Your Advisor's Thoughts

Who Do You Know… that We Don’t?

Tax season will soon be upon us. We realize that for many people, this is a dreaded time of year. However, the tax team at YBI looks forward to every tax season with great anticipation! We have just put 2011 behind us and eagerly look forward to beginning a new year with new opportunities and great expectations. The pace of the office picks up dramatically. But more importantly, it’s a chance for us to see our tax clients; many of whom we only see at tax time. We thoroughly enjoy the personal interactions and catching up on what has transpired in your lives since we last met or spoke. It is our desire to make tax season a pleasant experience for all our tax clients. We strive to provide accurate and timely preparation of your tax returns at a fair and reasonable price.

Referring new clients to us is the greatest compliment you can pay. Did you know that we have a Tax Referral Program at YBI? This month, you will be receiving a letter from our office containing two personalized business cards, like the one pictured to the left. These cards can be given to your friends or family as a referral to our office. For every new tax client you refer to YBI (who has both their federal and state tax returns prepared by our office) you will receive a $25 gift card and they will receive $10 off their tax preparation fee.* It’s a win-win proposition …so take advantage of this offer and introduce us to your friends!

Stay tuned…

*Limit of four $25 gift cards per client.

This is a guest blog by Jackie Ward, the Tax Operations Manager at “Your Best Interest” Financial Services, Inc.

Securities offered through Trustmont Financial Group (TFG) Inc. Member FINRA/SIPC. Advisory services offered through Trustmont Advisory Group (TAG) Inc. 200 Brush Run Road, Greensburg, PA 15601 724-468-5665 Neither “Your Best Interest” Financial Services, Inc. nor 401kPRO are affiliated with TFG or TAG.

Christmas Lists

If there ever was a time for making lists, Christmas is it. Gift lists, holiday card lists, shopping lists, and recipe lists are the unsung heroes of the Christmas season!

At the “Your Best Interest” office this last week, we received some new lists… ones that we look forward to completing! Recently, the YBI team paid a visit to CityTeam Ministries in Chester, PA. We were there to learn more about this amazing organization that is bridging the gap for so many who are struggling in our region. We talked with the staff about the needs at CityTeam and how we can get involved with supporting their activities. What an amazing day that was – we were certainly blessed and encouraged by what we saw, and we look forward to blessing them with our involvement in the coming year. An immediate opportunity was presented to us by their Christmas Toy Drive. This drive fulfills the Christmas wishes of local children by providing participants with a short list of toys to purchase for a child in our area. We received our lists and look forward to sending toys to CityTeam for delivery to these precious kids!

Giving gifts is naturally one of the best parts of Christmas… and in truth, it was originally God’s idea! The first gift ever given was Jesus: the Savior of mankind, the Messiah, Emmanuel (meaning “God with us”). No shopping list was needed for this first Christmas. There was only one gift, and every single one of us were the recipients. God gave us the Gift we most needed in the form of a flawless baby born into a filthy stable. The Good Shepherd was greeted by lowly shepherds. A Miracle Worker whose very birth was itself a miracle. He was, and is, a most perfect Gift in every way.

You are on God’s list of beloved gift recipients. You are on our list too: our list of extraordinary and exceptional clients, friends and colleagues. We are blessed to have been able to work with and for you in this last year, and we look forward to continuing our relationship in the coming year.

We wish you a most Joyful Christmas and promising New Year!

Phil Giambri, Greg Teal, and the rest of the YBI Team

Securities offered through Trustmont Financial Group (TFG) Inc. Member FINRA/SIPC Advisory services offered through Trustmont Advisory Group (TAG) Inc. 200 Brush Run Road, Greensburg, PA 15601 724-468-5665 Neither “Your Best Interest” Financial Services, Inc. nor 401kPRO are affiliated with TFG or TAG.

2011: The Year in Review

When the history books are written about 2011, what will be the highlights that will stand out in your mind? It has been a year in which we have experienced hurricanes, blizzards, a tsunami, tornadoes, sandstorms and earthquakes. We have watched our politicians struggle in so many areas as they attempt to revitalize America. Many Americans are out of work and many more have lost their homes. As I look at 2011 in retrospect, I will remember it as a year of challenges and blessings, natural disasters and phenomenal accomplishments.

On the financial front we have watched the stock market go up and down sharply on almost a daily basis. It seems as though the slightest bit of news, either negative or positive, has tremendous repercussions for the market. Most of you reading this have been touched personally in some way by the effects of our wavering economy.

Well, is it all doom and gloom? Absolutely not! Is the cup half full or half empty? From my view point, it is not only half full, it is full and running over. Despite all the challenges facing our nation, we still live in the most amazing country in the world. While my family has not been immune to the challenges of 2011, I still believe the opportunities and blessings far outweigh the issues we face.

You may question my optimism, but it is based on the following: When you chart both the S&P and the DOW over the past two years, both of these indices have actually seen slight increases. When compared to the current economic situation in many other countries across the globe, this is an unquestionable positive. In addition to those documentable figures, I have also noticed a growing regional trend of increasing numbers of “Help Wanted” signs. I am not referring here to seasonal jobs, but rather jobs that will generate income and benefits for families.

Personally, the most significant lesson that I learned in 2011 as I spent time reading through the book of Proverbs is that we need to show more mercy to one another. I was struck by how much more pleasant our lives would be if we routinely treated one another with attitudes of compassion and forgiveness. I look forward to 2012 with great anticipation as it is my desire to grow in knowledge, wisdom and understanding.

I know you will agree that as you get older, each year seems to go by much, much quicker than the year before. 2011 has not been an exception. This year has flown… as we watch 2011 go out, we have great expectations for next year. It is my hope that 2012 will be one of the most wonderfully memorable years of your life.

With warmest regards,

Phil Giambri

This is a guest blog by Philip M. Giambri, the founder and owner of “Your Best Interest” Financial Services, Inc.

Securities offered through Trustmont Financial Group (TFG) Inc. Member FINRA/SIPC Advisory services offered through Trustmont Advisory Group (TAG) Inc. 200 Brush Run Road, Greensburg, PA 15601 724-468-5665 Neither “Your Best Interest” Financial Services, Inc. nor 401kPRO are affiliated with TFG or TAG.

Always Something to Be Thankful For!

Thanksgiving…

For so many of us this day marks the beginning of the holiday season. The excitement of turkey roasting, family hosting, and Christmas shopping can quickly obscure the opportunity for grateful reflection. For others the concept of being “thankful for all that we have” is a very difficult one. Maybe money is tight this year, or health and family concerns weigh on your mind. This is a painful reality for so many in our community, and all the tasty recipes and beautiful table settings cannot compensate for the hurt or lack that so many feel.

So in light of these realities, how can we truly celebrate Thanksgiving Day with an attitude of gratitude?

Make a conscious effort to be more aware of what you have than what you don’t!

Simple words – but they really are such a challenge for all of us. We can all quickly reel off a list of our wants, but when did you last consider what you might be taking for granted? There are so many things we each enjoy every day… a beautiful Fall day with magnificently colored trees, the companionship of a pet, a place to call home, a hug from a loved one. We are so truly blessed, but we lose the blessing when we focus on our lack rather than the abundance of even simple things.

Express your gratitude to just one person this week.

Receiving just a few words of gratitude can go a long way toward brightening someone’s day. We all love to be told how much we are appreciated… look for someone that you can recognize with just a few encouraging words, and likely you will benefit as well!

We are thankful for each of you, our clients and colleagues, and wish you all a blessed Thanksgiving!

Phil, Greg, Charlotte, Jackie, Carol and Jen

Securities offered through Trustmont Financial Group (TFG) Inc. Member FINRA/SIPC Advisory services offered through Trustmont Advisory Group (TAG) Inc. 200 Brush Run Road, Greensburg, PA 15601 724-468-5665 Neither “Your Best Interest” Financial Services, Inc. nor 401kPRO are affiliated with TFG or TAG.

2011 Federal Energy Tax Credits

Tax season is quickly approaching! Have you made improvements to your home over the last year to improve its energy efficiency? Maybe you are considering home system upgrades and are wondering about the possible tax benefits. The Federal tax credits for making energy efficient improvements continue to be extended in 2011, but at lower levels than in previous years. For 2011 the credit varies depending on the type of improvement.

The improvements in this first list qualify for a tax credit of 10% of the cost of the improvement, up to $500 or a specific amount from $50 - $300. Remember that for these items, installation costs are not included.

• Insulation
• Roofs

- Metal roofs with appropriate pigmented coatings

- Asphalt roofs with appropriate cooling granules

- All must meet ENERGY STAR requirements

• Windows and doors

- Must be ENERGY STAR qualified

- Windows, maximum of $200

Each of the items in the next list qualify for the same tax credit (10% of the cost of the improvement, up to $500 or a specific amount from $50 - $300) but in these cases, installation costs can be included in the cost calculations:

• Furnaces & boilers

- Natural gas, propane, oil, hot water

- Capped at $150

- Must meet 95AFUE

• Advanced main air circulating fan

- Capped at $50

- Must use no more than 2% of the furnace’s total energy

• Central air conditioners

- Capped at $300

- Split systems: SEER > 16, EER > 13

- Package systems: SEER > 14, EER > 12

• Air source heat pumps

- Capped at $300

- Split systems: HSPF>8.5, EER >12.5, SEER >15

- Package systems: HSPF > 8, EER >12, SEER >14

• Water heaters

- Natural gas, propane, oil

- Capped at $300

- Energy factor > 0.82 or thermal efficiency at least 90%

• Electric water heaters

- Capped at $300

- Energy factor > 2.0

• Biomass stoves

- Capped at $300

- Thermal efficiency rating at least 75%

To claim the credit, the improvements must be made to an existing home that is your principal residence. New construction and rentals do not qualify. A lifetime limit of $500 is now in effect. Therefore, if you have already received $500 in these tax credits from tax years 2006-2010, you are not eligible for any additional energy tax credits.

The following improvements still qualify for 30% tax credit with no maximum limit:

• Geothermal heat pumps
• Solar energy systems
• Small wind turbines

In the case of these items, the credit applies to existing homes and new construction for principal residences and second homes. Rentals do not qualify. Installation costs are included in the credit.

The following qualifies for a tax credit of 30% of the cost (installation costs included), up to $500 per .5kW of power capacity:

• Fuel cells

- Residential fuel cell and micro-turbine system

- Efficiency of at least 30% and capacity of at least 0.5kW.

The credit applies to existing homes and new construction that will serve as your principal residence. Rentals and second homes do not qualify.

Please note:

• Not all Energy Star qualified products qualify for a federal tax credit.
• No federal tax credits are given for appliances.

We recognize that for many private taxpayers it is a challenge to stay on top of the ever-changing tax laws. The tax team here at “Your Best Interest” Financial Services, Inc. stays current on tax law changes by continually attending educational seminars and reading professional tax publications. Jackie Ward, the YBIFS Tax Operations Manager, will be posting here occasionally over the next few months to provide you with relevant information in an easy-to-understand format. Remember, our tax department is available to assist you year round, not just during tax season. If you ever need help, or just have a question, please call Jackie at 610-485-1010.

Stay tuned…

This is a guest blog by Jackie Ward, the Tax Operations Manager at “Your Best Interest” Financial Services, Inc.

Securities offered through Trustmont Financial Group (TFG) Inc. Member FINRA/SIPC. Advisory services offered through Trustmont Advisory Group (TAG) Inc. 200 Brush Run Road, Greensburg, PA 15601 724-468-5665 Neither “Your Best Interest” Financial Services, Inc. nor 401kPRO are affiliated with TFG or TAG.

Do You Believe It?

Last week while on the phone, I was caught off guard by the question, “Have you started setting your goals for 2012 yet?” Believe it or not, it is the goal setting time of year again! It seems like just yesterday that we were swimming with our grandchildren, persevering through one of the hottest summers in Philadelphia’s history.

I realized some time ago that, “Failure to plan is planning to fail.” This means if you have no intentionality in life, no plan or final destination, you are surely going to obtain what you set out to accomplish: not much.

My first activity in goal setting is to review each goal I set for 2011, celebrate the goals I attained, evaluate the cause for missing any goals, and re-group if necessary. Preparing for 2012, I evaluate the direction I am currently going and determine if I am on track to my destination. I then begin determining spiritual, physical, time management, and financial goals. It is always my desire to improve over the past. The goals I set need to be attainable, yet not set so low that I am underachieving.

Here is your wakeup call! Finish 2011 well. Start now to think about how you are going to better yourself, as you start planning for 2012. It’s coming faster than you think - and it will be here before you know it!

Anticipating 2012…

Phil

This is a guest blog by Philip M. Giambri, the founder and owner of “Your Best Interest” Financial Services, Inc.

Securities offered through Trustmont Financial Group (TFG) Inc. Member FINRA/SIPC. Advisory services offered through Trustmont Advisory Group (TAG) Inc. 200 Brush Run Road, Greensburg, PA 15601 724-468-5665

Neither “Your Best Interest” Financial Services, Inc. nor 401kPRO are affiliated with TFG or TAG.

Does Your 401(k) Contain Treats or Tricks?

The Treats - The GOOD Things:

401(k) plans are among the most successful investment instruments ever created to help American workers accumulate wealth. A majority of employers have generous matching programs available. For many of our retired clients, their social security checks are augmented by withdrawing retirement funds to provide for a desired standard of living.

The Tricks - The BAD Things:

The very legislation that provides for 401(k) plans is arguably the most complicated section of IRC code that exists. The simple fact that the law is complicated forces the plans to be complex and this often results in very high internal costs. Many participants believe that their plans are free, but this could not be further from the truth! The worst offending plan I have analyzed had 5.8% internal fees. A majority of plans commonly have over 3%. To put this in real terms, assuming a $150,000 account balance, this amounts to $8,700 in fees. When compounded over 10 years at 8% this is equates to $126,000 in potential retirement savings lost to fees.

In addition, 401(k) plans are legally permitted to be stretched by your beneficiaries. However many employers prohibit stretching simply because of the costs that can be incurred, and consequently your beneficiaries will not enjoy the full advantages of your savings.

The good news is that in many cases, the "Treats" of a plan do outweigh the "Tricks"… but it can be difficult to ascertain unless you know the important questions to ask your company Benefits Manager. Often even these employee fiduciary managers are unaware of the hidden costs that lurk within retirement plans, and this can make planning even more frightening! At “Your Best Interest” Financial Services, Inc., our 401(k)PRO service provides a complimentary analysis which will examine any plan for your employer to determine how tricky the "Tricks" are, and identify methods to maximize the benefits to employees.

If you are currently in a situation where you do not have a 401(k) or 403(b) plan, it is often advantageous to move your existing savings to an IRA to reduce costs, and allow stretching. A note of caution though: there are 3 caveats to moving your retirement plan to an IRA. Stay tuned for future information on this.

The bottom line, no matter your current situation, is that you need to work with someone who has vast experience and specialized knowledge in this area. If you have questions about your 401(k) plan and its costs and benefits, please contact us for an appointment to review your individual situation.

Stay tuned… and happy October!

Greg

Securities offered through Trustmont Financial Group (TFG) Inc. Member FINRA/SIPC Advisory services offered through Trustmont Advisory Group (TAG) Inc., 200 Brush Run Road, Greensburg, PA 15601 724-468-5665 Neither “Your Best Interest” Financial Services, Inc. nor 401kPRO are affiliated with TFG or TAG

Did You Take An Early Distribution From Your Retirement Plan?

If you took or will take an early distribution from your retirement plan in 2011 you should be aware that there is a potential tax impact. Here are ten facts about early distributions.

1. Payments you receive from your Individual Retirement Arrangement (IRA) before you reach age 59½ are generally considered early or premature distributions.
2. Early distributions are usually subject to an additional 10 percent tax.
3. Early distributions must be reported to the IRS and on your income tax return.
4. Distributions you rollover to another IRA or qualified retirement plan are not subject to the additional 10 percent tax if you complete the rollover within 60 days after the day you received the distribution.
5. The amount you roll over is generally taxed when the new plan makes a distribution to you or your beneficiary.
6. If you made non-deductible contributions to an IRA and later take early distributions from your IRA, the portion of the distribution attributable to those non-deductible contributions is not taxed.
7. If you received an early distribution from a Roth IRA, the distribution attributable to your prior contributions is not taxed.
8. If you received a distribution from any other qualified retirement plan, generally the entire distribution is taxable unless you made after-tax employee contributions to the plan.
9. There are several exceptions to the additional 10 percent early distribution tax, such as when the distributions are used for the purchase of a first home, for certain medical or educational expenses, or if you are disabled.
10. For more information about early distributions from retirement plans, the additional 10 percent tax and all the exceptions see IRS Publication 575, Pension and Annuity Income and Publication 590, Individual Retirement Arrangements (IRAs). Both publications are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Early distribution rules are not the same for the IRS and the state taxing authorities. If you took an early distribution from a retirement account in 2011, you will receive Form 1099-R reporting the amount of the distribution. You must include Form 1099-R along with a record of the total of your contributions to the retirement account and all previous distributions from the retirement account with your tax preparation documents.

If you have questions about an early distribution and would like to discuss the possible tax implications call us at 610-485-1010 or e-mail Jackie at jward@ybifs.com.

Stay tuned for more…

This information is provided by Jacqueline M. Ward, the Tax Operations Manager at "Your Best Interest" Financial Services, Inc. She combines her education in accounting, years of experience and attention to detail to provide her clients with confidence and peace of mind that their tax returns are completed accurately and in a timely manner. Jackie is the mother of 7 children, 2 girls and 5 boys. Two of her sons are presently serving our country in the military; one in the U.S. Marine Corps and the other is a midshipman at the United States Naval Academy.

Securities offered through Trustmont Financial Group, Inc., Member FINRA/SIPC

Advisory services offered through Trustmont Advisory Group, Inc.

200 Brush Run Road, Greensburg, PA 15601 724-468-5665

Neither "Your Best Interest" Financial Services Inc. nor 401kPro are affiliated with either Trustmont Financial or Trustmont Advisory Group, Inc.

September 11

Ten years have passed since the events of 9/11/01, and while in some ways it feels like a lifetime ago, the memory remains painfully fresh in our minds.

An attack on U.S. soil. The loss of nearly 3,000 lives. In the wake of these horrific events, we might have recoiled. We were all wounded that day, but the people of this nation rallied together, and in the decade that has followed, we've proven our strength, our courage and our resilience.

Let us never forget the events of 9/11.

This coming Sunday, Patriot Day, let us remember the thousands of precious lives that were lost that fateful day, as well as the lives of those we've lost since then - the brave men and women of the armed forces who fight for us each and every day.

9/11 is a wound that may never fully heal - like the wound we sustained at Pearl Harbor, but those wounds, though deep, make us stronger.

Our thoughts and prayers this week are with all those who lost family members and loved ones on that day, and in the subsequent years of military action.

GOD BLESS AMERICA!

Phil Giambri and Greg Teal

You can contact Phil and Greg at the office by calling 610-485-1010

Philip M. Giambri is the founder, and owner of “Your Best Interest” Financial Services Inc. Phil is a registered representative of Trustmont Financial Group Inc. Member FINRA, SIPC. Greg is an investment advisor representative of Trustmont Advisory Group, Inc. 200 Brush Run Road, Greensburg, PA 15601, 724-468-5665

A 5.9 Earthquake and a Category 2 Hurricane...

All of us on the East Coast are being reminded this week that some natural disasters can be anticipated, and others cannot. When the unexpected occurs, individual reactions may vary widely, as we discovered last Tuesday in the “Your Best Interest” office. During the earthquake, each of us reacted differently: one of us moved under a doorway, some jumped up to run outside, and one (the native Californian in the bunch) crawled under her desk. Phil calmly continued on with his appointment, appearing slightly amused by the collective alarm.

As if the earthquake weren’t enough for one week, the anticipated arrival of Hurricane Irene quickly moved to the top of the headlines! Local authorities and news outlets stressed the importance of making appropriate preparations for the expected torrential rain and high winds.

Our financial markets have been rocked recently as well. As with natural disasters, we each respond to these “financial tremors” differently. Some are tempted to run away, some stand their ground, and still others look for opportunities.

At “Your Best Interest” Financial Services, we understand that everyone has a different comfort zone when navigating the financial marketplace. Personal risk tolerance does not fluctuate with the market, but sometimes our feeling of uneasiness does. We are here to help you proactively create your individualized investment strategy and then encourage you to stay the course with professional guidance, perspective and objective assessment of the market.

Stay tuned…

Greg

You can contact Greg at his
office by calling 610-485-1010.

Greg Teal is an investment advisor representative of Trustmont Advisory Group, Inc. 200 Brush Run Road,
Greensburg, PA 15601. Trustmont can be contacted by calling 724-468-5665