financial pulse: april 2012

FinancialGuidant Planning’s Quarterly Review

GET AWAYtop destinations

ten tips for a

FINANCIALLY safe retirement

EXERCISE

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As seen As seen on PBSPBSAs seen on PBS with

Ed Slott’s Retirement

Rescue this past month.

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spring fun

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April 2012 - Issue 01

Upcoming Alert: Tax Season Deadlines

Are youAre youprepared prepared for taxes?for taxes?

ESSENTIAL FEATURES

AND MUCH MORE!

Pulse

TAX SCAMS 2012Catch up and read what the IRS has deemed the top scams for 2012

14

CONTENTSFeature Content ................................................04-05Get ready for the upcoming Tax Deadline

Spring Fruits ........................................................06-07Get the food you need to live a healthy retirement

10 Tips to Safe Guard Retirement ............08-09Tips that you can initiate to safe guard your retirement

Travel Destinations ..........................................10-11From Australia to Tuscany, view beauty from every angle

EURO LTRO ..........................................................12-13Catch up on the Greece bail out from earlier this year

Tax Scams 2012 ................................................. 14-15The IRS releases its 2012 Tax Scams to watch for

Retirement Rescue...........................................16-17As seen on PBS SoCal with Ed Slott’s Retirement Rescue

Retirement Guide 101.....................................18-19Read over and pass to a friend who may need help

PRESIDENT Allen G. Yee

OPERATIONS MANAGERJudy Doyel

MARKETING MANAGERSergio Villasenor

OFFICE ASSISTANTBrandon Yee

Be sure to follow the Offi cial Blog of Guidant Planning and Allen G. Yee, True North (www.allengyee.com), for the latest, most important information related to you and your retirement.

Also, be sure to come in for Social Media Training to connect with Guidant Planning on Facebook and Twitter. To make your appointment, just call our offi ce at (626) 396-1650.

Financial Pulse

Financial PulseGuidant Planning Quarterly Review

page3

TRAVEL DESTINATIONSAmazing sites from around the world today.10

SPRING FOODS Put a little more energy into your everyday with these tips6

EURO LTROCatch up with the Greece bail out from early 201212

RETIREMENT 101 Facts for you or a friend18

Our VisionWe begin by helping you assess your current paradigm, including your vision, values and goals. If you don’t know or aren’t sure, don’t fret – we’re here to help you sort it out.

Start with a paradigm shift – Guidant Planning. Through in-depth discussions with you and careful analysis of your current fi nancial situation, we can help you fi gure out where you are now, where you want to go and the best route to achieve those goals. Our paradigm is based on helping you understand what you can accomplish with an independent, objective and experienced fi nancial planner on your side.

Our fi nancial planning strategy – holistic planning is the most eff ective strategy to help you reach a fi nancially secure retirement. By employing a holistic approach and evaluating your entire fi nancial picture, including your goals and dreams, we can help you achieve fi nancial well-being in retirement.

Our investment strategy is to employ technical trend analysis that enables us to monitor your strategy and the markets and change course as needed. Buy and hold is dead. Much like a slide rule of yesterday, buy and hold served its purpose but is now obsolete. It’s our belief that demographic trends and cycles provide a big picture view of what’s happening today and what will occur tomorrow. We combine demographic trend analysis with investment trend analysis to produce the best fi nancial plan and investment recommendations possible.

Important Upcoming Dates Put these down in your CalendarApril 15th Tax Deadline for 2012

April 24th Guidant Planning’s Quarterly Review

May 22nd Social Security Seminar

June 2nd 2012 Client Shredding Party

Have you had your Tax Prep?In case you haven’t just yet

“ Make your 2011 IRA or Roth IRA contribution.

“ File your 2011 tax return or an extension.

“ Pay your 2011 tax liability.

“ Make your 2012 fi rst quarter estimated tax payment.

“ Start planning for next year.

“ Make an appointment to do or review your taxes by calling our offi ce at 626-396-1650.

Insulate and fi x your windows to earn residential energy credits.

For domestic adoptions, you can claim the benefi ts in the year you spend the money.

The child tax credit (non-refundable) comes with an additional child tax credit worth up to $1,000 per child.


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TAXCHANGESin the future 2013

Two new Medicare-related taxes created by the health-care reform legislation passed in 2010 take eff ect in 2013:

Additional Medicare payroll tax– The hospital insurance (HI) portion of the payroll tax–commonly referred to as the Medicare portion–increases by 0.9% (from 1.45% to 2.35%) for those with wages exceeding $200,000 ($250,000 for married couples fi ling jointly, and $125,000 for married individuals fi ling separately). The rate for self-employed individuals increases from 2.9% to 3.8% on any self-employment income that exceeds the dollar thresholds above.

Medicare contribution tax on unearned income– A new 3.8% Medicare contribution tax is imposed on the unearned income of high-income individuals. The tax generally applies to the net investment income of individuals with modifi ed adjusted gross income that exceeds $200,000 ($250,000 for married couples fi ling jointly, and $125,000 for married individuals fi ling separately).

The American opportunity credit is worth up to $2,500 per student.

IRS claims that only 12% of the people who are eligible for retirement savers credit actually use it.

Update, the government is no longer providing any incentives for buying hybrids.

Tax Credit Opportunities

Springfoods

Not that many people consider how their evening meal impacts their retirement, but perhaps they should. Our daily consumption dramatically aff ects our fi nances, and changing our food choices can alter our chances of a solid retirement. Here are several ways your food selection matters for your golden years.

Your diet greatly infl uences your

long-term health, and the amount of money you spend fi xing problems caused by a poor diet. This doesn’t mean that you have to avoid sweets all the time and never have some of your favorite

(but less healthy) foods. But you should pay attention to what you eat. Fruits and vegetables can help your health, as can nuts, fi sh, and other heart-healthy foods. Also, consider “brain foods” like salmon and blueberries. These can

improve your mood and help your brain avoid deterioration. So remember, take a minute to review what you are eating, if you are feeling down, maybe have less energy? It may be associated with what you are consuming.

Foods Do Aff ect YOU


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Optimize your nutrients from your grains by having whole grain products and whole grains such as barley, quinoa, wild rice, oatmeal, whole grain breads and whole-wheat pasta. Fibre rich foods can help you feel full and satisfi ed and this will help prevent you from overeating. Choose products that are low in fat, sugar and salt.

Select lean meats and alternatives 2-3 times per day. You don’t need to eat large amounts of these foods to meet your nutritional needs. Have meat alternatives such as beans, lentils and tofu often and try to have fi sh at least two times per week. Prepare your lean meats, fi sh and alternatives with little or no added fat Health Canada advises adults over 50 to consume foods fortifi ed with vitamin B12 or a supplement containing vitamin B12. Vitamin B12 is found only in animal-based foods such as eggs, dairy, meat, seafood and poultry and some fortifi ed foods such as soy milk and soy-based meat substitutes.

Milk and alternatives contain important nutrients that are good for your bones. Have 1 – 2 cups skim or 1% milk or fortifi ed soy beverage every day to provide you with the nutrients you need. Choose lower fat milk alternatives such as cheese or yogurt when available. They still taste great, provide you with nutrients and are fewer calories.

There are diff erent types of fat in the foods we eat including saturated, unsaturated and trans fat. Limiting the amount of fat and choosing the right types of fat can help lower your risk of developing the above mentioned diseases.

Increase your fruit and vegetable intake by having at least one vegetable or fruit at every meal and as a snack. This will help you get the amount of vegetables and fruit you need each day. Don’t forget to try a variety of colors, tastes and textures as this will help with getting in all the vitamins and minerals this food group has to off er.

Strawberries...

Oranges...

ssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssExotic Fruits...

Five Tips

10 Tips to Safe Guard Your RetirementA robust and predictable income is a big concern for retirees. They need to know how to generate enough cash to maintain their lifestyle without exposing their assets to too much risk.

Social Security is obviously a key source

of steady cash for retirees and some also have a pension, an increasingly rare employer-sponsored retirement plan that pays out like clockwork. Here are 10 other ways for retired folks to obtain reliable income while keeping risk in check.

An Immediate Fixed Annuity ***. If you

wanted the predictability of Social Security or a pension, you might go to an insurance company for an immediate fi xed annuity - a contract for a guaranteed income stream for a specifi ed time. As “immediate” suggests, the contract starts paying you virtually right away, usually the month after purchase and monthly thereafter.

Systematic Withdrawals. Since you typically

can’t get your money back from an annuity once it starts paying out, you might simply put the

money in an investment account with a systematic withdrawal plan. Such a plan can be established in nonretirement and retirement accounts with

a form instructing the investment company what sum to distribute monthly, quarterly or annually. You

keep control of your money but you don’t get the guarantee of an annuity.

Bonds. Bonds represent debt. So if you

buy a bond, it means somebody owes you money and is regularly paying you interest. When assembled into a properly diversifi ed portfolio, the

safest bonds like those issued by the federal government, government agencies, and fi nancially sound corporations can be a crucial source of dependable retirement income.

Dividend-Paying Stocks. Unlike

bonds, stocks represent ownership and company owners may get regularly-scheduled dividends. Not all companies pay dividends, though, and dividends can be stopped if a company gets into fi nancial trouble. Plus, stock prices sometimes plunge. That’s why retirees who buy stocks for income should probably limit their exposure to this strategy and stick with large, very stable companies with a history of paying dividends.

Life Insurance Life. Insurance really isn’t

meant to be a retirement plan, but it can be a welcome additional income source for retirees who fi nd they’re a bit short each month. The safest policy for the job is one like whole life or universal life that builds cash value on a schedule. People generally access the cash via loan or periodic withdrawal.

Home Equity. Relying too heavily on

home equity to fund your retirement can be dangerous because home values could drop.

Get Help Today....

Quality Information....

Stop wasting time and money today


page9

Income Property. Retired or not, it’s nice to get that

check each month when you rent out a home or sell one to someone and hold their mortgage (just like a bank).

Real Estate Investment Trusts (**REITs). If you

like real estate but aren’t into being a landlord or mortgage holder, consider investing in REITs - companies that buy, sell and manage commercial properties like malls and apartments. REIT shares, which are purchased directly on securities exchanges or indirectly through mutual funds, pay high monthly or quarterly dividends and are

liquid.

Savings Account and CD Interest. When it comes

to generating income, there’s nothing safer or more reliable. While this strategy obviously isn’t viable when CDs and savings accounts pay 2%, 1% or even less, it can be a fi ne option when interest rates are reasonable.

Part-Time Employment. Retirees often want to

stay active and involved. Working part-time can be a good way to do that while earning extra income. And the only thing at risk is some time.

Questions? Schedule an appointment today

Don’t let money hold you from a great retirement

2012 Client Shredding Party

This year we will

be hosting an annual Shredding Party June 2nd, at the Arroyo Seco Park in South Pasadena. We

invite you and your guests to join us in learning practical steps anyone can take to safeguard against identity theft and fraud. This is an excellent opportunity to introduce people who mirror your lifestyle to Guidant Planning.

Additionally, Guidant Planning will complete a Financial Physical,

inventory and a net worth statement at our expense for any guest at their request. Identity theft and fraud are on the rise mirroring the popularization of the internet. Whether you purchase goods online, utilize a social networking site or simply stay in touch via email, the internet is one portal where users can be victimized.

As GI Joe would say, “Knowing is half the battle,” and here at Guidant

Planning we agree. We hope you will be able to join us in learning more about identity protection and disposing of your sensitive documents in a secure manner.

Call our offi ces at 626-396-1650 for more information about this year’s

Shredding Party.

Keep your identity safe by shredding with us

Ireland

Perched on the northwest tip of Europe, this is the one place in the world where even time getting lost will be worthwhile... With ancient myths and legends to uncover, amazing landscapes to explore and locals who will be more than happy to reveal our hidden gems, just go where the island of Ireland takes you. Guaranteed, you’ll return home with memories that will last a lifetime.

Experience the beauty of Tuscany

Australia

With its vast distances and remote, rugged terrain, many of Australia’s journeys are ready-made adventures. Travel across northern Australia on the Savannah Way, which starts in Cairns and ends on the other side of the country in Broome. Or cut the continent from south to north on the Explorers Highway, which takes you from Adelaide through Australia’s Red Centre to Darwin.

Let Catalonia fascinate you with every breathe


page11

Go to the home of the Irish for a life changing

experience

Tuscany

Tuscany is known for its gorgeous landscapes, its rich artistic legacy and its infl uence on high culture. Tuscany is

regarded as the true birthplace of the Italian Renaissance, and has been home to some many infl uential people in the history of

arts and science, such as Petrarch, Dante, Botticelli, Michelangelo, Niccolo Machiavelli, Leonardo da Vinci, Galileo Galilei, Amerigo

Vespucci, Luca Pacioli and Puccini

Head to the Outback for fun

in the sun

Barcelona

Set on a plain rising gently from the sea to a range of wooded hills, Barcelona is Spain’s most cosmopolitan city

and one of the Mediterranean’s busiest ports. Restaurants, bars and clubs are always packed, as is the seaside in summer.

You might get the impression it’s dedicated exclusively to hedonism, but it’s a hard-working, dynamic place hoping to place itself

in the vanguard of 21st-century Europe with a heavy concentration of hi-tech and biomedical business.

European

LTRO

It begins as the savior of European banks but ends as another hand out. The ECB (European

Central Bank) created a three-year long-term refi nancing operation (LTRO) providing funds to banks as a back-stop against a massive run on banks. Basically, they are the lender of last resort (like The Fed) providing liquidity for banks when customers are looking to withdraw massive amounts of cash. LTRO has quelled the panic but off ers little (other than time) to solve Europe’s systemic issues. These loans will need to be paid off sooner than later and all other debt will be subordinated to the ECB. Like QE1 and QE2 here in the States, LTRO1 and LTRO2 will create liquidity to push the Euro and its stock markets higher – temporarily. This may be the last opportunity to dump the Euro, European sovereign debt and equities in European markets before schnitzel hits the fan.

Conclusion

LTRO cannot cure what ails Europe. Certainly, LTRO prevented the collapse of the European banking system by acting as lender of last resort. That was a positive thing; but it should have been expected. That is the function of a central bank. The problem is that LTRO does not address the fundamental problems that caused the

European crisis (e.g. current account imbalances) nor does it address the fundamental issues upon which solutions depend (e.g. German policy toward bailouts). For this reason the European crisis will continue despite LTRO. There has been much speculation regarding how much money the banks will borrow in LTRO2. I do not think that it really matters. Europe’s problems were never about the availability of funding for banks. In this regard LTRO is a distraction. If anything, a higher uptake on LTRO2 merely suggests that organic funding problems are greater than expected. The notion that a large uptake suggests that banks are eager to expand their balance sheets, increase risk exposures and lend more to the private and/or public sectors is simply not serious. If anything the data suggests that banks in Europe continue to shed risk, lower leverage and shrink their balance sheets. The mere availability of LTRO cash does not mean that banks will increase lending to the economy. It means that banks will not be forced to reduce lending. But LTRO does not force banks to lend either.

page12

EU issues another hand out to Greece


page13

TAXSCAMS2012Protect yourself from theft this tax season, which means it’s the right time to invest in a shredder for your home and/or business. Why is it so important to

shred documents during tax time? The answer lies in a few unpleasant statistics. Identity Theft costs businesses an estimated $50 billion annually. Additionally, Identity Theft aff ects millions of Americans each year – every 3 seconds there

is a new victim. Also, dumpster diving for paper documents, certain types of electronic devices, and a lack of formal security policies within businesses

present criminals with the right opportunity to steal your information. So while you are stressing to fi le your taxes this season, do not forget to keep all private

and important information away from potential dangers/predators.

The best advice I or anyone can give is to use your logic and think. The “Dirty Dozen” listed on the IRS site wouldn’t be so dirty if people would just believe there’s no free lunch. Instead, most people chance on something they believe to be reliable when it isn’t. Do your homework, research the strategy you are intending to implement, ask the person who is recommending the strategy for citations and other supporting documents. Before implementing the strategy ask

an expert; CPA, planner, attorney for their opinion. The old adage advice “If it sounds too good to be true, it probably is”, is ignored more often than not by those who end up in a scam.


page15

possible. In addition to the law-enforcement crackdown, the IRS has stepped up its internal reviews to spot false tax returns before tax refunds are issued as well as working to help victims of the identity theft refund schemes.

Phishing. Phishing is a scam typically carried out with the help of unsolicited email or

a fake website that poses as a legitimate site to lure in potential victims and prompt them to provide valuable personal and fi nancial information. Armed with this information, a criminal can commit identity theft or fi nancial theft.

Return Preparer Fraud. About 60 percent of taxpayers will use tax professionals

this year to prepare and fi le their tax returns. Most return preparers provide honest service to their clients. But as in any other business, there are also some who prey on unsuspecting taxpayers.

To read the full list handed out by the IRS this Tax season, go to: http://www.irs.gov/

newsroom/article/0,,id=254383,00.html.

Some of the key scams that made the 2012 IRS List:

Identity Theft. Topping this year’s list Dirty Dozen list is identity theft. In response

to growing identity theft concerns, the IRS has embarked on a comprehensive strategy that is focused on preventing, detecting and resolving identity theft cases as soon

AS SEEN O

N PBS RETIREM

ENT RESC

UE

page16

Thanks to your very generous support, we were able to raise $20,561. The Challenge Grant from California Retirement Advisors and Guidant Planning doubled your pledge dollar-for-dollar up to $7,500.

Ed Slott

* Slott was named “The Best” source for IRA advice by The Wall Street Journal and called “America’s IRA Expert” by Mutual Funds Magazine. Slott is a past Chairman of the New York State Society of CPAs Estate Planning Committee and editor of the IRA Planning section of The CPA Journal. Ed is a past recipient of the Excellence in Estate Planning and Outstanding Service awards presented by The Foundation for Accounting Education.

Retirement Rescue

Ed Slott’s Retirement Rescue! is a powerful call to action for American consumers concerned about their retirement. Ed Slott defi nes the monumental fi scal problems facing Americans and provides a step by step solution to creating a plan of action.


page17

Retirement Guide 101

Planning how and when to retire can be as

rough as a bad pocket of turbulence, but

that is only if you do not prepare and come

to terms with your reality. Most people like

yourself envision retirement as a “happy go

lucky” time they can enjoy after countless

years of hard work. But, what they fail to

realize is the amount of time and eff ort that

must be spent to ensure you reach your

dream retirement lifestyle. The dynamics

of success, whether in your working years

or retirement, do not change. The proper

amount of preparation, calculation, and

structure are needed to establish a successful

retirement plan. If not, you may have to be

a little frugal to make a retirement budget

work. The $27,798 median income for

American households headed by someone

65 or older doesn’t off er much breathing

room when gas, groceries, and out-of-pocket

healthcare costs all are conspiring to make

retirement more diffi cult. Wait. I thought this

was retirement? That’s right; you do NOT

want the same stressors you had during your

working years now, so make sure you plan

accordingly. So let us dig in.

Part I – Smart Decisions. The typical Social

Security recipient gets only $1,050 a

month before the Medicare premium is

deducted—and Social Security is the largest

source of income for most retirees. With that

said, whether you have properly planned

for retirement or not, take a few of these

practices and incorporate them into your

everyday life to save a quick penny here and

there. The last thing you want to do is trade

one stressful lifestyle for another, so make

smart decisions prior to, and in retirement,

so that you live the retirement lifestyle you

always dreamed about. So where do we

start? How about a brief layover in

Most people like yourself envision retirement as a “happy go lucky” time they can enjoy after countless years of hard work. But, what they fail to realize is the amount of time and effort that must be

spent to ensure you reach your dream retirement lifestyle.


page19

in “Your Final Year”.

Brief layover? That is right, just work an extra

year. The biggest retirement decision is when

you retire. Between the ages of 62 and 70,

working one more year typically raises annual

income 8 to 9 percent. That’s because delayed

claiming of Social Security allows you to get

higher monthly payments, your retirement

accounts have an extra year to grow, you’re

reducing the number of years your savings must last, and perhaps you can even tuck away a little

bit more money. You have come this far, what is another year if the benefi ts of hit out weight the

negatives.

Part II – More Along the Lines of Everyday Lifestyle

Slash transportation costs. The typical senior

between the ages of 65 and 74 spends $7,481

annually on transportation costs, according to

the Labor Department’s most recent Consumer

Expenditure Survey. Also, downsizing from two

cars to one or to a less fl ashy model can slash

insurance premiums. Car maintenance, such as

properly infl ated tires, tune-ups, oil changes, and

a new air fi lter, can decrease fuel costs. Use this

as an opportunity to initiate small, light workout routines such as jogging and walking to where

you need to go. Even sensible driving—for instance, decreasing your speed, avoiding idling, turning

down the air conditioning, and using cruise control on the highway—can help you save up to $115

per year on gasoline costs, according to the nonprofi t Alliance to Save Energy.

Downsize your house. Housing, including mortgage interest, property taxes, maintenance, utilities,

and furnishings, costs $13,273 annually for

the average senior between the ages of 65

and 74, according to the Department of

Labor.

For the full story, visit True North and search

“Retirement Guide 101” or just visit this link:

http://www.allengyee.com/retirement-

guide-101/

To subscribe, visit www.allengyee.com for up to date news and information pertaining to your retirement: 1499 Huntington Drive, Suite 303Tel: 1 (626) 396-1650Fax: 1 (626) 799-7030Web: www.guidantplanning.comEmail: [email protected]

*Member Ed Slott’s Elite IRA Advisor Group is a Private IRA study group of professional fi nancial advisors. I am not employed by or an independent contractor

of Ed Slott & Co, LLC. Ed Slott & Co, LLC does not sell, endorse, nor promote any opinions nor any products or services that I am off ering. Ed Slott’s Elite IRA

Advisor Group is designed to provide its members ongoing access to the most up-to-date IRA information available in order to properly and professionally

service their IRA clients. **Investing in real estate and real estate investment trusts (REITs) may not be suitable for all investors and involves special risks, such as

limited liquidity and demand for real property; changes in supply and demand for real property; change in law; tenant turnover or defaults; loss of investment;

competition; casualty losses; use of leverage; real estate values may fl uctuate based on economic, environmental and other factors. There is no assurance that

the investment objectives of any real estate program will be obtained. ***Fixed income investing entails credit risks and interest rate risks. When interest rate rise,

bond prices generally fall and the fund’s share prices can fall. Securities off ered through First Allied Securities Inc. Member FINRA/SIPC. Advisory services off ered

through First Allied Securities, Inc. and Guidant Planning, Inc.

financial pulse: april 2012

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