LOHENGRIN GROUP

CLIENT NEWSLETTER

Volume 4, Issue 1

On Winnie the Pooh Day, January 18, Revisit Winnie, Eeyore, Tigger and Roo
When you were a child, you probably roamed the woods with Winnie the Pooh, Eeyore, the gloomy donkey, Tigger the tiger, the brave Piglet and the scary Heffalump. Many a child has, which is why January 18th is Winnie the Pooh Day. It's a tribute to author A.A. Milne and the fantasy world he created. It's fantasy, but it's based on a real-life experience. Not everyone remembers that Winnie the Pooh was based on a real bear. During the First World War, a young lieutenant purchased an orphaned black bear cub and called her Winnipeg, or Winnie for short. Winnie became the mascot of the lieutenant's brigade, but when the troops were posted to France, he took Winnie to the London Zoo. She became a popular attraction. Christopher Robin, Milne's son, fell in love with the cub and named his own teddy bear Winnie. Milne, taking inspiration, began writing about the adventures of Winnie and Christopher as they cavorted in the 100 Aker Wood he created. He added other characters such as Eeyore, Piglet, Tigger, Kanga and Roo, based on Christopher's other stuffed animals. And he peppered the story with characters like Rabbit and Owl. Many of the places made famous in Milne's stories can be found in the area of Ashdown Forest in East Sussex, located about an hour outside of London. There, visitors attempt to locate Galleon's Lap, Roo's Sandpit, the Hundred Akre Wood and of course the mysterious Dark Forest. January 18th can be the perfect time to renew your relationship with the inhabitants of Pooh Corner. You could find yourself back at Cotchford Farm and Poohsticks Bridge. But don't take this journey alone. Share the books with a child.

1.) Sales of home safes explode - They're not putting it under the mattress, but a lot of people are putting their money into their home safes. People worried about the economy are responsible for a big spike in safe sales. SentrySafe, the largest maker of home vaults, says orders were up by half over last year for the month of October. At Home Depot, sales are up by double digits. Consumers are thinking their money is safe at home. It is hoped that thieves don't catch on to the trend, because small safes, though heavy, can be picked up and carted away. The Fed, which keeps track of "currency in circulation," reports a $21 billion rise in that category in one recent month. That's the biggest increase since 1999 when Y2K fears had people worrying about bank computers. Because bank deposits are federally insured, a bank would be a safer place to keep cash than a home. If that $21 billion were in banks, banks could use it to lend money to individuals and businesses in order to get the economy moving better.

2.) Small cars use less gas but cost more to insure - When gas prices rose to more than $4 a gallon in 2008, buying a smaller car seemed like a good choice to many car buyers. Buying a new car is a good idea to stimulate the economy and save gas. But choosing one that is smaller than you would like, because of fuel savings, could result in smaller savings overall than you realize. Small cars cost more to insure because they are involved in more accidents and result in bigger claims for personal injuries. On average, it could cost $412 more per year in insurance premiums to own a small car over a larger model or a minivan. The insurance cost is based in part on the history of a particular model, according to the Insurance Institute for Highway Safety. Small cars have higher theft rates and some are used more often in street racing, both of which add to insurance costs. Four of the top 10 most-stolen vehicles in the United States are compact cars, according to the National Insurance Crime Bureau. Insurance costs are also based on driving history, household composition, where the car is usually parked, credit-based insurance scores, and other factors that tailor the price to the individual.

3.) In Galileo's honor: The 100 Hours of Astronomy - Four hundred years ago, Galileo Galilei lifted his new telescope to study the sky, setting in motion a myriad of astronomical discoveries that forever changed our view of the universe. Contrary to current wisdom, Galileo was not persecuted by the church for his belief that the planets orbited the sun. In fact, that idea had been around for hundreds of years and was the publicly held belief of other scientists, including Copernicus (1473-1543). But in a time before the concept of 'free speech, Galileo was not exactly diplomatic. When he publicly mocked the Pope in a book published by the church, he landed in jail for several days. Later, he was confined to his villa and during those 10 years he continued his research, writing, received visitors, and remained outspoken in his beliefs. He died in 1642. It was actually his development of the telescope that constitutes his greatest contribution to science. In honor of Galileo, the United Nations declared 2009 the International Year of Astronomy. The 2009 opening ceremony will be in Paris on Jan. 15-16.About 400 participants are expected, including Nobel Prize winners and 200 student ambassadors from 100 countries. On of the main events of the year is the 100 hours of astronomy, April 2-5, days when the early evening is good for observing. The goal is to have as many people as possible peering through telescopes to study the sky.
For more information check www.astronomy2009.org

Phil and Christine have been clients of ours for a long time now.

Phil is an engineer with a large firm and Christine is a nurse at a local doctor’s office. They have two grown children. Matt, their son, graduated from college a few years ago, and was living with a couple of buddies in their first apartment. He worked for a small ad agency. Their daughter, Jessica, had just graduated from college this past summer, and was married to her high school sweetheart the next month.

Phil and Christine threw Jessica a huge wedding. They spent a ton of money, they hadn’t planned on, but they thought, “What the heck, it’s our only daughter’s wedding!”

Anyway, Phil and Christine came in for their annual review, and boy did we have our work cut out for us. Here is what they presented us with.

Phil had been given an early retirement option from his company. He didn’t really feel he was being forced out, but the idea of early retirement suddenly appealed to him. He always had it in the back of his mind that he would like to be his own boss. To see if he could make a go of it with his own company. He thought that if he took his company’s offer of an early retirement, it might be his only chance to realize this dream.

Christine was fine with this, but only if they could see on paper that it could really work out, without messing up their original retirement plans. Also, they had just had the big expense of their daughter’s wedding and she wanted all that debt paid off before they made any radical changes. Plus, Christine decided she wanted to go back to college to get an advanced degree, and had somehow never gotten around to doing it.

Just to confuse things a bit more, Matt had just stopped by to see them the night before, and asked if he could move back in with them for a while. It seems he got a little crazy with his credit cards, and the only way out that he could see was to save money on rent by moving in with Phil and Christine.

That’s always the way it goes doesn’t it? As a famous woman used to say on Saturday Night Live, “If it’s not one thing, it’s another!”

Thanks to the good solid plan they already had in place, most of their concerns were probably not as serious as they were worried about.

OK. When Phil’s company announced the early retirement plan, he had gone to the Human Resources office, and they gave him some advice which sounded good to Phil when he first heard it. The company had three different options as to how to take the early retirement money, and four different choices for payouts if Phil were to pass away, and three insurance plans to choose from. Pretty confusing stuff.

The answer Phil got from his company, (that he liked) was to do what, most of the other guys are doing, and choose these options...

This is really horrible advice. (The company should be ashamed of themselves. This is very dangerous and unprofessional of them. They could literally be telling someone to do the worst possible thing for their circumstances. What everyone else is doing means absolutely nothing!)

Anyway, we did the right thing, and listened to Phil and Christine’s new situation and goals. We then updated their plan, and cranked out the numbers. The all knowing Human Resources department’s ideas would have him broke by the time he was seventy! And if something were to happen to him, Christine would be in a really precarious financial position. So much for “one size fits all” financial advice!

After running the new scenario, we pointed out to the couple that because they had done well with their previous planning, that it was definitely possible for him to start his own business.

We offered to work with his Human Resources department in order to make sure his benefits offered him the most tax advantages and provided the capital they needed both now and down the road.

(As an important side note, Phil had listened to us about NOT putting much of his 401(k) in the market as he was nearing retirement, and NOT to put much if any in his company’s stock. Something “everyone else does” as we were told by the Human Resources person. Because of our conservative approach, Phil’s 401(k) was only down 6.5% before he decided to leave, which was so little it didn’t affect his plans. Unlike many people who have lost 50% or more of their savings in their retirement plans thanks to listening to Human Resource departments.)

We consolidated their debt from the wedding and some others they had run up (and their son’s debts, which Matt agreed to pay back to his folks) and paid them off with a loan from a home equity line of credit we helped them set up several years ago “just in case”.

(We remember the conversation we had with them about setting up a line of credit back then, before the economic meltdown, with the couple saying they “didn’t need the cash”. We told them the time to get money or credit is when you don’t need it because if you wait until you do need it...you won’t be able to get it. Little did we know that the situation would arise where practically no one can get credit due to the economy imploding to the tune of trillions in bad money. But, that’s another story.)

We also saved them money on their income taxes by taking a head of household deduction because they now had an adult child living with them, and because of all the legal tax advantages Phil would now have with his own business.

We gave Christine some resources to get special financing that she might qualify for as a middle aged, returning student.

Most important of all, this updated planning showed them what options they had, and allowed them to pick the choices that they were most comfortable with from an educated basis instead of guessing or hoping!

We don’t know how Phil’s business will do in this economic crisis, but he’s willing to give it a go, and we’re excited for him. We’re glad we’ve been able to help them.

While your situation might not be the same as Phil and Christine’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! Don't be your own financial surgeon! It just isn't worth it!

If you have had little luck in starting a family, there are things you can do, and we don't mean spending $150,000 on in vitro fertilization. Doctors now know that the problem of inability to conceive lies as often with the man as with the woman, but many causes are reversible.

• Check your prescriptions. Those that affect fertility include antidepressants like Prozac, beta blockers for hypertension, the stomach ulcer drug Tagamet, and pain medications like morphine and oxycodone. Avoid anabolic steroids and testosterone creams and medications, which decrease production of sperm.
• Do it more often. Have sex every other day during ovulation, about 10 to 18 days after a woman's period starts. Columbia University's Dr. Harry Fisch, author of The Male Biological Clock, says that after five days without sex, a man has a higher volume of fluid. It dilutes the concentration of sperm and makes sperm less active.
• Stay fit. Anything that makes the body unhealthy, such as a disease, toxins or excessive alcohol use will decrease fertility.
• Lose weight. Fat converts testosterone to estrogen in men who are obese or have a waist circumference of more than 40 inches. Anti-estrogens like Clomid can be used for the problem.
• See a urologist. Check for a blockage that can easily be corrected.

Q. Are student loans dischargeable in bankruptcy?

Yes No

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

True False

A. True. The statutes governing plan loans place no specific restrictions on what the need or use will be for loans, except that the loans must be reasonably available to all participants. But an employer can restrict the reasons for loans. Many only allow them for the following reasons: (1) to pay education expenses for yourself, spouse, or child; (2) to prevent eviction from your home; (3) to pay un-reimbursed medical expenses; or (4) to buy a first-time residence. The loan must be paid back over five years, although this can be extended for a home purchase.
If a participant has had no other plan loan in the 12 month period ending on the day before you apply for a loan, they are usually allowed to borrow up to 50% of their vested account balance to a maximum of $50,000. If the participant had another plan loan in the last 12 month period, they will be limited to 50% of their vested account balance, or $50,000, minus the outstanding loan balance in the preceding 12-month period, whichever is less.

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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