Buzz On Biz

Start with the end in mind! The beginning of a new year is a perfect occasion to encourage people to set goals. When we approach an objective with the end result in the forefront, we can focus on what it is we would like to achieve. This allows the implementation of a plan which means greater opportunity for success in reaching that ultimate goal. Although most of us probably do not have a goal of becoming deceased, it is going to happen at some point in time. So, it’s a good place to start the planning process.

If you don’t take care of your estate, the IRS will.

When Elvis Presley died, his estate was worth more than $10 million. His daughter received less than one-third of that. When Karen Carpenter died, her $6 million estate only netted her heirs about $1 million. Who was the biggest beneficiary in these well-publicized cases? The Internal Revenue Service.

Without proper estate planning, a significant portion of your estate could go to the IRS. Larger estates were taxed at an upwardly spiraling rate that reached 45% in 2008; which is currently 35% today, but with the ever changing legislation in Washington, it is a moving target. That means the government can claim almost half of what you have worked so hard to achieve.

What’s the problem? Without estate planning, you cannot take maximum advantage of tax strategies. Your assets in your estate may not be preserved for your heirs. Having a will just isn’t good enough anymore. Sometimes beneficiaries have not been updated and assets are left to those who may not be the intended heir, like an ex-spouse.

What’s the solution? Planning! Discussing your wishes for after your death is a starting place to the development of a good plan. This is a difficult topic for most individuals, but it is vital for people to discuss the future of their estates. It is a myth that estate planning is only for the wealthy. If you have a bank account, car or pet, you have an estate to plan for!

It is extremely important for business owners, homeowners and people with children to have an estate plan. If you have elderly parents, be sure to converse with them to confirm they are satisfied with their estate plan.

Twenty Twelve is here! Now is the time to set a New Year Resolution to get your estate plan in order. Remember, the government has a plan, whether you do or not!

KELLY RENNER is a Certified Financial Planner™ and has a Master’s Degree in Finance. She owns Life Strategies Financial Partners and specializes in comprehensive financial planning for businesses, individuals and families. She is a veteran of the United States Air Force. She is located at 3540 Wheeler Road, Suite 304. She can be reached at 706-210-3535 or online at LifeStrategiesFP.com. This is a sponsored article.

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As a young teenager in 1976, I moved to Evans from Atlanta and the first thing on my mind was the location of the mall. I was in culture shock to find out Augusta did not have a mall, and that I would have to wait two years before one opened! If I wanted to shop for clothes, I had two options, downtown Augusta or Daniel Village. Not to mention, Columbia Square Shopping Center, (now Gerald Jones Auto Group) was under construction with a Big Star grocery store, Roses, and Treasury Drugs. Nothing against the shops at that time, but it was a different shopping experience than I was used to. Now, fast forward 35 years, and the area has a variety of shopping options for me to choose from. I don’t have to go anywhere else today, except out my front door and down the street, and I wouldn’t want it any other way.

As part of the Columbia County Chamber’s efforts in advocating for our local businesses members, we launched a “Buy Local” campaign in partnership with WAGT. The goal of the campaign is to raise community awareness about the importance and benefits of buying goods and services from businesses located in the area. Even in today’s economy, research shows “Buy Local” campaigns are beneficial to businesses. Supporting your local businesses stimulates the local economy, assists in entrepreneurship, creates jobs, and generates tax dollars for our community.

For the fourth year in a row, a national survey of independent businesses has found communities with an active “Buy Local” campaign are doing better in today’s economy compared to those in communities without such a campaign. The survey was conducted by the Institute for Local Self-Reliance and gathered from 2,768 independent, locally owned businesses during an 8-day period in January. Nearly two-thirds of respondents said that public awareness of the benefits of supporting locally owned businesses had increase in the last year, while 24% said it had stayed the same, and only 3% said it had decreased.

What Consumers Can Do: Buying local puts your hard-earned dollars to work right here in your community.

Keep Recycling Your Dollar: By choosing to re-circulate your dollars our community, you play an important role in keeping our local economy strong, creating jobs and providing vital tax revenue that supports things like road repair, police, fire protection, and education.

Keep Our Community Strong: When local businesses flourish, they can continue their support of important community projects such as the SPLOST funds and charitable organizations.

Keep Our Economy Strong: Every dollar spent locally has a measurable effect on helping our local economy recover from the recent recession.

Columbia County and the Augusta area is thriving region, with hundreds of companies open for business and eager to assist you—large and small, franchises and locally-owned, you’re bound to find what you’re looking for.

As part of the mission of the Columbia County Chamber, we are an advocate for our Chamber members, and their investment allows us to be a driver of economic development for our entire community. This is just one of the ways we keep our community thriving. Join us – Become a business member and support yourself and the business community.

The Chamber’s Buy Local campaign commercials can be found on the Chamber’s You Tube page link at www.columbiacountychamber.com .

TAMMY SHEPHERD is the president/CEO of the Columbia County Chamber of Commerce. She can be contacted at (706) 651-0018 or tammy@columbiacountychamber.com.

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This is the time of year when most people get really busy with the holiday season. Although it seems like there is not enough time in the day, I am going to encourage you to implement at least one of the year-end planning tips I am going to share! These simple moves will save you money in the long run and who doesn’t want to save some money? There is a PRICE to everything you do… this is an easy way for you to remember the 5 suggestions.

P.R.I.C.E.

Plan Ahead. The most proactive thing you can do is look at your finances for 2011 and plan ahead for 2012! If this seems like a hard task to you, call me or your accountant and we can help!

Required Minimum Distribution. If you are over 70 and a half, and you have qualified money (traditional IRA(s), 401K(s), etc.), make sure you take your RMD by the end of this month. There is a hefty penalty of 50% if you fail to do this!! Yes, you read correctly, a 50% penalty!

IRA Charitable Contribution. If you are one of those people that have to take an RMD, but you do not need the money or can’t afford the tax implication on the income, an IRA Charitable Contribution might be the right option for you. Basically, this exclusion allows you to distribute (tax-free) up to $100,000 from your IRA and direct it to a charitable organization.

Contributions for Retirement. For 2011, the maximum contribution for an IRA is $5000 for those under age 50 and it is $6000 if you are over 50. You can make the contributions right up to the time you file your taxes. For a qualified plan such as a 401K, or a 403B, the maximum contribution is $16,500/$22,500 under 50 and over 50, respectively.

Estate Plan Review. This is a good time to review your estate plan for any major changes that have taken place over the past year. Some major changes would include marriage, divorce, or death of a named beneficiary. Your will, trust, Powers of attorneys, and advanced directives should be reviewed to make sure your wishes still hold true and you have the correct people taking charge if you were to become incapacitated. This is a good time to review beneficiary designations on accounts that have them (i.e. IRA(s), 401K(s), annuities, insurance policies, etc.) Also, if you have moved to Georgia or South Carolina this year it is important that you meet with your attorney to see if you need to update anything for the state requirements.

KELLY RENNER is a Certified Financial Planner™ and has a Master’s Degree in Finance. She owns Life Strategies Financial Partners and specializes in comprehensive financial planning for businesses, individuals and families. She is a veteran of the United States Air Force. She is located at 3540 Wheeler Road, Suite 304. She can be reached at 706-210-3535 or online at LifeStrategiesFP.com. This is a sponsored article.

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October 10, 2011, Augusta Georgia — Kelly Renner, CFP®, a financial services professional in Augusta has recently been recognized as a Pacesetter by H.D. Vest Financial Services®. Kelly joined 40 other Pacesetters at the Pacesetters Assembly, which was hosted by Allianz Life Financial Services, LLC in Minneapolis, Minnesota, October 6-7, 2011. H.D. Vest is one of the oldest and largest independent financial services firms specializing in training and supporting tax professionals.

H.D. Vest Financial Services Pacesetters is a company-wide program designed to recognize H.D. Vest Advisors at various stages of their investment planning practice for their commitment to providing clients with investment-planning tools and strategies that will help them work toward a brighter financial future. By recognizing a range of categories, Advisors at all levels of success and tenure are included and can learn from each other. The goal of the Pacesetters Assembly was to celebrate the Pacesetters’ success; share successful ideas and strategies; meet with representatives from the host sponsors Allianz; and build valuable relationships with other Pacesetter Advisors.

Kelly Renner heard educational speakers from Allianz speak on industry updates and planning ideas. Featured speakers included Anthony J. Crescenzi, Executive Vice President, PIMCO; Stephen J. Harvill, President, Creative Ventures; and Todd Buchholz, Global Economist and Market Expert. Also, attendees listened to updates from H.D. Vest President Roger Ochs and Robert DeChellis, President, Allianz Life Financial Services, LLC.

“Pacesetters is a unique program H.D. Vest supports because it recognizes Advisors who have excelled in their field but who may be at very different points in their careers — from new Advisors to those who have been helping clients for 20 years,” said Ochs. Our Advisors can learn a lot from each other because they each bring an expertise to the table. We are very pleased to partner with Allianz to host this educational event for these outstanding Advisors.” Kelly Renner has been an Advisor with H.D. Vest since 2003. She has owned Life Strategies Financial Partners LLC since 2004. Kelly graduated from Walsh College with a Master’s degree in Finance and received the Certified Financial Planner designation in 2007.

Kelly serves the needs of individuals, corporations, partnerships, trusts, estates and foundations providing traditional brokerage accounts, fee-based managed accounts, private money management, individual and business retirement plans, education planning, stocks, bonds, mutual funds, life, disability and long-term-care insurance, variable and fixed annuities, multigenerational estate planning, comprehensive tax reporting, online account access, check writing and debit cards, account consolidation and systematic investment plans.

Securities offered through H.D. Vest Investment ServicesSM, Member SIPC, Advisory services offered through H.D. Vest Advisory ServicesSM,, 6333 N. State Highway 161, Suite 400, Irving, TX 75038 (972) 870-6000.

Life Strategies Financial Partners is not a registered broker/dealer or independent investment advisory firm. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNERTM and the federally registered CFP (with flame logo) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

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Getting ready to retire? Leaving a job? If you have invested in a 401(k) plan, you are probably looking into rolling over your 401(k). Once you retire from a job, or leave an employer, the law allows you to roll that money over into an IRA without paying any taxes, also known as tax deferred. Most plans have their own form to initiate a rollover out of the plan and into an IRA at your financial institution. The most important part of this process is to ensure that the rollover check is paid directly to the new IRA custodian so that there is no tax withholding from the rollover. If the money is paid to the employee first, the IRS requires the custodian to withhold 20% for taxes even if you roll that money over into an IRA.

One important consideration in rolling over a 401(k) is the expense. Many 401(k)s have hidden expenses and administrative costs that are buried in the funds and make the plan very expensive. Analyze the plan’s expenses, and be aware of the total costs in the plan and the new funds you are considering inside your IRA.

For those who have not yet begun investing in a 401(k), you should start contributing to a retirement plan as early as possible. Starting early gives you a huge advantage in saving for retirement. In general, every 10 years you wait to start saving for retirement, you have to save three times as much per month to accumulate the same amount by the time you retire.

Money MD is an extension of Richard Young Associates, an independent investment advisory and financial planning firm. They are also host to a radio show called Money MD where they give prescriptions for better financial health and advice on how to make smart decisions with your money. Saturday mornings from 9-10am on WNRR 1380 AM. They are committed to helping people achieve peace of mind through excellent planning and investment management. To find out more, visit www.MoneyMD.net or call (706) 739-0725.

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You can stick your head in the sand if you want to, but the problems with the economy won’t go away by doing so. We are headed for a financial melt-down, a double dip recession, and probably the worse economic and stock market tank than that of two years ago. But the problem is that most people are not seeing the signs, and it’s because they are looking in the wrong places. Many people just read the Augusta Chronicle, catch the news on the internet, or watch one of their favorite news anchors delivering the morning or evening news. The problem with that in June is that most news programs were talking more about Charlie Sheen’s latest antics or Rep. Anthony Weiner and his scandal, and not about what is really happening to our country and our economy. “We are headed for a situation, economically, like many Americans have never seen or experienced before.” And we had better wake up before it’s too late.

Let me share with you just a few of the recent headlines and from where they come. US Housing Crisis is Now Worse Than Great Depression-CNBC.com U.N. Sees Risk of Crisis of Confidence In Dollar-Reuters Our Government Is In Imminent Danger-Porter Stansberry And you can go to FDIC.gov and type in “failed bank list” in the search box to see a list of all the failed banks in America. Right now there are over 110 failed banks listed on the FDIC website for 2011. That should scare us all to death. But the media doesn’t even seem to notice, and neither does the American public.

You probably know friends or family who have lived on the coast near Hilton Head or Myrtle Beach or Charleston. When they know that a hurricane is coming, what do they do? They board up the windows and make all the plans necessary to prepare for the storm. If the storm passes them by then they are not foolish for preparing, because they know that “it’s better to be safe than sorry”. The same thing is true with the coming economic tsunami; you had better be prepared! So, what can you do to start preparing? There is a lot you can do to be prepared. First and foremost, educate yourself. There are plenty of websites out there that will give you the truth about the direction our economy is headed. If you would like a list of some of them, drop me an email. What else can you do? Make sure your retirement is safe and guaranteed; only risk what you can stand to lose. If your current advisor is warning you about and helping you prepare for the hard times ahead then stick with him/her. If he/she hasn’t done anything to protect your retirement, then give me a call and let’s talk about what you can do to prepare for the coming economic storm.

I’m preaching the truth to all of our CSRA clients about batting down the hatches!

David Chiera This is a sponsored article from David Chiera, President of Strategic Retirement Solutions located in Augusta, GA. As a leading Financial Advisor Mr. Chiera holds the designations of Chartered Senior Financial Planner (CSFP) and Life Underwriter Training Council Fellow (LUTCF). Over the last 20+ years he has specialized in working with business owners, executives, and physicians as well as with retirees and pre-retirees. If you want to learn now how you can generate a Tax Free Income at retirement, then call our office at 706-869-9962, schedule a confidential appointment and get your free copy of this book. I look forward to speaking with you soon and seeing if the concepts in Tax-Free Retirement are right for you.

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Are you a business owner, executive, or physician? Do you know how much money you are going to need for retirement? The ING commercials call that “your number” and you see people carrying around “their number”. That number is the amount of money you will need as a nest-egg to retire. In theory you will accumulate money in your 401(k), your IRA, your savings and other investments, and then you take an income from that money for the rest of your life. I say in “theory” because there are so many variables and so many things that must happen in order for there to be enough money in your nest-egg that retirement is more at risk today than ever before. Let’s look at “the number” first.

How much are you going to need? Why and how did you choose that number? Here is a very simple way to find your number. First decide how much annual income you are going to need at retirement. You can exclude social security and any pension payment if you would like. For example, let’s say that you decided that you will need $85,000 per year in retirement. What amount of money would it take to produce an annual pre-tax income of $85,000 per year? Assuming you don’t want to touch the principal, and you are only going to take the interest, what is a safe withdrawal rate and safe interest to figure? Many advisors will suggest that you only take 5% of your nest-egg out each year and work on a 5% return. With that being said, it will take $1,700,000 at a 5% withdrawal rate to produce an annual pre-tax income of $85,000.

Does that sound like a lot of money? It is, but it IS what is needed to produce that income. Yes, there are plenty of variables to discuss, and we will do that in future articles. But for right now, you have a very simple and easy way to calculate how much your nest-egg will need to have to provide you a safe retirement. Notice I used the word “pretax” in this discussion. Many professionals today are looking for ways to disinherit Uncle Sam and enjoy a Tax Free Retirement. We are going to discuss how you can have a Tax Free Income in the next article.

David Chiera is President of Strategic Retirement Solutions located in Augusta, GA. As a leading Financial Advisor Mr. Chiera holds the designations of Chartered Senior Financial Planner (CSFP) and Life Underwriter Training Council Fellow (LUTCF). Over the last 20+ years he has specialized in working with business owners, executives, and physicians as well as with retirees and pre-retirees. If you want to learn now how you can generate a Tax Free Income at retirement, then call our office at 706-869-9962, schedule a confidential appointment and get your free copy of this book. I look forward to speaking with you soon and seeing if the concepts in Tax-Free Retirement are right for you.

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Life insurance underwriting guidelines link health with savings

Retirement planning requires a healthy amount of discipline and focus. You want to make sure you have enough money saved to maintain your lifestyle, but the truth is there’s more to successful retirement than an oversized IRA. Your health is perhaps the most significant component in your retirement equation, since it directly impacts your ability to enjoy the fruits of your labor. Now is an excellent time to focus on making lifestyle changes – you might even be surprised to learn that in some cases, a healthier you can lead to an even healthier bank account!

The Heart of the Matter

According to figures published by WebMD in 2008, coronary artery disease (CAD) affects nearly 13 million Americans. Some of the risk factors for heart disease are within your control, such as quitting smoking, reducing your cholesterol and maintaining a healthy weight. Obviously, these lifestyle changes increase the likelihood of living a long healthy life in retirement. But did you know these same lifestyle changes can lower the premiums you may pay for life insurance, allowing you to keep more of your hard-earned money?

Protect Your Heart, Increase Your Savings

In the past, people being treated for coronary artery disease might assume they were automatically excluded from the valuable protection of life insurance. But in response to medical advances, some insurance carriers are using underwriting guidelines that make life insurance more readily available for some individuals who have been treated for coronary artery disease, and offer them the opportunity to qualify for significantly lower premiums. Of course, availability and rates would vary based on each situation and the applicant’s complete medical history. Speak with a qualified insurance representative to learn how these guidelines might benefit you.

When it comes to setting important goals, whether it’s saving for retirement or lowering your cholesterol, what you do today can have significant ramifications for the future. There’s never been a better time to take control of your future, and make the positive changes necessary to help ensure your golden years are filled with health, wealth and happiness.

Tommy Norris This is a sponsored Financial Services article. Tommy owns the Norris Group and has 23 years of Insurance and Financial Service experience and can help with any of those needs, including Employee Benefits. In 2002, the Norris Group was recognized as “Small Business Of The Year, “ by the Metro Augusta\Columbia County Chamber of Commerce. Reach Tommy at 706.869.8888 or tommynorris@comcast.net

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In these challenging times, life insurance remains an affordable source of stability when it comes to financial security.

The prospect of shrinking retirement savings and rising unemployment rates has made financial peace of mind hard to come by these days.  Americans are looking for ways to cut back on expenses and shore up their savings, and many are considering life insurance as a way to bridge the gap created by other financial losses. According to a report called The Value of Life in Tough Economic Times issued by Prudential Financial in September, 2009:

• 94 percent of those surveyed have maintained or increased the amount of their life insurance over the last 18 months.

• At the same time, 90 percent acknowledged a loss of assets, and 55 percent indicated a traumatic financial event–such loss of job, income, retirement contributions or health-care insurance over the past 18 months.

• Despite the fact that 70 percent have cut back on routine expenditures, 84 percent indicated they view the cost of life insurance as relatively minimal when compared to other regularly budgeted items.

Prudential’s study also revealed that for 93 percent of Americans life insurance protection for their family is a “must.” In addition, 95 percent recognize that their policies could be significantly more expensive to obtain at an older age, and 55 percent are concerned it could be harder to get coverage due to health conditions.

While traditional sources of retirement income like stocks and retirement accounts have become less dependable, now is a good time to take a closer look at life insurance coverage and the protection it offers in this volatile financial climate. In fact, increasing life insurance protection for loved ones to help offset the value of assets that have been lost makes good financial sense.

How much coverage is right for you?

When purchasing life insurance coverage, statistics show that even among those insured by an individual policy, the majority have less than three times their annual income in coverage. Very few have the minimum recommended six to seven times their annual income coverage. As a result, only 27 percent of consumers in the Prudential study said they were “very confident” that their current life insurance coverage is sufficient to maintain the same standard of living for their loved ones in the event of their premature death. The fact is, tough economic times call for consumers to re-examine the amount and type of life insurance coverage they have to make sure it is adequate for their current and future financial needs.

A financial professional can offer information and advice to help you determine the amount of life insurance coverage that fits your individual needs.  For more information, download a copy of The Value of Life in Tough Economic Times.

Tommy Norris This is a sponsored Financial Services article. Tommy owns the Norris Group and has 23 years of Insurance and Financial Service experience and can help with any of those needs, including Employee Benefits. In 2002, the Norris Group was recognized as “Small Business Of The Year, “ by the Metro Augusta\Columbia County Chamber of Commerce. Reach Tommy at 706.869.8888 or tommynorris@comcast.net

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Term life insurance may be used to accomplish certain business and personal objectives.  That is what some business owners have done.  For example, let’s say “John” is expanding his practice.  He has constructed a larger office and is bringing a partner, “William,” on board who is also putting some equity into the business.  The expansion of the business activities, along with the ongoing desire to financially protect his family, resulted in the need for additional life insurance.   John had three needs.  First, the bank required John to obtain life insurance as collateral to qualify for the construction loan.  Second, John and William agreed to use life insurance to fund a buy-sell agreement in case either of them died.  And third, John wanted to add life insurance as a benefit for his family to ensure his wife, Penny, and the children would be financially secure. In order to address these needs, John purchases three separate term life insurance policies, totaling $2 million in coverage.

Three Policies for 3 objectives.

1. John is the owner and insured of a life insurance policy for $250,000.  This life insurance is assigned to John’s bank as collateral for the construction loan, and his wife Penny is the beneficiary.  If John dies before the construction loan is paid off, the bank would have first right to the proceeds to pay off the balance of the loan.  Any amount remaining after paying off the loan would go to Penny.

2. As part of a buy-sell agreement, John is the owner and beneficiary of a second policy for $1,000,000, insuring the life of John’s new partner, William.  William is also the owner and beneficiary of a policy on John for an equal amount.   The buy-sell agreement stipulates that if either partner dies, the remaining partner will use the life insurance proceeds to buy the property and business from his partner’s Estate.  The living partner would then have complete ownership of the business. This would be considered a funded buy-sell because it gives the living partner the cash needed to buy out the other partner.  Without the funding, the living partner may have to take an additional loan on the business to pay off the estate of his partner.  This could create additional stress and pressure for the on-going business partner.

3. For the third policy, John is the owner and insured with his wife Penny as the beneficiary.  The purpose of the $750,000 is so that Penny could comfortably continue on with her and the children’s lives.  Also, this money would be used to replace some of John’s lost income.  The money would bridge the gap until financial affairs are in order and the business is sold to its successor, William.

Conclusion

Business owners who wish to explore options for purchasing life insurance need to start by identifying what possible needs they may have.  Sharing those ideas with a competent professional is a good place to start so he/she can explain different arrangements that would be helpful to your business and your family.  A tax advisor should also be consulted, as certain ownership arrangements have estate and/or gift tax consequences. This type of planning is what can help you face the future with anticipation and not apprehension.

Life insurance policies contain exclusions, limitations, reductions in benefits and terms for keeping them in force.  A licensed financial professional can provide you with costs and complete details.

Life insurance is issued by The Prudential Insurance Company of America and its affiliates, Newark, New Jersey. Each is solely responsible for its own financial condition and contractual obligations.  Prudential Financial, its affiliates, and their licensed financial professionals do not render tax or legal advice.  Be sure to consult with your tax and legal advisors regarding your personal circumstances.

Tommy Norris This is a sponsored Financial Services article. Tommy owns the Norris Group and has 23 years of Insurance and Financial Service experience and can help with any of those needs, including Employee Benefits. In 2002, the Norris Group was recognized as “Small Business Of The Year, “ by the Metro Augusta\Columbia County Chamber of Commerce. Reach Tommy at 706.869.8888 or tommynorris@comcast.net

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