Life is like r iding a bicycle. To keep your balance you must keep moving. - Albert Einstein

times of the year are ahead with the holiday months approaching. Please do not hesitate to call us for any financial (and even non-financial) needs that you may have. We truly want to be your first phone call. The entire team looks forward to serving you as we approach the end of 2016 and soon will be welcoming 2017 into our lives.

Sincerely,

Chris

W. CHRIS STRAFFORD, Senior Vice President

I hope that everyone who was able to attend our annualclient event on September 29 at the Palais Royale and Morris Performing Arts Center had a wonderful evening. The food was delicious, the company of clients and colleagues engaging, and the entertainment of stories and songs by The Platters had many people tapping their feet or dancing in aisles. Steve Wessell, Executive Vice President, addressed the group of over 500 at dinner and announced his retirement from the Personal Asset Management Group. Steve led the PAMG team for over 20 years and leaves a legacy of serving clients with the highest level of integrity. Steve enjoyed getting to know you over his tenure with 1st Source and was passionate about our mission of putting your best interests first. Please join me in congratulating Steve on his well-deserved retirement.

This edition of the Gazette includes important information about our team name change, updates on our employees, and some year-end reminders worth considering. We know that some of the busiest

1st Source Gazette

October 2016 v 574-235-2790 / 800-882-6935 v www.1stSource.com

A LIFE WORTH LIVINGTHE MEANING OF TRUE WEALTH

ALLY POWERS, Vice President and Manager, Personal Trust

October 2016 v W E A LT H A DV I S O RY S E RV I C E S v www.1stSource.comOctober 2016 v W E A LT H A DV I S O RY S E RV I C E S v www.1stSource.com

Pearl is an amazing, strong woman. She is 82, petite, with the posture of a glamorous 1950s Hollywood movie star. She has a quiet demeanor and is one of the kindest souls you could ever meet. This once small-town girl quilts by hand and has played the piano almost her entire life. Several years ago she lost her husband and remained living in their home of almost fifty years – a beautiful sprawling ranch overlooking the water. She has no children, but does have some caring family who live out of town.

A month ago, Pearl fell. She was going to a doctor appointment and had fallen outside of the office. No one had seen her fall. No one came. She scratched her glasses and half of her face. Despite being scuffed up and upset, she was able to eventually pick herself up and get in to have X-rays. Luckily, she did not break any bones. But her confidence was shaken. As a result,she agreed to sell her home and the majority of her worldly possessions and move from her very comfortable home. She is even considering leaving the area so that it would be more convenient for her family.

I sat across from her drinking tea quietly in her pristine living room. We had just said good-bye to a realtor who had come to walk through the property in order to establish the listing price. Pearl then asked me,

"What should I do?"

It is through this lens that we have been looking toward how we, as an organization, should continue to serve our clients for the next 150 years. How can we simplify matters for them, so they can spend more time with what matters to them? Kurt Thompson, Managing Director of The Family Office, shared his perspective from experience with clients this way:

"Our clients want us to take a holistic approach to their life plan and provide unbiased advice. They want to maintain their lifestyle while using their assets in a way that is meaningful and responsible."

This aspiration to make a difference in the lives of others is one of the most important threads that binds us together as a people – no matter our political affiliation, age, race or gender. Real wealth is measured not just in material possessions, as Merriam-Webster suggests, but in the impact we make on the lives of those around us.

This is as true in our role as a fiduciary, as it is to each of us as individuals. We have been privileged to serve clients for over a century because of our ability to deeply understand our clients’ trust and investment-related matters. But as we move forward, we want to be judged not just by our investment performance and

estate-planning expertise, but by how we help our clients make all the important decisions they make in their lives.

We have the largest local, most professionally-credentialed wealth advisory team in the region. Additionally, we have spent decades building tremendous relationships with like-minded, caring experts across the communities we serve.

With access to great people, combined with additional training and continuing investments in technology, we gratefully welcome the opportunity to serve you and your family far into the future. We want to understand what is truly important to you and help in any way that we can. Wheneveryou have an important issue to address —

We aspire to be your first call.

To express how committed we are to serving our clientsin a more comprehensive way, we are officially transitioning our name to

1st Source Wealth Advisory Services

from the Personal Asset Management Group that you have known for many years.

This name change reflects our continued mission to help clients build wealth, achieve security and

I know she was asking me if she should move away from her surroundings of the past half century to be in an unfamiliar place closer to her family, or if she should consider moving to a local assisted living residence – a question that many of us will be asking ourselves at some point. I am writing this with tears in my eyes. The only answer that felt fitting at the time was that I wished that she was part of my family, because I thought she was so special.

It is in this moment that we all see a bit of Pearl in ourselves: the fear of losing faith in everything familiar, having to rely on others for things we used to be able to do without assistance or consultation, the possibility of having no one with whom to share a cup of tea and quiet conversation.

Several studies have been conducted over recent years to understand what is truly important to people as theyage. Consistently, the top three concerns have been

1) Losing our mental faculty

2) Not having enough money

3) Losing our independence

As a result, often times the decisions we make as we transition into retirement – and perhaps even why we choose to retire when we do – are related to spending more quality time doing what we enjoy with the people we love while we still can.

October 2016 v W E A LT H A DV I S O RY S E RV I C E S v www.1stSource.comOctober 2016 v W E A LT H A DV I S O RY S E RV I C E S v www.1stSource.com

high-profile lives in Washington with their much preferred routine life – reading, meals together, daily walks, playing piano, time with friends. The simple things that make life worth living.

And to think, someone so rich in character was also considered to be financially the poorest president in history. Contributing to his fate were failed business ventures including a zinc mining operation and an interest in a clothing store that went bankrupt in an economic panic during the 1920s, which cost him his entire investment of $30,000. Yet, even at his lowest point, he never declared bankruptcy, despite the advice he received from many. It would be decades later when he finally paid all his debts from the failed business. His financial circumstance was even considered to have heavily influenced the creation of the Former President’s Act in 1957 which would provide benefits to prior presidents including pension and protection.

On July 30th, 1965, Harry and Bess Truman also became the first recipients of Medicare when it was signed into law by Lyndon B. Johnson. President Johnson announced the nation from the Harry S Truman Library that it had ‘all started with the man from Independence’. He was referring to Truman who had fought tirelessly during his term twenty years prior to get a bill passed that would provide health coverage to all Americans.His efforts at the time had been unsuccessful.

Truman’s life story speaks of real wealth, integrity and courage. And, the values he embodied will continue to direct us, in large part to our living out the 1st Source commitment to always put our clients’ interests first. As 1st Source Wealth Advisory Services, we will continue to be humbled by your choice of us and trust in us to refer your friends and family.

Sincerely,

Ally Powers

realize their dreams. It also is intended to reflect having the courage to make ourselves a little vulnerable at times by asking deeper questions that we may not have yet explored, but which are crucial in making decisions affecting the livesof our clients.

Pearl’s biggest concerns about aging are shared by almost everyone, even former presidents of the United States. Let me begin to explain what I mean by sharing that forty-seven years ago this week, my sister was born. My parents and brother lived in Kansas City at the time. Interestingly, when my mom arrived at the Kansas City Research Hospital there were no rooms available except for one. That one room was reserved for Harry S Truman. During the last few years of his life he had frequented this hospital and so this room was kept specifically available should he need it. On this particular night when there were no other rooms available, my mom was overjoyed to learn that she would be staying there. She shared just how special this was to her, and then described the Truman room– as one might expect, knowing his personality andcharacter – as being simply decorated, comfortable and practical. She felt right at home.

My mom had a great deal of respect for this man who served as our 33rd President of the United States. My brother and sister and I were equally raised on a diet of hard work, honesty, and integrity – three values for which Truman’s name still stands today. Faced with what must have felt like insurmountable circumstances both personally and professionally throughout his life, he showed grit and fierce

determination over and over again. I too became an admirer of his unwillingness to ever give up. It came as no surprise to me that I would later attend Truman State University and name our family dog, Truman (of course).

If you were to visit 219 North Delaware in Independence, Missouri you would have the opportunity to witness the simplicity of Truman’s life. Truman had lived there with his wife, Bess, and mother-in-law (who did not particularly like him) for over 50 years. The beautiful, yet simple, two-story white Victorian house stands seemingly untouched since the time of Bess’ death in October 1982 – a gift from her to the people of the United States. The only significant change to the home during Truman’s ownership was the black wrought iron fence installed by the Secret Service during his presidency to provide privacy from curious onlookers. In the house today, evidence of Truman's character remains, including a worn hole in the kitchen linoleum from the many years of use while they lived there, where in fact upon returning home from the White House in January, 1953, Truman had opted for nailing down the linoleum's ragged edges in the middle of the room instead of opting to replace what he believed to be a perfectly useful floor.

When a reporter asked Mr. Truman what the first thing was that he would do now that he had returned home from Washington, he replied simply, “Carry the grips up to the attic.” He had not let his role as president change who he was as a person. He and Bess quietly replaced their

P L E A S E D T O A N N O U N C E Y O U R G ROW I N G T E A M ! We are committed to providing the bes t in exper t i se and resources to serve your f inancia l and other needs .

TREVOR ROSS, J.D., LL.M. (Taxation), Vice President and Trust Officer. Trevor has over 18 years of experience in financial management with a depth of

knowledge in tax planning strategies. Trevor focuses his efforts in assisting individuals

and families with estate planning, tax planning, retirement planning and special

needs planning. He received his undergraduate degree in Speech Communication

from San Francisco State University, his law degree from San Francisco Law School and

LL.M. in Taxation from Golden Gate University School of Law. Trevor appreciates

the genuine care for clients 1st Source employees have, and how that is supported

at every level within the organization. He and his family relocated to Warsaw in

September last year and have quickly become involved in the local community.

TIM HUNT, CTFA, Vice President and Trust Officer. Based in Niles, Michigan,

Tim brings 1st Source over 27 years of trust experience. He worked for CitiTrust

in South Dakota as a Director and Fiduciary Services Head where he had lived

for 5 years with another 10 years serving trust clients throughout the country

from a CitiTrust Office in Farmington Hills, Michigan. Tim’s comprehensive

knowledge provides him the ability to serve the complex needs of foundations,

individuals and families alike. He has extensive experience with helping clients

grow, protect, preserve and distribute their wealth through estate, tax, charitable,

retirement, and business succession planning. Tim expressed his sincere gratitude

to offer these services for an organization who unquestionably always does things

JACKIE KRONEWITTER, Assistant Vice President and Portfolio Manager. Jackie joined 1st Source Investment Advisors and serves as portfolio manager

for individually managed accounts. She assists with the analysis and selection of mutual

funds and is actively involved in the financial planning process. A graduate

of Bethel College, she came to work with 1st Source as an Investment Analyst,

Mutual Fund Specialist and Portfolio Manager, and then spent 14 years in Retirement

Plan Services as Investment Consultant and earned the designation of Certified

Retirement Services Professional (CRSP). Jackie volunteers with Michiana

Down Syndrome Family Support and Advocacy Group, and with Mishawaka

Catholic School. Born and raised in South Bend, Jackie now resides in Mishawaka

with her husband Doug and their two children, Nathan and Jessica.

IAN FORTE, J.D., Trust Officer. With more than 17 years of experience as

a practicing attorney in Elkhart, Indiana, representing small businesses and their

families, Ian serves the Elkhart/Goshen/Middlebury/Edwardsburg areas from the

1st Source Elkhart Franklin Street Office. Earning the reputation as a great listener

and providing high quality support, Ian has established excellent relationships across

the professional community in Elkhart. He enjoys learning about his clients by asking

questions and understanding their most important concerns. Ian thoughtfully

prepares and offers solutions to help clients achieve their personal and financial

goals through estate, business succession, retirement and financial planning.

A lifelong native of Elkhart, Ian received his law degree from Valparaiso University

ANDREA SOULE, Trust Officer. Andrea joined 1st Source 14 years ago. Her initial

years were in Retail Banking and Retirement Plan Services, followed by almost

a decade in Personal Trust. She was chosen to personally serve Mrs. Raclin, our

Chairman Emeritus, in The Family Office and later partnered with a Senior Trust

Officer to support our clients. Andrea was then promoted as a manager and

additionally led Estate Administration for our Indiana residents. Her combined

tenure with the bank and her depth of understanding across several areas of the

business have provided her great insight to help clients manage and structure their

portfolio holistically. Andrea is always finding ways to anticipate clients’ needs

and serve them and their families. She transitioned fully into the Trust Officer role

Trevor is involved with Big Brothers Big Sisters of Northeast Indiana, Optimist Club of Warsaw, Cardinal Services

Finance Committee Warsaw, and teaching economics with Warsaw High School Junior Achievement. His wife,

Ariel, also recently earned an opportunity to work as Capital Projects Manager at Grace College. Their children

Bennett, Grace and Jude attend Eisenhower Elementary, and their youngest, Quinn, is attending Kiddie Kollege

Preschool, Winona Lake.

in the best interest of their clients, serving in a true fiduciary capacity. Tim earned his M.S. in Finance

from Walsh College, currently serves as a Board member of Junior Achievement, and also actively supports

First Robotics. As outdoor enthusiasts, Tim, his wife Diane, and their children Patrick and Rose, have been so

happy to return to their home state of Michigan.

School of Law and is involved as a member of the Elkhart City Bar Association, The Michiana Estate Planning

Council, and the Indiana State Bar Association (including Probate, Trust and Real Property Sections).

He and his wife Michelle recently welcomed their beautiful first child, Lydia, into the world.

earlier this year. She is part of the REAL Services Advisory Council and continues to act as a mentor for

students attending IUSB. Andrea and her husband, Aaron, live locally in the area with their children Addie,

AJ and Amelia.H OW C A N W E H E L P ?

(574) 235-2790 or (800) 882-6935

October 2016 v W E A LT H A DV I S O RY S E RV I C E S v www.1stSource.comOctober 2016 v W E A LT H A DV I S O RY S E RV I C E S v www.1stSource.com

KELLY ENGLE, Trust Administrator. Kelly has 12 years of experience with

1st Source Bank. She is known for the special, personal care that she provides to our

Warsaw Personal Trust clients, and is passionate about cultivating and nurturing those

and her colleague relationships. Kelly truly listens to clients' needs and does her best

each and every day to meet and exceed their expectations. She attended Indiana

University and volunteers her time with the Salvation Army, Kosciusko Community

Foundation KEYS and Scholarship committee, and Kosciusko County Senior

Services. She also has a creative side and is frequently recognized and teaches crafts

at the local libraries. A lifelong native of Warsaw, Kelly, and her husband, Phil, love

spending lots of time with their granddaughters, Mady and Mara.

TRINA SWANK, Trust Officer. Trina has over 20 years of banking

experience. She started her career after high school while attending Lake Michigan

College and the American Bankers Association. In 2000, she joined the banking

team of 1st Source Bank working on the retail side of the bank before joining

Personal Trust in 2008. She has a remarkable understanding of her clients' needs

and helps them attain their individual and financial goals. Her background

includes involvement in the administration of Trusts, IRAs, Estates,

and Guardianships. She is a lifelong resident of St. Joseph, Michigan. Trina is very

active in her community volunteering for the American Red Cross, Humane Society

of Southwest Michigan, Junior Achievement, United Way, Relay for Life,

and the Berrien Springs Public Schools.

October 2016 v 574-235-2790 / 800-882-6935 v www.1stSource.com

Y E A R - E N D R E M I N D E R S worth consideringAs 2016 will soon be coming to a close, we invite you to be in touch about how we can help you plan for year-end actions that may better ensure a more comfortable tomorrow, some of which include:

1. Gifts of appreciated assets to a qualified charity may

allow you to avoid capital gains tax on your gift.

2 . Federal Income Tax-free gift from your IRA if you

are over age 70-1/2, for amounts up to $100,000 per year

if paid directly to the qualified charity of your choice.

3 . Consider receiving a state income tax credit or

deduction for this tax year with a College 529 plan

contribution for children or grandchildren.