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CLIENT NEWSLETTER
Volume 4, Issue 3
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Inside This Issue:
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Feature Story:
Has The Housing Market Finally Bottomed Out???
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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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For More Information
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 Fed Mandates Real-Time Traffic Information…
New government rules call for states to provide real-time information about traffic congestion on interstate highways. States have two years to make the information available by phone or online. Within four years, states must provide traffic information for major non-interstate roads in cities, according to the Government Accountability Office. The Association of State Highway and Transportation Officials reports that many states have electronic traffic-monitoring systems already. Others are broadening existing systems or developing new ones.
Right now, Nashville is involved in a multi-million-dollar expansion of its traffic monitoring system. It will be completed by the end of 2010. The Tennessee project, will double the number of overhead message boards that warn motorists of traffic problems. The traffic information is available at www.tdot.state.tn.us. The Interstate 95 Corridor Coalition has a Web site (i95coalition.org) showing real-time traffic conditions on I-95 from North Carolina to New Jersey. A similar system is in the Upper Midwest for I-90 and I-94. Information is given at www. i90i94travelinfo.com or by dialing 511. The AAA Auto Club says traffic-warning systems can prevent driver frustration and road rage.
One truck driver quoted in USA Today says he doesn't use Internet sites for traffic warnings, but the overhead signs are very helpful. They provide instant information on current conditions.
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“To accomplish great things, we must not only act, but also dream, not only plan, but also believe.”
~ Anatole France ~
“Experience is not what happens to you. Experience is what you DO with what happens to you.
~ Aldous Huxley ~
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 Has the housing market has finally bottomed out. Is this really the case? Some experts say yes…but others think that the current uptick in prices is just a quick head fake, and state that some markets still haven’t bottomed out yet.
We’ve read a number of articles on the subject, and here’s what various folks are saying.
Some people they think that the housing prices are going to continue to decline as a whole, and that we’ve not yet hit the basement in most states. However, these economists warn that there are some states that aren’t close to hitting their bottoms yet, like New York, for example.
Other people say that we have mostly hit rock bottom, and the consistent population growth we have in the US, an estimated 10 million or more new people in home buying mode per year will cause the demand to buy homes to be driven up, and thus prices to slowly but steadily increase.
New home buyers to the market include new US residents, young adults entering the work force and people who had lost their homes, and over the next few years will have re-established credit and saved enough money for down payments.
One of the main reasons several experts who think we still have more price declines ahead of us cite the fact that while home sales have hit rock bottom, prices haven’t. But, as the prices continue to drop, homes may finally start selling….(Or at least that’s what they think is going to happen.)
Now, some of these pundits state that the recent upward trend in prices has been mostly caused by ridiculously low interest rates and the new and existing home buyer tax credits.
These experts say that the market prices are temporarily inflated, artificially, by the government’s manipulation of interest rates and the tax code.
We agree that these factors have to be involved at least to some degree in the recent spike in prices in many markets. So are these price hikes just a “head fake”, or are they the beginning of a real turn around?
What do you think?
States that these experts think have been hit the hardest, and thus have already hit bottom, with prices already dropping as much as 50% are: California, Nevada, Arizona, and Florida. For these “sand states” as they’re called, the bust may be over. On the other hand, states like New York whose price-to-rent ratios are still well above historical norms, the housing crash may still be alive and well in the near term.
So what does this all mean?
Well, as you can see, there are many opinions, and many logical reasons to back up those opinions.
We do know one thing. And that is there’s no way to know for sure. No way to come up with a magic crystal ball and see the future. It is uncertain, but we think that the safest position to take is that prices are somewhere near a bottom and that if you want to buy or upgrade, you are probably going to be buying in the vicinity of the bottom.
We don’t even try to guess when any market tops or bottoms are going to happen or switch.
Trying to pick exact highs and lows in a market is a sure bet for trouble. But, using some logic and thought, you can say that you’re near a top or bottom, and possibly be able to take action with that in mind can be a sound way to manage your assets!
So, now more than ever is the time to start making your plans, and getting professional help in making your decisions on paper BEFORE you take any action!
You don’t want to do planning after something has happened.
We can and want to help you decide what you should be doing in the context of your financial planning for 2010 and beyond!
 So please give us a call NOW, before you take any actions. Let’s get your numbers crunched, and squeeze every dollar we can help you put into your pocket!
Remember, we HATE hearing about what you just did with your money. We want to hear, “Here’s what we’re thinking about doing…”, not that you’ve already done it!
We look forward to hearing from you soon!
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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.) Fliers can leave the plane… Passengers on a plane that is stranded on the runway for hours will soon be able to get off the aircraft. Beginning in late April, a new rule by the Transportation Department calls for allowing passengers to deplane after spending three hours on the tarmac. The rule applies to all domestic flights with more than 30 seats. But exceptions are allowed for safety or security, or when air traffic controllers notify a pilot that returning to the terminal would disrupt operations. The Air Transport Association, which represents the airlines, claims the new rule could cause more canceled flights and greater passenger inconvenience.
Additionally, the new rule requires that airlines provide food and water for passengers delayed for two hours, as well as operating lavatories and necessary medical attention.
 2.) Computer games are good teaching tools for kids… Computer and video games have been decried as bad for kids because they are too time-consuming and offer no exercise. Wii games are an exception. While a small percentage of children have been found playing games for hours on end, those who play for shorter periods gain some significant benefits, including improved hand-eye coordination. One study done in the United Kingdom concludes that, "video games can stimulate learning of facts and skills such as strategic thinking, creativity, cooperation and innovative thinking, all of which are important in the information society."
Microsoft's Play Smart, Play Safe study surveyed parents and found they thought games are "a great social experience." Sixty-one percent of parents allowed their children to play games labeled at a higher age rating.
While half of parents said games bring families closer together, 69 percent of kids wanted their parents to keep a closer eye on the age certificates of the games they played. Some 42 percent of parents worried about their sons and daughters communicating with older people online. Free online games for children are available at www.learn4good.com/kids/games/htm.
  3.) The multimedia Apple tablet makes it debut… Apple's new iPad tablet computer is scheduled to be on store shelves in June or July. It was unveiled in late January in San Francisco. Steve Jobs described the iPad as "so much more intimate than a laptop and so much more capable than a smart phone." With a 9.7-inch touch screen, it's a half-inch thick and weighs only 1.5 pounds. It has 10 hours of battery life and can sleep for days without using much of it. The iPad will let you read e-books, newspapers and magazines, watch movies and television, access iTunes, play games, search the Internet, post on social networking sites, and email. Third-party applications, which are popular on the iPhone, will extend the tablet's functionality. iPhone users say they can immediately get used to the iPad. It has a familiar feel. Models that support only Wi-Fi for getting online cost $499 for 16 gigabytes. After that, prices rise with the number of gigabytes. For models that also have AT&T's 3G net work, prices are $729 and $829. You also pay $14.99 or $29.99 a month for a data plan. Apple's entry could perk up the U.S. market for tablets. Sales declined in both 2008 and 2009. Other hardware manufacturers are rushing to make devices similar to the Apple in order to compete with it.
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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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 Jesse has a successful management consulting business. Margaret was a grade school teacher when they met and married 35 years ago. She became a stay at home mom after their three daughters were born.
Jesse and Margaret were a perfect match and enjoyed what we know as the American dream lifestyle. About ten years after they married, Margaret’s dad succumbed to a fatal heart attack. Margaret was grief-stricken, but with the support of Jesse and her mother’s independent spirit, she was able to quickly adjust. She vowed that her mom’s meager assets would not be a drain on Jesse. She felt she was quite capable of taking care of her mom. And that Jesse shouldn’t have to worry about taking care of the poor relatives. He had always been more than generous with her, and Margaret had a very handsome nest egg set aside.
Margaret’s mom, Rita, was as independent as they come. Widowed in her early seventies, she vowed that she would never become a drain on her only child. She volunteered at the local hospital and was active as a lay minister in the church. She also volunteered to hold and rock newborn cocaine babies at a care facility not far from her home.
Financially, Rita relied on Social Security and the lump sum that was left from her husband’s life insurance policy. She lived very frugally. Rita visited the family often. She rarely missed a birthday or recital. Margaret made sure that her mom would always be confident in her independence by supplementing her mom’s savings by drawing from her nest egg. Margaret invested conservatively and again, not wanting to burden Jesse with the responsibility of her mom, insisted on doing it all on her own. Rita bought a small place nearby, and they were all thrilled to be near each other.
Margaret took complete control of her mom’s finances. What little there was of them. Even though she was our client, she never told us anything about her mom at our regular meetings.
It was about this time that Jesse and Margaret came in for their most recent review. Margaret casually mentioned that her mom now lived nearby and she was concerned about her failing health. We asked about her mom’s financial health, and Margaret replied that while she didn’t have all that much, she had just set everything up with joint ownership between herself and her mom.
Margaret was stunned to learn from us that by setting up such a “simple” plan on her own, she had opened up the possibility of huge complications down the road not
only for Rita but also for her and Jesse as well. They were risking losing everything the whole family had!
 We pointed out that by having all the assets under joint ownership:
1. They ignored any potential “lookback” implications that might be involved, and
2. Since those assets were in joint tenancy, they were exposed to any creditor should something happen to Jesse’s business or something else went wrong, and
3. If Rita’s health failed and she required any sort of long term care, the entire estate could be quickly wiped out and Jesse and Margaret would be responsible for paying back to the state any money Medicaid had paid for Rita’s care.
We quickly set up a meeting with Jesse, Margaret and Rita along with an estate-planning attorney.
We showed them that by setting up an asset protection plan, which included removing Margaret’s name as joint owner from her mom’s assets and changing them to certain types of trusts, Rita’s estate was no longer exposed to any legal action that might be taken against Jesse’s business. We were also able to have Rita covered by a long-term care policy through Jesse’s business, at a much lower cost because she was an employee of the business.
They left the office feeling tremendously relieved.
As it turned out, not long after we met with them, Rita began to suffer a series of small strokes and while still able to live on her own, required the need of some home health care, which was covered by her long term care policy. Thank goodness we were able to get things set up well before Rita became ill. Otherwise, the whole family stood to be wiped out!
The moral of the story is that while doing things simply and independently may sound attractive, by not getting the proper advice and help in the beginning you may be sacrificing you independence later on by having to rely on your family or even the government to bail you out. If Margaret had continued with her mom the way she had been before our last meeting…the consequences could have been very bad. As we always say, “People don’t plan to fail…they simply fail to plan!”
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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 Life settlement deals are increasingly popular, not always wise.
The idea of selling your whole life insurance for a nice chunk of cash can sound appealing. Here's how it works.
* A broker will offer you a settlement worth a certain fraction of your policy's face value, which is generally more than the cash value amount.
* The broker then sells your policy to a buyer who will pay the premiums on the policy. When you die, the policy buyer gets the face amount.
One example given by Smart Money: A 75-year-old man with $1 million in life insurance might get $250,000 now from a life settlement. The investors would get $1 million when he dies.
* For some people, the life settlement is a great choice. If they are struggling to make their insurance payments, if their beneficiary or spouse has died, or if they really need the money, it can be a good move.
The life settlement business is growing rapidly. It rose from $2 billion in 2002 to an estimated $18-19 billion through June 2009, according to The Economist. Of life settlements made in 2008, more than half of the policies were less then four years old.
* The business is not regulated by the federal government or most state governments. Life settlement companies don't have to disclose how they value policies, what fees they charge or what commissions they pay.
Caution: After a life settlement, you may owe capital gains taxes on the proceeds, and you might not be able to get more life insurance if you need it.
Visit federalhousingtaxcredit.com for more information.
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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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 The American Heart Association recommends cutting back on sugar.
The heavier you are, the more work your heart has to do. That's one reason why the American Heart Association is looking for the causes of weight gain and obesity.
At this time, they are focusing on sugar. It is one of the main culprits in the rising obesity rates in the United States. The association wants everyone to cut way back on added sugar in their diets. For the first time since 2006, it is presenting new guidelines that recommend sugars added in processing, cooking or at the table total no more than 100 calories a day for women and 150 calories a day for men. That's five to nine teaspoons. It's a drastic reduction from the 22 teaspoons per day in the present American diet, which is a total of 355 calories. The amount of sugar in the American diet has increased by 19 percent since 1970. One can of non-diet soda can put a woman over the limit. Sweetened drinks are the main cause of increased sugar consumption since 1970.
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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. Already ended Dec. 31, 2009
B. Dec. 31, 2010
C. Dec. 31, 2013
D. No end date has been passed.
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Q. Sales, cost of sales, utilities expense, and depreciation expense is recorded in what financial statement?
A. Balance Statement Only.
B. Notes to financial statements.
C. Balance Sheet and Income Statement.
D. Income Statement Only.
A. Income Statement Only - Income Statement can also be referred as the Profit and Loss Statement. It helps the investors project the timing and risks of future cash flows. It can be reported as single-step or multiple-step income statement.
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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!”
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