LOHENGRIN GROUP

Client Newsletter

Volume 4, Issue 5

May 17: Armed Forces Day

We welcome the opportunity to pay tribute to the men and women of our Armed Forces ... to all the individuals who are in service to our country all over the world. For most service members, Armed Forces Day won't be a matter of parades. They will be in their assigned countries and in the line of duty, working to keep our country safe. We recognize them individually and collectively and thank them for their dedication. It has been 60 years since Secretary of Defense Louis Johnson announced the creation of Armed Forces Day in 1949. It replaced the separate days that recognized the Army, Navy, Marine Corps and Air Force. The change was promoted and approved by President Harry S. Truman, who named the following May 20 as the first Armed Forces Day. The theme of the day was "Teamed for Defense," and a spectacular display of that capability was exhibited in Washington, D.C. and other cities. In New York City, 33,000 participants marched under what was termed "an air cover of 250 military planes of all types." In U.S. harbors, the Battleships Missouri, New Jersey, North Carolina and Iowa were open to the public. This year, the celebration of Armed Forces Day will not be as dramatic, but the nation's gratitude and recognition of service members is stronger and more devoted than ever. One way we can show our appreciation is to do whatever we can to help returning service people. They have a big task ahead in readjusting their lives and their minds back to civilian life. What could you do?

1.) Hotels and tour companies are offering two-day to four-day vacations -
Travelers want to spend less but still see it all, and tour companies are responding. Remote Lands offers a three-night China tour in July where people will see a solar eclipse on Mount Emei, followed by visits to a Giant Buddha statue, an embroidery workshop, an opera, and meetings with families, students and baby pandas. Seventy-two hours after arriving, the group will be on its way home. Shorter trips attract customers who otherwise might not be traveling at all. Tour operators say their bookings are down 20 percent and hotel occupancy has also suffered. Though the recession has influenced the length of stays, Americans have been shrinking their vacations for decades, down to 3.3 nights on average, according to the U.S. Travel Association. Toronto-based Goway Travel offers four nights in Tahiti for $1,359, which includes round-trip airfare from Los Angeles. The Mayflower Inn & Spa in Washington, Conn., used to require a stay of at least four nights. Now guests can stay one night and buy whatever spa treatments and meals they want.

2.) Trees are the new must-haves for American cities -
Cities are stepping up tree plantings in hopes of improving air quality, reducing energy consumption and easing storm water flows. A four-man team of scientists at the University of Vermont is helping urban planners and foresters to gauge the existing tree canopy in the cities and to set realistic goals for increasing it. Generally speaking, the tree canopy refers to the part of a city that is shaded by trees. In the past, calculating it was an inexact and difficult task. The UMV scientists, working with researchers from the U.S. Forest Service, now use computer programs and their expertise to combine satellite images with aerial photos and tax maps to determine tree canopy size and break it down by parcel. The group consulted on Baltimore's ecosystem in 2002, and their work helped New York City establish the goal for a 1 million tree initiative that started last fall. They will plant that many trees over 23 years. Trees cool things and remove particles from the air. They’ve been linked with controlling storm water flows, which are a big problem for cities.

3.) Sweeten your life with a taste of Stevia -
Soft drink and cookie makers are telling the world that some of their low-calorie products are sweetened with something new: Stevia. It's 10 times sweeter than sucrose. Did you know that the plant stevia rebaudinana can be grown in your own garden? Starter plants can be found at nurseries, many garden centers and for sale on the Internet. (Seeds can be tricky to germinate.) Once started, it will grow in any yard or on any balcony in states from Florida to Canada. Just don't overwater it or plant it in a soggy area. It does have shallow roots, so a layer of mulch will help to keep it moist. Most organic fertilizers will work well. Grasshoppers and most other insects pass it by. Harvesting should be delayed as long as possible. The coolness of autumn temperatures intensifies the herb's sweetness. When harvesting, strip the leaves off of the plant. You may also want to clip the ends of the stems to add to your collection. To preserve the leaves, you need to go through a drying process. It is fairly easy. Put them on a screen or net and place it outside on a warm day for about 12 hours. You can also cut down the whole plant and hang it upside down in a warm dry place. Plants should dry in four to 10 days. Crush the dried leaves to release the sweetening power. To use your leaves fresh, the flavor must be extracted by heat. Just drop one leaf into your tea or coffee and let it steep for five minutes. If you want to use the leaves to sweeten your baking or any other food, drop a leaf in hot water. Then condense that hot water to use in your cooking.

Sonia came into our office with a tale that should be in a book.

Her cousin Marlene referred her to us. Sonia came in and asked us to help her.

She wiped her glasses with a beautiful handkerchief with her initials on it and said, “OK, but it’s kind of complicated.” And off she went.

We didn’t say a word for almost 25 minutes. (Which, if you know us, is hard to believe.) Sonia’s story was so captivating that we just listened as she spoke.

She said that she was born in Russia well after the Communist revolution, and was caught in the ongoing chaos that ensued after the Communists took charge, but before the 2nd World War started to creep into the region. Renegade soldiers went through villages in her part of the Ukraine, searching for Jews, literally raping and pillaging peaceful villages, burning many of them to the ground as they killed with impunity. Her village had been spared, but one never knew.

Sonia said that she was the youngest of five sisters, ranging from age 11 to 19, and also has three brothers, two older and one younger. As Stalin seized absolute power, they were no better off. They were forced to work on collective farms, sharing the fruits of their labor with all for the good of the “Mother Country”. They had brutal “political officers” in the village watching their every move, and if they didn’t like anything about you, they could have you hauled away forever, beaten, brutalized.

Anyway, Sonia continued with her story. She said that one night, Red Army soldiers drunk and loaded for bear rode into town. Her family’s home was broken into by more than a dozen heavily armed troops, and they set about killing all the men in the family including her little brother. Sonia and her sisters were all raped, beaten and cruelly left for dead. Their possessions were confiscated in the name of the “state”.

It turned out one of the soldiers was a kinder man, a kid, actually. After his buddies left their home to go make more trouble, he stayed behind, secured a horse and cart, and told the girls to get out of town under the cover of darkness. By daylight they had made it to the next town, one that had been spared their village’s fate, and got help from the townsfolk. They all survived, and worked for while saving money, then escaped into Poland, then England, and eventually here, coming through Ellis Island.

Some of her sisters married and had families, and Sonia got married as well. After the incident in her village, she said now that she looks back on it, she probably had emotional scars that left her somehow attracted to men that were, well, real jerks.

She told us her first husband, Jackie, was an immigrant from Lithuania, and was a miserable person. He was having an affair with a girl in his factory right from the day he was married to Sonia. Word got around, and Sonia divorced him a couple of years later.

The factory he worked for, however, was a fledgling industrial company, and Sonia being so sharp, decided to inquire about how one goes about buying stock in the company. She took a small part of Jackie’s and her paychecks (she worked as a seamstress in a sweatshop) to buy this stock every month. As she saw the value grow, she started buying shares in other companies as well.

She never remarried, but she did keep buying stocks. When the wall caved in, in 1929, she wasn’t even concerned. She knew these were long term investments, and even after the drop from the crash, she still had a higher value than what she had put in, although not much. But she sat tight, and as the years went by, she slowly became a millionaire.

She developed some very close relationships with her nieces and nephews and some not so close relationships (A couple of them were too much like Jackie for her liking). She had written and re-written several versions of her will over the years, and had kept changing it as the situations of her life changed.

When she came into see us, she admitted that she was recently diagnosed with cancer, and was worried about her advanced age, and her prognosis of getting better. Her doctors told her that with new treatments, she had a chance of recovering completely, but, Sonia wanted to see what would happen to her estate when she passed on.

We had an attorney review all her documents, and she told Sonia that she hadn’t updated her estate wishes since 1993, and that she had some of her relatives named as beneficiaries whom Sonia no longer had any relationship with. Plus, we told Sonia if the government does bring back estate taxes as they are threatening to do in 2011, and Sonia survives long enough for the estate taxes to come back, she will pay over half of her net worth in taxes.

Then, of course, there is the problem of her stock portfolio having dropped 47% since its value at the beginning of 2008.

We sat down with Sonia and the attorney, and worked out a plan to have Sonia:

• Utilize income and estate tax planning strategies to work on reducing income taxes now, and reduce or eliminate potential estate taxes if the government keeps their promise to confiscate 55% of people’s assets. This includes gifting strategies, charitable giving strategies, and re-titling assets.

• Establish a Living Trust and other trusts to control her estate during her lifetime, and remove most of the assets from taxation.

• Use her life insurance policies for further charitable giving since Sonia doesn’t need the coverage any more, and the cash values and face values can be used to help charities...while saving Sonia a bundle in taxes.

• Rearrange her portfolio to minimize capital gains taxes, (Sonia actually has them since she has held much of her stock for decades) and reposition some of the freed up cash into low risk, tax deferred savings vehicles.

Well, Sonia’s health is hanging in there, and we hope she shakes this one off. (After everything she’s been through, we think she’ll make it. She’s so tough.) She said she is so much more peaceful with life, knowing the nieces and one nephew who actually call her and help her will be well taken care of, and that a few of her favorite charities will get way, way more money than she thought she could leave as a legacy.

We’re glad she came in to see us. If she hadn’t, she could have been violated and beaten by our soldiers in the IRS!

While your situation might not be the same as Sonia’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!

Please be aware that there is still a lot of predator lending going on in the marketplace, even though the topic has been on the front page of the news for months.

What is predatory lending? Well, it’s the practice of charging excessive fees for loans, particularly mortgages, and/or putting people into loans that are against the consumer’s financial interests. These bad practices are usually accompanied by false claims, misleading advertising, targeting vulnerable consumers, and generally using too aggressive and harmful methods.

According to Brenda Procter, MU and Robert Weagley, PhD, CFP®, here are some signs you may be involved with predatory lending:

1. The deal sounds too good to be true.
2. The lender pressures you to make a decision immediately.
3. The lender ignores or doesn’t answer your questions.
4. You are approved for a loan that is more than you need or requested.
5. There are fees you were not told about, or they put “add-ons” into the paperwork like credit insurance.
6. There is a prepayment clause.
7. The interest rate seems excessive.
8. The lender asks you to sign blank papers to be filled in later.
9. The lender tells you its OK to lie or falsify information you disclose on the application.
10. You get pressured to refinance very soon after closing on a loan.
11. You are asked for upfront fees before applying for the loan.
12. Other requests or terms that don’t make sense or are difficult to understand.

If you’re applying for any kind of loan, PLEASE let us take a look at it BEFORE you sign or agree to anything. We can be objective and help you look at the proposed loan in the context of your entire financial situation!

"Mindfulness meditation" is the act of paying close attention to your thoughts, feelings, actions and body sensations in an objective, nonattached way.

Pain: Doctors at the University of Wisconsin say it is a proven pain reliever because pain has emotional and cognitive aspects. When you recognize pain with kind, nonjudgmental attention, special areas of the brain produce fewer signals that are interpreted as pain.

Just five minutes of mindfulness meditation can be helpful.

Anxiety and depression: It decreases anxiety by 44 percent and symptoms of depression by 34 percent, say doctors at the University of Wisconsin. Subjects who took an 8-week mindfulness-based stress reduction (MBSR) program had more brain chemicals associated with a happy, calm state after taking the course. The mediators also had higher immunity scores.

Stress: Doctors quoted in Prevention say mindful walking is a successful stress reliever. Pick a quiet place in your home and walk slowly back and forth or in circles. Look ahead and focus on how one foot makes contact with the ground, your weight shifts, and the other foot lifts and moves forward.
Keep your mind on your feet. If your mind wanders, gently bring it back. A 10-minute session is recommended.
To find a course in mindfulness-based stress reduction in your area, visit www.umassmed.edu/cfm/mbsr/. MBSR is technically defined as a common form of complementary medicine addressing both physical health and emotional wellbeing.

Q. Which First Lady gave a tour of the White House for a TV program, earning an Emmy Award?

1. Nancy Reagan
2. Laura Bush
3. Jackie Kennedy
4. Bess Truman

Q. Inflation is defined as a rise in prices?

True False

A. False. The American Heritage® Dictionary of the English Language, Fourth Edition, Copyright © 2000 Published by Houghton Mifflin Company goes on to say:...caused by an increase in available currency and credit beyond the proportion of available goods and services. In other words, the common usage of the word inflation is the effect that people see. When they see prices in their local stores going up they call it inflation. But what is being inflated? Obviously prices are being inflated. So this is actually "price inflation". Price inflation is a result of "monetary inflation". Or "monetary inflation" is the cause of "price inflation". So what is "monetary inflation" and where does it come from? "Monetary inflation" is basically the government figuratively cranking up the printing presses and increasing the money supply.

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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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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