Close your eyes and visualize your dream vacation or the shiny new car that you’ve always dreamed of owning. Sure, looks great! Unfortunately, for many of us the planning stops right there. With a little planning and discipline the likelihood of achieving our goals can be dramatically improved. Consider implementing one, if not all, of the strategies listed below to improve your financial picture.
? Write down your financial goals and objectives, include deadlines. This will help you stay focused.
? Use credit cards as little as possible. Financing your lifestyle with credit cards is a trap. Reach for your checkbook instead.
? Pay off your credit cards each month. With the new minimum payment requirements around 5%, consumers will get out of debt quicker.
? Spend a little, but save a little more. As your debts are paid off, save the ‘extra? cash each month. Many people are tempted to overspend with the ‘extra? cash.
? Keep a savings balance of at least 6 months of expenses. This cash cushion can be used when emergencies do arise instead of charging on credit cards.
? Map out a college savings plan and begin funding early.
? Manage taxes early in the year and look for deductions, credits and deferral of income to reduce your tax bill. The savings on taxes can be used for other goals.
? Go for steady, consistent, long-term growth in your investment. By the time you read about a ‘hot tip? it’s usually cold.
? Protect your valuables and income earning potential with appropriate insurance policies including mortgage, life, and disability policies.
? Invest for retirement. At best, Social Security will cover only a fraction of the money you will need for retirement. Talk to your financial advisor about preparing for a comfortable retirement.
? Create an estate plan. Many people think you must be super wealthy to do estate planning which is not true. Avoiding probate and passing assets to heirs estate tax free, may be the main goals.
This material was prepared by Raymond James for use by James B. Kruzan, CFP?, CRPC? of Raymond James Financial Services, Inc. Member FINRA/SIPC.

In this time of corporate downsizing and restructuring, many find themselves pursuing a new career with a new employer. Embarking on a new career should inspire a revision of existing retirement plans including future income, eventual age of retirement, and standard of living.
In addition, don’t ignore your current employee benefits package. Employee benefits and ‘perks? can account for more than a third of the total compensation your new employer has to offer and should be an important consideration in a complete financial plan.
It’s important to understand how to get the most benefit from the options available in your new position. Of course, working with the employee benefits people to gain a full grasp of all that is available is your best option. Here are a few tips.
Coordinate health benefits with your existing health coverage. Avoid duplicating coverage or you’ll end up paying for what you don’t need.
Contribute as much as you can to your company’s qualified retirement plan. If your employer offers matching funds, increase your saving enough to maximize that contribution. Tax-deferred buildup and matching contributions are two ‘perks? that are too good to pass up.
Review disability options. The chances of an employee becoming disabled for an extended period of time and prevented from working are far greater than those of dying before 65. Many benefit plans offer good coverage much cheaper than that available from insurance companies.
Determine how much life insurance you need. If you have dependents, you may need to have additional life insurance outside the coverage provided in your benefits package.
Consider private life and disability insurance if you change jobs often. These benefits are transferable, so your coverage will continue and you won’t be exposed during career transition.
Find out about other benefit options your employer provides such as child care, paid vacations and holidays, extended leave policies, education reimbursement, and employee discount packages.
Review your benefits regularly and adjust your participation to changes in your family and life. Be sure they still meet your long-term concerns and goals.
With the help of your financial planner, making well thought out choices about your employee benefits will make you enjoy your new career move and help you stay financially healthy.
This material was prepared by Raymond James for use by James B. Kruzan, CFP?, CRPC? of Raymond James Financial Services, Inc. Member FINRA/SIPC.

Today’s job market is more transitory than ever. And, as more and more individuals switch jobs, they begin to wonder what they should do with the money they’ve accumulated in their employer-sponsored retirement plans.
The good news for 401(k) plan participants is that your retirement plan assets are very portable so you may be able to keep your existing 401(k) plan assets in a tax-deferred environment.
The trick is to resist the urge to use the monies. A hasty withdrawal decision by someone under age 55 could easily wipe out a third of your 401(k) assets. If you decide you want a lump-sum withdrawal paid directly to you, the 401(k) plan trustee must withhold 20% for federal income tax and, if you do not attain age 55 prior to the end of the year in which you separate from service, the trustee must also withhold an additional 10% premature distribution penalty.
After age 55, however, the premature distribution penalty is no longer imposed if your withdrawal is prompted by your separation from service with the employer sponsoring the plan.
Of course, if you choose to take a withdrawal, you may, within 60 days of the distribution, subsequently decide to deposit it into an IRA as a qualified rollover. However, for the withdrawal and re-contribution to be a tax neutral event, you would need to deposit the gross distribution amount into the IRA, which means you need to replace the withheld monies with funds from another resource such as your personal savings.
To be in the best position to make an informed decision, you should consider other options available for your existing 401(k) assets, such as:
? Leave your assets in the 401(k) plan if possible
? Transfer your assets to a new employer’s 401(k) or retirement plan
? Roll your assets into an IRA
Your 401(k) plan account balance represents your savings; therefore, it is important to make informed distribution decisions that will preserve your hard-earned money. To learn more about the portability of your 401(k) assets, or for more information on preserving your 401(k) assets and 401(k) retirement planning strategies based on your particular situation, contact your Financial Advisor.
This material was prepared by Raymond James for use by James B. Kruzan, CFP?, CRPC? of Raymond James Financial Services, Inc. Member FINRA/SIPC.

Many investors rely upon financial advisors to help them manage their investment portfolio. Ideally, the financial advisor and investor should work together, as a team, to find the right investments and make informed decisions to help meet investment objectives. Below are some keys to developing a partnership with your financial advisor.
Review investment objectives. Your financial advisor will help define your investment objectives, but he or she needs your assistance to do a thorough job. Think through your objectives before your next meeting. Your participation and feedback will greatly aid your financial advisor in formulating a strategy that fits your unique goals, timeline and risk tolerance.
Ask questions ? be an informed investor. Be sure you fully understand the investments recommended for your portfolio. If you don’t, it’s your responsibility as an investor to let your financial advisor know you need more information. Don’t be afraid to ask questions about your financial advisors recommendations and advice, after all they’re your investments!
Understand the risks with each investment. It’s important to fully understand the risks in every investment you own and the reasons why the value of your investments may rise and fall. Your financial advisor can help explain the risks involved with each type of investment, and your questions will help make sure nothing is overlooked. If you don’t completely understand the risks associated with your investment, ask more questions until you do.
Meet regularly to review your portfolio. Use these meetings to your advantage, go over your current investments, their performance and evaluate other investment opportunities. Regularly scheduled meetings with your financial advisor are a good time to inform him or her about significant changes in your life that may require shifts in your strategy. Also, major changes in the economy or new tax laws should also prompt a review.
Maintain up to date records. Make sure your confirmations and account statements are reviewed and saved in a safe place. These documents help you monitor your investments on an on-going basis and will be useful come tax time. When you come across something you don’t understand, ask for assistance from your financial advisor. The key is being an informed investor and keeping good records will aid you in this task.
James B. Kruzan, CFP, is a Registered Principal and Branch Manager for Raymond James Financial Services, Inc., Fenton and Clarkston.

Accidents, lawsuits, taxes and other financial risks are simply the facts of life. Here are a few basic ways you can protect your assets aside from using insurance.
A is for ADVICE. Your first step is to engage professionals. You’ll need a variety: legal, tax, and financial. Asset protection should not take place in a vacuum so a multifaceted approach is necessary. Different assets are exposed to different types of risks. Depending on your specific situation, different types of risks require different types of protection be applied at different times. For example, a ‘qualified disclaimer? can potentially be quite useful in minimizing the portion of your family’s wealth that goes to the IRS via the estate tax. Knowing when and how much to disclaim can be very valuable advice.
B is for BUSINESS. Your business is your own, not your neighbor’s. Conversely, your personal investment account is your own, not your business creditor’s. Or is it? Your business creditors may be able to reach your personal assets, and vice versa, especially if you are a sole proprietor. A partnership can be even worse, as your partner’s personal creditors may be able to reach partnership assets. Additionally, you may be personally liable for your partner’s professional actions, not just your own. Choice of business type can be instrumental in providing an asset protection element to your financial plan. Certain types of business entities and insurance products not only shield business partners from the business risks discussed; but, may also provide an efficient estate planning strategy.
C is for CONTRIBUTIONS. Contribute to your employer sponsored retirement plan. Contribute to your IRA. Your employer sponsored retirement plan enjoys federally legislated creditor protection under ERISA. ERISA protects your accrued benefit in your employer sponsored defined benefit (pension) plan, 412(i) plan, profit sharing or 401(k) plan. IRAs find their protection under federal Bankruptcy laws and under state law and are generally similarly protected.
James B. Kruzan, CFP, is a Registered Principal and Branch Manager for Raymond James Financial Services, Inc., Fenton and Clarkston.

‘How long will it take my investment to double?? This is a common question many may have concerning their investments and think a calculator is needed to provide an answer. But a calculator may not be needed, at all.
The tool to use is called the Rule of 72 and, best of all; it is simple and free. This is how it works. If an individual has an investment they think will grow at an assumed rate of return per year, then simply dividing that rate of return into 72 will provide a rough estimate of the number of years it will take for the investment to double in size.
For example, let’s assume an investment is assumed to grow at an average rate of return of six percent each year. Simply divide six into 72 will give a rough estimate that it will take 12 years for this investment to double (72 / 6 = 12). This formula assumes a fixed annual rate of return and the reinvestment of all earnings. Keep in mind that very few investments offer a guaranteed rate of return and that an investment’s past performance does not guarantee future performance.
The rule of 72 may also be used to show the negative power of inflation. This may be an especially handy tool to those individuals in their retirement’s years and, also, for those approaching the retirement decision. Using this tool an individual can estimate the number of years it will take for his or her cost of living to double. Or put another way, how long before an individual’s purchasing power is cut in half.
For example, let’s assume an individual is retired and forecasts an inflation rate of five percent per year. An inflation rate, in general terms, is the rate of increase in the prices of goods and services individuals purchase over time. Forecasting an inflation rate of five percent means the individual is assuming the prices of the goods and services he or she will purchase in the future will increase at a rate of five percent per year. Using the rule of 72, simply dividing five into 72 will provide a rough estimate that the individual’s cost of living will double in 14 to 15 years (72 ? 5 = 14.4).
James B. Kruzan, CFP, is a Registered Principal and Branch Manager for Raymond James Financial Services, Inc., Fenton and Clarkston.

While the long-term performance of equity markets has historically been a steady up trend, short-term direction is always unpredictable. Amid all of this misgiving about the market’s course, what should investors do? Here are some suggestions:
Stay balanced
Build a well-diversified portfolio where different sectors will complement each other and may not always move in the same direction at the same time. It should comprise cash equivalents, bonds, equities, and real estate and tangibles. Your Financial Advisor will help determine how much weighting to give each category and how to sub-allocate within each given an individual’s time horizon and risk tolerance.
Reassess risk tolerance
Amid market turmoil, investors may realize that they don’t quite have the stomach for stock market volatility they thought. Upon discovering risk tolerance is much lower than imagined, move incrementally toward a more appropriate investment mix. A well-diversified portfolio generally helps to offset instability and can put investors on the path toward achieving financial goals.
Count cash ? liquidity is key
In the event of a market downturn, investors should determine how long they could go without selling stocks, considering income, pension, Social Security and cash and bond holdings. This exercise can help bring the market’s short-term swings back into perspective and help re-focus long-term goals.
Keep a diary
Consider keeping an investing diary. Investors sometimes suffer from selective memory. They may remember thoughts of selling stocks right before a market downturn, but forget that they had that same thought many other times prior to the market’s rise. By keeping a diary, investors can see how often their instincts may be wrong.
Take advice from a financial coach
Seek the advice of a qualified Financial Advisor for coaching through the ups and downs of the emotional investing roller coaster and remain focused on long-term goals.
James B. Kruzan, CFP? is a Registered Principal and Branch Manager for Raymond James Financial Services, Inc., Fenton and Clarkston.