• Review your credit history. Time required: less than one hour. At AnnualCreditReport.c​om you can get a free copy of your credit report from each of the three major reporting agencies. Your credit history doesn't include your credit scores, but this is the information used to tabulate your scores, so you really need to check it for accuracy. Take 10 minutes to download it, then a half-hour looking it over to make sure all's well.

• Review your tax situation. Time required: one to two hours. The window for some tax advantages closes at the end of the year, so now's the time to look into possible credits and deductions, especially if you're close to another tax bracket. Start by pulling out last year's return, scoping out last year's deductions, and seeing if there are actions you can take now to swell this year's. Can you add more to your retirement plan at work? Can you take a deductible loss on an investment? Make a charitable donation? For more ideas, see "4 reasons to start thinking taxes now."

• Clear clutter. Time required: one hour to one month. There's no better time than the holidays to turn your clutter into cash, or at least a tax deduction. Pick one room, closet, or drawer per day, and spend a few minutes getting rid of stuff you haven't touched in a year or more. If it's easily sold, sell it online. If you'd rather help someone less fortunate, donate it. Either way, you'll end up with more money or more deductions, and less mess, and if you're lucky, maybe even a re-gift. 

• Review/rebalance investments. Time required: less than one hour. Investments like your retirement plan shouldn't require a lot of maintenance, but they do require some. Take a look at how your investments are performing and decide whether it's time to buy, sell, or leave well enough alone. Check out "Manage your 401k in 1 minute" and the SEC's Beginners' Guide to Asset Allocation.

• Support a charity. Time required: less than one hour. It's the season for giving, not just because of good cheer, but also because of tax-deductible donations. It only takes a few minutes to check out charities. See "4 tips to find the right charity."

• Max out retirement contributions. Time required: less than one hour According to the IRS, the annual cap for IRAs (including Roths) is $5,000 for those under 50 on Dec. 31 and $6,000 for those older. You have until April to do this, but not so with your 401k at work. You only have until Dec. 31 to contribute the max: $16,500 if you're under 50, and $22,000 if you're over. Finding out how much you've contributed this year should only take a minute or two. Use the rest of the time to contact your HR department and set up fatter contributions through year-end.

• Spend your FSA. Time required: less than one hour. If you've set aside money in a flexible spending account, the deadline for spending it is usually Dec. 31. Some changes were made this year to how an FSA can be used. For example, most nonprescription drugs no longer qualify.

• Prepay bills. Time required: less than one hour. You might boost some tax credits and deductions for this tax year by prepaying things like your mortgage or next semester's college tuition. If these bills are due soon anyway, get a deduction by paying in advance. What's deductible? Look at last year's tax return.

• Find a financial adviser. Time required: one to three hours. There's someone out there who can help you with most of the things on this list, and a lot more -- a financial adviser. Check out "How to find a financial adviser." Also check out "9 things financial advisers won't say."

• Tinker with your budget. Time required: one to two hours. Now is a good time to look at whether your spending has matched your projections over the past year. Maybe some adjustments are in order, especially if your income or expenses have changed. If your budget is busted or you don't have one, check out "5 steps to building a budget that works."

• Change important passwords. Time required: less than one hour. A lot of sensitive personal information is one smart guess away from being stolen. Add an extra layer of protection by changing your most important passwords at least once a year. A good password has a mix of numbers, letters and special characters, but as this XKCD comic strip shows, length is more important than complexity.

• Digitize documents. Time required: one hour to one month. If you're buried in paper, maybe it's time to invest in a scanner. You can get a decent one for $50 and start transferring the contents of your filing cabinets and drawers to your computer. Just make sure to keep backups. We suggest some options in "5 tips for paperless finances." Trying to figure out what to keep? Check out "7 tips for spring cleaning your finances."

• Make a will. Time required: less than one hour. As Stacy explains in "How do I get a will on the cheap?" lawyers can cost hundreds but do-it-yourself software is less than $50 and you can do it in less than an hour. If you have the time and money, have your computer-generated will checked by a lawyer. But anything's better than nothing.

Begin by making a list of the activities you need to do around each of these areas:

Gifts: 

• Begin now to make a list of gift ideas for those you purchase gifts.  Make a list of things you would like too, should someone ask.
• Include hostess gifts on this list; find a favorite and buy several so that you don’t have to scramble before each gathering.  Consumable gifts are great.
• Don’t forget to include service people and co-workers that you recognize during this time.  Or, better yet, give them their gifts at Thanksgiving … the holiday for expressing thanks.  This allows you to take care of those gifts earlier before the real hustle and bustle begins.
• Take advantage of the internet to identify what products you want to buy (check out the reviews) and what retailers carry it.  While this article is somewhat dated, it provides relevant information about internet sites that help identify the least expensive prices.  http://articles.moneycentral.msn.com/SavingandDebt/FindDealsOnline/freedman-how-to-find-those-rock-bottom-prices.aspx
  
• Consider charitable giving as well.  Work time into your schedule and budget to participate.

Card Giving:

• Make a list of holiday cards you plan to send.  Make sure you have current addresses for everyone. 
• Get your cards early.  If you are doing a picture card, make plans to have the photo taken or identify a photo you can use. 
• If you write a letter to include with the cards, begin jotting down the items you would like to include in the letter, or better yet, write it now.  You can also address the envelopes before you have the letter written.
• Don’t forget the individuals you may need to recognize for other reasons during this time, such as birthdays, anniversaries, thank yous, etc. 
• Consider using an on-line service that mails the cards for you.  You can provide the information ahead of time and the cards are sent at the appropriate time.  You can also select gifts or gift cards to include.  Check out SendOutCards at www.sendoutcards.com/loribecker.  You can send two cards for free to test it out.

Decorating:

• Take the time to pull out your decorations now to assess what you may want to replace or add this year, if anything.  Watch for early sales to get a great price and selection.
• If you order fresh garland, poinsettias or other items, call to see if you can pre-order, so it is ready to pick up on a select date.  If you hire out any of the work, confirm their availability now.
• If you’ve moved into a new home since last year, plan how you will use your decorations in the new space and make a list of any additional items you may want. 
• If you have decorations you won’t use, donate them now, so others can use them this year.  Contact your local non-profit organizations.  They may need them or know who could use them.

Entertaining:

• If you have gatherings you have each year, draft up a menu for each and make a list of the non-perishable items you can purchase now.  A trip to Costco with that list can be very beneficial.  Purchase wine by the case to get better pricing. 
• Determine if there are additional serving dishes or other items you may need and begin to shop for those now.
• If you have work to do to make your home ready to entertain, determine what is reasonable to complete before the holidays, considering all of the other activities.  The beginning of November is a great time to clear out clutter in rooms, paint walls and generally spruce things up.

Don’t forget to estimate the cost to carry out your plan.  Adjust as appropriate to meet your available budget.

Spending an hour or two now to begin to think about and prepare will help you move through the holiday season more smoothly and enjoy the true meaning of the holiday season.

If you struggle to work through this process or if your needs are much greater than you can handle, consider having a professional help you get organized and free up your time.  To discuss options, we invite to to CLICK HERE to contact Life Organizer, Lori Becker of Organization Is The Answer,

or call her directly at 425-888-5576.

• Replace roof shingles if you’re only missing a few of them. You may want to hold off on a new roof until spring, since warm weather helps shingles seal properly. Ask a roofing expert what’s best for your region.

• Be an energy miser and caulk or weather-strip around window frames and door frames.

• Replace rotted wood (including fences) that can attract termites, carpenter ants and other pests.

• Clean gutters and downspouts to avoid overflow and basement flooding. Equip

• downspouts with extenders, if needed, to help keep water away from the foundation.

• Lubricate garage door hinges, rollers and tracks to avoid stress during frigid temperatures.

• Tune up your snowblower before the first flakes fall.

• Fill driveway and sidewalk cracks to prevent damage from freeze-and-thaw cycles.

• Prevent supply lines from bursting in cold climates by removing hoses from outside faucets, draining the faucets and turning off basement shut-off valves.

• Check the R-value (indicating effectiveness) of your attic insulation, then upgrade as needed. Visit www1.eere.energy.gov/consumer/tips/insulation.html for guidance.

• Test all ground fault circuit interrupter (GFCI) outlets.

• Paint interior walls if it’s still warm enough to open windows to ventilate fumes.

• Remove lint from your clothes dryer vent. According to the U.S. Fire Administration, clothes dryers cause 15,600 structural fires annually, and dirty vents are the leading culprits.

• Test smoke and carbon monoxide detectors and replace batteries twice a year.

• Make sure the fireplace flue damper opens and closes fully. Hire a pro to clean the chimney and inspect the firebox.

• Check for air leaks. Head for your basement on a sunny day, leave the lights off and look for sunlight filtering through foundation cracks.

• Give your emergency generator and sump pump a test run.

• Replace furnace filters regularly for peak heating-system operation.

• Set up a furnace/boiler inspection. Some contractors offer lower rates if you schedule early in the fall.

Many consumers haven’t realized they needn’t wait until 2014 to get some of the new Health Care Reform Law’s benefits.  Starting back on September 23rd 2010, most consumers started getting certain preventive services with no out-of-pocket costs, zip, zero, nada.  Not even a co-pay.  Keep in mind the operative word here is “Preventative”.   Further, the most recent ruling by Health and Human Services now also includes Women’s birth control on the list of “Preventative” items covered for no cost, starting in August of 2012

The catch?  Well, you do need to have a health insurance plan that is not “Grandfathered” and our Insurance Commissioner has allowed insurance companies to raise their rates to compensate for the extra costs.  But still, even the high deductible Catastrophic plans include this new provision! And though there is never a completely free lunch, it does make it more cost effective to get the preventative care you should be getting anyway.

So, what is covered?

“Preventative” Screenings covered will vary depending on your gender, age and risk factors but will include:

• Immunizations for children and adults, if those shots have been approved by the CDC
• Well Child/Baby visits
• Colorectal cancer screening for adults over age 50 (colonoscopy’s)
• Mammograms
• HIV screening
• Depression screening
• Bone Density for women aged 65 and over
• Hepatitis B and tobacco counseling for pregnant women
• Childhood vision and hearing screenings
• Blood pressure, diabetes and cholesterol tests
• Smoking cessation and obesity/weight loss counseling
• In general, once yearly physicals for adults and children will be covered

Also, starting August 1st, 2012 birth control options for women including oral contraceptive pills, intrauterine devices and contraceptive patches will be included under the new regulations. Female patients will also be guaranteed co-pay-free screenings for gestational diabetes, human papillomavirus and human immunodeficiency retrovirus screening, in addition to an annual “well-woman” visit and counseling on domestic violence. The regulations also make available sexually transmitted infection counseling, which will be used to identify high-risk populations to whom free additional STI screenings may be offered.

Surprisingly, not all health plans need to abide by these new rules. Only Non-Grandfathered plans beginning after September 23rd 2010 are required to provide the no-cost screenings, and only plans renewing or starting after August 1st 2012 need to provide for no cost birth control (with some exceptions for Religious organizations, etc.). 

It’s no free lunch, but it’s as close as you can get to having a great reason to get your regular health check up!

Not sure if your plan offers this, or you’re confused about how to ensure your services are considered “Preventative”? We invite you to CLICK HERE to contact Jeff Lindstrom of My Health Insurance of Washington or call him directly at 206-356-1607. He can answer any questions you might have in regard to Preventative Health Coverage and Health Insurance in general.

“It’s the little things that tend to trip up people,” says Frank Lesh, former president of the American Society of Home Inspectors and owner of Home Sweet Home Inspection Co. in Chicago. “Some cracked caulk around the windows, or maybe a furnace filter that hasn’t been changed in awhile. It may not seem like much, but behind that caulk, water could get into your sheathing, causing mold and rot. Before you know it, you’re looking at a $5,000 repair that could have been prevented by a $4 tube of caulk and a half hour of your time.”

Maintenance affects property value
Outright damage to your house is just one of the consequences of neglected maintenance. Without regular upkeep, overall property values are affected.

“If a house is in worn condition and shows a lack of preventative maintenance, the property could easily lose 10% of its appraised value,” says Mack Strickland, a professional appraiser and real estate agent in Chester, Va. “That could translate into a $15,000 or $20,000 adjustment.”

In addition, a house with chipped, fading paint, sagging gutters, and worn carpeting faces an uphill battle when it comes time to sell. Not only is it at a disadvantage in comparison with other similar homes that might be for sale in the neighborhood, but a shaggy appearance is bound to turn off prospective buyers and depress the selling price.

“It’s simple marketing principles,” says Strickland. “First impressions mean a lot to price support.”

Prolonging economic age
To a professional appraiser, diligent maintenance doesn’t translate into higher property valuations the way that improvements, upgrades, and appreciation all increase a home’s worth. But good maintenance does affect an appraiser’s estimate of a property’s economic age—the number of years that a house is expected to survive.

Economic age is a key factor in helping appraisers determine depreciation—the rate at which a house is losing value. A well-maintained house with a long, healthy economic age depreciates at a much slower rate than a poorly maintained house, helping to preserve value.

Estimating the value of maintenance
Although professional appraisers don’t assign a positive value to home maintenance, there are indications that maintenance is not just about preventing little problems from becoming larger. A study by researchers at the University of Connecticut and Syracuse University suggests that maintenance actually increases the value of a house by about 1% each year, meaning that getting off the couch and heading outside with a caulking gun is more than simply a chore—it actually makes money.

“It’s like going to the gym,” says Dr. John P. Harding, Professor of Finance & Real Estate at UConn’s School of Business and an author of the study. “You have to put in the effort to see the results. In that respect, people and houses are somewhat similar—the older (they are), the more work is needed.”

Harding notes that the 1% gain in valuation usually is offset by the ongoing cost of maintenance. “Simply put,” he says, “maintenance costs money, so it’s probably best to say that the net effect of regular maintenance is to slow the rate of depreciation.”

How much does maintenance cost?
How much money is required for annual maintenance varies. Some years, routine tasks, such as cleaning gutters and changing furnace filters, are all that’s needed, and your total expenditures may be a few hundred dollars. Other years may include major replacements, such as a new roof, at a cost of $10,000 or more.

Over time, annual maintenance costs average more than $3,300, according to data from the U.S. Census. Various lending institutions, such as Directors Credit Union and LendingTree.com, agree, placing maintenance costs at 1% to 3% of initial house price. That means owners of a $200,000 house should plan to budget $2,000 to $6,000 per year for ongoing upkeep and replacements.

Proactive maintenance strategies
Knowing these average costs can help homeowners be prepared, says Melanie McLane, a professional appraiser and real estate agent in Williamsport, Pa. “It’s called reserve for replacements,” says McLane. “Commercial real estate investors use it to make sure they have enough cash on hand for replacing systems and materials.”

McLane suggests a similar strategy for homeowners, setting aside a cash reserve that’s used strictly for home repair and maintenance. That way, routine upkeep is a snap and any significant replacements won’t blindside the family budget.

McLane’s other strategies include:

• Play offense, not defense. Proactive maintenance is key to preventing small problems from becoming big issues. Take the initiative with regular inspections. Create and faithfully follow a maintenance schedule. If you’re unsure of what needs to be done, a $200 to $300 visit from a professional inspector can be invaluable in pointing out quick fixes and potential problems.

• Plan a room-per-year redo. “Pick a different room every year and go through it, fixing and improving as you go,” says McLane. “That helps keep maintenance fun and interesting.”

• Keep track. “Having a notebook of all your maintenance and upgrades, along with receipts, is a powerful tool when it comes to sell your home,” advises McLane. “It gets rid of any doubts for the buyer, and it says you are a meticulous, caring homeowner.” A maintenance record also proves repairs and replacements for systems, such as wiring and plumbing, which might not be readily apparent.

1. Glance through your closet or garage and assess how much of what is there you use on a regular basis.  Or at all.  Is it worth the space that it takes up?
   
   
2. Of the cool new things you bought, what is the likelihood that you will use them again?  I know it’s hard to admit we paid hard-earned money for something we will likely never use again.  But taking up precious storage space to keep it may just increase that cost.
   
   
3. Is there another person you could pass these items on to now, that may make better use of them than you will?  Or could use them until you need them again?
   
   
4. If we stuff it into our already overfilled storage spaces, does it make it even more difficult to find the items in storage that we do need, but now can’t find, so we go out and purchase new just because it’s easier?
   
   
5. If you were to rent a storage unit to alleviate some of the storage issues, it would perhaps cost you only $50 for a 5’ x 5’ unit – or more realistically you’d go for the 10’ x 10’ unit for $100 (more if it’s climate controlled).  Doesn’t sound like that much money.  However, if you consider the annual cost of the unit is $600 or $1200, it sounds much different.  And, if you consider the value of the items you are storing in the unit, it may shed an even different light.  Is it even worth that much?

Take a step back, there a few approaches that may help:

          - Before you make purchases, consider other options:

o   Renting

o   Borrowing from others

o   Purchasing used and selling back when you’re done

          - If you have limited storage space:

o   Use a one in/one out approach – if you’re going to purchase something that requires storage space, determine what you are willing to let go of to free up sufficient storage space.

o   Review what you currently have in your storage space and ask yourself if it is worthy of the space.  Toss items that don’t make the cut.

o   If the items you are storing are very inexpensive, consider whether it is better to just donate them and repurchase when you need again?

o   If you’re buying in bulk to get a cheaper price, ask whether it is worth it when you add in the cost to store it.  Perhaps you can buy in bulk and split it with someone else.

o   Are your spaces organized for maximum storage?  If not, consider redoing the space or consulting a professional to help.

It seems like storage space is an ongoing issue for many people.  Until and unless you begin to look at it differently, you will likely continue to struggle.  Take the time now to consider your options and make some changes today!

If you struggle to work through this process or if your needs are much greater than you can handle, consider having a professional help you get organized and free up your time.  To discuss options, we invite to to CLICK HERE to contact Life Organizer, Lori Becker of Organization Is The Answer, or call her directly at 425-888-5576.

In today’s economy, families are facing increasing pressure to provide for their every day needs. It is important for parents to teach children in a way that gives them a chance for a better future than many parents feel they have today. Parents may want to talk about finances so their children feel confident with financial decisions later in life.

A 2011 study commissioned by Massachusetts Mutual Life Insurance Company (MassMutual) and conducted by Forbes Consulting Group as part of the State of the American Family series studied family financial decision makers with responsibility for at least one child.

Nearly all Americans face some type of financial setback throughout their lives. For some, setbacks occur due to loss of employment; for others, they result from divorce, loss of a spouse or just plain hard times. For most, though, the greatest financial setback has been a direct result of the economy. People may feel a sense of regret and a resulting pressure to recover losses. Some people may feel a need to work longer before retirement, enabling their nest egg to recoup part of its losses; others may realize that plans for a child’s college education fund must change in order to pay their bills.
 
Many experience similar circumstances and want to find ways to improve their current situation. In order to do so; however, families need to prioritize personal and financial goals, better manage their expenses against those goals, and establish a plan that will help compensate for setbacks. 

In many cases, families are realizing that their purchases have placed them in a financial situation they did not envision since their material “assets” cannot help them bounce back from hard times. It is important for parents to teach children money management skills so this trend is reversed. 

The majority of Americans make financial decisions based on their experiences or research. Without guidance from trusted or knowledgeable resources – parents, grandparents, friends, and financial professionals – family decision makers may feel under prepared or lack confidence in their ability to make positive long-term decisions when balancing their family’s short term needs.

Many family decision makers are actively seeking ways to educate themselves and their children about finances. Most parents think it is important to educate children to ensure a strong economy.  If they neglect to educate them about finances, parents worry that their children’s quality of life will be inferior.

Thinking about your financial future can be overwhelming and you may not know where to begin. Many people struggle to take the first step because they don’t know where to turn for help or how to search for guidance.

Take time to think about the areas of your personal finances that feel like setbacks in your life. Then consider what you can do to change your situation. Educate yourself about your alternatives to help attain long-term goals and seek a financial professional who understands your situation and can help you to not only imagine but also realize your objectives.

Even if your parents did not talk about finances, or you would change past decisions, following the simple activities below can help you and your family to learn more.

Educate yourself

• Reflect on where your finances stand currently and think about what you want to accomplish.
• Refer to www.massmutual.com/family for helpful information about saving, budgeting, protecting your income and family. Also view videos about other parents in similar situations.

• Ask your children questions about how much money items cost, their understanding of credit and the difference between wants and needs.
• Download a free copy of Save! The Game TM to teach children valuable financial concepts through an interactive video game.

If you have children, you’re well aware of the hustle and bustle as the school year comes to a close.   Now is a great time to prepare and make a plan for all that is about to happen.

Take time to thank those who have helped you and your child through the year:

·         Those who ...

o   Helped shuttle the kids back and forth

o   Helped out when the kids were ill

o   A mentor or tutor

o   Volunteers who go above and beyond

o   And of course their teacher(s). 

·         Get a package of thank you cards and write them out early so you’re ready to deliver. 

·         If you are going to give a token of your appreciation, consider things that are consumables or services, so as not to add any clutter to their lives.  You can purchase these early and be ready to go.

o   Restaurant certificates

o   Spa services

o   A bottle of wine

o   Movie tickets

o   Amusement Park

o   Stationery

When the kids begin to bring their leftover supplies home – collect them at the door and sort them as follows:

·         Store supplies that are unused or in good shape and can be used again next year in a container labeled “School Supplies.”  You can then save money in Fall when the long supplies list comes out.

·         Supplies that do not warrant being saved for next year, add them to the supplies you currently use at home.

·         Toss those supplies that are broken, used up, or otherwise not useful.

Gather all of the artwork and other creations that you have collected over the year. 

·         Review the items with your child to appreciate the work and progress that has been made over the past year. 

·         Agree to save a select number of items and work with your child to pick out the favorites.  Add a description and date to each piece you will save.   Store them in an appropriate place, such as a scrapbook, or a storage box or bin labeled for each child.

·         For those items you really like but didn’t make the cut to save, take a photo of each item to capture the piece. 

·         Toss the other items.

Sort through their clothes.  It’s a great time to look through what they’ve worn for the past year and prepare for the next:

·         Save any clothes that still fit and the child will wear during the summer or next school year.

·         Of the remaining:

o   Box up and store any clothing that will be saved for a younger child.

o   Box up any clothing that will be donated or shared with other children

o   Toss any clothes that are worn or stained

If you do this work at the end of the school year, you will have less clutter going into the summer and be much better prepared in August when you prepare for the new school year!

To discuss options, we invite you to CLICK HERE to contact Lori Becker of Organization Is The Answer or call her directly at 425-888-5576.

Trusts Can Be a Key Element in Financial Planning
for Today and Tomorrow

What is the sign of a good decision?®
It’s being confident in your current and future financial plans and knowing if a trust is right for you.

What is a trust?
A Trust is created by a legal document (Trust Agreement) that enables the Trust to own property for the benefit of a third party. A Trust is a versatile instrument. You create it during your lifetime to hold property and assets. After your death, the Trust can distribute the assets to beneficiaries, or hold and invest the assets for a set number of years or lifetime(s). It can distribute income generated by the investments to your beneficiaries, as dictated by the Trust.

How does a trust differ from a Will?
Unlike a Will, a trust does not have to go through probate, often a time-consuming legal process, which may have tax implications and is part of public record. When you have a trust, your assets go to your designated beneficiaries in a tax-advantaged and confidential manner. Furthermore, with a trust, you can choose to have your assets distributed to your beneficiaries over time. However, with a Will, assets are usually disbursed as a one-time event. A trust can also provide asset management, estate planning consultation and tax services, such as investment oversight, financial reporting, asset disbursements and bill payment, which can provide great peace of mind to families as the trust Grantor, or person establishing the trust, ages.

What kinds of trusts are there?
There are different types of trusts to meet a variety of objectives. Trusts are very flexible, and designed to address the Grantor’s personal wishes. The Grantor can use trusts as a key element in a comprehensive estate and wealth transfer plan, or direct how their legacy will be managed and distributed after death.

Let’s talk about trusts ... Trusts can be created to accomplish specific goals. For example, if you have a child or grandchild with special needs, you can set up a Special Needs Trust to ensure that they’re properly cared for during their lifetime. For your philanthropic goals, you can establish a Charitable Remainder Trust and leave some or part of your estate to your favorite charity or institution. Combinations of trusts can help address the needs of multiple families and generations.

How do I know if a trust is right for me?
Trusts are for people who want to maintain control over how their estate is managed, preserved and distributed, those who want access to professional investment management advice and services, or seek specific expertise. For example, anyone with a Special Needs family member who wants to provide funds for care while continuing to qualify for state and federal aid or people interested in making and administering gifts to a favorite charity or school can benefit from a trust. If you want to consolidate multiple investment accounts, a more tax-advantaged way to manage and transfer your assets, or want more control over the distribution of assets over time, establishing a trust could be a smart financial decision.

A trust can offer more than tax benefits. It gives you complete control over the accumulation and distribution of your assets. If the trust owns life insurance, access to cash values can supplement retirement needs. A trust can also help you manage finances and pay bills if you travel frequently or become incapacitated. This is a much valued service and ensures that your bills are being paid on time and that your assets are organized. Establishing and funding a trust while you are living can help streamline the probate process and reduce many costs associated with your estate settlement.

For additional information about TRUSTS or FINANCIAL SERVICES in general, we invite you to CLICK HERE to contact Patricia Parsons of MassMutual Financial Group or call her directly at 425-941-9007.

© 2011 Massachusetts Mutual Life Insurance Company, Springfield, MA 
C:201302-108

Twelve Tips for Childproofing Your Home

Each year, children are unintentionally hurt—and sometimes killed—by hazards in and around the home. The good news is that these twelve tips for childproofing can help reduce and prevent the risk of injury.

1. Install safety latches on all cabinets and drawers to prevent access to toxins and sharp appliances.

2. Secure bookcases and bureaus to the wall with brackets to prevent them from tipping over.

3. Put safety caps on unused electrical outlets, and ground outlets in the bathroom and kitchen with fault circuit interrupters.

4. Unplug electrical appliances near sinks after use to prevent accidental electrocution from contact with water.

5. Use the stove’s back burners to keep hot pots and pans out of reach.

6. Install anti-scalding devices on faucets and showerheads to prevent burns.

7. Place bumpers on the corners and sharp edges of furniture.

8. Install toilet locks to keep the lids closed. Children can drown in just one inch of water.

9. Put up safety gates at the top and bottom of stairs to prevent toddlers from climbing and falling.

10. Make sure window blinds do not have looped cords, which can be strangulation hazards.

11. Lock up power tools and flammable substances in a shed or basement.

12. Store and lock up firearms and ammunition separately, well out of reach.

For further information on Child Proofing your home or Homeowners Insurance, we invite you to CLICK HERE to contact Charles McDowell of Liberty Mutual or call him directly at 425-417-0522.

Higher Health Insurance Deductibles Ahead?

A new study commissioned by the Kaiser Family Foundation shows that deductibles are likely to be much higher than they are today for people buying coverage in the new health insurance exchanges beginning in 2014.  The amount that someone with a given level of health expenses will pay out-of-pocket –set by a combination of deductible and coinsurance amounts - will be based on “actuarial values” in the new law.

The 2014 estimates did vary quite a bit, but in all cases, the deductibles were high -- ranging from $2,750 with 30% coinsurance to $6,350 with no coinsurance for an individual policy for the basic Bronze plan in 2014, which is the minimum people can buy and satisfy the so-called "individual mandate."  Patient out-of-pocket costs would be capped at $6,350, an amount that's specified in the new law.  All of these amounts would be double for a family policy.

However, though these out of pocket amounts seem high, they are consistent with the trends in the marketplace.  Since 20006, the share of workers enrolled in a high-deductible plan (with a deductible of $1,000 or more for single coverage) has nearly tripled.  Almost half of all workers in small firms are now enrolled in such a high deductible plan.  It is possible that the new law will accelerate these trends by establishing a standard for coverage with high deductibles as a matter of national policy once the exchanges are in place.

However, those higher deductibles and out of pocket limits must be taken in context with the subsidies (based on income) when buying health insurance within the exchange.  Thus, while a plan may be made more affordable, there may still be significant financial risk to the consumer.

It is possible that in the future, once the exchanges are fully in place, there will be pressure to reduce deductible levels to make out-of-pocket costs more affordable.  But there will be countervailing pressure to keep premiums down, and thus unfortunately deductibles are likely to remain high, consistent with trends in the marketplace.

Thus, in the end, the consumer may end up with a much less expensive health insurance plan (subsidized  by uncle Sam), but one that still costs them a bundle when they do get seriously ill.

For additional information about your Insurance Deductible or Health Insurance, we invite you to CLICK HERE to contact Jeff Lindstrom of My Health Insurance of Washington or call him directly at 206-729-6586.

High Credit Score = Low Interest Rate

Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.
 
There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans.
 
There are many quick tricks to improve the credit score, and I can provide borrowers with more information on this subject. If necessary, I guide them to a reliable resource for credit remediation. If a borrower has to pay a higher interest rate to close a loan, the tarnished credit rating will begin to improve once mortgage payments are made on time and in full. If that is the case, my team and I will be on the watch to alert the borrower when an opportunity arises to refinance and get a lower interest rate.

Credit Tips that will Score Lower Interest Rates ...

A good credit score translates into lower interest rates for borrowers. In a mortgage lender’s eyes, the higher your score is, the less risk you are, and the more likely it is you will pay off your debt. For this reason, borrowers with lower scores usually end up paying higher interest rates on their loans. Not only can your credit score effect your mortgage interest rate, but also insurance, employment and other aspects of financial decisions.

If this is you, don’t panic. There are a number of things you can do to adjust your credit score to receive a favorable review from the underwriter. Here are a few suggestions:

Should I pay off all my past due balances and charge-offs? This is usually a good idea, but you only need to worry about the past due balances and charge-offs that have occurred in the last two years. Items more than two years old have little effect on your current credit score. In fact, if you pay off delinquent items over two years old, it can actually bring your credit score down – something you don’t want to do. Bringing that score up means that you’ll get a better interest rate on your loan.

Should I close existing credit card accounts that I don’t use? No. Part of your credit score is based upon credit history. If you have old credit cards that you don’t use very much, you still have the benefit of the credit history they represent.

Rather than trying to pay off all of your credit cards, you can move part of the debt from one card to another to even out the distribution of debt. Try to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home. Also, if your credit provider will increase your line of credit, the ratio of debt to available credit is automatically reduced.

What about errors on my credit report? If you have items that are showing up on your credit report that you know you have already paid, request that these items be removed by the credit bureau. They are obligated to rectify this within 30 days.

If there are items on your credit report that are less than two years old, send in your payment if possible and mark the back of the check with the following notation: “Accepting this check is evidence that the transaction is complete and this charge will be deleted from my credit record.” If necessary, the cancelled check will be proof that this should be promptly removed from your credit report if it interferes with the closing of your loan.

For additional information about Interest Rates, How To Lower Your Credit Score, or Mortgages in general, we invite you to CLICK HERE to contact Laney Shorett of Cobalt Mortgage or call her directly at 206-275-1900.

Real Estate Outlook as Consumer Spending Rises

The economy in late 2010 may have grown at a quicker pace than some analysts previously thought. The Commerce Department reported that gross domestic product (GDP) was up 3.1 percent in the last quarter of 2010, thanks in part to large rises of corporate profits.

Consumer spending was up as well, this being the eighth straight month of increases. Spending rose 0.7 percent in February. The department also reported that inflation accelerated at its fastest rate since June 2009. Incomes also rose in February by 0.3 percent. Spending, however, is expected to have slowed this first quarter of 2011.

But when it comes to the housing, the good news isn't spread so liberally. Residential vacancies, largely steeped by foreclosed homes, are depressing sale prices and property values.

And future numbers don't look promising. Vacancies are up 13 percent over last week's report, and up 12.1 percent from 2007 levels.

There was one bright spot in the market this week, though. Pending home sales, compiled by a National Association of Realtors' survey, were up by 2.1 percent in February over the month prior. And while this is 8.2 percent below figures from February 2010, they are still a promising trend.

Lawrence Yun, NAR chief economist, says it's important to look at the market with broad strokes. "Month-to-month movements can be instructive, but in this uneven recovery it's important to look at the longer term performance," he said. "Pending home sales have trended up very nicely since bottoming out last June, even with periodic monthly declines. Contract activity is now 20 percent above the low point immediately following expiration of the home buyer tax credit."

Regionally, the area with the largest increase was the West, up by 7.0 percent. It is the only region experiencing higher levels of pending sales than a year prior. The Midwest wasn't far behind, with a 4.0 percent rise for the month.

"We may not see notable gains in existing-home sales in the near term, but they're expected to rise 5 to 10 percent this year with the economic recovery, job creation and excellent affordability conditions providing confidence to buyers who've been on the sidelines," Yun said.

Article Originally Published by RealtyTimes.com - April 4, 2011

Does Your Company Offer Non-Traditional Employee Benefits?

If not, they should ... here are some of the reasons why:

Boulevard Benefits Group (BBG) is passionate about the financial education and well being of their customers and communities. We believe that a secure financial future and balanced work environment leads to happier, healthier and more productive lives.

What does the future hold for non-traditional benefits?

  H A positive impact on the company's bottom line

  H A shift in culture enhancing work-life demands

  H Enable companies to get the best from their employees as a result of offering a means to reduce stress and "recharge their batteries"

  H Benefits that save time or enhance family life can sometimes be more important than pay

  H Forward thinking companies will continue to adopt emerging benefits trends to ensure they attract and retain the best employees in the war on talent

  H The scope of non-traditional benefits is broad and ever growing as companies become more innovative through the creation of benefits that support their employees everyday needs
 
Let BBG ...

  H Educate employees on how to achieve financial goals and reduce stress

  H Enrich existing benefit programs at no cost to the company

  H Enhance company retention and excel the company recruiting efforts 

About BBG ...

Boulevard Benefits Group provides local companies and individuals with a non-traditional employee benefits program that enables them to have happier, healthier and more productive employees.

With years of experience, BBG has been helping employees achieve financial security and balanced work-lives through a series of on-site educational seminars, interactive guidebooks and free, no-obligation consultations.

Contact us if we can help you or the company you work for! 

206-508-0020
 

Info@BoulevardBenefitsGroup.com  /  www.BoulevardBenefitsGroup.com

Home Sweet Homeowner Tax Breaks

Congratulations, you've achieved the American-dream and are a homeowner! Along with the joy of painting, plumbing and yard work, you may also have some tax considerations.

The good news is you can deduct many home-related expenses. These tax breaks are available for any abode -- mobile home, single-family residence, town house, condominium or cooperative apartment.

The bad news is, to take full tax advantage of your home, your taxes will likely get more complicated. In most cases, homeowners itemize. That means you're not living on "EZ" Street anymore; you've moved to the 1040 long form and Schedule A, where you'll have to detail your deductible expenses.

For many homeowners, the effort of itemizing is well worth it at tax time. Some, however, might find claiming the standard deduction remains their best move.

If you do find that itemizing is best for your tax situation, here's a look at homeowner expenses you can deduct on Schedule A, ones you can't and some tips to get the most tax advantages out of your new property-owning status.

Mortgage interest
Your biggest tax break is reflected in the house payment you make each month since, for most homeowners, the bulk of that check goes toward interest. And all that interest is deductible, unless your loan is more than $1 million. If you're the proud owner of a multimillion-dollar mortgaged mansion, the Internal Revenue Service will limit your deductible interest.

Interest tax breaks don't end with your home's first mortgage. Did you pull out extra cash through refinancing? Or did you decide instead to get a home equity loan or line of credit? Generally, equity debts of $100,000 or less are fully deductible.

What if you're the proud owner of multiple properties? Mortgage interest on a second home also is fully deductible. In fact, your additional property doesn't have to strictly be a house. It could be a boat or RV, as long as it has cooking, sleeping and bathroom facilities. You can even rent out your second property for part of the year and still take full advantage of the mortgage interest deduction as long as you also spend some time there.

But be careful. If you don't vacation at least 14 days at your second property, or more than 10 percent of the number of days that you do rent it out (whichever is longer), the IRS could consider the place a residential rental property and ax your interest deduction.

Points
Did you pay points to get a better rate on any of your various home loans? They offer a tax break, too. The only issue is exactly when you get to claim them.

The IRS lets you deduct points in the year you paid them if, among other things, the loan is to purchase or build your main home, payment of points is an established business practice in your area and the points were within the usual range. Make sure your loan meets all the qualification requirements so that you can deduct points all at once.

A homeowner who pays points on a refinanced loan is also eligible for this tax break, but in most cases the points must be deducted over the life of the loan. So if you paid $2,000 in points to refinance your mortgage for 30 years, you can deduct $5.56 per monthly payment, or a total of $66.72 if you made 12 payments in one year on the new loan.

The same rule applies to home equity loans or lines of credit. When the loan money is used for work on the house securing the loan, the points are deductible in the year the loan is taken out. But if you use the extra cash for something else, such as buying a car, the point deductions must be parceled out over the equity loan's term.

And points paid on a loan secured by a second home or vacation residence, regardless of how the cash is used, must be amortized over the life of the loan.

Taxes
The other major deduction in connection with your home is property taxes.

A big part of most monthly loan payments is taxes, which go into an escrow account for payment once a year. This amount should be included on the annual statement you get from your lender, along with your loan interest information. These taxes will be an annual deduction as long as you own your home.

But if this is your first tax year in your house, dig out the settlement sheet you got at closing to find additional tax payment data. When the property was transferred from the seller to you, the year's tax payments were divided so that each of you paid the taxes for that portion of the tax year during which you owned the home. Your share of these taxes is fully deductible.

Property taxes must be deducted as an itemized expense on Schedule A.

When you sell
When you decide to move up to a bigger home, you'll be able to avoid some taxes on the profit you make.

Years ago, to avoid paying tax on the sale of a residence, a homeowner had to use the sale proceeds to buy another house. In 1997, the law was changed so that up to $250,000 in sales gain ($500,000 for married joint filers) is tax-free as long as the homeowner owned the property for two years and lived in it for two of the five years before the sale.

If you sell before meeting the ownership and residency requirements, you owe tax on any profit. The IRS provides some tax relief if the sale is because of a change in the owner's health, employment or unforeseen circumstances. In these cases, the tax-free gain amount is prorated.

A ruling by the IRS in late 2002 could put more dollars in homeowners' pockets when they must sell before they qualify for the full tax break. The Treasury has defined the unforeseen circumstances that often force homeowners to sell and under which they now can get some tax relief.

A partial exclusion can be claimed if the sale was prompted by residential damage from a natural or man-made disaster or the property was "involuntarily converted," for example, taken by a local government under eminent domain law.

Second home sales also can provide some tax benefits, but not as much as they did in the past, thanks to a law that took effect in 2008. Previously, you could move into your vacation property, live in the home as your primary residence for two years and then sell and pocket up to $250,000 or $500,000 profit tax-free. Now, however, you'll owe tax on part of the sale money based on how long the house was used as a second residence.

What's not deductible
While many tax breaks are available to a homeowner, don't get too carried away. There are still a few things for which you have to bear the full cost.

One such expense is insurance. If you pay private mortgage insurance, or PMI, because you weren't able to come up with a large enough down payment, that's a cost you probably won't be able to deduct -- unless you meet the requirements of a special PMI law. Under this law, some homeowners can deduct on Schedule A their PMI payments on loans originated or refinanced between Jan. 1, 2007, and Dec. 31, 2011, and which meet certain loan amount limits.

The other big home-related insurance cost, property hazard insurance premiums, still remains nondeductible for all, even though the coverage generally is required as part of the home loan and is included as a portion of your monthly payment.

Other nondeductible residential expenses include homeowners' association dues, any additional principal payments you make, depreciation of your home, and general closing costs and local assessments to increase the value of your neighborhood, such as construction of new sidewalks or utility connections.

What about all those repairs that seem to crop up the day after you move in? Surely they're tax-deductible. Sorry. While they'll make your house much more comfortable, you're on your own here, too.

But hold on to the receipts. Some long-time homeowners may find their property has appreciated beyond the $250,000 ($500,000 for married couples) amount the IRS will let you keep tax free when you sell. If that happens, the records of property improvements could help you establish a higher basis for your house and reduce your taxable profit.

For additional information about Homeowner Tax Breaks or taxes in general, we invite you to CLICK HERE to contact Mira Torres of Business Tax Solutions or call her directly at 206-275-1040.

Article courtesy of Bankrate.com 

2011 Federal Estate Tax Update

2010 was an anomaly for the federal estate tax. As I wrote before, there was no federal estate tax in 2010 - anybody who passed away in 2010 owed nothing to the Federal Government in estate tax, regardless of how much money they left behind.
 
2011 was shaping up to be drastically different – a year in which estates in excess of $1 million would be required to pay federal estate tax at the rate of 55 percent. Then Congress stepped in, and provided Americans with some temporary relief. In 2011 and 2012, Americans can now pass along $5 million free of federal estate tax. Those estates that have values in excess of $5 million will pay federal estate tax at the rate of 35 percent. Spouses can now shelter a combined $10 million from federal estate tax. Further, steps have been taken to make the use of the Unified Credit (the $5 million exemption) easier to use. It is (possibly) no longer necessary for spouses to create complicated trust mechanisms to make sure they use the entirety of their Unified Credit.
 
These changes are all very helpful in the short term, but they do not address the long-term problems faced by Americans and estate planners. There is still no long-term certainty concerning the federal estate tax. In 2013, the Unified Credit is again scheduled to drop to $1 million and a 55 percent tax rate, meaning many more Americans will be subject to a more substantial federal estate tax. Nobody can predict what changes, if any, will be made before 2013. Some predict no change, ushering in a return to the $1 million and 55 percent tax rate. Others believe that Congress will abolish the federal estate tax completely. Most predictions are somewhere in the middle. But they are all predictions, not certainties.
 
The lack of certainty on the federal estate tax makes it difficult to plan ahead. However, the same advice still applies. Consider consulting with an attorney experienced in estate planning if you and your spouse have combined assets in excess of $2 million. Even if the federal estate tax is abolished completely, an estate planning attorney can help you craft an estate plan that addresses all your non-tax related goals.

For additional information about the Federal Estate Tax or Estate Planning, we invite you to CLICK HERE to contact Luis Aragon of Aragon Law or call him directly at 206-999-8705.

Is that Spring?

It’s that time of year … occasionally you get a glimpse of it …  Spring!  Whether it’s an occasional ray of warm sunshine, a crocus blooming or the birds singing, it’s a wonderful feeling!  It also may prompt many of us to “Spring” into action and take care of a few things.  A few things to consider:

* Daylight Savings time begins on Sunday, March 13^th at 2 am.  Don’t forget to “spring” your clocks forward one hour.

* While you’re changing the clocks – remember to change the batteries in your smoke detectors, carbon monoxide detectors and any other detectors you may have.

* Take the time to walk around the outside of your house and check things out.  The winter winds can be ruthless.   Look for anything that may have been ripped off, dislodged or otherwise damaged.  It’s best to get those repaired as soon as you are aware of it.

* It’s a great time to check out all of that stuff in the garage … As long as you’re starting to take things out, dig a little deeper:

o   All of that sports equipment …

- If you no longer play the sport, perhaps it’s time to let someone else enjoy it.

- If you purchased new equipment, do you really need the old?

- Is there a way that you can organize it so that it’s easier to access and return it?

o   That garden stuff …

- Do you have things that sounded like a good idea at the time you bought them, but now don’t use them?  How about those tools that are in disrepair … now may be the time to get a new one.  Let them go!

- Inventory all of your garden “grow” products

~ Dispose of those that you no longer need

~ Inventory what you do have so you don’t unnecessarily buy more

~ Organize them so that they’re easy to find when you need them

- What about all of those pots?  They do seem to multiply …  Sort through them and keep only those you know you will use.  If you haven’t used it in a year or two, it’s a great candidate to donate …

o   What about all of those cans of paint?

- Sort through the paint:

~ If you no longer have that color in your house, you can likely toss it.

~ If the can is rusted, consider getting a new can (they sell small cans at the hardware store), transferring the paint and labeling it.

~ If there is only a small amount left, consider transferring it to a smaller container to save space.

~ Label all cans with the room that the paint is in so it is easy to identify for touchups.

A clean, organized garage is a great way to start the season.  Clean up, clean out and get ready for the new growth!

Don't Undermine Your Capacity to Create Wealth

Have you ever been asked or wondered what your biggest asset is?  Many people think of their home, 401K or retirement savings, car or personal belongings.  Most stop there but if you consider how much income you will potentially make over your working lifetime, it is easy to see that your ability to earn an income is more likely than not to be your greatest asset.  In fact, for most individuals it is by far the most valuable asset you’ll ever have.  Think about this, someone making an average of $75,000.00 over 30 years, which of course is not your entire working lifetime, would earn more than $2,500,000.00.  When you look at it in this light, it’s easy to understand how putting this important asset in jeopardy could undermine your capacity to create wealth. 
 
Of course most people don’t consider that anything will ever come between them and their ability to earn a living, but consider this:  According to the Washington State Department of Social and Health Services, The Washington DDS which has three branch offices located in Olympia, Seattle, and Spokane to serve disability applicants of Washington State employs about 250 people and receives nearly 1700 new claims each week.  The Social Security office expands on this and reports that studies show that a 20-year-old worker has a 3-in-10 chance of becoming disabled before reaching retirement age.  It’s no doubt that the odds increase with age. 
 
So what does this have to do with creating wealth?  Simply put, if you can’t earn an income, you can’t pay your bills, not to mention fund your retirement, pay your mortgage or rent and provide for transportation; all of which are part of the equation of the basic building blocks of creating a solid financial future.  As well, the process of wealth creation includes transferring risk when appropriate and possible.  But a large portion of our population doesn’t realize that they can, that they should, or how to do it, so let’s take a look at some important information that can guide you in making informed decisions. 
 
If you work for a company that offers Disability Income insurance through its benefits package, you’ll have some coverage under the group policy.  That’s the good news.  But unless you have an individually owned policy, usually group policies will leave you in a vulnerable position.  The reasons for this vulnerability are that group policies can never insure all of your income, rarely cover bonuses and more than not, will have a cap on the benefit.  But there are two additional very important considerations to keep in mind.  First, if the premiums are employer paid, the benefits are taxed at the time of a disability claim and payout.  So, if your income is covered at let’s say 60% and it is taxed at claim time, the amount that you’ll receive will be far less than what you normally take home in your regular paycheck.  Most people can’t live very long on half a paycheck. Conversely, if you own your own policy and you end up on claim, the monthly dollars that you receive through your insurance benefits are tax free. 
 
2nd, group Disability Income insurance policies are not portable, which means if you leave your job, you can’t take the policy with you.  Many companies are extremely generous and offer stellar benefits; however, it’s never a good idea to fully depend upon your employer to manage your entire risk or investment portfolio. 
 
As you think about building wealth, consider your risk management portfolio; what the average person insures, from medical insurance to car insurance to home insurance.  Next calculate your earning potential.  And finally, utilize the tool found at Halfapaycheck where you can evaluate your potential vulnerability.
 
If you calculate a gap, it’s time to take action.   The method of obtaining Disability Income insurance is through an application process.  It is underwritten, priced and offered based on age, health, gender, job duties and current income.  The last piece is important to remember, because as mentioned before, if you have the coverage through a group policy it’s not portable and if you don’t have an earned income, you won’t qualify for it. 
 
Remember, if your goal is to build and create wealth; don’t forget to transfer unnecessary risk appropriately.  It’s part of a fully diversified plan that will help you achieve success in the short and long term.

For additional information about Building Wealth, we invite you to CLICK HERE to contact Patricia Parsons of Mass Mutual Financial Group or call her directly at 425-941-9007.

Living Green to Conserve Energy
and Protect the Environment

From roofing to flooring, “eco-friendly” materials and devices can help you save money when you’re maintaining, repairing or improving your home. Even better, they help save the environment. Join the Green Revolution and consider these simple ways to conserve energy and other natural resources. 

• Use impact-resistant roof shingles made from asphalt, metal or simulated tile. They deflect hail, wind and fire better than asphalt and keep roofing material out of landfills.
  
• Replace appliances more than ten years old with energy-efficient models, which could save you hundreds of dollars a year according to the EPA.
  
• Install low-flow showerheads and toilets to conserve water.
  
• Exchange your most-used lighting fixtures for Energy Star models to help reduce greenhouse gasses.
  
• Switch to compact fluorescent light (CFL) bulbs, which can save more than $30 in electricity costs compared to an ordinary incandescent bulb.
  
• Substitute recycled plastic lumber for concrete, work and metal in decks, fences, swing sets and landscaping.
  
• Choose renewable flooring materials when you build or redecorate, such as bamboo, cork, reclaimed glass and salvaged wood.
  
• Lay carpeting made from natural, organic or fair-trade fibers that are friendly to the environment and hypoallergenic.

At Liberty Mutual, we have a responsibility. To be there every step of the way. Across state lines and continents. As a fortune 100 company we have more than 45,000 employees worldwide. All of whom are dedicated to one thing: Doing the right thing. We have a responsibility. To help people live safer, more secure lives. At the homes they live in. At the businesses they build and grow. On the earth in which we all live.
 
"Corporate responsibility takes many different forms; and social responsibility means many different things to different people and different institutions. Liberty Mutual does not strive to conquer the latest fad in 'corporate social responsibility.' We don’t follow the trends; nor do we strive for some sort of recognition or visibility. We do strive to do the right thing." -Edmund F. (Ted) Kelly, Chairman and CEO
 
For additional information about Insurance or Liberty Mutual's Philanthropy and Community Involvement, we invite you to CLICK HERE to contact Charles McDowell of Liberty Mutual or call him directly at 206-417-0522.

How Adjustable Rate Mortgages Work

Adjustable Rate Mortgages (ARMs) are once again increasing among consumers.  These days, few homeowners (especially first-time buyers) remain in their homes for more than seven years.  In this case, it often makes sense to get an adjustable rate mortgage with a lower rate, especially one with a 5-year or 7 year fixed portion (fixed for the first term … such as a 5/1 ARM is fixed for the first 5 years and then adjusts once a year there after), as they won’t have the loan long enough to be concerned about the rate fluctuation.

Adjustable Rate Mortgages have three main features:  Margin, Index, and Caps.  These are very important to understand when looking at an ARM.  Please see the attached graph and information for further clarification of those terms.

While ARMs are not for all consumers and scenarios … they are a great option in a time that 30 year fixed mortgage rates rise higher.

CLICK THE IMAGE TO SEE IT FULL SIZE

ARMs have 3 main features: Margin, Index, and Caps.  The Margin is the fixed portion of the adjustable rate.  It remains the same for the duration of the loan, and is set at the beginning of the loan, offered by the lender.  The Index is the variable portion.  This is what makes an ARM adjustable.  Margin + Index = Interest Rate.
 

It is important to understand that there are many different indices:  the 11^th District Cost of Funds (COFI), the Monthly Treasury Average (MTA), The One Year Treasury Bill, the Six Month Libor, etc.  Each index has its own strengths and weaknesses; some are slow moving, others are more aggressive.

The third and final component of ARMs is Caps.  Caps limit how much the rate can fluctuate over time.  Annual Caps limit changes to the annual rate, whereas Life Caps provide a worst case scenario over the life of the loan.

For additional information about mortgages, we invite you to CLICK HERE to contact Laney Shorett of Cobalt Mortgage or call her directly at 206-265-1900.

6 Signs you may be paying too much for
Health Insurance

1.  You haven’t shopped rates and benefits in the past Year.
New plans are introduced all the time and if you’re healthy you may be able to reduce your monthly premiums.
If you are not healthy, you might want to consider Washington’s partially federally-funded high risk pool for people with pre-existing conditions.  A high risk pool provides fantastic benefits, but does cost a bit more.
 
2.  Your healthy family is covered under your employer’s health insurance.
For many healthy families, paying to be on an expensive plan through an employer could be just wasted money.   Many times there are plans that can provide completely adequate coverage without breaking your bank each month.  Remember, an employee is NOT required to add his/her family to their employer’s health insurance plan!
 
3.  You are paying for benefits you don’t need.
Guys don’t need maternity coverage. Likewise, ladies don’t either if they are past the child bearing years!  If you’re paying for benefits you don’t use (like maternity or chiropractic care), you might save money with a plan that excludes those benefits. On the other hand, if you’re paying too much out of pocket for recurring medical services (like prescriptions or checkups), consider a plan that adds these benefits.
 
4.  Your entire family is on the same plan.
If your whole family is covered under a single plan, you could be missing out on savings. When some family members are healthier than others, or see doctors less frequently, or don’t need certain benefits like Prescriptions or Maternity, you might save by tailoring the coverage to your individual needs.
 
5.  You have experienced life changes but haven’t adjusted accordingly.
If you recently had a child, shift in income or change in marital status – or if you anticipate these events in the year to come — it may be time to review your health insurance coverage.
 
6.  You have heard about HSA’s but don’t really know how they work.
Regardless if you if you are a W2 employee, self-employed, or have an individual policy, there are many great reasons to consider an H.S.A. plan if you are relatively healthy.  Did you know that money put into an HSA is yours forever (tax free too!) and never expires?  Did you know that you could be saving a bundle on your monthly health insurance premiums?

For additional information about Health Insurance,
we invite you to CLICK HERE to contact Jeff Lindstrom of My Health Insurance of Washington or call him directly at 206-729-6586

Consumer Confidence Rises in January

Anticipation of improved conditions in business and the job market caused consumer confidence to inch up in January.

  
Lynn Franco, Director of The Conference Board Consumer Research Center, reports that “consumers have begun the year in better spirits. As a result, the Index is now near levels not seen since last spring (May 2010, Index 62.7). Consumers rated business and labor market conditions more favorably and expressed greater confidence that the economy will continue to expand and generate more jobs in the months ahead. Income expectations are also more positive. Although pessimists still outnumber optimists, the gap has narrowed.”

What is consumer confidence? It is measured in terms of the public's optimism about the economy. Consumer confidence is also measured in part by how much people are spending and saving.

Each month The Conference Board surveys 5,000 U.S. households. The survey asks for rankings on:

1. Current business conditions

2. Current employment conditions

3. Projected Business conditions

4. Employment conditions for the next six months

5. Total family income for the next six months

In January, consumers' short term outlook was higher than the month prior. According to the Conference Board, "Those anticipating an improvement in business conditions over the next six months increased to 19.0 percent from 16.8 percent, while those anticipating business conditions will worsen decreased to 11.3 percent from 11.8 percent. Consumers were also more optimistic about the job market. Those anticipating more jobs in the months ahead increased to 16.0 percent from 14.2 percent, while those expecting fewer jobs declined to 17.5 percent from 19.2 percent. The proportion of consumers expecting an increase in their incomes rose to 11.4 percent from 9.9 percent."

Consumer spending also rose in the latest survey, as reported by the Commerce Department. This was the sixth month of gains, and the highest it has been in four years, according to Business Week.

Unemployment, however, remains high. In the last monthly report from the U.S. Bureau of Labor Statistics, unemployment is 9.4 percent nationally. This is a slight decline of .4 percent from December. Rises in employment were seen in the healthcare and leisure and hospitality industries only.

"There are definitely hopeful signs of sustained recovery in 2011,” Federal Reserve Bank of Atlanta President Dennis Lockhart said yesterday, “That said, I believe it is a bit early to declare victory, and, to be sure, employment is nowhere near acceptable levels.”

Repair to the ailing job market should have far reaching effects, namely on spending and the housing market.
 
For information about the current housing market or real estate in general, we invite you to CLICK HERE to contact Julie Scozzafave of Windermere Real Estate/East, Inc. or call her directly at 425-417-3566.

Published by RealtyTimes: February 1, 2011

Your 15 Point Tax Return Checklist

http://money.msn.com/tax-preparation/your-15-point-tax-return-checklist-schnepper.aspx

                                         Estate Planning for Young Families
                                                        - Taking Care of your Minor Children -
 
Many of my estate planning clients are what I call Young Families - young parents with young children. Young Families typically own very few assets outright (perhaps an older car), but they have plenty of debt.  Whether the debts are the result of student loans, car payments, or enthusiastic credit card use, many of my Young Family clients believe they have little need for estate planning.

The truth is that Young Families need estate planning just as much as older families with substantial assets.  The single most important reason that a Young Family needs estate planning is to designate Guardians for their minor children.  Guardians are the people who will assume care and control of minor children should both parents pass away or become unable to care for their children.  Parents can select whom they would like to act as Guardian in both a Will (in case of death) and a Durable Power of Attorney (in case parents can no longer care for themselves).  If you do not designate a Guardian, it may fall to a judge to determine who is best suited to act as Guardian.  While all judges strive to make a decision in the best interest of the children, they do not always have all the information necessary to make a wise decision. Young Families should avoid this possibility by drafting a Will and a Durable Power of Attorney and naming the Guardians of their choice.
 
Durable Power of Attorney documents are vital for Young Families.  They allow parents to designate who will make decisions on their behalf should they become unable to do so.  Spouses are typically granted access to each other’s medical records.  But other family members, friends, even long-term boyfriends/girlfriends, are nearly always denied access to medical records.  A Durable Power of Attorney can designate a person that has access to your medical records and is empowered to make health care decisions on your behalf.  An unfortunate modern day scenario would be a car accident in which both parents are seriously injured.  Neither is able to make decisions for themselves or each other, and neither is able to care for their children.  Certainly neither is able to grant Power of Attorney to somebody else at that time.  Durable Power of Attorney documents can help alleviate problems that arise at this time by clearly indicating who is empowered to act as Guardian of minor children, and who is authorized to access medical records and make health care decisions on behalf of the parents.  Durable Power of Attorney documents can also give a person authority over the finances of the parents.  This allows the authorized person the necessary funds to pay for the health care of the parents and the welfare of the children while parents are unable to do so.
 
Estate planning is more than just a tool for managing and distributing your assets.  Young families with few assets to their name should use estate planning to make sure that their minor children will be cared for should anything ever happen to the parents.
 
For additional information about Estate Planning, we invite you to CLICK HERE to contact Luis Aragon of Aragon Law or call him directly at 206-999-8705.

Getting Organized in 2011

Hopefully 2011 is off to a great start for you.  As part of your ritual you may have made resolutions that include getting more organized, clearing things out, and being more efficient.

Eliminating unneeded paper and electronic communications that come your way is a great way to free up time and space, make you more effective and also help the environment.  Some simple ways to accomplish this include:

-  Go paperless with your bills. 

If you have access to a reliable computer and e-mail account, have your bills sent to you electronically.  Electronic bills provide the same information, right to your e-mail inbox.  Instead of having to pick them up from your mailbox, put them somewhere you hope to locate again and then remember to pay them, you will receive them in your inbox.  Tag the e-mail to remind you when to pay them or, better yet, schedule them up to be paid online.

-  Eliminate the many credit card applications you may be inundated with.  This not only eliminates the unwanted paper, but also eliminates the risk of these applications getting into the wrong hands.

Go to www.OptoutPrescreen.com to be removed from these mailing lists.

If you find yourself interested in a new credit card, go to http://www.bankrate.com/credit-cards.aspx for information on different cards and offers.

-  If you have catalogs you receive that are not useful to you, ask to be removed from their distributions lists.

www.dmachoice.org offers the opportunity to be removed from all or select catalogs.  This does not include catalogs from companies you are previous customer of.

To be removed from the mailing list of the companies you have previously purchased from you can contact the company directly and ask to be removed from their distribution list.

-  If you receive e-mails that you do not find useful, ask to be removed from the distribution lists.

Check the bottom of the e-mail for an opportunity to “unsubscribe.”  Most distribution lists offer that.  If not, respond to the e-mail that was sent with “Unsubscribe Please” in the subject line.  Ask them to remove you from their distribution lists.

If you receive forwarded e-mails (with jokes, pledges, etc.) that are unwanted, politely ask the senders (even if they are friends of yours) to not forward them to you. 

This will be a great start to free up your time to do more constructive work and help the environment.

Choosing Your Place of Domicile

Increased mobility in today’s society has changed the ways in which we live, work, and play. Compared to previous generations, it is now quite common for work and recreational activities to cross state lines, resulting in ownership of property and formal relationships in more than one state.

To this point, consider the terms domicile, statutory residence, and residence. At first, these terms may seem similar. However, understanding their distinctions can be important. Your domicile is the state where you maintain your permanent residence. It is the state to which you ultimately intend to return for prolonged periods. A person can have only one legal domicile at a time. A statutory residence is the place where you live and work, and therefore are subject to state income tax. If you are a statutory resident of one state, while claiming domicile in another, your state of domicile may also require you to file a tax return. Your residence is any place where you live. You may have more than one residence; in fact, many people do. The term “residence” itself has little or no legal significance.

Consider the Consequences

Your choice of domicile can affect your overall financial plan. First, consider property ownership issues. Not all states define property ownership in the same way. Some allow married couples to own property and income separately. In others—called community property states—married couples share ownership of all assets acquired during the marriage, though each spouse may own previously acquired property separately.

In addition, your choice of domicile can affect your state income tax. Your income may be taxed in your state of domicile, the state where you earned it, or both. If you change your domicile during the tax year and both your present and former domiciles tax income, you may have to file partial-year tax returns in both states.

Your domicile also determines the jurisdiction where your will is probated. If your domicile is unclear at your death, several states may be able to claim you as a domiciliary and tax your estate accordingly. Keep in mind that estate tax laws vary by state, and state laws may differ from Federal laws. In some states, your spouse may be taxed on a portion of his or her inheritance that, in another state, would pass to him or her free of state estate tax. Some states exempt smaller estates and certain property from the probate process. Other considerations may also apply.

Establishing or Changing Your Domicile

Fortunately, there are steps that can be taken to establish your state of domicile. Your domicile is generally not determined by the length of time you spend in a state. You may establish a domicile the first moment you occupy a property, or you may spend years in a place and never call it your domicile. If you marry a person domiciled in another state, you may be able to claim your spouse’s domicile as your own, even if you never visited that state.

If you have moved, your “true” domicile may hinge on the number and significance of the contacts you have in your former and present state. Consider the following significant factors:

• Retention of “historical” home. If you have moved, have you sold your long-time residence in a former state?

• Business relationships. In which state are your significant business contacts located?

• Location of property. Where is most of your significant real and tangible personal property located?

• Social connections. Where do you maintain political, civic, religious, and family connections?

• Time spent. Where do you spend the majority of your time?

While you may feel your intent is clear, it is most likely that your actions will be viewed as the evidence of your intentions. Consequently, simple acts such as changing your voter registration to the new locale, changing your automobile registrations and driver’s license, formally resigning from organizations in your former state, and formally joining organizations in a new state may be viewed as evidence of your intent to change your domicile.

Your choice of domicile can affect your overall financial plan. For specific guidance applicable to your unique circumstances, be sure to consult your tax and/or legal professionals.

Should you have any questions about your overall financial plan, we invite you to CLICK HERE to contact Patricia Parsons of Mass Mutual or call her directly at 425-941-9007

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