Protecting What May Be Your Most Valuable Asset

If you are young and healthy, you might think your chances of becoming disabled are fairly slim. And you wouldn’t be alone in your belief: 64% of workers believe they have only a 2% (or less) risk of suffering a disability that could sideline them for three months or longer.1

But statistics tell a different story: 43% of 40-year-olds will suffer at least one long-term disability (90 days or longer) before age 65.2 Despite this risk, 38% of working Americans say they would be able to pay their living expenses for only three months or less if their incomes were interrupted; 65% would not be able to cover expenses for one year. These findings become all the more alarming when you consider that the average long-term disability lasts for two and a half years.3

If you wouldn’t think of going without insurance coverage for your home, health, or car, it doesn’t make much sense not to protect what may be your most valuable asset: your ability to earn an income.

A Policy That Can Protect

An individual disability income insurance policy can help replace a percentage of your salary, up to the policy limits, if you should suffer an illness or injury that makes it impossible for you to continue working. The benefits can continue until you recover or for a predetermined number of years, whichever comes first. If you pay the premiums yourself, the benefits usually are not taxable. Some policies will pay if you can’t perform your current occupation, whereas others will pay only if you cannot perform any type of job.

Many workers have some type of short-term group disability coverage through their employers. Group plans rarely cover as much as the 70% to 80% of income that individual policies typically offer, and the benefits from group plans are taxable to the extent that the employer pays the premiums.
Your Future Could Be at Stake

In the absence of an adequate, long-lasting source of disability income, you could be forced to use your retirement assets to pay living expenses and medical costs. If you have to withdraw assets fr

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om a tax-deferred retirement account, the withdrawals may be subject to a 10% federal income tax penalty if you are younger than 59½ (depending on the severity of the disability), as well as ordinary income taxes. Even worse, tapping your retirement assets could interfere with progress toward your retirement goals, creating the possibility that you might not be able to attain the retirement lifestyle you envisioned.

The appropriate disability income strategy may help reduce the financial consequences if you lose your income because of an illness or injury.

1, 3) Council for Disability Awareness, 2010
2) 2010 Field Guide, National Underwriter

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

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Help Keep Your Estate Out of Probate

If you’ve ever seen an estate go through probate, you know that it’s the legal equivalent of having a tooth pulled — an unpleasant procedure to be avoided whenever possible. And just like tooth decay, probate may not be entirely avoidable, but you may be able to reduce the risk through preventive care.

Probate is a costly and sometimes lengthy procedure wherein a court oversees the distribution of property to a decedent’s heirs. During probate, courts can freeze assets until the process is completed. Probate also risks a loss of privacy, because court records are open to the public. Perhaps the biggest drawback is the price tag — probate costs can eat up 4% to 5% of the total value of an estate, depending on its size, complexity, and the state in which probate occurs.1

One way to help shield assets from probate is by placing them in a trust. As you’ll see, trusts offer other benefits as well.

Meet the Key Players

Although trusts involve a complex web of tax rules and regulations, the concept behind them is fairly simple. The grantor places ownership of his or her assets in the trust, which holds the property for the benefit of the beneficiaries. The trust is typically overseen by a trustee who must distribute the assets based on instructions outlined in the trust. Even though a trust is a legal document, it enjoys a level of privacy not available with a will because it may never see the inside of a courtroom.

There are several types of trusts, but most fit into one of two categories.

Revocable trusts allow the grantor to modify the terms, add or remove assets, and even revoke the trust entirely during the grantor’s lifetime, after which the trust becomes irrevocable. This type of flexibility is popular for grantors who want to control how their assets are managed and distributed. Revocable trusts can be used to place limits and conditions on beneficiaries, help married couples segregate community assets from individual assets, and establish rules and guidelines for management of the trust assets during and after the grantor’s lifetime.

Irrevocable trusts don’t offer the same flexibility, but they excel when it comes to reducing exposure to creditor claims and estate taxes. The grantor is essentially required to surrender control of any assets that are placed in the trust. Transferring ownership of assets to the trust means they are no longer considered part of the grantor’s estate. Although the grantor can specify how the assets will be distributed, he or she is generally prohibited from benefiting from the trust assets once they are in the trust.

A properly structured trust can be a valuable estate conservation tool, but it is not something you should set up yourself. Before implementing any trust strategies, you should consider the counsel of an experienced estate planning professional.

1) 2010 Field Guide, National Underwriter

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

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The Federal Estate Tax Is Back and May Be Here to Stay

Despite the fact that 65% of taxpayers believe the federal estate tax is unfair, it’s back after a one-year repeal, and it could be here to stay.1

Some form of estate tax has been a part of the political landscape since 1797. Although it’s been repealed and reinstated many times, the federal estate tax appears to be as American as baseball and apple pie.

The 2010 Tax Relief Act reinstated the federal estate tax, imposing a 35% tax rate on estates that exceed the $5 million exemption through 2012. By taking specific steps, married couples may be able to pool their exemptions to shield up to $10 million. But these parameters — the most generous in decades — are temporary. After 2012, the federal estate tax is scheduled to revert to pre-2001 tax law levels, with a 55 percent top tax rate on estates valued at more than $1 million, unless lawmakers extend or modify the current law.

In addition to the federal estate tax, many states tax inheritances. Twenty-two states and the District of Columbia have estate or inheritance taxes that could apply to estate assets that are considerably lower than $5 million.2

A Matter of Trusts

If you are concerned that your estate may be subject to estate taxes, you might consider setting up a trust. When properly structured, an irrevocable trust may help you reduce or avoid the fees and estate taxes that may be imposed upon your death, control the distribution of your assets, and avoid probate. Trust assets are also protected from creditors.

A trust is a separate legal entity under which the grantor (or trustor) places assets in the trust, and a trustee administers the trust and eventually distributes assets to the beneficiaries according to the terms of the trust. Once property is placed in an irrevocable trust (which cannot be modified or terminated once set up), the assets are removed from the grantor’s taxable estate. Essentially, the grantor relinquishes ownership of the assets to the trust.

Irrevocable trusts can be used for specific purposes, such as to keep life insurance proceeds out of the taxable estate for the trust beneficiaries, and to benefit charitable groups.

An irrevocable life insurance trust can be used to replace assets in an estate left to charity (so beneficiaries will still receive an inheritance) and/or to keep life insurance proceeds out of the taxable estate. The grantor works with an attorney to set up the trust document, and the trustee uses money funded by the grantor to purchase a life insurance policy that is owned and controlled by the trust. When the insured individual dies, the life insurance proceeds are paid to the trust and distributed to the beneficiaries according to the terms of the trust. With this type of trust, the grantor cannot serve as the trustee, and the life insurance premiums must be paid by the trust.

The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable.

With a charitable remainder trust, you transfer assets to the trust and name a charitable group as the eventual beneficiary. This strategy preserves the appreciated value of the assets placed in the trust because they

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won’t be subject to capital gains tax. The assets are typically sold by the charitable group and placed in an investment portfolio that can provide you (or your designated income beneficiaries) with a specified income that can last for your lifetime or a specific period of time; this income is generally taxable. Upon your death (or the death of your designated income beneficiaries), the charitable organization receives the “remainder” assets. By gifting the assets to a charitable trust, you can preserve the full value of your gift to charity.

A charitable lead trust offers a way to donate income from your gift while retaining ownership of the assets. The grantor places assets into an irrevocable trust on behalf of a designated charitable organization, and any income generated from those assets goes to the charitable group for the duration of the trust period. Upon termination of the trust, the remaining assets pass to the grantor or to the chosen beneficiaries. This could help reduce, or in some cases even eliminate, estate taxes on appreciated assets that eventually go to the grantor’s heirs.

You should bear in mind that not all charitable organizations are able to use every possible gift, so it would be prudent to check first. The type of organization you select can also affect any tax benefits you might receive.

A properly structured trust may help shield your assets from estate taxes, but you must relinquish ownership of them to the trust. The use of trusts involves a complex web of tax rules and regulations. You should consider the counsel of an experienced estate planning professional and your legal and tax advisors before implementing such strategies.

1) Tax Foundation, 2009
2) American Family Business Foundation, 2011

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

Why You Want to Know How Much Your Business Is Worth

Business Valuation Can Be Valuable Even When No Sale Is Planned

If you have no plans to sell your business, an up-to-date valuation may seem like an unnecessary expense. But you might be surprised at how important the current value of your business can be to achieving your long-term goals. The current value of your business can affect how you approach everything from retirement to estate conservation and your succession strategy.
Your Retirement Lifestyle

The typical business owner has 50% to 70% of his or her net worth in the business.1 If you expect your business to help fund your retirement, a significant change in value might mean you need to adjust the amount of income you are investing for retirement. A shift in value might also affect the date at which you expect to retire, which could influence the timing of your decisions about the kinds of preparations you expect to make to get the business ready to sell or pass on.

Estate Conservation and Succession

It’s understandable if you would rather not spend too much time thinking about whether your business has lost value, but there could be an upside to knowing. If you are expecting to transfer ownership to the next generation, lower asset values may help you transfer a larger share of the business without tax consequences.

If your business has a buy-sell agreement that values the business too highly, a more reasonable valuation may help the survivors or successors take over without paying more than the business is actually worth.

If you discover that your business is responsible for more of your net worth than you realized, it could indicate that it’s time to diversify away from the business. It’s rarely a wise move to let your financial future hinge on the fate of a single asset — even if it is your own business.

Given the events of the past few years, you may be more inclined to focus on today’s problems than on what could happen years from now. But a precise valuation may provide you with valuable information that you didn’t realize you needed.

1) Financial Advisor, August 27, 2010

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent Naperville business advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

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Financial World Relies on Key Groups to Track the Economy

Over the years, the closely watched “yield curve” has been fairly adept at signaling the onset of U.S. economic recessions. When short-term Treasury yields exceed long-term yields, an economic slowdown often results. When such a yield “inversion” occurred in late 2005, some economists pointed to it as an indication that a recession was approaching. Some two years later, the economy indeed fell into recession.

A yield curve inversion would seem to be a fairly straightforward method for ascertaining the direction of the economy, but more often than not, matters are not so simple. This is evidenced by the committees and teams who join forces to study the economy and weigh in with predictions and forecasts. Here’s a look at some of the key organizations that bring together the world’s most powerful and influential economists.

Beyond the Curve

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The Federal Reserve’s Federal Open Market Committee is ground zero for information about the possible future of interest rates. The committee is composed of the seven members of the Federal Reserve Board and five of the 12 Federal Reserve Bank presidents. They meet nine times a year to set monetary policy. Even though the FOMC announces its decisions immediately after each meeting, the announcements are couched in sterile language that does little to indicate what really happens during the meetings. It’s a bit like hearing the score of a football game without seeing any of the action — the score reveals the outcome but not the drama. The real action can be seen in the meeting minutes, which are usually released a few weeks later. Analysts and journalists pore over the minutes for clues about whether the committee was divided, what specific concerns were discussed, and what data motivated the committee’s decision.

The Wall Street Journal’s Economic Forecasting Survey also showcases competing views. This monthly poll of more than 50 economists reveals predictions of major economic indicators, such as inflation, interest rates, taxes, and employment. Their consensus forecasts are published in the newspaper each month, but their individual views are sometimes more interesting. To adapt an old saying, 50 heads are better than one, and considering the differences among the surveyed economists can sometimes provide clues about how they reached their consensus views.

The National Bureau of Economic Research’s Business Cycle Dating Committee has the last word on when recessions start and end, even though their judgments sometimes come years after the fact. This cautious group of academics uses a broad measure to define a recession: not simply two quarters of declining gross domestic product but also weakness in income, employment, production, and sales. Although the business cycle committee gets most of the headlines, the NBER itself might be the most prestigious collection of economists in the world or in history. Many of its members are Nobel Prize winners; several have served as economic advisers to the president of the United States or as governors and chairmen of the Federal Reserve.

Everyone has an opinion, but clearly not all opinions are equal. Considering the views offered by the best of the best may help with decisions about your Naperville Investments portfolio.

1) The Wall Street Journal, August 16, 2010

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

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Why Realistic Expectations May Be Great Expectations

A survey of investors found that many have reduced their expectations for the stock market. A large majority expect annual stock market returns over the next one to five years to be no higher than 8%.1 This is down from the 12% return investors expected from stocks in 2010 and the 20% return they expected in 2009.2

Despite scaling back their investment expectations, 87% of investors still expect to reach their long-term financial goals, even though four in 10 made no adjustments to their investment strategies during the previous two years.3

Positive thinking can be a powerful force, but there’s a fine line between optimism and unrealistic expectations.

Possible Pitfalls

The most obvious risk of overestimating how your portfolio will perform is that you may not reach your goal on time. Major financial goals such as retirement and saving for college can take years to achieve. If you arrive at the expected date of your goal but haven’t accumulated the expected funds, there’s no starting over. You may be forced to postpone your goal or make do with less money.

A less obvious risk is that, as you get closer to your target date and it appears as though you may not achieve your goal, you may be tempted to take on more risk than would be suitable for your situation in order to help close the shortfall.

Unrealistic expectations can also create a false sense of retirement security by leading you either to contribute too little of your income during your working years or to withdraw too much during retirement.

A small difference in investment performance can have a tremendous effect over a long period. If you were expecting a 5% average annual return but actually earned 8%, you’d probably be pleasantly surprised. Imagine your disappointment if you were expecting the higher return but actually earned less. Investments seeking to achieve higher rates of return also involve a higher degree of risk.

It’s natural to hope for the best. But being realistic — and not overly optimistic — may put you in a better posi

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tion to pursue your financial goals.

1, 3) Investment Advisor, July 15, 2010
2) CNBC.com, December 21, 2009; December 31, 2008

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent Naperville Investment Services professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

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New Rules Are in the Cards

In 2010, the federal government issued a dizzying array of rules and reforms affecting the plastic you carry in your wallet. In case you had trouble keeping track, here are some of the important developments.

Credit cards: Under the Credit Card Accountability, Responsibility and Disclosure Act of 2009, consumers must be given a 45-day notice before any significant changes affecting their account terms can take effect. Such changes include higher interest rates, fees, and finance charges. Consumers who exceed their credit limits cannot be charged an overlimit fee without their consent. Card issuers must send statements a minimum of 21 days before the due date, which must be the same date every month.1

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Debit cards: Banks are required to have a debit-card user’s permission before they can charge overdraft fees on
point-of-sale purchases and ATM withdrawals (overdrafts via paper checks and automatic payments are exempt; banks can continue to cover them for a fee without the account holder’s permission). Card holders who agree to the fees will have their purchases authorized when their accounts don’t have sufficient funds. Card holders who don’t accept the fees will likely see their over-limit purchases declined.2

Gift cards (and certificates): Issuers cannot charge inactivity fees on cards sold on or after August 22, 2010, unless the card or certificate has been inactive for at least one year. After one year, the issuer may levy inactivity fees, but no more than once per month. The money stored in a gift card must be usable for at least five years from the date the card was issued. If a consumer adds money to the card, the amount added must also retain its value for at least five years.3

1) Bankrate.com, 2010
2) National Foundation for Credit Counseling, 2010
3) Federal Reserve, 2010

The information in this article is not intended tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional Naperville Accounting advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

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Getting to Know Your Beneficiaries

Thanks to a popular 2007 motion picture, many Americans now have a “bucket list” — an inventory of accomplishments they hope to achieve in their lifetimes.

Although many bucket list endeavors require courage or tenacity, such as traveling to faraway places or writing a book, there’s at least one task you can resolve to accomplish that is fairly simple but could have lasting benefits for your family, friends, and possibly a favorite charity.

Designate Your Beneficiaries

When you set up an IRA or participate in an employer-sponsored retirement plan, you are typically asked to fill out a beneficiary designation form. Although many people postpone the naming of a beneficiary, this can be a big mistake. IRAs and most retirement accounts are not subject to probate, and the assets will convey directly to your designated beneficiaries, regardless of different instructions in your will. Whoever is designated as your account beneficiary will inherit the proceeds directly, and it would be unlikely for a probate court to order a different result.

Failing to designate a beneficiary means your estate could inherit the money. Because your estate is not eligible for the same tax benefits that individual investors enjoy, your estate would be required to withdraw the assets over a shorter time period. By contrast, a correctly named beneficiary can preserve the tax-deferred status of the inherited funds and spread the tax liability over several years or even over his or her lifetime.

Life Insurance Policies, Too

Life insurance benefits also convey directly to beneficiaries, independent of the probate process. Although it would be unusual to purchase life insurance without designating a beneficiary, it’s not unusual for policy owners to fail to review their beneficiary designations on a regular basis.

The reasons you bought your life insurance policy and the people you want it to protect may change over time. But only you can change the designated beneficiaries on your life insurance policy. Major life events such as marriage, birth, divorce, or death may affect your choice of beneficiaries, and it’s important to update your designations to keep pace with any changes in your life.

Estate conservation issues may be uncomfortable to face, but there’s probably no other aspect that is as simple or inexpensive as designating beneficiaries. Keeping your beneficiary designations up to date can help ensure that your valuable assets go to the people you want to inherit them.

For more information on how we can assist you with your Naperville Estate Planning, please call us today!

The information in this article is not intended as Naperville tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

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How to Make the Most of the Payroll Tax Cut

Have you considered what you will do with the extra 2% in take-home pay that you will receive in 2011? The 2010 Tax Relief Act (H.R. 4853) not only extended the expiration dates of many current tax rates but also reduced the Social Security payroll tax by two percentage points for the 2011 tax year.

An extra 2% might not seem like much, but it could be an opportunity to make a difference in your financial future.

Eliminate Credit-Card Debt

Image by Getty Images via @daylife

Two-thirds of Americans who file for bankruptcy attribute the main cause of their financial problems to credit cards.1 If you have credit-card debt, consider how it might be interfering with progress toward your long-term goals.


The average variable interest rate on credit cards is more than 14%.2 Thus, a borrower with a $5,000 credit-card balance and a 14.5% interest rate would pay $1,872 in interest to retire the debt, assuming $125-per-month payments for 55 months — that’s about four and a half years!

If you have racked up some bills on your credit cards, consider using the extra 2% in take-home pay to help reduce or eliminate the debt, which could free up more of your future income to save and invest.
Increase Retirement Plan Contributions

Experts often recommend that you try to give your retirement plan a raise every year by increasing your contribution by an extra 1% or 2%. Putting the extra 2% you will get this year toward your workplace retirement plan is a relatively painless way to accomplish this objective.

For a worker earning $75,000 a year, the 2% payroll tax cut would be worth an extra $125 per month in take-home pay. By contributing $125 more each month for 25 years to an account earning a hypothetical 5% average annual return, a worker could accumulate an extra $74,440 toward retirement. Of course, this assumes the extra 2% contributions continue to be made even after the payroll tax cut expires after 2011. However, if the worker receives annual pay increases, he may be able to use them to maintain the higher contributions in future years without experiencing a reduction in take-home pay. This hypothetical example is used for illustrative purposes only and does not represent the performance of any specific investment. Fees and expenses are not considered and would reduce the performance described if included. Actual results will vary.

In 2011, the contribution limit for 401(k), 403(b), and 457 plans is $16,500 (or $22,000 for workers age 50 and older). If you aren’t making the maximum annual contribution to an employer-sponsored retirement plan, consider using the additional income to increase your monthly contributions. It could help you accumulate more for retirement.

Open an IRA

If you are already making the maximum annual contribution to a workplace retirement plan or don’t have access to such a plan, it might be time to open a Roth IRA or a traditional IRA. In 2011, you can contribute up to $5,000 ($6,000 for those age 50 and older) to all IRAs combined, as long as you have earned income. Contributions to a traditional IRA are generally tax deductible (subject to income limits if you are an active participant in an employer-sponsored retirement plan), whereas contributions to a Roth IRA are after-tax (income eligibility limits apply). Distributions from traditional IRAs and most employer-sponsored retirement plans are taxed as ordinary income. Qualified distributions from a Roth IRA (those made after the account has been in place for at least five years and after the original owner reaches age 59½) are free of federal income tax. Early IRA and employer-plan distributions (prior to age 59½) may be subject to a 10% federal income tax penalty.

Take Your Portfolio in a New Direction

If you are already doing everything you can to pursue your retirement objectives, you might consider investing in something that previously has been out of reach. Perhaps you are interested in an investment opportunity that is not available in your workplace retirement plan. Maybe you have always wanted to broaden your investment experience but never had the money. Remember that investments seeking to achieve higher rates of return also involve a higher degree of risk, so it’s a good idea to make sure you are using money that you won’t need in the near term.

Save for a Specific Financial Goal

The extra take-home income could be an incentive to open an investment account to pursue other important goals, such as saving for a child’s college education, a down payment on a home, a wedding, or a vacation. Because getting started is often the most difficult aspect of pursuing a new goal, using the payroll tax cut to open a new account may help you build momentum so that you will find other ways to keep the account growing.

If you simply plan to spend the extra income from the 2011 payroll tax cut, you could be passing up on an opportunity to adopt some new habits and put yourself in a better position to pursue your financial goals. Although the tax cut is temporary, it may be just the impetus to make a meaningful difference in your long-term financial situation.

1) Reuters, October 25, 2010
2) Bankrate.com, January 18, 2011 (average interest rate as of January 12, 2011)

Phone us today so we can discuss Naperville Investment Services.

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

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Setting Up Your Own Pension

A Gallup poll taken in April 2010 found that 63% of Americans expected their taxes to go up within a year’s time. Perhaps unsurprisingly, the expectation of higher taxes tended to increase with income: 74% of taxpayers with $75,000 or more in household income expected higher taxes within the year.1

Business owners may have more options for sheltering income from current taxes than ordinary wage earners. One option is setting up a solo defined-benefit plan. This plan offers self-employed individuals and some business owners a tax-advantaged opportunity to target an annual retirement benefit that is comparable with their pre-retirement incomes.

Like the Big Guys

A solo defined-benefit (DB) plan is not unlike the pension plans offered by large corporations. The participant chooses a retirement income target and then an actuary calculates the annual contributions that would be required to meet the target. In 2010, the target benefit amount may not exceed the lesser of $195,000 or 100% of the participant’s average annual income for the past three years.

Once the plan is in place, the participant is required to make the annual contributions until the plan is fully funded. Contributions are generally tax deductible, and any earnings accumulate on a tax-deferred basis. It wouldn’t be unusual for a business owner to put $100,000 a year in a solo DB plan.

There are some rules and drawbacks, as well. Although there is some leeway for a participant to secure a temporary waiver of his or her contribution for a plan year if paying the full amount would cause a “substantial business hardship,” failing to meet the funding requirements typically results in an excise tax.2 Also, the tax code generally requires a company offering a DB plan to make contributions for all employees. There are exceptions for employees younger than 21 and those who have not worked at least 1,000 hours during any 12-month period. Before you take any specific action, be sure to consult with your Naperville Accountant.

As with most other retirement plans, there are fees associated with setting up and maintaining a solo defined-benefit plan. There is an initial plan setup fee and an annual fee for actuarial services, which are required to ensure that the investments are on track to reach the funding requirements.

1) Gallup, 2010
2) CCH, 2010

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

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Charitable Giving Strategies That May Pay You Back

It appears that American generosity is built to withstand adversity. Although total U.S. charitable giving fell by nearly 4% in 2009 — perhaps the most economically difficult year since the Great Depression — individuals cut back on their giving by less than one-half of 1%.1

This says a lot about what is important to charitable givers. During a time when many consumers and organizations were looking for ways to cut expenses, individual donors apparently decided that giving was not an expense worth cutting. In a survey of wealthy individuals from around the world, Americans were more likely than Europeans or Asians to say that the ability to give to charity was one of the benefits of wealth.2

Where do Americans get their penchant for philanthropy? Although Americans may indeed be generous, it would be an oversimplification to say that they lead the world in philanthropy because they are more generous. U.S. tax law treats charitable giving more favorably than do tax laws in many nations. One example is the way in which certain types of charitable trusts can be used to help reap even greater tax benefits.

Charitable Remainder Trust

A properly structured charitable remainder trust provides the opportunity to receive tax benefits and a potential income from an asset donated to charity. A grantor who places money, securities, property, and/or other assets in a charitable remainder trust can designate an income beneficiary, even if it is the grantor himself (or herself), to receive payment of a specified amount (at least annually) from the trust. Upon the grantor’s death, the trust assets are transferred to the designated charity and won’t be counted as part of the grantor’s estate for estate tax purposes. The grantor may also qualify for an income tax deduction on the estimated present value of the remainder interest that will eventually go to charity.

Charitable Lead Trust

A charitable lead trust takes a nearly opposite tack. The grantor places an asset in an irrevocable trust on behalf of a designated charity, and any income generated by the asset during the trust period goes to the charity. After the trust period, the remaining trust assets are passed to the grantor or the grantor’s designated beneficiaries. This eliminates current capital gains taxes on the donated assets, a valuable benefit when the donated assets have experienced high appreciation. This strategy also could potentially reduce estate taxes because the trust assets are no longer considered part of the grantor’s estate.

Keep in mind that donations to both types of charitable trusts are irrevocable; therefore, the assets cannot be withdrawn once the trusts are formed. Also, some charitable organizations may not be able to use all possible gifts. It is prudent to check first. The type of organization you select can also affect the tax benefits you receive.

The use of trusts involves a complex web of tax rules and regulations. You should consider the counsel of an experienced estate conservation professional and your legal and Naperville tax advisors before implementing such strategies.

Giving to a good cause and benefiting your family’s financial situation are not necessarily mutually exclusive. An examination of your charitable giving desires and financial situation may reveal some overlooked opportunities.

1) Giving USA Foundation, 2010
2) The Wall Street Journal, May 24, 2010

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

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• IRS Published Applicable Federal Rates For December 2010 (blogs.forbes.com)

Looking Back to See the Present

With the unemployment rate remaining persistently high, it might be easy to become discouraged over the progress of the economic recovery. But if you are looking for signs of a recovery, the employment situation is the last place to look — literally.

Employment is typical of a class of economic indicators, called lagging indicators, that are poor at predicting how the economy will perform in the near future. However, when it comes to providing confirmation that a particular trend is in place — whether it be a recovery or a recession — lagging indicators can play a vital role. Here’s a roundup of some common lagging indicators and why they can provide useful information for investment decisions.

Employment

Rising unemployment is usually one of the final signals that a recession has begun, and rising employment is among the last indications that an economy is recovering. In both situations, it’s difficult to miss the influence of human emotion in the business cycle. During a slowdown or a recession, employers may cut back on other expenses in order to avoid layoffs for as long as possible. And when conditions begin to improve, employers may avoid hiring until they are confident that the recovery is sufficient to justify additional labor costs.

Corporate Earnings

Earnings are a lagging indicator because they reveal past performance. Most publicly traded companies release their quarterly earnings one month or more after the quarter has ended. So even though stock prices are technically a leading indicator, actual corporate earnings performance may say little about what to expect in the future. However, if economic activity seems to be faltering, yet no recession has been officially declared, economists may look at earnings and other measurements of business revenue for confirmation.

The Conference Board Lagging Index®

Perhaps the most important lagging indicator, which actually gets little attention, is The Conference Board Lagging Economic Index. As with other lagging indicators, this index is most useful when compared with leading and coincident indicators. Coincidentally, The Conference Board also produces coincident and leading indexes, which makes comparisons convenient.

The lagging index tracks average duration of unemployment, manufacturing and trade inventories to sales ratio, labor cost per unit of manufacturing output, the average prime rate, outstanding commercial and industrial loans, ratio of consumer credit outstanding to personal income, and the consumer price index for services.1 Changes in these seven variables are averaged to arrive at an index value.

Although some experts consider the lagging index to be a lackluster source of information, economists tend to pay close attention when it shows something other than a confirmation of the direction of the leading and coincident measures. A divergence suggests that the stock market may have misinterpreted the direction of the economy.

Lagging indicators rarely make headline news, but they are an important source of information. We can help you keep an eye on these and other indicators.

Please contact me at 630-548-9600 regarding our Naperville Investment Services

1) The Conference Board, 2010

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

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Understanding the Sacrifices of Family Caregivers

About 44 million people, roughly 19% of the U.S. adult population, provide unpaid care to someone who is age 50 or older. The average age of caregivers is 50 and the average age of care recipients is 77. Most caregivers assist family members, usually their mothers.1

Although many caregivers help their family members out of love, there is overwhelming evidence that caregivers pay a dear price for their compassion. Nearly half reported increased financial worries and having to use sick time or vacation hours to provide care. 2

One especially telling statistic: More than four in 10 caregivers said they felt as though they had no choice about whether to assume the role of caregiver.3 This may indicate that little or no preparation took place before caregiving began. Yet when it comes to their own potential need for long-term care, 55% of Americans say that their greatest concern is becoming a burden to family members.4

Fortunately, you can start developing a strategy today that could help you provide for your own care and avoid becoming a burden to your loved ones.

Recalculate Retirement Needs

The obvious reason for having to turn to family members for care is money — or, more accurately, a lack of money. The national average cost for nursing-home care is $74,208 per year.5 How likely are you to need specialized care? Forty-three percent of people who reach age 65 will eventually spend time in a nursing home.6

If your retirement-needs calculations don’t take the potential need for long-term care into account, it may be time to evaluate your options for covering the potential costs. If you have a family member who may need care, the earlier you begin to prepare, the greater the possibility that you may be able to reduce the effect on your own finances and lifestyle.

Talk About It

Whether you are a caregiver or a care recipient, a financial professional can open a dialogue that helps preserve dignity and harmony while also coordinating decisions about common concerns, such as which care options are appropriate, whether the care recipient should move, how to manage property and possessions, and how to handle legacy issues.

Because it could be years before you find out whether you need living assistance, the most prudent approach could be to assume that you will and to begin preparing now. If it turns out that you don’t need care, there’s no penalty for being prepared.





Please feel free to contact me at 630-548-9600 to discuss your Naperville Financial Planning needs.

1, 3) National Alliance for Caregiving, 2009
2) Money, September 2010
4) Journal of Financial Planning, June 2010
5–6) 2010 Field Guide, National Underwriter (2009 costs, latest year for which data was available)

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

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Everyone Procrastinates, But Why?

When it comes to procrastination, doing it now may mean having to do it later, too. In 2010, 24% of workers planned to postpone retirement. The poor economy and a change in employment situation were the most common reasons for workers to stay on the job.1

We can’t know whether any of these people postponed their retirement dates because they got a late start on their saving goals.

Everyone knows that procrastination is the enemy, yet not only do we all do it, sometimes we have no choice. Effective time management often requires us to put off one task until another is finished. Rather than wrestle with the inevitability of procrastination, a more useful exercise might be to examine why we procrastinate.

Not Knowing What to Do

Many people correctly assume that they don’t know much about finances, but one of the benefits of working with a Naperville Retirement Planning professional is access to strategies and education. Although there is no assurance that working with a financial professional will improve investment results, a professional who focuses on your overall objectives can help you consider options that could have a substantial effect on your long-term financial situation.

Afraid to Act

Waiting until your fears subside before deciding to act could be the stepping stone to two classic mistakes: basing your investment decisions on emotion and failing to recognize the opportunity cost of waiting. Risk is an inherent aspect of investing, and few people can assume risk without at least some fear. But inaction is also risky because time is one of the key ingredients to financial success. Procrastination can carry a high opportunity cost by decreasing the amount of time that your investments have available for compounding.

Life Happens

The day-to-day demands of having a career, raising a family, and caring for a home often take precedence over investment needs. Most people schedule time to get the oil changed, visit the dentist, and get their hair done. Why not then schedule regular appointments to review investment matters and measure progress toward financial goals?

Squandering time is one mistake that many people may never recover from. If you’ve been meaning to get around to some aspect of preparing for your financial future, now is the best time to get started.

1) Employee Benefit Research Institute, 2010

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

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What a (Tax) Relief: Congress Temporarily Averts Huge Tax Increases

After waiting until almost the last minute, Congress averted tax increases that would have affected taxpayers at all income levels and added some 15 million lower-income workers to the tax rolls.1

Had Congress not passed the 2010 Tax Relief Act (H.R. 4853), tax rates for income, capital gains, dividends, and estates would have reverted to higher pre-2001 levels in 2011. Rates for these taxes were reduced in 2001 and 2003 but were subject to a December 31, 2010, expiration date because of the political climate at the time. The new law pushes their expiration dates to December 31, 2012.

Despite the uncertainty created by yet another temporary tax law, there are many encouraging provisions that result in some of the most favorable tax conditions Americans have seen in a generation.

What’s New and What’s Not?

One-year payroll tax cut. Employees may notice slightly more take-home pay in 2011 because the employee’s share of the Social Security payroll tax has been temporarily reduced from 6.2% to 4.2% of income (on up to $106,800 in taxable wages). The employer’s share (6.2% of an employee’s pay) did not change. For the self-employed, the Social Security payroll tax has been reduced from 12.4% to 10.4%.

Estate tax revival. Although the federal estate tax is back after being repealed in 2010 (for one year only), the new parameters are more generous than those that had been scheduled for 2011 (a $1 million exemption and a 55% top tax rate).

For individuals who leave behind an estate before December 31, 2012, assets in excess of a $5 million applicable exemption will be subject to a top rate of 35%. Married couples who take the appropriate steps may be able to pass up to $10 million tax-free to their heirs.

The new law also brings back the stepped-up basis rules, which allow heirs to calculate their basis in an asset according to its value on the date of inheritance. Heirs who inherited assets in 2010 can elect to use the modified carryover basis rules that were in place for that year (meaning they must calculate capital gains using the decedent’s basis) or they can apply the new $5 million exemption and 35% top rate and use the stepped-up basis rules.

Gift tax reunified with the estate tax. Gifts in excess of the donor’s $5 million lifetime exemption are subject to a maximum 35% rate.

Itemized deductions for high incomes. The repeal of the so-called Pease limitation, which reduces the use of certain deductions for taxpayers with incomes in excess of certain levels, has been extended through 2012.

No phaseout of the personal exemption. High-income taxpayers will be allowed to claim the full personal exemption through 2012. Prior to 2010, the exemption was phased out for taxpayers with incomes in excess of certain thresholds.

Two more years of AMT relief. Middle-income taxpayers may be able to avoid the alternative minimum tax for at least two more years. The AMT was crafted in 1970 to keep wealthy taxpayers from using exemptions and deductions to avoid income taxes, but it has started to affect less affluent taxpayers because the limits aren’t indexed to inflation. The new exemption amounts for 2010 and 2011 are $47,450 and $48,450, respectively, for single filers ($72,450 and $74,450, respectively, for married taxpayers filing jointly).

Capital gains and dividends. Long-term capital gains and qualifying dividends will continue to be taxed at a 0% rate for individuals in the 10% and 15% income tax brackets and at a maximum 15% rate for other taxpayers. After 2012, long-term capital gains will be taxed at a maximum 20% rate and dividends will be taxed as ordinary income.

Income taxes. The 2010 Tax Relief Act includes a two-year extension of the income tax rates that have been in effect since 2003.

These are just the highlights. Several other provisions have been extended. Before you take any action, consult your Naperville tax preparation advisor for information about your situation.

1) The Wall Street Journal, December 17, 2010


The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc.

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Getting Something for Giving

Americans are very generous when it comes to causes they believe in. In fact, donations by individuals accounted for 75% of the $307.7 billion given to charity in 2008.1 Religious groups, educational institutions, and grant-making foundations were among the top donation recipients.2

If you are interested in making the most of your own charitable gifts, setting up a charitable trust may offer your family and your favorite charity some benefits that you hadn’t considered.
Charitable Remainder Trust

A grantor who places money, securities, property, and other assets in a charitable remainder trust can designate an income beneficiary, even if it is the grantor herself, to receive payment of a specified amount (at least annually) from the trust. At the end of the trust period, which can be for a certain number of years or for the rest of the grantor’s lifetime, the designated charity receives the “remainder” assets, as the name implies.

One key benefit of this strategy is that if the trust is properly executed, you can donate highly appreciated assets without incurring a capital gains tax liability. This may enable you to leverage your gift by donating that portion of the asset value that might otherwise have been consumed by taxes. You may also qualify for an income tax deduction on the estimated present value of the remainder interest that will eventually go to charity.
Charitable Lead Trust

A charitable lead trust takes a nearly opposite approach. The grantor places assets in the trust, which pays an income to the charity. At the end of the trust period, the remaining assets are paid to the grantor or the grantor’s beneficiaries. This can help reduce, or in some cases even eliminate, estate taxes on appreciated assets that eventually go to the grantor’s heirs. The appeal here is that the family can use the assets that might otherwise create a tax liability to benefit a charity without ultimately surrendering control of the assets.

Bear in mind that donations to both types of trusts are irrevocable; therefore, the assets cannot be withdrawn once the trusts are formed. Not all charitable organizations are able to use all possible gifts. It is prudent to check first. The type of organization you select can also affect the tax benefits you receive. The use of trusts involves a complex web of tax rules and regulations. You should consider the counsel of an experienced estate conservation professional before implementing such strategies.

Charitable trusts may help your charity of choice while also providing you with potential tax benefits. Call today to discuss your need for a planned giving strategy. Susan S. Lewis Ltd, a Naperville Accounting Firm,  endorses the Illinois Charity, www.ShowersOfHope.org, an Illinois Not for Profit dedicated to helping children in need.

1–2) The Wall Street Journal, November 9, 2009

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2010 Emerald.

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Searching for Your Ideal Risk Tolerance

Feelings Are Important but Other Considerations Should Guide Decisions

A survey of U.S. households found that about two-thirds were willing to assume some investment risk in order to earn a return. For example, 35% said they were comfortable assuming an average risk burden for an average gain. Another 22% said they would be willing to take above-average or substantial risk as long as the return potential was also above average or substantial.1

These are unsurprising answers. Many people base their ideas about risk tolerance on subjective standards — their feelings — without considering whether their personal circumstances would either exaggerate or mitigate the risk inherent in a particular investment. Feelings are important, but they should play only a supporting role when deciding how much risk is appropriate for your situation.

Nonetheless, if your portfolio is overexposed to risk, your feelings may be your first indication. For example, what was your reaction to the “flash crash” in May 2010? On that day, a trading anomaly caused the Dow Jones Industrial Average to plunge nearly 1,000 points.2 If this event struck terror in your heart, it’s a good indication that you may be carrying too much risk.

Here are some other indications that you could be overexposed to risk.

A large percentage of your net worth could disappear overnight. This is where it’s easy to see that risk tolerance is a personal consideration that extends far beyond the risks that are specific to a particular investment. Consider two hypothetical investors: One has a $5 million net worth; the other’s most significant asset is $100,000 in his 401(k) plan. Each makes a $50,000 investment in the same security. Even though the investment itself poses identical risks to these two individuals, the millionaire is assuming far less risk because even a total loss would amount to only 1% of his net worth. The other investor is taking on needless extra risk by exposing half of his retirement assets to the fate of a single security.

You would need to sell some of your investments to cover a personal financial emergency. If you were faced with a large, unexpected expense and would need to liquidate some of your investments to cover it, it’s probably an indication that you are in over your head.

There are many considerations when evaluating how much risk is appropriate for your portfolio. We can help you evaluate your risk tolerance as it changes over time. Please contact us at 630-548-9600 for additional Naperville Wealth Management options.

1) Investment Company Institute, 2009
2) The Wall Street Journal, May 19, 2010

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2010 Emerald.

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Time to Get Back to RMDs

If you took advantage of the temporary reprieve that allowed you to skip required minimum distributions from traditional IRAs and employer-sponsored retirement plans in 2009, be aware that no such exemption exists for the 2010 tax year. The deadline for taking required minimum distributions for 2010 is December 31, 2010.

Even if you didn’t take advantage of the opportunity to skip your RMD in 2009, you may want to keep reading. Failing to take the appropriate minimum distribution from tax-deferred retirement plans carries one of the highest tax penalties in the tax code.
What Is an RMD?

Tax-deferred retirement vehicles allow participants to defer paying current taxes on their contributions and earnings until they begin taking withdrawals, generally in retirement. To ensure that investors d
on’t postpone their income taxes indefinitely, the tax code stipulates that they must begin taking RMDs from traditional IRAs and qualified retirement plans after reaching age 70½ or face a tax penalty equal to 50% of the amount that should have been withdrawn.

The amount that must be withdrawn in 2010 is calculated based on the account owner’s life expectancy (generally based on an IRS uniform lifetime table) and the account balance(s) on December 31, 2009.
One Time Only

Congress suspended RMDs in 2009 to give investors time to recover from losses they may have experienced in 2008. However, Congress did not extend the suspension of RMDs beyond the 2009 calendar year.

Because RMDs are derived from complex calculations and the tax penalty for mistakes is so high, it may be a good idea to consult a tax professional before taking required minimum distributions. In the meantime, use the table to help calculate the date when RMDs must begin.

Contact Susan S. Lewis for more Naperville Tax Preparation strategies.


The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2010 Emerald.

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Understanding the Potential Benefits of Mutual Funds

Americans overwhelmingly turn to mutual funds for help in reaching their financial goals. Some 87 million investors own mutual fund shares, which equates to about 43% of all U.S. households.1


One reason for the popularity of mutual funds is the fact that they are among the most common offerings in employer-sponsored retirement plans. About two out of every three mutual fund investors own shares inside tax-deferred retirement accounts.2 But this alone may not account for their broad appeal. The fact is, mutual funds offer many attractive characteristics, including some that may help take the complexity and uncertainty out of investing.

Professional Management

Image via Wikipedia

When you purchase shares in a mutual fund, to some extent you are also buying the expertise of the fund manager and the fund management company. Fund managers carefully research, select, and supervise all the assets a mutual fund holds, buying and selling in an attempt to maximize the fund’s return based on its objectives. Although you have a certain dollar amount riding on the fund’s performance, it’s likely that the fund managers have an even bigger stake: their reputations. Of course, there is no guarantee that a professionally managed fund will not lose money.

Diversification

Of all the strategies recommended for managing risk, diversification is near the top. Mutual funds offer the opportunity to invest in a wide range of asset classes, industries, and securities. In fact, some mutual funds invest in hundreds of securities, providing a level of diversification that individual investors might find difficult — and expensive — to duplicate on their own. Diversification does not eliminate the risk of investment loss; it is a method used to help manage investment risk.

Shareholder Privileges

Mutual funds offer high liquidity and flexibility. For instance, if you decide today to redeem shares (held outside an employer’ retirement plan), your funds could be available to you as early as tomorrow. Some funds will even allow you to write checks against your account.

They also enable you to customize your portfolio and quickly make adjustments when your situation calls for reallocation or rebalancing. The return and principal value of mutual funds fluctuate with changes in market conditions. Shares, when sold, may be worth more or less than their original cost.

Mutual funds are sold only by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

No matter what your investment objectives and long-term goals may be, it’s possible that there is a mutual fund that offers what you’re looking for. Taking advantage of the many benefits of mutual funds can help you pursue your financial goals.Start by contacting us at 630-548-9600 to find out more regarding Naperville Financial Services

1–2) Investment Company Institute, 2009

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2010 Emerald.

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