Health insurance offerings have changed drastically due to the steep rise in health insurance costs. Many employers either drop coverage altogether or reduce their employer contribution, placing more of the financial burden on the employee.  The more fortunate of employees work for larger, well capitalized corporations that spread their health care costs among a larger pool of employees, so employee cost is low. If you’re not one of the fortunate ones you’ll need to consider alternatives and those alternatives can still be expensive, less comprehensive or not even attainable if health issues are prevalent. Many policies can now be purchased on-line. One way to keep monthly costs low is to consider a high deductible plan.  You are still receiving coverage, but at the same time keeping your monthly out of pocket expenses lower. Anyone should have some type of coverage; whether it is a full comprehensive plan or just a catastrophic plan. If employer provided coverage is not adequate, consider a supplemental plan. A major illness can easily wipe out savings.

Did you know that you are far more likely to be injured or disabled than killed in an accident? Disability insurance is another important insurance product for wage earners, especially in certain professions. Surgeons, dentists, carpenters, electricians or any person employed in a profession that works with their hands should consider disability insurance to replace any inability to perform their job duties if injured or become ill – either for a period of time or if permanently disabled. Of course, any worker that is the primary wage earner in their family that is concerned with becoming injured or ill should consider disability as well, regardless of profession. Some employers provide this coverage – especially those in potentially hazardous professions, but more often they do not. It is generally cheaper to purchase coverage from your employer, but you’ll need to first determine whether coverage is appropriate, then whether coverage is provided at work, and, if so,  if this coverage is adequate. Sometimes it is appropriate to supplement a company policy with an individual long-term policy when future financial needs are considered. Keep in mind that some relief to a disability is provided by worker’s compensation (if the injury occurs at work) and social security disability benefits. When asking your advisor/agent about individual policy elements, understand the benefit period and elimination period. Of course, you’ll need to make sure your policy provides adequate coverage. Most long-term disability policies provide a replacement of up to 60 percent of base salary to a maximum of $5000 per month. Make sure you read the in detail about what disabilities are covered. Policy premiums vary greatly depending on coverage and riders.

Planning to pay for health care needs in retirement has typically been postponed in the face of declines in investment portfolios. This does not diminish the importance of considering long term care (LTC) insurance. Many studies estimate that 50 percent of adults will need some form of care in their later years. Consider that the average cost of health care in Austin, TX is $187 per day for a private nursing home or $68,255 per year. The average cost of an assisted living facility is $3,544 per month or $42,528 per year.1 If you want a highly-regarded or fancier facility, you may pay substantially more. While the average stay in a nursing home is generally less than three years, this expense can put a major dent in retirement savings or wipe it out completely.  One study showed that 62% of personal bankruptcies were the result of excessive medical bills.2 Don’t wait until your sixties to address the need. The younger a couple is when they quote LTC care rates, the lower the annual cost. Most insurers offer a “couples discount” that offers a substantial reduction on the annual premium. Riders tend to be complex and extensive, so consulting your advisor/agent is a good idea. Worried about not using the policy? Consider the new hybrid products that offer universal life insurance that come with accelerated-death benefit riders to cover LTC needs.

Medicare supplement insurance is designed to provide benefits for certain medical expenses not covered by Medicare. For many seniors, these expenses can be significant, so it may be a good idea to engage in a cost-benefit analysis to determine whether purchasing a policy is a good idea. The best time to buy a supplemental policy is within six months after enrollment in Medicare part B. This is the only time insurers must accept you regardless of preexisting health conditions. Another important fact is that benefits are identical for all companies offering a Medicare Supplemental Insurance plan. Not only are the benefits identical, but the claims paying requirements are also almost identical. The key here is that premiums do vary, so it pays to shop around. Finally, be aware that premiums are adjusted annually to keep up with inflation, so, potentially; your premiums could increase annually. Make sure you purchase an “issue age” or “community rated” (ask your agent!) policy with the lowest premium. They are slightly more expensive up-front, but the premiums don’t increase every year just because you get older.

It’s a good idea to review your risk management strategy every five years or whenever there is a major change in financial goals or family circumstances. It’s as important as planning for retirement. Just as you cannot afford to ignore putting away earnings every month so money is available in retirement, you cannot afford to not plan for an unexpected, illness, disability, or death that could deplete that very same retirement nest egg.
 
1Source: John Hancock 2008 Cost of Care Survey
2Source: Harvard University

A beneficiary form, for example, is usually completed when any type of IRA is opened or insurance policy is taken out. It is important to recognize that the IRA beneficiary form precedes a will – that is, whoever is listed as a beneficiary of the IRA will receive the money outside of any probate process or provisions of the will. Fail to have a beneficiary named, and the IRA assets are subject to probate – which can be costly. It is a good idea to not only list primary beneficiaries, but also secondary beneficiaries in case something happens to the primary beneficiary(s). In addition, you forfeit the ability to convert an inherited IRA to a “stretch IRA” if no beneficiary is named. A stretch IRA allows a designated IRA beneficiary — the person named as the beneficiary on the IRA beneficiary form — to extend distributions over his or her lifetime rather than over a shorter, less favorable payout period calculated off the original owner’s lifetime. I have seen many clients in my office where no beneficiary is named on the IRA beneficiary form. Save yourself and your loved ones the cost (and hassle) of probate and preserve the ability to use the stretch feature of an IRA by making sure your beneficiary forms are updated. Life insurance and annuity assets also pass outside the provisions of any will. If no beneficiary is named on an insurance policy, the insurance company will generally require you to name one before the policy is issued and in force. The importance of making sure insurance policy and/or annuity beneficiaries are updated and are properly coordinated with one another cannot be overemphasized. One final note: with more substantial estates and/or you have minor children, it’s often a good idea to name the primary beneficiary as your spouse and a “testamentary trustee designated in the insured last will and testament” as the contingent beneficiary to preserve tax benefits and other planning by your wills. This is a complicated issue and should be discussed with an estate attorney.

Another common mistake I see in financial documentation here in Texas is joint accounts held as “joint tenants with rights of survivorship,” often abbreviated on statements as “JTWROS.” Jim Floyd, an estate attorney here in Austin, explains that while the JTWROS designation creates a non-probate and speedy way of transferring estate assets to a surviving spouse, designating the assets as “community property” (Texas is only one of nine community property states) on your account documents may be a better way. With JTWROS, only the decedents half of the joint property enjoys a “step up” in tax basis. Contrast that with property/accounts held as community property, where both halves of the community property are stepped-up in basis. With a step-up in basis, the value of the asset is determined to be the higher market value of the asset at the time of inheritance, not the value at which the original party purchased the asset. For example, say your husband purchased some shares of a stock for $10 in 1989, and he left them to you upon his death, at which time the shares are $50. This will potentially save the spouse a lot of money, since any capital gains taxes she pays in the future will be based the $50 price rather than the purchase price. Another account tilting feature is “Tenants in Common.” This is generally o.k., but there is no survivorship feature. The decedent’s share passes either under a will or goes through probate (intestacy stature). Again, it is always advisable to speak with an attorney.

Speaking of joint ownership by spouses, did you ever consider how difficult it would be for a spouse to gain control of management of the household affairs after the death of his/her spouse? This situation could be even more difficult for the surviving spouse if he/she did not handle the finances. Every household should have a notebook, storage place or other method of listing every financial, insurance and estate-related account and advisor, what function they have related to the household and how to contact them. One example that our firm has created is what we call a “family planner.” The family planner consists of recordkeeping and data storage section containing all financial-related documents along with a referenced educational module for different types of investments and insurance. A second recommendation and advice section contains customized strategies for asset allocation based on the family risk profile as well as estate transfer information for beneficiaries. This benefits a family heir and/or trustee - often a spouse, oldest child, attorney, etc…. - by assisting them with the tools they need to carry on the family finances successfully with less learning curve, worry and hassle. The last thing you want is an heir under emotional distress from the death of a spouse trying to learn how the family finances are run.

A few other final paperwork issues can ensure more efficient handling of financial chores. Always keep your account address, phone numbers and email current with your financial firm/advisor or any in which you deal in money. Many people forget to do this, especially on smaller accounts. This may result in you not receiving timely investment recommendations and advice from your advisor which may cost you money! Or, your investment documents could end up in someone else’s mailbox – a serious breach of privacy and confidentiality. Or, the assets could be simply lost and they end up in unclaimed property accounts with the state. If you suspect you may have unclaimed property, you may attempt to find out here: http://www.window.state.tx.us/up/. Finally, if you recently changed your name due to marriage or divorce or other reason, be sure and change the account titling as soon as possible. Getting new account titling is also applicable when a child becomes 18 years of age and has a UTMA/UGMA or has reached an age designated by a trust to take full possession and control of assets. Getting the financial paperwork in the proper name will ensure that the assets are easily accessible and transfers occur without necessity of substantial additional paperwork.

Making sure you have these details related to your financial documents in order will save you plenty of time, money and legwork down the road. If you think you are deficient in this department, contact your “financial quarterback” (often your financial advisor/broker) immediately. You’ll likely want to follow up with a C.P.A. and estate attorney as well.

If you consider yourself an investor that is a little more uncomfortable with current market events, consider market fundamentals. By a variety of measures, the market is oversold and severely undervalued. Many market prognosticators have said that this may be the best buying opportunity in 20 years. Don’t get me wrong, this market and economy is sick, very sick. We may have some more downside. Years of recovery may possibly lie ahead. But any examination of a stock market chart since before the great depression shows that the S&P 500, for example, tends to bounce back sharply after some of its worst performing years. The following chart shows the worst S&P 500 returns and what happened the year after:

Clearly, some bad years are followed by an additional bad year. But subsequent five-year average annual returns have always been positive. The lesson here: markets always rebound and, by staying in the market, you may recover your losses over time. Clearly, if you are a retiree or imminently retiring, this does not apply to you. But, if your time horizon is five years or longer, stay with the market, but have a strategy to move forward. But beware: even a flight to money markets today can enable you to lose money safely (see my article from last month entitled, The Good, the Bad and the Ugly of Low Interest Rates). Preparing your portfolio now for an eventual rebound makes more sense.

So, what are some of the ways to deal with a portfolio that has taken a massive body blow? First of all, any strategy will require careful reevaluation of your asset allocation, examining any correlation between investments and a thorough analysis of each individual investment. This should be done with your financial advisor. If you find assets that have losses and your analysis indicates there is little hope of recovering the loss, “realize” the loss by selling the asset. You may offset up to $3000 of the loss against earned income, and additional losses may be offset against capital gains. No gains to offset, you say? You may keep track of these losses, and they may “carried forward” into the future, to offset any future gains.* You may create a tax benefit by this action, either now, in the future, or both. Another benefit is that you may use the cash generated from the sale and place it in assets you deem to have more upside in the near term, thus offering your portfolio a better chance to recover.

Another way to help recoup losses is by lowering your cost basis. You’ll need additional cash to do this, but it simply entails buying more of a position at a lower price. If you double your number of shares with this strategy, it is also referred to as “doubling-down.” If you have identified a position in your portfolio, for example, that has lost 30 percent of its value and you think the fundamentals indicate that it will recover, you simply buy more of the position at the lower price. Thus, your average cost is reduced. This is important because at a 30 percent loss, you need almost a 43 percent gain to make your money back. By lowering your average cost, you need less of an increase in the price of the stock to begin to realize a profit than you would have if you had just stuck with your existing position. Be careful here though. Analysis prior to executing this strategy is critical. If you continue to buy more of a stock that keeps declining, you’ve made the situation worse. As they say in the business, “…better to not try and catch a falling knife.”

Dollar cost averaging (DCA) is a strategy similar to lowering your cost basis, but it is done over time. Investopedia (www.investopedia.com) defines DCA as buying a fixed dollar amount of a particular investment on a regular schedule regardless of share price. More shares are purchased when shares are low, and fewer shares are purchased when prices are high. Eventually the price of the security will become smaller and smaller. DCA lessens the risk of investing a large amount in a single investment at the wrong time. This is a particularly good time to be using this strategy, since many portfolios have investments whose prices are lower than the have been in years. Also, if you still think the market has some downside, DCA prevents you from plowing all your “dry powder” (i.e. cash) back into your portfolio now, which may be invested at even lower prices in the future. If you participate in a 401(K) plan at work, and are investing a portion of each paycheck in to your plan, you are essentially using a form of DCA. By the way, the 401(K) plan is a fabulous was to invest for retirement since money grows tax-deferred. Regardless whether you are getting a company “match” at this time (but especially so), you should be putting as much money into your plan as you can afford.

A few more techniques for dealing with bear markets include, but are not limited to, entering stop-loss orders on existing stock positions and the purchase of non-correlated asset classes in your portfolio. A stop-loss order involves entering an order to sell an existing equity position in your portfolio once it reaches a certain price. This will limit your loss on that position. A good rule of thumb is to enter a stop-loss order at 10 percent below the purchase price. This limits your loss to 10 percent. It also prevents that common, “deer in the headlights” reaction, where you freeze up and allow the stock to free-fall. It also prevents the even worse reaction where you fail to admit you’ve picked a poor performer, and you refuse to sell the stock until it makes your money back. This can result in some serious losses when the stock never recovers!

Also, as we have seen, even seemingly well allocated portfolios may have losses exceeding 40 percent in this market. Having large-cap, small-cap growth, value, international, real estate and bond positions used to qualify as a “diversified” portfolio, but not these days. A positive correlation between these types of investments, even if small, is not negative. Further, in declining markets, correlation between investments increases. This past year we saw some quality bonds even lose 30 percent of their value right along with small-cap growth stocks, for example. So, look for truly non-correlated classes of investments such as commodities and currencies. Even if you don’t have a commodities or currency trading account, you can purchase these types of assets through exchange traded funds (ETFs), unit investment trusts and, to a lesser extent, mutual funds. Where appropriate, gold is often an excellent commodity to own in your portfolio, for example.

We have witnessed a historically bad market related to a cavalcade of bad economic events. It may get worse before it gets better. But by stepping back, taking a deep breath, and analyzing your portfolio, you can develop a rational approach to positioning your portfolio for a recovery by utilizing a variety of techniques available to you. Purchasing “put” options, short selling and hedge funds are among the myriad of additional ways to deal with (and prevent!) portfolio losses, but you should be discussing these with your financial advisor.

The GOOD part about these lower interest rates is that it becomes cheaper for the consumer to borrow. Often the largest single interest bill that consumers pay is on their home mortgage. The national overnight average for a 30-year fixed mortgage is at 5.11 percent, according to bankrate.com. This can provide new home buyers a much more affordable loan and current homeowners an opportunity to refinance their current mortgage to save a substantial amount of money over the term of their loan. Of course, rates vary with the type of loan obtained such as a fixed or adjustable rate, and this really depends on how long you intend on staying in your home.

What should new home buyers be aware of in purchasing a new home? “Credit score is the number one factor in your ability to obtain a home loan,” says Houston Morford, of Southwest Bank mortgage here in West Lake Hills. You’ll need a credit score above 640 at most mortgage companies in order to even consider your loan application, along with liquidity for a down payment. (In this economy, 100 percent financing is generally a thing of the past). Morford says that better rates are obtained with 10-20 percent of the price of the home paid at closing, while some of the best rates may be obtained with a 40 percent down payment. He also recommends consulting www.freecreditreport.com to obtain your credit score. For $5 a month they will notify you of any inquiries to your credit to any of the three credit reporting agencies. This may provide protection against identity theft.

What about refinancing? There are a variety of reasons you may want to refinance your home, from debt consolidation to college funding to starting a new business. Debt consolidation is another good opportunity that may be reaped from lower interest rates, especially when credit card rates may exceed 20 percent or more! This can be done using home equity as well. The general rule for refinancing your mortgage, according to Morford, is make sure that the closing costs can be repaid by the savings obtained with the new loan while you are still living in your home. There are many websites with calculators to help you make the decision to refinance, but here is one you may use: http://www.bmcloans.com/calculators.asp.

Unfortunately, for investors looking for interest bearing investments, there is a BAD side to low interest rates. One of these is found in “interest rate risk.” Interest rate risk is the risk, or variability in value, inherent in an interest bearing asset such as a Certificate of Deposit (CD), or bond due to changing interest rates. In general, as rates fall, the price of a fixed bond will rise, and vice-versa. CDs, treasury bills bonds and other fixed-income investments pay a fixed-rate of interest for a certain term, after which the principal is returned. These instruments are bought by risk-averse investors, those simply seeking a safer return on a portion of their investments as part of an overall asset allocation strategy, or those simply needing income. The problem today is that interest rates have declined to lows we haven’t seen in decades, and these are reflected in rates paid by these types of instruments. With the federal funds rate at 0.25%, there’s not much lower rates can go. The next move may be up, even if it may not happen for a year or more. So, the interest rate risk these days is the fact you lock in a low rate for a specified term, and then rates rise during that term. You’re then stuck with the lower rate.

How do fixed-income investors achieve a respectable rate of return without experiencing the higher risk associated with the fluctuation of interest rates? Laddering involves building a portfolio of bonds with staggered maturities so that a portion of the portfolio will mature each year. To maintain the ladder, money that comes in from currently maturing bonds is typically invested in bonds with longer maturities within the range of the bond ladder. This accomplishes two goals: 1) It allows the investor to capture price appreciation as the bonds age and their remaining life shortens; and, 2) Reinvests the principal from maturing short-term (hence lower-yielding) CDs or bonds into new longer-term (hence higher-yielding) CDs or bonds. Another strategy is the “bullet” strategy. With this strategy, you purchase bonds at different times to reduce the interest rate risk, so they all mature at the same time. But where you put your money while you’re waiting is the problem.

This gets us to the truly UGLY part of low interest rates. The lowest interest rates for investment are found in money market accounts and in shorter maturity CDs, treasuries and bonds. A sampling of the rates on January 9th via bankrate.com shows taxable mutual fund money market rates ranging from 0.56 percent to 1.81 percent and 1 year CD rates ranging from 1.35 percent to 3.39 percent. 1 year treasury bills are yielding a mere 0.43 percent! Despite the safety and liquidity of these investments, investors using these in taxable accounts are potentially losing money at these rates due to taxes and inflation. For example, with inflation currently at an estimated 1.07 percent,** an investor in the 30 percent tax bracket (married, filing jointly) earning 1.5 percent on $10,000 in a money market, will actually have a negative 0.02% rate of return. In other words, you’ll have about $999 after one year, considering taxes and inflation, so you lose one dollar.. The same investor earning 3 percent in a one-year CD for $25,000, will earn a whopping 1.03 percent, or about $258 dollars.***

So what can you do? Well, you’ll have to consider longer term investments where appropriate, and consider laddering and bullet strategies discussed above. For money that you want to retain in safer fixed-income investments (vs. stocks) but don’t need the liquidity, consider intermediate and high-yield corporate bonds. There are quality bonds yielding 8-10 percent compared with 10 year treasuries yielding 2-2.25 percent. Also consider municipal bonds, but be careful to only buy the municipals with solid fundamentals and those that are insured. Many higher-rated municipals have lost value due to the economy. If you can handle the added risk, consider higher yield stocks in blue chip corporations or mutual funds/ETFs that invest in a basket of these.

Use this low interest rate environment as an opportunity to lock in lower borrowing rates to save money over the long term. Remember that there is a price to be paid for the safety of lower yield investments. With corporate bonds, municipal bonds and stocks offering compelling values, reconsider how much more risk you are really adding by investing in these instruments.

Brent T. Beesley, CRFA™
Eltekon Financial, LLC
Principal/Director of Private Wealth Management
Investment Advisor
100 Congress Avenue, Suite 250
Austin, TX 78701
512-477-3200 ofc
512-477-3201 fax
www.eltekon.com

* Yahoo News, December 14, 2008.
** InflationData.com
*** Real rates obtained using iLoancalc at www.iloancalculator.com

Carter was not surprised by the outcome of the game. He said that the team was ready for their opponent, especially on the ground where Carter’s teammates racked up 288 yards on 28 carries.

“We felt that coming into the game, we had the offense to do it,” Carter said. “As long as we didn’t make too many mistakes. We knew we could put up 56 points. We really didn’t have a chance to pass the ball. Our running backs, every time they would touch it, they would score.”

With the state title checked as complete, Carter still has a couple of games left on his schedule. He is playing in two showcase games in January.

“I have the Under Armour All-American Game and I leave for that December 31,” said Carter, who finished the season with 39 receptions and 14 touchdowns. “After that, I have Broward (County) versus Dade (County) game down here in Florida. That’s on January 17. So I still have a very busy schedule.”

After those last two games Carter will end his high school football career and prepare for life at Ohio State, among other things.

“I will be working out to get ready,” said Carter, recruited by coach Darrell Hazel. “And I’ll run track and that will help me on my speed. That’s it. Track and weight lifting. I’ll be up there (in Columbus) in June.”

Carter elaborated a little bit on his goal in track in one event, the high jump.

“Last year, I did 6-3,” said Carter. “This year, I’m trying to get to 6-7. It’s more of a strength thing. I’ve been running a lot with a weight vest on so I can kind of get used having more weight and being more explosive.”

With a father that was a star for the Buckeyes in Cris Carter, the younger Carter said he doesn’t feel any added pressure to perform or to live up to the legacy of his dad.

“Not really,” Carter explained. “Coach Tressel is confident in what I can do. That’s why they offered me a scholarship and I’m confident in what I can do on the field. I’m not here to disappoint, just to do my job as a wide receiver and I’m lucky to do it at a prestigious program like Ohio State”

1. Watch out for the Alternative Minimum Tax (AMT)
Despite adjustments for 2008, you may still be vulnerable, especially if you are in a higher bracket. Don’t accelerate payments on itemized deductions like property taxes and mortgage interest and be careful with the exercise of incentive stock options.
2. Identify unrealized losses
In this market, you likely have some losses in your investment portfolio. You can offset capital gains and up to $3000 of income by “realizing” (selling) the dogs in your portfolio. With larger sales you can’t offset, you can carry them forward and offset against future gains and will come in handy if capital gains tax rates are increased. Don’t buy back stock you sold though for 30 days, or you are subject to the “wash sale” rule and the write-off is forfeited.
3. Look for unrealized gains
This may be a good year to take gains on long held low-basis stock. You probably have losses to offset the gains, and capital gains tax rates may be going up. There is no wash sale rule on gains so you can always buy the stock back anytime if it declines after you sell it. Also, the mutual fund industry has warned of large distributions, so you mutual fund owners in taxable accounts may get hit with taxes on distributions even where the values of those funds have significantly declined (see #2!).
4. Give cash to charitable organizations
If the charitable organization is a 501(c) (3) entity, you may be able to write off some or all of the contribution against taxable income. You may also give stock, but if it’s at a loss, sell it first to claim the tax loss and give the cash.
5. Make $12,000 annual gifts
The estate tax is repealed in 2010, but the repeal sunsets in 2011. You can bet there will be some sort of estate tax going forward! You make up to $12,000 annual gift per person per donor (such as to a son/daughter or grandchild), and help reduce the value of your estate for estate tax purposes. You must write those checks by year –end.
6. Buy Municipal bonds
It is our view that tax rates will increase under the new government administration, especially for high-income earners. Municipal yields are at historic highs compared to treasuries and offer a tax-free income stream. Look for AAA rated, insured bonds that are AMT-free. Pre-refunded bonds offer the most safety. Build a “ladder” of bonds to protect against rising or falling interest rates.
7. Maximize retirement plan contributions
You may defer up to $15,500 for 2008 plus $5000 catch –up for those 50 years of age or older. (Those with integrated plans may be able to contribute up to $46,500) This will lower your final tax bill. If you haven’t maxed out your contribution and you have the ability to so, do it before December 31. Idea: If your spouse has second income (and is not part of a plan) set up a second plan for that business. You may defer some or all of that income with a new retirement plan. Some of these plans must be set up before year-end.
8. Convert to a Roth IRA
The $100,000 income limitation still applies for 2008 and 2009, but, if you are eligible, it might be better to convert now while tax rates are lower. Remember, you have to pay the taxes the following April after the year in which you convert. You could always wait or 2009, so you don’t have to pay until 2010. For those who don’t qualify, remember the income limitation is removed for 2010.
9. Recharacterize a Roth
“What,” you say?! Well, let’s say you converted to a Roth earlier in the year. Assume the assets values in your account have fallen significantly. So you would have been better off to have waited to convert so your tax bill on the conversion would have been lower. Well, believe it or not, you can “recharacterize” or roll your Roth back into a regular IRA. Then you just do the conversion again next year when asset values are lower. Timing is critical. You must recharacterize before December 31 because you have to wait 31 days before doing the new conversion and the new conversion can’t be done the same year as the original conversion. So if you recharacterize now, you can comply with both requirements without running too much risk that the asset values will increase substantially between the recharacterization and the new conversion.
10. Open a Roth
The income limits for 2008 are $159,000-$169,000 (joint) and $101,000-$116,000 (all others). You have until April 15, 2009 to make a contribution for 2008, but it makes sense to get this done ASAP while you can still invest the account more cheaply. Your maximum contribution is $5000 for 2008 and 2009 plus $1,000 catch-up for clients 50 and older. Contributions to Roths are not deductible, but assets within them grow tax-free and are able to be withdrawn tax-free at retirement.

11. Take 2008 Required Minimum Distributions (RMDs)
You must take RMDs by December 31, to avoid a nasty IRS penalty. You must begin taking distributions by April 30 of the following year in which you turn 71.5 years of age and every year you are alive thereafter. If you don’t want to sell assets at these levels, do an in-kind distribution of stock to a taxable account, for example, and the basis of the stock becomes the value at the time of distribution.

*Eltekon Financial, LLC does not provide tax advice. We strongly advise you to consult your tax advisor or CPA. We will be happy to provide a referral.

Brent T. Beesley, CRFA™
Eltekon Financial, LLC
Principal/Director of Private Wealth Management
Investment Advisor
100 Congress Avenue, Suite 250
Austin, TX 78701
512-477-3200 ofc
512-477-3201 fax
www.eltekon.com

Taylor was the primary speaker in a back-to-school rally held Wednesday at Galilee Baptist Church. It was a warm welcome for the 1992 Longview High School graduate, who played defensive back in the NFL from 1995 to 2004, as he received multiple standing ovations from approximately 250 attendees.

Taylor appeared to be comfortable at a church in which he has deep roots, and where his life is going since he retired from the NFL in 2005. Taylor started attending Galilee when his family moved to Longview in 1982.

“Around this time of year, I can understand the desire to get involved in the NFL,” Taylor said. “But I haven’t felt that way in years. I think that’s because I had a focus on what I wanted to do after I quit, while I was still playing.”

Some of that focus started in 2000, when Taylor joined an Austin-based financial investment business, which includes fellow former NFL defensive back Troy Vincent.

Taylor said he decided this path because he witnessed a downside to the fortunes NFL players earn, and then lose.

“You have to focus on keeping your bodies in playing shape year-round, and players don’t always focus on the financial part of it. These people come up to them saying they got a business proposal for them, when they really don’t,” Taylor said. “The NFLPA does a pretty good job in counseling about money, but sometimes there are guys who should be set for life financially, but they’re not because of decisions they made.”

Full Story

The former All-Pro wide receiver will appear on NFL Live, SportsCenter, ESPNEWS and contribute to ESPN Radio and will begin April 1.

Carter played 16 seasons for the Eagles, Vikings and Dolphins and finished as the NFL’s second all-time receiver with 1,101 receptions for 13,899 yards and 130 touchdowns. He was selected to the Pro Bowl eight times.

“Cris is a Hall of Fame caliber player and a tremendous analyst, and we are thrilled to welcome him to ESPN where he will give fans a true insider’s perspective on the NFL year-round across our various platforms,” said Norby Williamson, ESPN executive vice president, production.

Added Carter: “I am very excited to be joining ESPN and their talented group of NFL analysts. I have always felt connected to ESPN since they gave me an opportunity to do some television work during my playing career, and even while working at HBO, I have always admired and respected how they do things. I look forward to getting started in April.”

Carter has worked as an analyst on HBO’s Inside the NFL.

He is the latest addition to ESPN’s roster of NFL studio analysts, which includes Mike Ditka, Merril Hoge, Tom Jackson, Keyshawn Johnson, Mark Schlereth, Emmitt Smith, Steve Young and others.