Your Advisor's Thoughts

Advancing Technology: In Your Best Interest

Isn't technology amazing? Over the years, as music lovers embraced vinyl records, 8-track tapes, cassettes, and eventually audio CDs, it seemed we were rocketing into the computer age. At the time they were introduced, each of these advancements seemed so revolutionary, didn't they?

It is mind-boggling to consider how fast technology is advancing on a daily basis. Our office staff got a good chuckle at my expense when we were discussing social media one day, and I asked how to get a "Spacebook" account. Of course, I'm sure you all realize I was referring to a "Facebook" account.

At Your Best Interest, we are striving to not only keep up with technology, but lead the pack. Our tax practice went paperless in 2010. Since then, we have integrated smartphones, tablets, and a SMART board in our conference room as a part of our daily business operation. These innovations allow us to continually monitor clients' accounts, providing each of you with the best service possible. Our newly upgraded customer relationship management system provides a portal for our clients to view up-to-date summaries of their accounts at anytime. What's next?

It has been said that nothing is so constant as change, and changing technology seems to be the new constant in our lives. We are all learning together - and benefitting from all that the latest technology has to offer! Who knows - maybe one day there will be Spacebook as well. Then our staff will have to admit I was ahead of the curve all along!

With warmest regards,

Phil Giambri

Philip M. Giambri is the founder and owner of "Your Best Interest" Financial Services, Inc. Contact Phil by e-mail at pgiambri@ybifs.com, or call our office at 610-485-1010.

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.

You Can Still Make a Difference!

It has been said that “all good things must come to an end”. On April 17th we marked the official end of the 2011 tax season, and we are also nearing the end of our CityTeam Diaper Drive!

At YBI, being a good neighbor is an important part of our business, and supporting the CityTeam ministry is a great way to benefit our local community. We gave you, our clients, an opportunity to partner with us in our Diaper Drive effort, and you responded with amazing generosity. In the last 3 months, we have collected nearly 2,000 diapers to donate to the Mother and Baby Care Program at CityTeam. This will be a tremendous blessing to many!

On Saturday, May 5, CityTeam will hold its Mother & Baby Care Angel Luncheon and Silent Auction. The proceeds generated from this event will help CityTeam continue to provide compassionate care and essential items to local families in need. Would you like to be a part of this special day? If so, click here to purchase tickets to attend the Luncheon and Silent Auction, or even sponsor a table of friends or business associates. If you cannot attend the lunch, but would like to support CityTeam with a donation, you can do so through this link. If you are a local business owner interested in sponsorship or involvement with the auction – if so please call our office at 610-485-1010 and we will gladly provide you with a contact at CityTeam.

To learn more about CityTeam Ministries in our area, you can view an informative 8-minute video here. To contact "Your Best Interest" Financial Services, e-mail us at ybifs@ybifs.com, or call 610-485-1010. We look forward to hearing from you, doing business with you, and partnering with you to make our community a better place to live!

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.

The Definition of "Tax Insanity"

Albert Einstein once said:

“Insanity is doing the same thing over and over again and expecting different results.”

His quote is apropos as this year’s tax season draws to a close. Unfortunately, so many people fall in to the same tax traps over and over again, and the result is the same every time: an excruciatingly large bill from the IRS.

There are a few particularly dangerous “Tax Traps” to be aware of in 2012:

Tax Trap #1: If you take money out of an IRA or a 401(k), don’t forget that in most cases it is ALL taxable! If you plan to make a withdrawal, make certain to pay the tax at the time of the withdrawal, and at your current tax rate! By postponing payment until the end of the year you risk forgetting that you have a payment due.

Tax Trap #2: If you are receiving unemployment income, make sure to set aside money set to pay the taxes due based on your actual tax bracket. The government automatically calculates withholding from your payments at the 10% rate, however there are a number of factors which can negatively impact this withholding:

a. Did you generate income during part of the year?

b. Do you have a spouse earning regular income?

c. Did you withdraw money from your 401(k) or IRA?

If the answer to any of these questions is “yes”, you must set aside additional monies now if you wish to avoid a very unpleasant surprise when you file your 2012 taxes!

Tax Trap #3: The tax on Social Security blindsides so many taxpayers every year. Did you know that depending on your income, up to 85% of your Social Security benefits can be taxable? So many people labor under the misconception that “I’m older than 65; I can earn as much as I want.” This is true to a point, but when you reach a certain threshold ($25,001 for a single person, $32,001 for a couple), your Social Security becomes taxable. Not only does it become taxable, but it counts as income in the calculation of your tax rate.

There is only one thing we hate more than presenting our tax clients with a large IRS bill, and that is presenting them with a large IRS bill that they could have avoided by correcting last year’s tax mistakes. Don’t be an example of Tax Insanity… take steps to avoid these Tax Traps next year. You’ll be glad you did.

Come see us at YBI for Expert Tax Advice, Fast Accurate Service, and our Convenient Drop-Off during office hours: Monday - Friday, 8:00 am - 5:00 pm, and Saturday, 9:00 am - 12:00 pm.

To contact "Your Best Interest" Financial Services, e-mail us at ybifs.@ybifs.com or call us at 610-485-1010.

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.

Nothing Is "The Same as Last Year"!

Every year we get asked the same questions about Charitable Contributions:

1. What is the "standard deduction" I can take for charitable contributions?
2. How much did I claim last year?
3. Do I need receipts?

The answers are simple:

1. There is no "standard deduction" for charitable contributions!
2. It doesn't matter how much you contributed last year.
3. Yes, to be deductible you need receipts.

In recent years the IRS began aggressively enforcing its requirements for charitable contribution documentation. Our job is to help you remain compliant to the IRS and prepare accurate tax returns for you. Following are some of the guidelines set forth by the IRS, to aid you in preparing for tax season.

To be deductible, charitable contributions must be made to qualified organizations.

Cash contributions include those paid by cash, check, electronic funds transfer, debit card, credit card, or payroll deduction. You cannot deduct a cash contribution, regardless of the amount, unless you keep one of the following:

1. A bank record that shows the name of the qualified organization, the date of the contribution, and the amount of the contribution. Bank records may include:

• A canceled check,
• A bank or credit union statement, or
• A credit card statement.

2. A receipt (or a letter or other written communication) from the qualified organization showing the name of the organization, the date of the contribution, and the amount of the contribution.

You must get the acknowledgement on or before the earlier of:

• The date you file your return for the year you make the contribution, or
• The due date, including extensions, for filing the return.

If you make any noncash contribution, you must get and keep a receipt from the charitable organization showing:

• The name of the charitable organization,
• The date and location of the charitable contribution, and
• A reasonably detailed description of the property.

In addition, you must provide a written value of the property at the time of donation. For more information about Charitable Contributions, see IRS Publication 526: Charitable Contributions, available at www.IRS.gov or by calling 800-829-3676.

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. 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 us 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.

There Ain't No Such Thing As A Free Lunch!!

This time of year we are all bombarded by tax preparation advertisements. From catchy Superbowl commercials to pesky internet ads, everyone seems anxious to prepare your tax return - and most of them seem to be offering to do so for FREE! Some companies promise a limited fee; others send you "free" tax software through the mail. Such offers are tempting! Tax season is a dreaded time for many, and the thought of letting someone else tackle your returns at no cost is certainly appealing.

Unfortunately, these offers are rarely what they seem.

In the last month, a number of clients have walked through our doors having explored one of these enticing offers and found the results less than satisfying! For example:

• At a local preparer offering "FREE" 1040EZ tax returns, the actual cost upon completion was over $300. Had this particular return been dropped off at YBI, it would have cost $99.
• Another preparer offering "FREE" returns charged $79; the YBI fee would have been $75.
• After promising "Returns for $74", still another company charged $115. This return would have cost $75 at YBI.

In addition to cost, consider what kind of support you will receive after tax season should the IRS contact you with questions about your return. At YBI, our tax pros are available year-round to address IRS questions and even provide assistance if necessary. Ongoing education ensures that they are current with the most recent tax law changes.

So when you are tempted by yet another "FREE" offer, remember:

"There Ain't No Such Thing As a Free Lunch"

Come see us at YBI for Expert Tax Advice, Fast Accurate Service, and our Convenient Drop-Off during office hours: Monday - Friday, 8:00 am - 5:00 pm, and Saturday, 9:00 am - 12:00 pm.

To contact "Your Best Interest" Financial Services, e-mail us at ybifs.@ybifs.com or call us at 610-485-1010.

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.

Important Information for PA Tax Filers

There is a new line on the 2011 PA tax return that must be completed by every PA resident. Line 25 reports Use Tax, which is the counterpart of Sales Tax and applies to taxable purchases made over the internet, through toll-free numbers, from mail order catalogs and from out-of-state locations where sales tax was not charged and collected by the seller. The use tax rate is the same as the PA sales tax rate; 6%. It is PA's attempt at mandatory compliance of remitting PA sales tax for untaxed out of state purchases that would be subject to sales tax if purchased in PA. Every PA resident is personally responsible for remitting the use tax directly to the PA Department of Revenue.

This isn't a new law;
it's enforcement of current law.

Examples of taxable items include the following: antiques, paintings, appliances, books, stationery, computers, exercise equipment, formal clothing, furniture, furnishings, jewelry, luggage, handbags, musical instruments, office equipment, souvenirs, televisions, radios, stereo equipment, video equipment and camera equipment. Examples of taxable services include lawn care, pest control, self-storage, building cleaning and maintenance services such as housekeeping services.

Purchases are reported in 2 categories; individual purchases less than $1000 and individual purchases over $1000. For individual purchases less than $1000 you have the option of providing detailed purchase information or using the optional use tax table provided by PA Department of Revenue to calculate your use tax liability based on taxable income. For individual purchases over $1000 you must provide detailed purchase information and itemize the purchases. Your use tax liability will be calculated on the taxable purchase amount.

If you paid some sales tax on items - for example sales tax paid at a lower rate paid to another state - you may offset your use tax liability by the sales tax already paid.

For detailed information on use tax reporting responsibilities and options, visit: www.revenue.state.pa.us/usetax.

To contact "Your Best Interest" Financial Services, please reply to this e-mail, or call us at 610-485-1010.

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.

Simplify Your Life!

As your "One-Stop Investment Shop", the "Your Best Interest" Financial Services team brings together investment, insurance, and tax expertise along with outstanding customer service to provide a comprehensive approach to your unique financial situation.

Unlike traditional financial services firms, we can simplify your life by addressing all the areas of your individual financial plan under one roof. Integrating investment knowledge with tax advice is a YBI distinctive. There are significant potential benefits to incorporating tax preparation services with:

Retirement Planning

Financial Planning

Investment Advice

401(k) Advice

Life Insurance

Income Planning

Real Estate

This year, take your financial planning a step further: let the YBI team help you build personalized investment strategies that have tax advantages as well. Come talk to us and see what we can do to simplify your life!

With warmest regards,

Phil Giambri

Founder and Owner, "Your Best Interest" Financial Services, Inc.

To contact "Your Best Interest" Financial Services, e-mail us at ybifs@ybifs.com, or call 610-485-1010.

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.

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.