Helpful Articles

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BUDGETING FOR RETIREMENT

It only makes sense – yet many retirees live without one.

Presented by Forest Hills Financial Inc. & Shannon Simon

You won’t be able to withdraw an unlimited amount of money in retirement. So a retirement budget is a necessity. Some retirees forego one, only to regret it later.

Run the numbers before you retire. Often people need about 70-80% of their end salaries in retirement, but this can vary. So years before you leave work, sit down for an hour or so (perhaps with the financial professional you know and trust) and take a look at your probable monthly expenses. Online calculators can help.¹

The closer you get to your retirement date, the more exact you will need to be about your income needs. You first want to look for changing expenses: housing costs that might decrease or increase, health care costs, certain taxes, travel expenses and so on. Next, look at your probable income sources: Social Security (the longer you wait, the more income you can potentially receive), your assorted IRAs and 401(k)s, your portfolio, possibly a reverse mortgage or even a pension or buyout package.

While selling your home might leave you with more money for retirement, there are less dramatic ways to increase your retirement funds. You could realize a little more money through tax savings and tax-efficient withdrawals from retirement savings accounts, through reducing your investment fees, and getting your phone, internet and TV services from one provider.

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SMALL FEES, BIG IMPACT

Seemingly insignificant charges in retirement plans can add up.

Presented by Forest Hills Financial Inc.

So much fine print goes unread. Few people realize how significantly 401(k) account fees can impact their retirement savings efforts. AARP recently conducted a poll of 401(k) participants and the results were eye-opening: 71% incorrectly assumed that they paid no account fees at all, and another 6% said they were entirely clueless about the matter.¹

In 2012, 401(k) plan sponsors will have to inform plan participants about the fees they pay when enrolled in these programs. Some of these fees are also common to IRAs.¹

What kind of impact are we talking about? The Department of Labor offers a hypothetical example.

An employee has a 401(k) account with $25,000 in it and 35 years to go until his retirement date.

Over time, he makes no further contributions to his account.
Over the next 35 years, his 401(k) generates an average 7% annual return.
If the plan’s fees and expenses are just 0.5% annually, he winds up with $227,000 in his account 35 years later.
If the plan’s fees and expenses take a 1.5% bite out of his return annually, he winds up with just $163,000 after 35 years.
All other factors aside, a 1% difference in annual fees would mean a 28% difference in his retirement savings over these 35 years.²

Financially, there is nothing trivial about these fees.

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12/09/2011 - DO YOU HAVE A SELL PROCESS?

With the market so volatile, you need one in place.

Provided by Forest Hills Financial Inc. & Shannon Simon

How should you plan to avoid forced selling? In the wake of all this recent volatility, you may be seeking a way to subtract as much impulse and emotion as possible from your sell decisions.

Have you set sell guidelines? While you can’t control the market, you can plan to maintain control of your losses. Has your advisor worked with you to create a sell discipline? If you consider yourself a serious stock market investor, you really should have one.

When you are forced to sell, you are reacting. You are allowing headlines, pressures, or short-term money needs to force your investment decisions. Impatience takes over – and in the stock market, impatience is not your friend.

If your ultimate goal is wealth preservation, a sell process can be very useful. It can help you recognize a mistake and deal with it - fast. It can define what a “loss” is for you. It can set the conditions that signal when to sell.

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12/01/2011 - It's Year-End Tax Planning Time

Presented by Forest Hills Financial Inc., Jaime Westenbarger & Shannon Simon

As the end of the year approaches, we know you are busy with holidays, family, and travel, but it is also a good time to do some last minute tax planning. As a courtesy, we want to provide you with a few eleventh-hour tax tips you may find useful. Although tax planning is rarely fun, these strategies could help you keep more of your hard earned money.

Year-end tax planning is especially challenging this year because of ongoing uncertainty related to whether Congress will enact sweeping tax reform. And even if there is no major tax legislation in the near future, Congress will still have to deal with a number of tricky issues in 2012, such as what to do about the expiration of the Bush-era tax cuts on December 31^st. Regardless of what steps are taken, spending a little time on tax planning now is a good idea.

Get Organized
This is an excellent time of year to get your financial house in order. Gather cash receipts to help you calculate possible deductions and miscellaneous payments. Do you have a hobby or activity that generates income? If so, any losses might also be eligible for deduction. Have you made home improvements? Charitable contributions? Get all of your documentation together early to make your life a little easier in April.

Contribute the Maximum to Your Retirement Plan
You have until April 17, 2012 to make IRA contributions for 2011, but the sooner you get your money into the account, the sooner it has the potential to start growing tax-deferred. Making deductible contributions also reduces your taxable income for the year. You can contribute a maximum of $5,000 to an IRA for 2011, plus an extra $1,000 if you are 50 or older. This limit can be split between a traditional IRA and a Roth IRA if you desire, but the combined limit is still $6,000.[i]The amount you can contribute to a Keogh plan depends upon the type you choose.[ii]

[i] http://www.irs.gov/retirement/article/0,,id=202510,00.html

[ii] http://www.irs.gov/retirement/article/0,,id=202510,00.html

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11/04/2011 - WHAT DO YOU DO WITH SUDDEN WEALTH?

You’re suddenly rich. Now what?

provided by Shannon Simon & Forest Hills Financial Inc.

What’s the plan when you have a windfall? Through luck, inheritance, talent, or legal decisions, some people receive “sudden wealth” – a lump sum of money that is at least several times their annual income. Sometimes people think that the money will solve all of their problems. But if they aren’t careful, it can create entirely new ones.

Sudden wealth often comes with emotional baggage attached to it. If you’re suddenly wealthy, you may experience degrees of fear, guilt, anxiety and even paranoia in the months following your good fortune. As Dennis Pearne, Ed.D., author of The Challenges of Wealth notes, sudden wealth “changes what you can do, what you no longer have to do, where you can live” and other aspects of your life that seem set in stone. “So much changes so fast that it can be terribly overwhelming, and some people go into money shock.”¹

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10/28/11 - YOUR FINANCIAL TO-DO LIST

Things you can do before and for the New Year.

Presented by Forest Hills Financial Inc. & Shannon Simon

The end of the year is a good time to review your personal finances. What are your financial, business or life priorities for 2012? Try to specify the goals you want to accomplish. Think about the consistent investing, saving or budgeting methods you could use to realize them. Also, consider these year-end moves.

Think about adjusting or timing your income and tax deductions. If you earn a lot of money and have the option of postponing a portion of the taxable income you will make in 2011 until 2012, this decision can bring you some tax savings. You might also consider accelerating payment of deductible expenses if you are close to the line on itemized deductions – another way to potentially save some bucks.

Think about putting more in your 401(k) or 403(b). The IRS hasn’t announced the contribution limit for 2012 yet. Given the moderate inflation of late, we might see the annual limit rise to $17,000 from the present $16,500, or not. In 2011, you can contribute up to $16,500 per year to these accounts with a $5,500 catch-up contribution also allowed if you are age 50 or older. Has your 2011 contribution reached the annual limit? There is still time to put more into your employer-sponsored retirement plan.¹

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10/21/2011 - STOCKS IN THE FOURTH QUARTER

Can the last quarter of 2011 live up to historical averages?

Presented by Forest Hills Financial Inc. & Shannon Simon

Is a rally ahead? You may have heard that stocks tend to do well in the fourth quarter. History affirms that perception: while past performance is no guarantee of future results, the last quarter of the year has historically been the best quarter of the year for U.S. equities. As data from Bespoke Investment Group notes:

The S&P 500 has averaged a +2.44% performance in fourth quarters since 1928.
In the last 20 years, it has averaged +4.57% in fourth quarters.
In the last 30 years, it has advanced in 24 of 30 fourth quarters with an average price return of better than 7%.¹

Will the Street put its anxieties aside? Right now, you have a lot of uncertainty. Many analysts see a stock market unimpressed by tepid domestic growth and waiting fearfully for the other shoe to drop (meaning Greece).They see more pain ahead for U.S. investors. On the other hand, there is also talk of when a point of capitulation might be reached, i.e., is Wall Street simply ready to rally even in the face of the debt troubles in Europe and the slow recovery here.

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10/14/11 - CHOOSING A FINANCIAL PROFESSIONAL

There’s nothing like doing your homework and being selective.

Provided by Forest Hills Financial Inc. & Shannon Simon

When we buy a car or a house, consider a school for our children, or plan our next vacation, what kind of approach do we take? For one thing, we take our time. We shop around and consider our choices.

Yet when it comes to selecting a financial consultant, not everyone takes such care.

MarketWatch.com senior columnist Chuck Jaffe sometimes speaks to audiences on this topic, and when he does, he likes to conduct an informal poll. First, he asks people to raise their hand if they have ever worked with a financial advisor. Many hands go up.

Next, he asks these people to keep their hands in the air if they hired the first financial advisor they met with in their search. Few if any hands are lowered. Then he asks them to keep their hands up if they did a background check on that person before agreeing to work together. After asking that question, Jaffe writes, “I have never had a single hand stay in the air.”¹

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10/07/11 - COVERDELLS VS. 529 PLANS

There is more than one way to save for college.

Provided by Forest Hills Financial Inc. & Shannon Simon

Today, some parents are wondering if they should convert Coverdell Education Savings Accounts to 529 college savings plans. With that mind, here is a brief look at how both of these accounts work.

Why were Coverdell ESAs so popular in the past decade? Imagine a Roth IRA used only for college savings. That's basically the concept behind a Coverdell. In fact, the Coverdell ESA (created in 2002) evolved from the Education IRA (created in 1998).

Contributions to a Coverdell ESA aren’t deductible, but you get tax-deferred growth. Contributions must be made in cash. Withdrawals from Coverdells are (currently) tax-free if used for qualified educational expenses such as tuition, fees and books. The funds can also pay for certain K-12 education costs.^1,2

You can allocate Coverdell account assets among many different kinds of investment vehicles, and many banks, credit unions and mutual fund providers offer these accounts. However, Coverdells have some drawbacks. The annual contribution limit to a Coverdell is $2,000, and phase-outs kick in at $95,000 for single filers and $190,000 for married filers. An individual taxpayer with modified adjusted gross income above $110,000 cannot contribute to a Coverdell (the MAGI limit is $220,000 for joint filers).^2,3

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09/30/11 - IS IT TIME FOR LIFE INSURANCE?

Important life events may call for it.

Presented by Forest Hills Financial Inc & Shannon Simon

Just as many people between the ages of 30 and 50 lack a will, many also lack life insurance. A March 2011 survey from Genworth Financial and the University of Virginia’s Darden School of Business found that almost 70% of single parents and 45% of married parents were living without any coverage.¹

Why don’t more young adults buy life insurance? Shopping for life insurance may seem confusing, boring, or unnecessary. Yet when you have kids, get married, buy a house or live a lifestyle funded by significant salaries, the need arises.

Finding the right policy may be simpler than you think. There are two basic types of life insurance: term and cash value. Cash value (or “permanent”) life insurance policies offer death benefits and some of the characteristics of an investment – a percentage of the money you spend to fund the policy goes into a savings program. Cash value policies have correspondingly higher premiums than term policies, which give you death benefits only and have terms of 10 years or longer. Term is a great choice for many young adults because it is relatively inexpensive. There is an economic downside to term life coverage: if you outlive the term of the policy, you and/or your loved ones get nothing back. Term life policies can be renewed (though many are not) and some can be converted to permanent coverage.²

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09/23/11 - EARLY DISTRIBUTIONS FROM RETIREMENT ACCOUNTS

Some tax consequences to remember.

Presented by Forest Hills Financial Inc. & Shannon Simon

There are times when people really need money – and in those times, a retirement account may seem like a conveniently liquid resource to tap. What’s the harm in taking an early distribution from a tax-deferred retirement plan? Well, the tax bite could be considerable.

Big taxes may await you. If you are younger than 59½, working, and you withdraw funds from your 401(k) or IRA just as you would from a bank account, you might really feel the pain next April. An early distribution from an IRA or a qualified retirement plan must usually be included in your taxable income. So your federal tax bill could balloon for the year in which you take the distribution. (If you take an early distribution from a Roth IRA, you won’t be taxed on the amount of your contributions. Any amount above that which is attributable to the Roth IRA’s earnings will be subject to tax.)¹

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09/16/11 - ASSESSING THE AMERICAN JOBS ACT

Will Congress pass it? What difference could it potentially make?

Presented by Forest Hills Financial Inc. & Shannon Simon

On September 8, President Obama announced a new plan to improve the economy – the $447 billion American Jobs Act, a sequel of sorts to his past economic stimulus proposals. His announced goal: job creation without new taxatio... MORE

09/09/11 - WHY AREN’T YOU MAXING OUT YOUR 401(k)?

It may be the best retirement planning tool you have.

Provided by Shannon Simon & Forest Hills Financial Inc.

Do you have a million dollars? At the moment, probably not. But if you invest and save diligently and let your assets compound, who knows? You may be a millionaire someday. In fact, you may need to be a millionaire someday. If you stay retired for 20 or 30 years – which could happen – it could take well over $1 million to fund that retirement. In fact, a recent study of Registered Investment Advisors recommended retirement assets of $1.5 million or more for baby boomers.1 This is why you should contribute the maximum to your 401(k) plan.... MORE

09/01/11 - DO YOUR INVESTMENTS MATCH YOUR RISK TOLERANCE?

Now is a good time to examine what’s in your portfolio.

Provided by Forest Fills Financial Inc. & Shannon Simon

“The lower things go, the more I buy.” The legendary Warren Buffett said those words on August 9 in a chat with Fortune. Buffett is a buy-and-hold kind of guy, and even if you don’t buy into his approach, you have to admit stocks are cheap in the wake of the recent correction. For many investors, a downturn like this means picking up quality stocks at markdown prices, including dividend-paying stocks.

... MORE

08/26/11 - A TIME FOR PATIENCE

Coping with the market during a rough week for stocks.

Provided by Shannon Simon & Forest Hills Financial Inc.

As expected, a plunge. World stock markets swooned on August 8 in reaction to Standard & Poor’s downgrade of U.S. long-term debt. On Wall Street, the DJIA fell 634.76, the S&P 500 79.92 and the NASDAQ 174.42. It was the toughest day on Wall Street since December 1, 2008, when the National Bureau of Economic Research announced America had lapsed into a recession... MORE

08/19/11 - IS NOW THE TIME TO BUY?

Now is a good time to examine what’s in your portfolio.

Provided by Forest Fills Financial Inc. & Shannon Simon

The stock market is unsettled … and perhaps its fluctuations are unsettling you. It’s a stressful time for the economy and Wall Street, and you may be concerned about your portfolio given what’s going on with oil prices, the real estate market, and rising unemployment figures. It may be a good time to review how your assets are invested.

Is your portfolio balanced? A balanced portfolio may help you ride out stock market turbulence. Stocks and mutual funds aren’t the only asset allocation choices you have, and you won’t be alone this winter if you decide to examine other investment options... MORE

08/05/11 - AN INTRODUCTION TO THE STOCK MARKET

What it is, how it works, and how to get started.

Provided by Shannon Simon & Forest Hills Financial Inc.

Confused or unsure? You’re not alone. It’s amazing to me how many adults, many of them college grads, know practically nothing about the stock market. Many schools simply don’t offer or don’t require the classes that cover it. If you’ve been holding off on investing because you simply didn’t know enough about it … that’s probably wise. But rather than delay any longer, here’s some information to get you started:- more

07/29/11 - NEW RULES FOR RETIREMENT PLAN FIDUCIARIES

Coming your way: some of the most significant changes in 30 years.

Provided by Forest Hills Financial Inc. & Shannon Simon

The Department of Labor has promised to update the retirement plan landscape. Three major rule changes are scheduled for the near future. All retirement plan fiduciaries and administrators should be aware of them.- more

07/22/11 - WHY PEOPLE WANT INDEPENDENT FINANCIAL ADVISORS

A new perception has taken hold: “independent” is better.

Provided by Shannon Simon & Forest Hills Financial Inc.

Times have changed – and so have financial advisors. Today, people don’t want financial advice from a salesman. Instead, they want a relationship with a financial professional who is candid, trustworthy and thoroughly educated, who provides personalized financial consulting for each client.- more

07/15/11 - IRA MISSTEPS

A lack of knowledge can lead to problems & disappointments for your heirs.

Provided by Forest Hills Financial Inc. & Shannon Simon

Be vigilant, and be knowledgeable. Do you want to hand your heirs big tax problems? Would you like to hand the IRS a sizable chunk of your wealth? Of course not. But if you misunderstand the rules when it comes to inherited IRAs, you just might. Here are some missteps that IRA owners and IRA heirs often make – financial choices to regret.- more

07/11/11 - THE D WORD HAUNTS WALL STREET

Is there a chance that America could actually default on its debt?

Provided by Shannon Simon & Forest Hills Financial Inc.

When will the debt ceiling issue be solved? The NFL, the NBA, the EU, Congress … wherever you look, it seems people would rather wrangle these days than resolve their differences. The U.S. Treasury has set a hard deadline of August 2 for Congress to settle its divide on the federal debt ceiling, and if partisan bickering interferes, the world economy could suffer a severe hit. - more

07/01/11 - A RETIREMENT PLANNING TIMELINE

30 … 40 … 50 … as time goes by, make sure you accelerate your planning.

Provided by Forest Hills Financial Inc. & Shannon Simon

When should you start saving for retirement? When do you really need to get serious about planning your retirement transition? Well, it depends on many factors. But along the timeline of life, there are certain things you might consider doing at certain ages. Your retirement planning can begin early in life, and remember that today is never too late. - more

06/24/11 - WHEN WILL THE DEBT CEILING AFFECT STOCKS?

Will the markets feel stress as the deadline to raise the debt limit approaches?

Provided by Shannon Simon & Forest Hills Financial Inc.

August 2 looms. That is the absolute deadline for raising the federal debt ceiling, according to Treasury Secretary Timothy Geithner. The U.S. actually “hit” the $14.3 trillion ceiling on May 16 but took “extraordinary measures”, in Geithner’s words, to avoid default. (Those measures included suspension of Treasury payments to the Civil Service Retirement and Disability Fund and the Federal Employees' Retirement System Thrift Savings Plan.) While Congress will surely vote to raise the debt cap by August 2, our politicians are mostly transmitting contention. - more

06/17/11 - THE “HOW” AND “WHY” OF THE IRA ROLLOVER

A way to reinvest the lump sum you’ve saved for retirement.

Provided by Forest Hills Financial Inc. & Shannon Simon

As retirement approaches … money decisions become increasingly major. One big decision concerns what to do with the money in your company retirement plan.

… Consider a direct rollover. For most people, the most attractive option is an IRA rollover. In other words, you transfer the money from your 401(k), 403(b) or 457 plan into an IRA. It is not hard to accomplish, provided you have the guidance of a qualified financial advisor. - more

06/10/11 - THE BIG ROLLOVER

What should you do with that old 401(k)?

Provided by Shannon Simon & Forest Hills Financial Inc.

Options, options, options … There are many misconceptions about what must be done with a 401(k) when someone leaves a company. Some people think they have to cash out their 401(k) upon leaving a job. Others think they must “roll it over” into a new 401(k). Still others believe that they must leave the 401(k) where it is. None of these are true … and none are false. These aren’t “musts”, they are options. The big question is, which option is the right option for YOU? - more

06/03/11 - MORE AUDITS FOR THE WEALTHY

The IRS has nearly doubled its examinations of returns from the richest taxpayers.

Presented by Forest Hills Financial Inc. & Shannon Simon

IRS audits are up nearly 8% for the wealthiest Americans. This spring, the Internal Revenue Service released the 2010 IRS Data Book. Journalists and tax professionals looked inside and noticed a couple of eyebrow-raising statistics:

• The IRS audited 18.4% of 2010 tax returns filed by taxpayers with adjusted gross incomes above $10 million. That’s up from just 10.6% for 2009.1
• Taxpayers with AGI between $5 million and $10 million were also targets. Audits increased by 55% for this group in 2010 (the percentage of audited returns jumped from 7.5% to 11.6%). - more

05/20/11 - WILL GAS HIT $5 A GALLON?

How about $6? $7? When will we see relief?

Provided by Forest Hills Financial Inc. & Shannon Simon

How high will pump prices go this summer? Many analysts think we will pay $5 a gallon for gas this summer – and some think gas will cost much more than that. On April 20, the AAA’s Daily Fuel Gauge Report had regular unleaded averaging more than $4 per gallon in six states – Hawaii, California, Alaska, Connecticut, Illinois and New York.1

Is collusipulation in the oil industry, most economists see this as little more than a public relations move coming out of the Obama administration – the U.S. had no way to control global price pressures on oil in 1979 and it has no way to control the price of the commodity in 2011. Automatic rebalancing may remedy this... more

05/13/11 - A CLOSER LOOK AT GOLD

Amid all the hype and euphoria, some history is worth remembering.

Provided by Shannon Simon & Forest Hills Financial Inc.

America’s got gold fever. Internet headlines inform you that gold settled at another record close today. Nightly news segments show you footage of excited sellers and beaming commodities traders. Radio commercials remind you that gold has outperformed stocks in the last decade. How should you respond to all this?

There’s no doubt that in recent history, the performance of gold is startling. Across the 2000s, gold gained 278.52% on the COMEX while the S&P 500 lost 24.10%. In 2010, the S&P 500 advanced 12.78% and gold notched a 29.76% gain. more

04/15/11 - AUTOMATIC REBALANCING – WHAT IT IS, WHY IT MATTERS

Why automatic asset reallocation may help your portfolio.

Provided by Forest Hills Financial Inc. & Shannon Simon

If you participate in a 401(k) plan, or if you have a variable annuity, an ETF, or an IRA mutual fund, you may have an option to automatically and periodically have your assets “rebalanced.” In fact, a 2007 survey by Hewitt & Associates found that 42% of large employers offered this option.¹ Why might this be important?

An automatic check-up for your portfolio. Here’s why. When you first contributed to that retirement plan, ETF, IRA or variable annuity, there was a specific asset allocation in mind. Your assets were fractionally allocated across different investments – a certain percentage in this class, a certain percentage in that class, and so on. You did this in a way that suited your tolerance for risk.

But over time, those percentages subtly change. Some investments outperform others, and as a result, the asset allocation may stray from the targets you once set.

Automatic rebalancing may remedy this... more

04/08/11 - IRA Changes for 2011

Little details you need to know about.

Provided by Shannon Simon & Forest Hills Financial Inc.

What’s new? Every year brings changes in tax law, and some of these revisions always seem to affect IRAs. Here is a look at some of the new wrinkles for 2011.

You can’t defer income resulting from a Roth IRA conversion in 2011. If you converted a traditional IRA to a Roth IRA in 2010, you could opt to divide the income resulting from the conversion between your 2011 and 2012 federal tax returns. (If you did go Roth in 2010, you have until October 17, 2011 to choose this income deferral option.) You don’t have this choice in 2011 - the income can’t be deferred to a future tax year.¹

04/01/11 - FINDING A TAX PREPARER

When should you hire one? What should you look for?

Provided by Shannon Simon & Forest Hills Financial Inc.

Is doing your own taxes getting to be more and more of a challenge? Are you thinking of hiring someone to do it for you? Are you wondering if that will be worth the cost?

There are times in life when you really should turn to a professional for tax preparation. In addition to potentially saving you money, that professional can also help you gain a better understanding of your tax situation year after year.

When should you hire someone else to do your taxes? The basic answer is “when you no longer feel comfortable doing them yourself”. If you are going to buy a home or invest in real estate, if you are starting a business or entering into some kind of business partnership … you really should have your taxes prepared by a professional.

Beyond those circumstances, are you starting a family? Are you getting married or divorced? Are you moving to a new state? These events can complicate your tax picture, and you will want to draw on the knowledge of a tax professional... MORE

03/25/11 - Little Ways You Might Improve Your Financial Life

Some things to think about this year – and every year.

Provided by Shannon Simon & Forest Hills Financial Inc.

This is the year! Yes, you can make 2011 the year you alter your financial life for a better financial future. Let’s look at some steps you might think of taking with the goal of financial freedom in mind.

No, we’re not talking about those ridiculously obvious steps the usual articles recommend, like “write your goals down” and “set a budget”. Let’s go past the clichés and get into the real issues.

Look at your income source, your expenses and your debt. How do you earn income? If you earn it from one source, is there effectively a ceiling on it, or is there real potential for your income to rise in the next few years? Now look at your core living expenses, the ones you can’t avoid (such as a mortgage payment, car payment, etc.). Can any core expenses be reduced? Investing aside, you position yourself to gain ground financially when income rises, debt diminishes and expenses stay (relatively) the same... MORE

03/18/11 - Avoiding Financial Catastrophe

How can you prepare, financially, for a disaster?

Provided by Shannon Simon & Forest Hills Financial Inc.

Wildfires, hurricanes, terrorist attacks, floods, earthquakes … there are many disasters, both man-made and natural, that could happen without warning. For many, preparedness is a way of life. If you’ve lived all your life on a fault line, for example, then making your home and belongings earthquake-ready may be a no-brainer. But are you totally prepared? Are you financially prepared? ... MORE

03/11/11 - 27 Things You Should Know About The 2011 TAX LAWS

Provided by Shannon Simon & Forest Hills Financial Inc.

2011 is here and there is much to report. Congress has restored the estate tax, cut the payroll tax and retained and/or restored a variety of tax breaks.

Here’s a look at some recent developments in federal tax law – not just the changes for 2011-2012, but also the decisions (some quite recent) that may impact your 2010 return. This is by no means a tax planning guide, just an update on what has changed and what hasn’t.... MORE

03/11/11 - HOW LONG DO YOU HAVE TO KEEP YOUR STATEMENTS?

A year? Seven years? It depends.

Provided by Shannon Simon & Forest Hills Financial Inc.

You have probably heard that you should retain copies of your federal tax returns for 7 years. Is that true, or a myth? How long should you keep those quarterly and annual statements you get about your investment accounts? And how long should you keep bank statements before throwing them away?

Your age, wealth and health might shape your answer. If you are not yet retired, then you may wish to follow the general “rules of thumb” presented across the rest of this article.... MORE

03/04/11 - Breaking The Surface

Four tips for recovering from unemployment.

Provided by Shannon Simon & Forest Hills Financial Inc.

Any period of unemployment is fraught with stress – both personal and financial. While landing that formerly-elusive new job can be a relief, it is only the first step on the road to recovery from unemployment. This transition time is akin to breaking the surface after being underwater for several minutes. It’s a relief to be breathing again and feel the sun on your face, but it’s no time to relax. You must start swimming right away to get back to a healthy financial shore.

Here are four steps you can take to help make sure your recent unemployment doesn’t cast a long shadow across your future financial health.... MORE

02/25/11 - Should You Downsize For Retirement?

It may be better to sell that big home rather than keep it.

Provided by Shannon Simon & Forest Hills Financial Inc.

You want to retire, and you own a large home that is nearly or fully paid off. The kids are gone, but the upkeep costs haven’t fallen. Should you retire and keep your home? Or sell your home and retire? Maybe it’s time to downsize.

Lower expenses could put more cash in your pocket. If your home isn’t paid off yet, have you considered how much money is going toward the home loan? The typical mortgage payment in the U.S. represents about 30% of gross income and about 50% of after-tax income.¹ When you move to a smaller home, your mortgage expenses may diminish and your cash flow may greatly increase – and don’t forget about interest savings over the life of the loan... MORE

02/18/11 - 6 Steps To Get Out Of Debt

Why not plan to lighten your financial burden?

Provided by Shannon Simon & Forest Hills Financial Inc.

Positive moves to counteract negative cash flow. In July, a New York Times article mentioned that half of American families were carrying more than $25,000 in debt. Of course, some of this can be attributed to mortgages. But the borrowing doesn’t stop there.

Every day, people draw on money they don’t actually have – via credit cards, payday loans, home equity lines of credit, and even their 401(k)s. Many of them end up making minimum payments on these high-interest loans – a sure way to stay indebted forever... MORE

02/11/11 - Good Financial Steps to Take When You Get Married

If you’re going to say “I do”, here are some things you might want to do.

Provided by Shannon Simon & Forest Hills Financial Inc.

Are you marrying soon? Have you recently married? As you begin your life together, it's important for you to start planning your financial future together and putting your finances on the same page. Here are some priorities you might want to write down on your financial to-do list … MORE

02/04/11 - Eight Tips For Planning Your Retirement

A few simple steps to help you get started on the right foot.

Presented by Shannon Simon & Forest Hills Financial Inc.

Planning financially for retirement may feel overwhelming. For some, that feeling is what keeps them from really focusing on and implementing a plan. If you haven’t started planning for your retirement – do yourself a favor and make TODAY the day you begin... MORE

DO YOU HAVE A SELL PROCESS?

With the market so volatile, you need one in place.

provided by Forest Hills Financial Inc. & Shannon Simon

How should you plan to avoid forced selling? In the wake of all this recent volatility, you may be seeking a way to subtract as much impulse and emotion as possible from your sell decisions.