Your Advisor's Thoughts

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

Should You Focus on 11-Month Losses or 12-Month Gains?

In case you have been living under a rock, let me inform you that throughout the past few weeks the stock market has been rather unpredictable. To put it in technical terms, it has been absolutely crazy! Month to date the S&P 500 index is down 7.6%. We have seen huge increases and declines over days, and even hours at times!

A sharp increase in volatility will make even ultra-long term investors squeamish. This is exactly the time, however, to fight our natural urges to flee despite the talking heads on TV who cry that the sky is falling. The United States of America is no different today than it was three weeks ago. Our national potential is truly amazing despite such valid concerns as debt, unemployment issues, and even occasional political silliness.

In light of the current climate, let me give you a few of my thoughts in a nutshell...

• The current stock market conditions are a "normal occurrence"
• We are not facing imminent default
• We will not be overtaken by another country any time soon
• I see no signs of an impending recession
• Conventional wisdom says to avoid commodities at historically high values: currently this means gold and silver

My crystal ball is currently in for repairs, therefore I am not willing to venture a guess at the duration of the current spike in market volatility or valuation decline. I am confident that patience will pay off in investing appropriately for your individual time horizon and risk preference. As a part of our service to our clients, we manage risk levels and invest appropriately. If you feel there is too much risk in your portfolio, please call us so that we can discuss your individual situation.

Stay tuned for more!

Greg

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

Greg 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

 

Welcome, Jen!

I am pleased to introduce you to the newest member of the “Your Best Interest” family: Jen Myers has joined our team as the Marketing Coordinator. You’ll be hearing from Jen regularly regarding new services and educational opportunities coming soon! At Your Best Interest Financial Services, service is our biggest asset, and we anticipate serving our current clients with even better communication as well as developing new relationships as we promote all the distinctives that set us above and apart from the crowd.

In addition to Jen’s new responsibilities at Your Best Interest, she is a wife and mom. Jen and Jeff have been married 17 years, and have 2 children, Ian and Bekah… both of whom will be in Middle School this year. Jeff and Jen are anticipating that it will be an adventure!

Jen enjoys rose gardening and baking, and we have heard that she has a special fondness for chocolate! We are eager to personally evaluate some of her favorite recipes in the (hopefully) near future. Jen also is involved with the women’s ministry at her church, Faith Community in Brookhaven.

We are here to serve you, and we always enjoy the opportunity to make a personal connection. Jen looks forward to meeting you the next time you are here in the office or at an upcoming event. Stay tuned!

With warmest regards,

Phil

This is a guest blog entry by Philip M. Giambri, President of "Your Best Interest" Financial Services, Inc. Phil is a Registered Representative for Trustmont Financial/Advisory Group, Member FINRA/SIPC

Summer Fun!!!

Phil and I have the honor of teaching 4 evenings at StonyBank Community Church as part of their “Evening Vacation Bible School ~ For The Whole Family”.  “Lies We Believe vs Biblical Truth” is a program used in many churches called where we present common financial misconceptions our society embraces and that our culture leads us to believe.  If you wish to attend Stonybank requests that you RSVP to 610-459-1827.

 
Stay Tuned For More…

You can contact Greg at 610-485-1010

He is an investment advisor representative of Trusmont Advisory Group, Inc