balances. USAA, for example, caps the fee at $75, according to Bankrate.com's 2009 credit card survey. But many others don't cap balance-transfer fees, which can lead to substantial charges for customers who transfer large balances, says Ellen Cannon, managing editor for Bankrate.com. Depending on the size of your balance, "There are still scenarios where balance-transfer deals can work for you," says Curtis Arnold, founder of CardRatings.com. Some credit card issuers are still offering a 0%, 12-month introductory rate, but you need excellent credit to qualify”.

Don't be afraid to negotiate...If your rate goes up, call the credit card issuer and ask for a better deal.
If you always pay on time, pay more than the minimum and have never exceeded your credit limit, there's a good chance your credit card issuer will lower your rate, Cannon says. "They don't want to lose their good customers."

If you don't carry a balance...The easiest way to avoid higher interest rates is to pay off your balance every month. But even customers who don't carry a balance are vulnerable to stealth fees, according to Bankrate.com. What to watch out for:

Fees for exceeding your card limit...Over-limit fees range from $15 to $39, with some issuers tying the amount of the fee to the amount by which you exceed your limit. Starting in February, banks will be required to get customers' permission before allowing them to make purchases that exceed their limits. In the meantime, the best way to avoid triggering over-limit fees is to set up online accounts for your credit cards and review them every day, says Adam Levin, founder of Credit.com. Reviewing your accounts, he says, "brings you face to face, sometimes unpleasantly, with how much you're spending and what you're buying, and how close you might be coming to that magic credit limit line for that particular card." It's also a good way to protect yourself against identity theft.

Different grace periods...Read the fine print on your credit card statement to find out how much time you've got to pay your bill before triggering finance charges and late fees. In the Bankrate.com survey, grace periods ranged from 20 to 25 days. Even paying a day late could trigger fees of up to $39, according to Bankrate.com. Want to avoid late fees by making a payment by phone? If you talk to a human being, most issuers will charge you about $15, Bankrate found.

It doesn't have to be a trade-off. Accolades for vitamin D keep pouring in. Luckily, it's summer now, the perfect time to build up your D levels by getting out in the sunshine. That doesn't mean ignoring advice about using sunscreen when you will be outside for longer than 15 or 20 minutes during the day.
If you are fair-skinned and wearing shorts or a tank top, getting 10 to 15 minutes of sun exposure is enough. If your skin is darker than fair, you can stay in the sun a little longer. After that, slather on the sunscreen and put on your hat.
Get your sunshine at least twice a week. More often is better, say doctors at the Medical College of Wisconsin. The important factor in sunshine is its ultraviolet B. When UV-B rays hit the skin, a reaction takes place that enables skin cells to make vitamin D. Short exposure times will not increase your risk of getting skin cancer, but they will help to prevent many other diseases. Large studies at Harvard School of Public Health and elsewhere show that death from all causes is higher in people who have low levels of vitamin D. Deaths from heart disease lead the list, but low vitamin D levels are also associated with an increased risk for cancers of the breast, prostate, colon, kidney and ovaries, according to the National Academy of Sciences.
The role of vitamin D in bone health has been proven for some time, making the vitamin an important factor in preventing osteoporosis. In summer, get your D from the sun. During winter, the best source is a supplement. The government set minimums are 200 IU for people to age 50, 400 IU per day for those age 51 to 70 and 600 IU for those over 70.

Q. If I claim my son/daughter as a dependent because he/she is a full-time college student, can he/she claim themselves as a dependent when he/she files her return?

Yes No

Q. Can first time home buyers claim a tax credit for 2009 before they file their 2009 income taxes in the winter of 2010?

Yes No

A. Yes. Prospective home buyers who think they may qualify for up to the maximum $8,000 federal tax credit for first time home buyers can take advantage of new benefits under the Economic Stimulus package. You MUST talk to us BEFORE doing anything with a home purchase, especially in regards to this first time home buyer credit. It expires at the end of 2009, by the way, but who knows if it’ll be extended or not.

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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