LOHENGRIN GROUP

Client Newsletter

Volume 3, Issue 12

Why You're Gonna See Red ... At Christmas Time

It shows up in Santa suits, poinsettias and big holiday bows. Red is perfect for the most celebrated holiday of the year. It's the color of Christmas. Red is the most emotionally intense color. Doctors say it stimulates a faster heartbeat. It attracts people to each other and birds to the winter berries. In Nature's Palette: The Science of Plant Color, author David Lee says it's clear that red is exciting for people too. It's the color of love. Blue and green are calming. Red catches the eye. It shows up well against green, its complementary color. You'll see red everywhere if you are a human or an ape. Lee says most other mammals can't see it. Birds search for red. Stephen Kress, author of the Audubon Society Guide to Attracting Birds, says birds can see red and red means ripe. Birds like the fruit of winterberry, cranberry bush and others. With freezing and thawing, crab apples ferment and can make birds tipsy. It's a floral tradition. This is the season of the poinsettia, the nation's most purchased potted plant. The Department of Agriculture reports that about 75 million poinsettias are sold at this time, most of which are red. For more flower power, some are sprinkled with gold or white glitter. Don't forget Rudolph. His nose is bright red. That character of story and song is "Rudolph the Red-Nosed Reindeer," first sung by Gene Autry. Where did Christmas colors originate? Some historians say the use of red and green at Christmas originated in Italy and the custom spread across the Continent and into the United States. Italy's flag is red, green and white, all Christmas colors.

1.) Live longer: Have a cup of coffee (or two) - Is there a link between drinking coffee and living longer? A recent analysis of study data suggests that. Analyzing study data, researchers found that, during an 18-year period, the relative risk of death decreased among study subjects in direct proportion to the amount of coffee they drank. The coffee consumption was self-reported among the 41,736 men and 86,214 women in the Nurse's Health Study and the Health Professionals Follow-up Study. Researchers divided subjects into six categories ranging from less than one cup per month to more than six cups per day. They found that the relative risk of death from all causes decreased in proportion to higher coffee intake. The decrease in deaths was primarily due to fewer cardiovascular deaths.

2.) 3-D is the next big thing in television- Watching a football game on HDTV is a beautiful sight. But 3-D television makes a dramatic change in the experience. When the quarterback throws a pass, for example, it practically lands in your lap. Right now, there are several 3-D sets for sale, but no programming to speak of. It could be a while before people, who have little idea of what 1080p is, go for something else, says Richard Siklos of Fortune. But when the time and the product are right, the change will be dramatic. Experts in technology at ESPN say the development of 3-D TV is in a stage similar to where the development of high-definition was five years ago. Present-day 3-D sets, such as those made by Samsung and JVC, still require different types of image coding and the use of viewing glasses with red and blue plastic lenses. Phillips already has a 3-D monitor that doesn't require viewing glasses, but at this time the set would be too expensive to be offered to the public. They estimate that the first 3-D broadcasts in the United States are at least three years away. One thing is certain. There will be a lot of talk and conjecture about better 3-D TVs at the consumer electronics show in January 2009. It's the next big thing in television, though it will take a while before it's ready.

3.) How to make the best deal at rental car agencies - Just getting off the airplane, stepping up to the rental-car counter and presenting your credit card is not the best idea. To get a better deal: * Skip the airport agency. They have to charge more because of high overhead, higher fees and taxes. If you haven't made a reservation, take the shuttle downtown and rent from there. * Even better, call the direct number of the local agency where you will pick up the car. The agency could offer a deal. * Bring a digital camera, advises Peter Greenberg, in The Contrarian Traveler. If there is any damage to the car, take pictures of it. Show them to the agent and get his or her name. * Check for discounts offered by affiliated hotels, airlines, AAA and American Express, and others. * If they make you pay for a full tank in the beginning, bring it back with very little gas. If you have the option of bringing the car back with a full tank, fill it up. The agency will charge about twice the price you will pay elsewhere for gas, although some car rental companies are charging close to market prices now with the price of gas so high. * If you need a car for only one day, rent it on Saturday morning. You may be able to do errands all day for a bargain price. *Think twice about the insurance. Check to see if you are covered by your own car insurance. Some credit card companies provide collision insurance if their card is used. * If renting online, keep checking the Web site for special deals. The agency will lower your price accordingly, if you ask them to do it.

Michele told us that her mom, Jill, had been forced into early retirement when the company she worked for outsourced her job to Bangalore, India in early 2000. She was only 57 when this happened, and while Michelle thought Jill’s payout from her retirement plan, combined with her other investments would serve to provide a fine existence for Jill...it hasn’t turned out that way at all.

So we agreed to meet with Jill and Michelle. Michelle was single once again. (She had been divorced from the same man on two different occasions, but that’s a whole ‘nother story.)

Anyway, here’s the story Jill told us. It turns out that Jill was married to David Sr., for 29 years. David was the manager of grocery store in town, and had a couple of bad habits that caused the marriage to break up a few years before Jill got laid off from her job. (It still hurts Jill, because she was very teary eyed when she got to this part of the story.)

The divorce agreement provided that David pay alimony to Jill since he made quite a bit more than her, and that he maintain a life insurance policy with Jill named as beneficiary.

Only eleven months after the divorce was final, David had a heart attack while on vacation with his new significant other, and died two days later. His smoking and drinking were apparently too much for his heart. The other sad news was that he had been behind on his alimony payments from the beginning of the divorce, and had not paid any of the premiums on the life policy. Jill also thought she was the beneficiary on his retirement plan from the grocery chain, but he had cashed it in, forging her signature on the disbursement documents, unbeknownst to Jill, and had nothing at all to leave Jill or Michelle.

Jill was obviously upset at the awful end to the marriage and the awful way her ex treated not just her, but Michelle as well. (It took a few moments for Jill to compose herself when she got to this part of the story.)

As things happened, when Jill got her severance package from her employer, she and Michelle figured out what her monthly income would be from her investments and the IRA she set up with her distribution from her 401(k) plan. The house still had a mortgage on it, as the insurance money she didn’t get from David wasn’t available to use to pay the loan off as was originally intended. She still had the property taxes, maintenance, food, car payments, insurance, utilities, etc., etc. But, her investment income at the time of her retirement seemed sufficient. At that time.

Jump to 2008. Jill just turned 65, and has all kinds of financial problems, and is running into new ones all the time.

First off, her expenses have climbed dramatically since she retired. Her gas, groceries, medications, Medicare supplement policy, utilities, clothing, etc., etc. have all climbed sky high.

Jill’s been helping Michelle out, even though Michelle feels horrible about her own mess. Yet she still accepts the assistance from mom. At the point Jill came in here, she was running a deficit each month, and dipping into principle. This, she suspected would end up wiping her out I the not too distant future.

But wait. There’s more! Jill’s mom, Arlene. Arlene, was unknown to us until the second meeting with Jill. We had asked about all close family as we always do, but Jill and the kids never said a word about Arlene. She only came up because of a new crisis that had happened in between the meetings. It turns out Arlene is 89, and had been estranged from the family for decades. But, she recently had a brain aneurysm, and was being admitted to a nursing home.

No one could even remember what had happened to cause the rift between Arlene and everyone, but Jill was sure it had something to do with David, years ago. Anyway, now Jill was told that Arlene needed $6,100 a month to pay for the nursing home, and that all Arlene had was $659 a month from Social Security and a $122 monthly pension from her departed husband, and their small house which was worth about $68,000. (It was worth over $100,000 only a few months ago, but the real estate crash has hit her neighborhood hard.) She had long ago gone though all her savings.

Now, Jill was told that Arlene was going to have to go on Medicaid pretty quickly, and that the house was going to have to be sold and the proceeds used to pay for the nursing home, and that the state would keep her pension and Social Security checks. Jill was aghast. “How could they just take everything?”, she wondered aloud.

Well, they can take everything, and Arlene will end up in a Medicaid bed in an OK but certainly not nice nursing home for a long time. She survived the aneurysm, but had the same effects a stroke leaves behind. Her money from the house would be used up in no time, and then it was all state aid with NOTHING left.

She also hadn’t even thought about taking out a long term care policy...until Arlene got sick. (And seeing as 60% of us end up in a nursing home for an average of 2 ½ years, the family was wondering how they’d come up with the dough to pay for it!)

What a mess.

But, fortunately, we see this stuff every day. We understand all the complications of putting this incredible maze and jigsaw puzzle together, so that the pieces fit, and a plan that works is put in place!

Much to everyone’s delight, we were able to help Jill redo her investments and loan situations to bring in hundreds of additional after tax dollars into her checkbook with less risk than she had before! We were even able to take a small amount of the new monthly additional cash, and have Jill buy a long term care policy so she wouldn’t end up in Arlene’s unfortunate situation if she were to get permanently sick.

In short, we were able to get Jill to a financial place where she was going to be self sufficient. And Jill would be able to help Michelle out without hurting her lifestyle.

You should have seen the smiles on everyone’s faces when we laid out the plan! They were even bigger a few months later when we got together and reviewed everything, and the implementation of the plan had been accomplished.

We live for those smiles. It’s why we come into work every day. The reality for pre-retirees and current retirees is that it’s a jungle out there, and unless you are armed with the right knowledge, you almost have no fighting chance.

The government has an enormous problem with thousands of people every day turning 65, with more coming as the baby boomers reach retirement age in the next decade. If you don’t have a plan in place with the right info about your tax situation, your financing, your Medicare and Social Security options, long term care planning, estate planning, investment options...you are going to have a real hard time, no matter how much you have now.

Remember that this financial meltdown, time, inflation, taxes and government abuses like the new trillion dollar bailout will likely cause all kinds of financial turmoil. YOU have to take control by planning and knowing your options!

Once again, a lack of careful planning could have led to a certain doom! PLANNING IS THE ONLY ANSWER! 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!

Gas prices are high, which makes some people wonder if they should sell their cars and buy hybrids. The time might not be right, say experts at Edmunds.com. When you consider that you'll get a low price for your existing car and pay extra for a hybrid, it could take years to make up the difference with gas savings.

Even if you need a new car right now, a hybrid might not be the best choice. A compact car with a high-mileage regular engine could be almost as fuel efficient as a hybrid.

Quoted in Newsweek, Edmunds' Jesse Toprak says the best candidates for saving money by not buying a hybrid are people who drive at least 15,000 miles a year and drive mostly in traffic. In that case, Toprak says, "keep your car until the wheels fall off."

If you want to do the math yourself, check politicalcalculations.blogspot.com and click on "Should You Trade in Your Gas Guzzler?"

At Edmunds.com, you can check how much it would cost you to own any car. It shows that over five years, you will spend $3,405 more to own a hybrid Honda Civic than a conventional one. At $4 a gallon for gas, by their calculations, it will take 8.5 years for the hybrid Civic to start paying for itself.

The Toyota Camry hybrid will start paying for itself in about four years. It gets 37 miles to the gallon on the highway. It costs $28,500 in 2008.

The conventional-engine Ford Focus gets 35 miles to the gallon, and costs less. Its starting price in 2008 is $14,695.

If gas prices stay down where they are now, then the hybrids will end up costing even more.

Here is a festive cake that departs from the usual candied fruit cakes and stollens. It's great for those who have intolerance to milk products. It is rich in appearance and texture and stays moist for days. It has two spices traditional to spice cakes, cinnamon and ground cloves. The cake freezes well for make-ahead storage. It's great for Christmas or Hanukkah celebrations or for New Year's Day. And it works well as a breakfast sweet.

Eggless, Butterless, Milkless Cake

2 cups brown sugar
3 cups bread flour 2 cups hot water
1 teaspoon baking soda 2 tablespoons hard shortening
1 teaspoon cinnamon 1 teaspoon salt
1 teaspoon ground cloves
1 1/2 cups of seedless raisins (pieces of dates can be substituted)

Boil the brown sugar, water, shortening, salt, raisins and spices together for five minutes, stirring constantly. When cooled, add the flour and soda that is dissolved in a teaspoon of hot water. The recipe makes two layers. Cut round pieces of wax paper to fit layer cake pans. Place on bottom of pans and pour in batter. Bake 45 minutes in 325-degree oven. Top with rich penuche icing or other frosting.

Penuche Icing 1/2 cup butter

1 3/4 cups of confectioners sugar
1 cup brown sugar packed
1/4 cup milk

Melt the butter. Add brown sugar. Boil over low heat for 2 minutes stirring constantly. Stir in the milk. Stir until it comes to a boil. Cool to lukewarm. Gradually add sifted confectioners sugar. Beat until spreading consistency. If it becomes too stiff, add a little hot water. The icing may be topped with maraschino cherries, butterscotch bits or colored icing decorations.

Q. You can get tax free loans out of your 401(k) plan to pay bills.

True False

Q. Which would you rather have?

1. A credit of $1000
2. A deductible expense of $1000
3.A capital gain of $1000
4. A deductible loss of $1000

A. 1. Your best deal is a tax credit, because that offers a dollar-for-dollar reduction in the taxes you owe.

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 a free copy of this eye-opening report will be sent to you immediately. Call NOW!

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• “The Tax Savings Secrets The IRS Doesn’t Want You To Know!”
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