LOHENGRIN GROUP

Client Newsletter

Volume 4, Issue 10

In 2009, Fire Prevention Week Focuses On Preventing Burns…

Hot foods are common causes of burns in children, according to the National Fire Protection Association, and adults are not exempt. * Keep hot foods and liquids away from counter edges. Know where kids are before you carry a hot dish to the table. *Keep pan handles pointed away from the floor to avoid spilling their hot contents on someone. Scalds from hot bath water can cause burns or even death in a small child. Remember that children and older adults burn more easily. * Set the water heater thermostat at 120 degrees rather than higher. * Always test the water temperature with your wrist, elbow or back of your hand before bathing a child. Don't depend on a tub's water temperature indicator. Keep water at 100 degrees.

Cooking is the leading cause of kitchen fires, often because a person leaves the room while food is being fried, grilled or broiled.
* Turn fast-cooking foods off when answering the door or telephone and when you have to go to another room for a time. * When simmering, boiling, baking or roasting food, check it regularly. Don't leave the house. Set a timer. Smoke alarms can be life savers ... if they are working. * Install one outside of each sleeping area. If you can, connect all alarms so they will go off at the same time. Test smoke alarms once a month and replace them every 10 years. * Design a fire escape plan that has at least two ways out of every room. Practice the plan with your family. * When the smoke alarm sounds, get out of the house and stay out. The heat is on!
* Use a fireplace screen to keep sparks inside. Have the chimney cleaned and the central heating system inspected. * Turn portable space heaters off when you will go to bed or spend time in another room. Be sure there are no curtains, paper, furniture or other combustibles within three feet of the heater.

1.) Windows XP users might find it difficult to switch to Windows 7…

PC users, especially those with Windows XP, are wondering whether they can upgrade to the new Windows 7 operating system.
Windows Vista users will find it to be a fairly straightforward process because much of the operating system is the same as Vista's. It will install itself on your current machine and preserve your files, folders, settings and programs. It takes about an hour of work to do it. Vista users will benefit from changing to Windows 7. It does everything Vista should have done and more. Upgrading from Windows XP is another story. According to tech expert Walter Mossberg, XP users have three choices:
* Forget the upgrade and stay with the solid Windows XP.
* Locate all the program CDs for your present computer. If one or more are missing, buy new ones. Then begin a complicated multi-step process.
* OR, buy a new computer with Windows 7 preloaded into it. That's what Microsoft recommends you do instead of trying to upgrade an XP computer, laptop or notebook. The new "7" system can compete with the Mac OS X operating system, which was better than Windows XP or Vista.
* Or, buy a Mac. The new Mac Snow Leopard operating system could mean that Apple will retain its edge, according to Mossberg.

2.) Fewer Airline Delays…

If you fly very often, you may have noticed that fewer flights are delayed. The U.S. Department of Transportation calculates that delayed flights are at their lowest point in five years.
The reason: Fewer people and fewer planes are flying. Don't count on fewer delays during rush hour when your plane could in a long line for takeoff. There is still no legal limit on how long fliers can sit on a plane that's standing on the runway. JetBlue promises to deplane passengers who have waited five hours for their plane to take off. The company gives vouchers for from $50 to a round-trip ticket refund for delays of three hours or more.
Maximum for lost luggage - The Department of Transportation has raised the minimum lost-baggage reimbursement to $3,300. Airlines vary in what they will pay for. Some won't reimburse a passenger for valuables such as jewelry and camera equipment. Valuables should always be placed in your carry-on.
Canceled flight procedures - Airlines are not required to compensate you for a canceled flight. Most, however, follow the industry standard of booking passengers on the next available flight. Sometimes passengers will be booked onto an earlier flight, but often you will have a choice. Keep your the reservation number handy so you can request the flight that is most convenient for you. You could be sent to another airline.
A bump can be worth money - Fliers who are bumped because the airline overbooked are entitled to compensation by law, according to Smart Money. Some travelers step right up when the agent ask for volunteers. The compensation is up to $400 for a one- to two-hour delay in getting to their destination. It's double the ticket price up to $800 if they arrive more than two hours later than scheduled.

3.) Solving small problems can kick-start change, bring important progress…

Devoting even a small amount of effort on a problem can bring big results over time, especially if it's a continuing problem, something you dread to tackle and procrastinate on beginning to solve.
The road to continuous improvement begins with a single step. In his book, One Small Step Can Change Your Life, Dr. Robert Maurer of UCLA's School of Medicine recommends focusing on a small problem before it has out-sized consequences later. Maurer bases his one-small-step recommendations on Kaisen, developed from Japanese wisdom written thousands of years ago. It is a gentle but potent way to bring change. He recommends: Think small thoughts, take small actions, solve small problems. Maurer says, for example, the way to lose weight is not with a crash diet but by eating a little less at every meal. Life-changing exercise can begin by just standing on a treadmill for one minute a day. Changing from a chair that makes your back ache can prevent future back trouble.
Here's how to work on small problems:
Step 1: Each day, identify one mistake you have made without becoming angry at yourself. This will help you notice what is available for improvement.
Step 2: Ask yourself whether the mistake might reflect a larger problem. For example, if you misplaced your keys, is it an indication that your are over-committed, trying to multitask or are too distracted?
Step 3: If so ask yourself what small step you can take to correct it.
Visualize a change you want and give yourself small rewards for steps toward achieving it.

When Ann and Ray came in to see us, they were pretty upset.

They have a 17 year old daughter named Nancy, and a 16 year old daughter named Barb. Both girls want to go to college. Ann and Ray want them to go as well.

Ann and Ray both work outside the home. Ray is a skilled tradesman, and Ann is a registered nurse. They make a decent combined income. At least they thought
they did until they started investigating how much it costs to go to college! Nancy's desire to go to an out of state, high-tech college started getting Ann and Ray upset.

See, Ann went to college in the early seventies, when it cost a mere pittance compared to what the costs are today. In fact, it only cost Ann $1,900 for a full year of undergraduate study. (Yes you read that right!) When Nancy came home from her counselor with the costs for the school she wants to go to...Ann and Ray almost fell on to the floor!

The total cost including tuition, room and board is over $39,500 a year! And, that doesn't include travel, goofing around, etc.!

Then, they started to see what Barb wanted to do, and they discovered that her choice of school was much more reasonable. It is only $26,000 a year!

That's why Ann and Ray were so upset when they came in to see us. See, they had always figured that they would save enough money, or the girls would work, or both...to pay for school. They figured they would get some loans, and maybe, somehow, they'd squeak by.

But, like most couples we see, their savings accounts are earning a paltry 2%, and their long term funds were decimated by the stock market crash of late 2008, early 2009…and are nowhere near worth what they needed to handle this gigantic education bill!

The couple also always thought they could refinance their home to help pay for college, but when they talked to their banker, she got back to them with the news that their house had lost over $256,000 in value since early 2008, possibly worse, and that the estimated market value of the home (which is very hard to know now because as of September 2009 when we’re writing this, home prices are mostly flat or still dropping) is actually less than the mortgage amount.

Plus, when they went to the school counselor at the high school, he told them they make too much to get much help!

Ann and Ray were really mad! Ann said, "I know we make a decent living, but these days, it's barely enough to pay your day to day bills, our 401(K) and 403(B) retirement plans are worth less than half of what they were 18 months ago, but according to this high school counselor, we’re rich!"

We understand how Ann feels. She isn't alone, nor is she wrong. But, her and Ray have made a big mistake...they didn't plan! At this stage, their lack of planning, is water under the bridge.

We explained that getting mad might let their anger out, but it wasn't going to pay these staggering college bills! We told them they needed to work on rearranging their financial situation to maximize their ability to get college funding.

And to start planning RIGHT NOW for the rest of their education funding, as well as for their retirement, tax reduction, estate planning, etc.

Just because they waited this long, and because the post bailout world doesn't seem so financially friendly, that doesn’t automatically mean they should mess things up worse by not starting to plan now! They agreed, and realized that calm thinking needed to prevail. When we did their plan, we were able to show them how to:
• Reposition money that they were needlessly paying taxes on into tax deferred accounts that allow them to shelter the income from taxes, as well as help reduce their contribution requirement on the college aid forms!
• Save $3,000 a year on overpriced and inadequate life insurance!
• Increase their take home pay by taking tax savings NOW instead of getting a refund in April 2010!
• Pick up a good portion of the money needed for college by discovering the correct way to fill out college financing paperwork, and how to negotiate with college admissions counselors the right way!

The net result of these simple moves the family didn’t know they could do was to find enough money to get Nancy the money to go the school of her choice, and the likelihood that Barb would be able to do the same! Nancy was able to get an offer from her dream college that was $14,000 a year as opposed to the $39,500 the high school counselor told them they would have to pay!

Ann and Ray feel a million times better. Nancy and Barb feel a million times better. And, we feel a million times better too! We love helping people find money they never knew they had or could get!

What a great way to make a living! Helping people solve problems that seem monumental, and helping families reach their goals!

If you are interested in learning more about how you can save money in taxes, or other expenses you might be overpaying for...or want to sit down with us and have your plan reviewed or updated, give us a call!

We're here to help you, and to help you keep on track with your planning. Don't be a stranger. Call us, and we'll assist you in having the best shot possible of reaching your goals, and having peace of mind! Don't wait until it's too late!

The government is helping more distressed homeowners refinance their mortgages. Under an Obama administration housing rescue program, homeowners with mortgages through

Fannie Mae and Freddie Mac will be allowed to refinance up to 125 percent of their home's present value. Previously, homeowners could only refinance 105 percent of its value,

One goal of the program is to lower mortgage payments through lower interest rates. The National Association of Realtors considers it a great plan that will increase the number of people who can get help in order to stay in their homes.
Borrowers will be encouraged to pay off their loans more quickly. For mortgages lasting less than 30 years, Fannie and Freddie will reduce the fees associated with refinancing. The shorter term will help homeowners build equity more quickly.

Nearly 30 percent of homeowners with mortgages today owe more than their houses are worth, according to Economy.com (by Moody). But economists at Moody's predict that in order for the new program to be very successful, mortgage interest rates will have to be below 5 percent.

Mortgage companies say they are still struggling to refinance borrowers under the previous level. The process is complicated with Fannie Mae and Freddie Mac. The companies are still training people to handle the huge number of applications. Some have a 45- to 60-day backlog for processing.

In other housing information, the National Association of Realtors announced that recently pending home sales rose six months in a row for the first time since October 2004.

It's a good sign for the housing market and for the economy.

Maybe you've been exercising some and pretty regularly, but the bathroom scale hasn't budged and your middle is still about the same size. You have probably made an improvement in your cardiovascular health, and that could be even more important than your pants size.

Researchers at Harvard University and Brigham and Women's Hospital report that moderate amounts of exercise is associated with as much as a 41 percent reduction in cardiovascular risk. While their study was done entirely on women, men can assume they have a similar benefit. In various study subjects, Body Mass Index changes accounted for just 10 percent of the reduction. Blood biomarker improvements accounted for about one-third of the risk reduction, and blood pressure changes were accountable for 27 percent of the improvements. Reduced cholesterol accounts for a 20 percent improvement.

The benefits of regular moderate exercise outweigh what the scale will tell you. The researchers found that the more study subjects exercised, the greater their cardiovascular health improved. The surprise was that cardiovascular risk dropped by 27 percent for those whose activity burned just 200 to 599 calories per week. The risk was reduced by 32 percent for those who burned 600 to 1,499 calories per week, and 41 percent for those who worked off 1,500 calories a week.

Q. What is (are) the most important reasons to begin saving now, as soon as possible?

1. Compound earnings. 2. Tax deferral. 3. Rule Of 72 4. All three answers.

Q. A __________ plan can be a great way to save for a child’s higher education?

A. A 529 Plan is one of the best ways to start saving for your child’s education. Contributing to a 529 Plan regularly, starting when your child is born, gives the account at least 18 years to grow tax-free if the investments within the account do well. Even better, when it is time to withdraw money from the 529 Plan, you don’t have to pay taxes on the investment earnings. Depending on the 529 Plan you choose, you might enjoy a deduction on your state income taxes.

If an individual is filing his or her own tax return, and the individual can be claimed as a dependent on someone else's return, the individual cannot claim his or her own personal exemption. In this case, your daughter should check the box on her return indicating that someone else can claim her as a dependent.

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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