Important Tax & Retirement Planning Deadlines for 2012:
Sept. 30 ? Beneficiary Designation Date. It may be possible for beneficiaries of IRAs and Qualified Retirement Plans to take Required Minimum Distributions based on their own single life expectancy only if the deceased IRA or QRP account owner had a Designated Beneficiary(s).
Oct. 1 ? 2012 Catch-up Contribution Universal Availability Deadline. Individuals who attain age 50 or over on or before December 31, 2012 may make catch-up contributions to applicable employer retirement plans.
Oct. 1 ? Deadline to Establish SIMPLE IRA Plan for 2012 Plan Year. An employer may set up a Simple IRA plan any date between January 1, 2012 and October 1, 2012.
Oct. 1 ? Deadline to Set Up a New Safe-Harbor 401(k) Plan for 2012 Plan Year. The first plan year must be at least a three-month plan year.
Oct. 15 ? Last Day to Recharactorize a 2011 Conversion to a Roth. These taxpayers are (1) those whose Roth IRA has experienced a drop in market value of the assets following a 2011 conversion from a traditional to a Roth IRA, and (2) those who made a Roth IRA contribution and their AGI exceeded $125,000 for a single filer, or $183,000 for a married filer.
Nov. 2 ? Deadline for Providing SIMPLE IRA Required Notices (Including Notification of Plan Termination). Employers sponsoring a SIMPLE IRA plan must provide each eligible employee with two required notices 60 days prior to the start of the 2012 plan year. First, provide either (1) a Summary Plan Description (SPD) for the plan, or (2) a copy of the IRS Form 5304-Simple or 5305-Simple. Second, employers are also required to notify each eligible employee that he/she may make or change salary reduction elections during this 60-day period.
Dec. 1 ? Deadline for Notification of Switch from Regular 401(k) or Profit Sharing Plan to a Safe Harbor 401(k) Plan. Employers that have amended their existing 401(k) or PSPs to include a safe-harbor 401(k) provision effective 2012 must provide written notice to each eligible employee between 30 and 90 days prior to the start of the 2012 plan year.
For more information on these and other year-end tax and financial planning opportunities, please consult with your Financial Advisor or CPA. This material was prepared by Raymond James for use by James B. Kruzan, CFP?, CRPC? of Raymond James Financial Services, Inc. Member FINRA/SIPC.

Have you assessed your emergency savings fund lately? Do you have six to 24 months of living expenses set aside in case an unforeseen emergency arises?
In these uncertain economic times, many find it difficult to routinely save for an emergency that has yet to happen. What starts out being a great savings plan idea usually dissipates while trying to make ends meet month to month.
Here are ideas to help you develop a routine and to build an emergency savings fund:
Be Honest About Your Finances. Take a long hard look at your financial health. Know what income you have coming in on a month to month basis and know what expenses you have going out on a month to month basis.
Identify Your Discretionary Cash Out Flow. Know where your everyday cash is going. How often do you go out to lunch during the work week? How often do you start the day with a latte from Starbucks?
Pay Yourself First. Make saving a priority. Think of your emergency fund savings account as a monthly bill that must be paid.
Use Cash. A cash-only spending plan can be extremely beneficial for a variety of reasons.
Some studies indicate people spend less when paying with cash. Discretionary spending changes for the better.
Don’t Spend ‘Found? Money. Sometime in one’s lifetime, money turns up unexpectedly. It’s found in the pocket of a seldom worn coat or in a purse that is only used seasonally. When cash appears unexpectedly, don’t spend it; deposit it to your emergency savings fund.
Direct Deposit. Set up your paycheck, tax return and/or other income as Direct Deposit to your savings account then transfer only what you need to your checking account in order to pay your monthly living expenses. Excess cash stays in savings and is not inadvertently spent.
Reduce Spending. Always look at ways to reduce spending. Not all expenses are fixed. There is always a way to reduce or even eliminate expense.
Any of these ideas can help create, preserve and build an emergency savings fund. What is important is that it gets started. The results down the road may be notable.
This material was prepared by Raymond James for use by James B. Kruzan, CFP?, CRPC? of Raymond James Financial Services, Inc. Member FINRA/SIPC.

Recent economic reports have observed that Americans reverted back to the credit-dependent trends of the eighties. Apparently, the nation’s populace hasn’t heeded the warnings regarding carrying too much debt.
Unfortunately, this statement could be applied to the federal government as well.
For families grappling with swollen credit card balances, professional financial advisors offer a three-step strategy for coping with year-end bills and avoiding future troubles. The International Association for Financial Planning (IAFP) recommends understanding the credit terms of card issuers; learning how, and whether, cards should be used; and developing an aggressive plan for paying off debts.
Consumers should find out the conditions and policies of their lenders, such as length of grace period, whether the interest rate is fixed or variable, and how much is charged for cash advances.
Most consumers only need one major credit card that is universally accepted. For people who have the cash flow to pay off balances each month, a charge card ? rather than a credit card ? is a better choice. If credit is needed, choose a card with the lowest available interest rate. Often, people with one or more credit cards should look for a card that charges less interest and transfer all of their debt to that one card.
Ultimately, the way to bring credit card debt under control is with an aggressive play to pay off existing balances. After consolidating as many credit card bills as possible, tackle the card with the highest interest rate first. Pay as much as possible toward the principal each month, while paying the minimum required on any other cards. As you eliminate the balance, begin paying more toward the principal on the others.
Credit cards sometimes make sense for smaller or short-term needs, but for major purchases, a home equity line of credit might be a better choice since the interest is lower and is usually tax deductible. Understanding the proper use of credit cards is an important part of the overall financial planning process. Be sure to check with your financial advisor to see what alternatives are available to you.
This material was prepared by Raymond James for use by James B. Kruzan, CFP?, CRPC? of Raymond James Financial Services, Inc. Member FINRA/SIPC.

As you plan for retirement, you may count on an employer sponsored “qualified” retirement plan such as a pension plan, profit sharing plan, or 401(k). Or perhaps you’re counting on your traditional IRA or your Roth IRA. Someone else may be counting on those assets, too. Creditors, perhaps? It would be nice to know if creditors could get to your retirement savings.
Up to now, your qualified plan accounts find their creditor protection in federal law and are generally fully protected – no matter how large. Your IRAs, however, find their protection in state law and, unfortunately, many states do not fully protect IRAs. In fact, the level of IRA protection varies widely by state and so has been a point of confusion for many investors. For those with little or no state IRA protection, federal bankruptcy law offers up to $1 million in IRA creditor protection.
This $1 million protection limit for IRAs applies to all of your traditional IRAs and Roth IRAs. Assume your state law offers little or no protection to IRA assets and you own two traditional IRAs and one Roth IRA. If each IRA is worth $200,000, you would have a total of $600,000 in IRA assets. The new federal bankruptcy law protects up to $1 million. So, your IRA assets should be fully protected from creditors. But, let’s assume that when you retire, you roll $500,000 from your 401(k) into one of your IRAs which will increase your total IRA assets to $1,100,000.
Amounts rolled over from qualified retirement plans, and the future growth on those rollover amounts, are both fully protected under the new federal law. These amounts are not counted toward your $1 million limit. So, in your case, the $500,000 of 401(k) monies you rolled into your IRAs is protected and is not counted toward your $1 million limit. The remaining $600,000 ($1,100,000 less $500,000) is still entirely protected as it falls below the $1 million limit. All of your $1,100,000 IRA assets are protected.
To simplify your “counting,” you may want to keep your qualified retirement plan assets in an IRA other than the one to which you make your regular annual contributions. The best way to do this may be to establish a separate IRA and roll your “qualified” retirement plan assets directly into this new IRA. The rollover amount and all future growth will be easily identifiable.
Proper financial planning includes making decisions about how to handle rollovers of qualified plan accounts and manage risks, including the potential risk of creditors.
The important thing to remember is that you should avoid making rollover, risk management, or other financial decisions, based solely on one aspect of risk management. Consult your financial advisor for assistance.
This material was prepared by Raymond James for use by James B. Kruzan, CFP?, CRPC? of Raymond James Financial Services, Inc. Member FINRA/SIPC.

The road to successful investing is paved differently for each investor. One investor’s road to success may be the high road while another’s may be the low road. But common to both investors is basic principles that are true to form no matter which road an investor finds themselves taking. Below is a list of some basic principles that may lead an individual along the road to successful investing.
Formalize you goals. As with the achievement of any goal, commitment to the goal is half the battle. Formalize your commitment to attaining your goals by writing them down, both short and long-term. Track your progress by updating them annually.
Invest early. Procrastination is an investor’s worst enemy. Though there is no perfect or ideal time to start investing now may be the best time of all.
Invest in what you understand. If you do not understand how an investment works, you will not fully understand the risks associated with that investment. Is it really worth it placing your hard-earned money in this type of investment?
Consider the impact of inflation and taxes. Inflation and taxes erode an investor’s purchasing power. The consideration of investments that minimize the impact of these two forces may be key in meeting your goals.
Your portfolio is for you and you alone. The design and formulation of your portfolio is based on your goals, time horizon and risk tolerance. Understand that what may work for your friend, cousin or colleague may not work for you because one size does not fit all.
A basket of eggs is better that one. Diversification of your investment assets may bring the positive benefits of potentially reduced volatility to your investment portfolio basket. Mutual funds are a cost efficient way to invest while at the same time reaping the potential benefits of
diversification.
Use time, not timing when investing. Trying to correctly time the ups and downs of the market is a risky, if not impossible, task. Most investors will fare far better by keeping their investment assets in the market the entire time. It is time in the market, not timing in the market.
The old team player may be better than a young hotshot. Try to avoid the temptation of investing in the new ‘hotshot? investment that may lose its luster quickly. Seek investments with solid track records that will benefit you more over the long run.
Know when to cut your losses. Many investors do not know when to get out of an investment.
If your investment selection is heading south and most likely won’t return to previous form, face the music and consider getting out before your lumps get too big.
This material was prepared by Raymond James for use by James B. Kruzan, CFP?, CRPC? of Raymond James Financial
Services, Inc. Member FINRA/SIPC.

At the end of each month, many people ask the following question: What happened to the money I was going to save?
One of the best ways to gain control of your money is by developing a written spending plan.
A spending plan can help you to:
? See where your money goes
? Reduce unnecessary expenses
? Evaluate needs and wants
? Locate money in your budget for large expenses, emergencies and long-term goals
Here’s how to begin building your financial framework:
? Discover where your money goes. For one month, make notes on all expenditures. Get out last year’s checkbook register to determine what you paid for those items that are not predictable on a monthly basis (entertainment, hobbies, travel, etc.).
? Categorize your expenses by areas (i.e. food, clothing childcare, utilities and transportation).
Write down everything, even the popcorn you had at the movies! You’ll be surprised where those hard-earned dollars go.
? Prioritize your financial goals and determine how much you’ll need to save each month. Think long-term and short-term goals.
? Bring your goals in line with your income (i.e. new car, less expensive car, wait another year for a car). Putting off a purchase is called ‘delayed gratification.?
? Make the written plans realistic. Over a few months? time, you can get your spending on track and make progress toward your specific financial 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.

It has become common to see headlines in local newspapers about investors being the subject of investment scams.
These crimes are not isolated to the senior citizen population or to a specific geographical location.
Victims are being reported all across the country and across gender lines.
The question becomes ‘How do you protect yourself from becoming the next victim??
Listed below are some suggested tips that can be used.
1. Never spend money on investments solely on the basis of a phone call.
2. Don’t be rushed by ‘buy now? investments. Legitimate investments will always be available.
3. No one can guarantee a risk-free investment.
4. Never give personal information over the phone, especially social security number, credit card or bank account information.
5. If you don’t understand it, don’t buy it.
6. Always remember, if it sounds too good to be true, it probably is.
7. Do not invest due to fears (e. g., health care, inflation, or interest rates). Fear clouds judgment.
8. Request written information and run it by your financial advisor.
James B. Kruzan, CFP, is a Registered Principal and Branch Manager for Raymond James Financial Services, Inc., Fenton and Clarkston.

Recent studies suggest that about 40 percent of all people who reach 65 will spend some time in a nursing home.
One in four will spend more than a year in a nursing home. One in 10 will require nursing home care for five years or more. Those same studies put the national average cost for a year of nursing home care at about $79,935 and this number can run higher in major metropolitan areas!
Can you afford nursing home care? Take this test and see.
First, add up all your annual sources of income from pensions, social security and the like. If you are married, add both spouses? income. To that figure add all investment income from interest, dividends, rents, etc. From your total income, subtract the annual cost of a year in a nursing home in your area.
If the difference between your income and the cost of a nursing home is a negative number, you’ve got a real problem.
Principal will be required to pay both the nursing home and to pay the living expenses for the spouse still at home.
If the number is positive, ask yourself this question: ‘Can I live on that??
If you must spend principal, how long will your assets last? Remember if you consume principal this year to pay the nursing home, there will be less to invest to produce income next year.
If there is less to invest, your investment income will probably go down. If your investment income decreases, you’ll probably need to consume more principal next year to meet costs.
This is the start of an accelerating downward spiral.
Nursing home costs have to be paid. Either you or someone else must pay them.
There are only three possible sources of funds other than you; your family, the government or an insurance company. Could your family afford to shoulder the burden of your nursing home costs? Even if they are able and willing, would you ask them for help?
Contrary to popular belief, there is a national government program to provide funding for nursing home expenses. It’s called Medicaid.
Medicaid is a welfare program for the poor. In order to qualify for long term care under Medicaid, you either must be poor or become poor. Medicaid should be a last resort.
The best way to manage the risk of an extended nursing home confinement is through insurance.
Not only will you have coverage, but you’ll also have choices about where you receive care. These choices can help preserve your independence and dignity.
Purchasing a cost effective policy requires careful planning and investigation.
Of course, this brief article is no substitute for a careful consideration of all of the advantages and disadvantages of this matter in light of your unique personal circumstances.
Before implementing any significant tax or financial planning strategy, contact your financial planner.
James B. Kruzan, CFP, is a Registered Principal and Branch Manager for Raymond James Financial Services, Inc., Fenton and Clarkston.

By James B. Kruzan, CFP
Many individuals save for their children’s education by participating in the U.S. Government’s Education Bond Program. The benefit many see with saving in this program is their investments in savings bonds (Series EE and I bonds) grow tax deferred. The program also provides a savings bond tax exclusion that permits individuals to exclude from their income all or a portion of the interest earned (that has been growing tax deferred) when the bonds are redeemed and used for the payment of qualified higher education expenses.
The interest is tax-free when the bond owner pays qualified higher education expenses at an eligible institution. To qualify, the bond owner must have purchased bonds issued after 1989 and has to have been at least 24 years old by the first day of the month in which the bonds were bought. This effectively eliminates the benefits of the education tax exclusion for bonds purchased in the name of a minor child. Typically, the bonds are in one or both parents? names.
When bonds are bought by other individuals such as grandparents, other relatives or friends, the buyer will want register the bonds in the parents? names. In this case, the tax exclusion isn’t available to the buyer but may be available to the parents if the other limitations are met. You may wonder why the exclusion is not available if the grandparents purchase the bonds. The exclusion is only available to the person who claims the student as a dependent on their tax return and that person is typically a parent. This rule eliminates most grandparents from receiving the exclusion benefit.
In addition, the exclusion is available only if the bond owner’s income (which must include the interest earned on redeemed savings bonds) is under certain limits in the year the bonds are redeemed. In 2009, the interest exclusion benefits was phase out for joint filers with a modified adjusted gross income (MAGI) between $105,100 and $135,100 ($70,100 and $85,100 for single filers) by a decreasing percentage above the threshold income level. Married individuals filing separately cannot receive the exclusion regardless of income.
If the value of bonds redeemed exceeds the amount of eligible expenses paid, only a proportional amount of interest income may be excluded. Keep in mind that qualified higher education expenses include tuition and fees for the bond owner, the bond owner’s spouse, or dependent. It also includes contributions made to a qualified tuition program (QTP) or Coverdell education savings account (ESA).
If you are interested in this savings program, you should first discuss the strategy with your Financial Advisor. It is critical that you understand the limitations of the program and do not make any mistakes that could disqualify you from the exclusion.
James B. Kruzan, CFP? is a Registered Principal and Branch Manager for Raymond James Financial Services, Inc., Fenton and Clarkston.

Nearly everyone has heard their doctor preach, at one time or another, about the need for routine checkups.
Yet, how often do you consider the need for a review of your personal finances?
By asking yourself the following questions you may determine that the time has come for a financial checkup.
? Do you have financial goals? If so, are they in writing and do they include deadlines?
? Is your debt under control? Do you pay off your credit cards each month?
? Have you reviewed your investment portfolio recently? Are you comfortable with the level of risk associated with your current investments?
? Are you satisfied with the rate of return that your investments are generating?
? Have you started a retirement fund yet? If so, will your current rate of savings provide an adequate fund to meet your future retirement needs?
? Have you reviewed your tax situation recently to see if there are ways to reduce your tax liability?
? Have you started a savings program to meet the cost requirements of your children’s college education? If so, will your current savings rate be adequate given the effects of inflation and rising tuition costs?
? Have you reviewed your life insurance coverage recently? In the event of an untimely death, will your current policies provide adequately for your spouse and/or children?
If you are not satisfied with your answers to any of these questions, contact your financial advisor today.
Together, you can work on getting your finances on track.
James B. Kruzan, CFP, is a Registered Principal and Branch Manager for Raymond James Financial Services, Inc., Fenton and Clarkston.

As an investor, it is of utmost importance to be able to answer certain fundamental questions: Will your current investment portfolio be able to meet both short- and long-term investment objectives, geared to your individual level of tolerance for risk?
One sound way to answer these questions is by utilizing asset allocation ? a disciplined, objective investment game plan that will help you meet your financial goals.
A simple asset allocation model for an individual investor generally requires a portfolio of assets divided into three categories ? stocks, bonds and cash.
Each is assigned a fixed percentage. Based on this strategy, a conservative portfolio would generally contain more bonds and cash than stocks. A more aggressive portfolio might contain a higher percentage of stocks.
Asset allocation is flexible and revolves around personal needs. However, professional financial advisors have generally found that investors at various age levels tend to be best served by adopting allocation models that address the needs of their ‘life-cycle phase?. In most cases, the longer your investment time horizon, the more aggressive your investment strategy might be.
For example, investors in their 30s and 40s tend to have several needs and concerns in common (e.g., children, new home, college education, retirement planning). To address these concerns, an asset allocation plan that emphasizes stocks is often recommended because they historically have provided superior returns over time.
Even though past performance may not be indicative of future results. At the other end of the spectrum are investors who are close to or who have entered into retirement. Their goal might include providing enough income to maintain a lifestyle, or growth of their capital to ensure they do not outlive their assets. For these investors an above-average holding in bonds may be recommended.
James B. Kruzan, CFP? is a Registered Principal and Branch Manager for Raymond James Financial Services, Inc., Fenton and Clarkston.