LOHENGRIN GROUP

Client Newsletter

Volume 5, Isuue 1

New Year Traditions In America

In the U.S., New Year's Day is becoming a time to relax and recover from the previous holidays. Morning hours can include watching the spectacular Rose Bowl Parade on television and later seeing the game. Americans generally ignore the good-luck shenanigans that are popular in other countries. But a large percentage of us still think we can cook and eat our way to a prosperous new year. Corned beef and cabbage is one lucky choice because cabbage leaves signify money in this and other cultures. Many people think pork should be included in the New Year's meal. For hundreds of years, the hog has signified prosperity. Black-eyed peas, hog jowls or ham are lucky foods in some areas as is rice. One activity is becoming a New Year's Day event. You hear bragging about it the day after. Yes! They took down the Christmas tree. Making New Year's resolutions is an admirable New Year's Day activity. Most of us have given up on making a list because one or two are more than we can handle anyway. If you haven't seen too much of them over the holidays, it's nice to visit relatives on New Year's Day. In at least one rural community, men and boys go rabbit hunting while the women and girls make dinner.

1.) New hydrogen fuel cell car takes small step into the future - Flex fuel vehicles have been on the road for more than a decade and some hybrid vehicles are in their third generation. But now, automotive engineers believe that the hydrogen fuel cell is the best bet as an alternative power source for cars of the future. By far the most-environmentally clean fuel to date, the fuel cell has only water vapor as a by-product of combustion. Several auto manufacturers have fuel cell vehicles in

research and development. Honda became the first to place one on the road, testing it in smoggy southern California. The FCX Clarity, a four-door sedan, uses compressed hydrogen from a re-enforced fuel tank at the rear of the car. It supplies hydrogen to the "V Flow fuel tank stack" located beneath the driving compartment.

The V Flow fuel stack then produces the electricity, which powers a motor that drives the front wheels. Meanwhile, a lithium-ion battery stores the extra electricity produced. A PDU or power drive unit is used to govern the electrical flow. The most significant concern of hydrogen’s use is its volatility and its safe use. Mass storage for vehicle fueling, its safe transfer from storage to the vehicle, and a question of its eruption in high-impact crashes are problems still under study. Honda is testing FCX Clarity in southern California and Japan with high income customers who have other vehicles. The car will travel about 270 miles on a fillup of hydrogen, but since there are no stations outside of California, you can't go on a long trip. The pioneer Clarity owners won't save much on fuel for now, since gas costs less than hydrogen. But that can change. For more information on fuel cells, visit Honda’s fuel cell pages, The California Fuel Cell Partnership at www.fuelcellpartnership.org and the U.S. Department of Energy’s Web site.

2.) You can be stronger - How to develop a resilient personality that can bounce back from 'disasters'…Resilience is the ability to overcome adversity and to deal with stressful and difficult circumstances. The most resilient people recover from traumatic experiences and are stronger and wiser. Everyone is born with the potential to develop these abilities, says Al Siebert, author of the award winning book The Resiliency Advantage and the best seller, The Survivor Personality. He says the five levels of resiliency are:

1. Maintaining your emotional stability, health and well-being. This is essential to maintaining your energy.
2. Developing an outward focus with good problem solving skills and concentrating on the challenges at hand. Problem-focused coping is better than emotion-focused coping.
3. An inward focus. Have strong self-esteem. Your self-confidence is your reputation with yourself. You expect to handle new situations well because of past successes.
Remember them.
4. Expect things to work out well. Have optimism guided by internal values and a high tolerance for ambiguity and uncertainty.
5. Recognize serendipity. It is the ability to recognize what could turn misfortune into good fortune.
Siebert recommends having friendships and loving relationships. Those who do are more resistant to stress. Wonder about things. Wonder what is different, and "What if
I did this?" Resilient people can have many sides. They can be strong and gentle, sensitive and tough, logical and intuitive. They can think of negative ways to reach
positive outcomes, asking "What could go wrong and how can it be avoided?" Being resilient helps them block attacks and sidestep cons, games and manipulations. They find allies.

3.) Battle for overhead bin space - Caused by bag fees, crowded planes and limited space for carry ons, flight attendants say there is a problem. One attendant claims passengers with carry ons create a scene that resembles TV shows like The Amazing Race. They charge into the planes in order to stow their gear before others fill the bins. They drag bags that are heavier than allowed, slip aboard with more than two bags, and bump into seatmates while cramming their belongings into the overhead bin.

Travelers often break the rules of bag limits, according to flight attendants quoted in USA Today. Another problem develops when passengers delay others because their carry on is too heavy to lift. Other passengers have to come to their rescue. The last passengers to board the plane may find no place left to stow their stuff. The problem is so serious that Congress is considering legislation to limit carry on size and ensure enforcement at TSA airport checkpoints. Airlines usually limit carry ons to one of varying size and one of a smaller size such as a purse or a computer case.

(With all the talk in Congress about the need, or lack of a need, to change/update/re-do health care in the US, here’s a story that brings this point home.)

Karen and Tom are both forty years old. Tom is in middle management with a nationwide home improvement company, and Karen works in the corporate office of a large real estate company.

They met when they were about twenty years old, fell in love and got married a few years later. When they were married a little over a year, Karen found out she was
pregnant with twins. Tom and Karen were both thrilled. They had just had their bid accepted on a small two bedroom starter house. Karen looked and felt great. Tom just
got his first promotion at work. Things could not have been better.

Well, the day finally came and Karen gave birth to two healthy, but tiny baby boys. They only weighed four pounds each. Karen and the boys would have to stay in the
hospital for a few weeks. Karen to heal from her caesarian, and the twins until they were a little bit stronger. Tom and Karen were very much relieved that their long ordeal had a healthy happy ending.

That was until they saw the hospital bill!

They were appalled to see how much they owed for surgery, neo-natal care and all the extras that they weren’t aware of. Their insurance covered normal maternity
expenses, but theirs was far from normal. The amount of the bill that wasn’t covered was staggering to them. (The insurance company said that these other costs weren’t “normal and customary” and therefore not covered.)

Still, they were very happy to be home with Matt & Josh. The babies were adorable and healthy and Karen and Tom were ready to live happily ever after.

Well, when the boys were about two years old, and they had almost finished paying off the medical bills from the births, Matt got an ear infection that just wouldn’t go away. The thing just progressed until finally Matt was admitted to the hospital with what they said was pneumonia. But, even after all kinds of antibiotics, Matt just didn’t get better. A couple of days later, he started going into convulsions.

They finally went over Matt with a fine-toothed comb at the hospital. This kid was tested for everything under the sun. The poor guy even had to have a spinal tap to rule out meningitis. Then, they got the bad news. Matt had a rare blood disorder that was very serious, and had a high mortality rate.

Karen and Tom were devastated. They felt so bad, it cannot be put into words. Their hearts were broken. But, they had to stay strong, and found a doctor through the

Internet who specialized in this disease. She worked with their local doctors and recommended a treatment that was only available in Canada and Mexico, but not here.

Karen and Tom went to Canada, and got the treatment for Matt…which worked like a miracle! In only a few weeks, he had a strong enough immune system to beat this challenge! Karen and Tom were forever grateful that Matt was healthy.

Again, the bills started coming. To say they were over whelmed would be a gross understatement. Their insurance wouldn’t cover the majority of Matt’s treatment, saying it was “experimental”, and therefore not covered. After a long fight, they ended up settling with the insurance company, and splitting the huge bill. Karen and Tom were stuck with half of a very big number, and had to make big monthly payments they could barely afford.

That’s twice in two years they got hit with thinking they were insured, when the all powerful insurance company simply said, “you’re not covered” and left them hanging
out to dry.

They had always hoped that Karen would be able to stay home with the boys and not work. This was just not possible with all their bills. Because of this gigantic financial burden, Karen went back to work full time. Tom started taking on remodeling side jobs. The kids went into daycare.

This was definitely not the “happy ever after” they had planned on.

When they heard about what we do from Karen’s dad, we sat down with them and they hired us to do a total financial plan. When we went through all their finances, we found:
• Several deductions that Tom could be taking for doing side jobs that their accountant never told them about.
• They could be leasing new safe cars for a fraction of the cost of what they had paid for the clunkers they were driving.
• The little money they had set aside for the twins college education was not going to be close to what they needed in the long run.
• They weren’t even coming close to taking advantage of their company benefits like flexible spending.
• Their 401K plans and IRA’s were not properly set up or diversified.
• They were both paying for insurance through their companies that was totally unnecessary.

We could go on and on… This was one of those cases where we really felt like a fairy godmother . When Karen and Tom came back in and we showed them how they could:

• Pay off their medical bills using the big savings in income taxes and other expenses we found!
• Pay $211 less in insurance premiums each month!
• Get new cars for less that they were paying for repairs on their beaters!
• Re-position their investments so that when the time came the boys would have the best college education possible!
• Take advantage of numerous tax-deductions that they didn’t know they were eligible for, and use company benefits the right way!
• Re-finance their mortgage at an amazingly low rate, so that they could pay off their credit card debts they had racked up! (They were fortunate that even after the local real estate market’s steep, post-bailout decline, they still had some equity left and a decent credit score.)
• Set up a dollar cost averaging program that would enable them to establish their savings with a diversified portfolio!
We wish you could have seen their mouths hanging open when we told them how they could actually be out of this mess in less than a couple of years, and save enough money to take the kids on a vacation every summer! (Something they hadn’t done yet.)

Sometimes we just love out job… and this was one of those times! We wish they would have come in years ago. But better late than never. 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!)

We've all seen the Geico gecko and All State's Dennis Haysbert on TV. They say we can save money on car insurance and maybe we can. It depends.

Prices are determined by factors such as your credit score, one of the top three factors in pricing, along with where you drive, how much you drive, your age and your gender. Your driving record is among the top ten factors calculated in the price but unless it's terrible, it's not as important as the others.

It pays to get five or six quotes. In some cases, you could save money buying over the Internet, but allow plenty of time to fill out a lengthy application with all sorts of questions. If you are an ultimate winner in the Web application process, you could save 15 percent over the price of buying from an agent, but not always.

Internet sellers include Geico Direct, Amica, Ameriprise, USAA and 21st Century.

In addition to your credit score, the price may also be influenced by your insurance score. Reed Elsevier sells the Choice Point Attract auto insurance score. It ranges from 200 to 997 and costs $12.95 at www.choicetrust.com.

If you have been insured by a company for five years or more, you might get a better deal because of the loyalty discount. Having a home insured by the same company brings the multiline discount. Accident-free brings a nice discount as well.

If you have a teen driver, you will pay a high price, but could get discounts for driver training and good school grades.

Other factors are taking a look at your deductibles, buying only the coverage you need, and asking the companies you get quotes from what other factors they consider for lower premiums such as anti-theft devices, amount of mileage driven, the use of the vehicle and so on.

Service is an important matter to consider. That is, if your agent is located a short distance away, you could get faster service for a car accident than you would from an Internet insurance provider who is a thousand miles away.

The American College of Physicians and the American Pain Society have released a new set of guidelines. They will help doctors and patients classify types of low back pain and plan a course of treatment. The doctors recommend that a patient think about when and how the pain developed before visiting a physician. At the appointment, a history will be taken that focuses on precipitating circumstances and present symptoms. There are a few symptoms that can tell you whether your backache is more than the result of too much physical work on the previous day. If there is any loss of sensation or strength in the leg, immediate medical attention is needed. If there is fever, immediate treatment is required. If pain lasts through the night, you should see a doctor soon.
* Shooting pain and tingling could be caused by lumbar disc disease.
* Back pain that intensifies and subsides repeatedly might be caused by a kidney stone.
* Pain that shoots down one leg to behind the knee is an indication of sciatica.
* Tender points and pain in the spine, neck, shoulders and hips could be caused by fibromyalgia.
* Most back pain can be treated without surgery. Physical therapy and education on lifting and movement techniques are recommended. To prevent back injuries:
* Lift with your legs. If you have back problems, don't lift much at all.
* Stretch daily to keep the back limber and to improve circulation.
* Keep abdominal muscles strong. They support your back.

Q. True or False: If a 401(k) plan has "automatic enrollment," then the company can force an employee to contribute to the plan.

Q. Your credit score is mostly dependant on your financial history?

True      False

A. False. For all the attention credit scores get, they are generally misunderstood by consumers.
First, they are not a factor in everyday life. The credit score matters only when you take out a loan, such as for a car, a house, education or new credit card.
Here's how a score is calculated:
35 percent: Your financial history, whether you paid on time and if not, how late you were and how often.
30 percent: How much you owe on each account and how much of your credit limit you have used.
15 percent: Your credit history, how long you had each account.
10 percent: Types of credit, such as home loans, car loans, and credit cards. Secured loans are best.
10 percent: New credit, how many new accounts or credit checks you have had by present or prospective lenders. A credit check knocks about 15 points off your credit score.
Some points to remember
* A credit score doesn't reflect your whole financial picture. You might have a lot of savings, assets and investments, but they don't count. How much you owe and whether you pay on time is all that counts on your credit score.
* It doesn't matter if you carry a balance on a credit card. The total you owe and whether you pay on time are what count.
* The FICO score is the most widely used score, but it isn't necessarily the one you might see advertised. There are three credit bureaus: Equifax, Experian and TransUnion, all of which sell their own scores.
* A history of late payments is wiped off your credit score after seven years.
* Good credit lasts at least 10 years, even if the loans are paid off.
* You will probably never have a score of 800 or more, but the high 700s is the best credit area to be in.
* If your score is in the 600s or low 700s, you should try to raise it by paying on time and reducing the amount of debt you have in relation to the amount of credit available to you.

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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