Happy 23rd Birthday, TFG!

Happy Birthday to Us! Tull Financial Group is celebrating our 23rd year in business this February, and we are grateful for every minute of it! Many of our clients have journeyed with us through four buildings, a few new employees, and some major hairstyle changes. Take a walk with us down memory lane by viewing the slideshow on our Facebook album “Happy 23rd Birthday, TFG.”  And if you’re thinking about getting us a birthday present, clicking our “LIKE” button at the top of the main page would be a great gift…and oh-so-affordable!

Are You Feeling Sandwiched?

Are you part of the Sandwich Generation? I am. I have four children, two who are still in school, and my mother (locally) and Cathy’s mother (in Illinois) are both still living independently, but we are on high alert for when they need special care. A few years ago we were fortunate enough to be able to add a “mother-in-law” room on to our home, just in case…

I’m not alone. There are an estimated twenty million Americans who are Sandwich filling – caring for their children AND their parents at the same time. And just because aging parents may not live in your household doesn’t make it any less exhausting. Time spent traveling to another city, taking time off work, arranging for childcare, taking over another set of finances…if you’re not careful, you’ll quickly become the wilted lettuce in your Sandwich.

No matter what part of the Sandwich you are, it’s never an easy situation. Here are some tips and useful links to help with a smooth transition for all family members.

• Start a Conversation…It may be tough, but finding out how your parents are doing financially and what their plans are should they need long-term care, will help you plan for your life as well. Bills for nursing homes or home healthcare can easily reach over $50,000 a year…who will be paying for this and how?

• Benefit from Benefits…Medicare and Medicaid are only two of many government resources you or your aging parents may be able to use. The AARP website also has a wealth of information.

• Power Up…Have your parents set up a durable power of attorney authorizing someone to make financial decisions on their behalf; a healthcare proxy, authorizing someone to make medical decisions in case they’re incapacitated; and a living will outlining their wishes if life-sustaining medical care is needed. While you’re at it, do this for yourself as well.

• Take Care of Yourself…If you’re already sandwiched, remember to find time for yourself, and your spouse and kids. Reach out to siblings and other relatives for help, hire an elder companion for a few hours a week, or enroll aging parents in an adult day service.

• If the emotional toll of the responsibilities becomes overwhelming, don’t hesitate to talk it out, whether with a professional counselor, pastor, or friend. Think about enlisting an elder care manager to help get you organized. And don’t forget to assess your own financial situation. Will you have enough for retirement? To send junior to college? For your own long-term care?

Caring for aging parents may be extremely challenging, but it may also be incredibly rewarding. If you’re part of the Sandwich Generation – whether bread or filling – I’d love to hear about your experiences. What would you do differently? What tips do you have to offer? Post your comments below.

Robin

Return to: www.TullFinancial.com

World May Not Be Coming To An End Just Yet

It does seem that investors may be deciding that the world isn’t coming to an end just yet.  James Paulsen, chief investment strategist at Wells Capital Management wrote to his clients that ‘Fear’ has arguably been the biggest hurdle to stronger economic growth so far in this recovery and the prospect of rising confidence might be the best sign yet that the U.S. recovery will sustain and broaden.

When you receive your January statements you may be surprised to see that most major stock indexes posted some of their strongest performances in history for the month of January.  Domestic bond indexes posted solid gains as well. The fact that economic news continues to be generally positive has been an encouraging sign  thus far in 2012.  As an investment advisor, we continue to keep our attention on the ongoing concern of a euro-zone meltdown or a problem in China which could put a halt to this welcomed surge in stock prices.  You on the other hand, feel free to take satisfaction that the S&P 500-stock index, which rose 1.46% Friday, is up 6.9% so far this year, its best start to a year since 1987.

Robin

Return to: www.TullFinancial.com

Planners Planning

Every year countless articles are written statistically listing the number of attorneys who didn’t have a will, or accountants that fail to file their tax returns on time. For our financial planning firm, we work hard to practice what we preach. Just as we encourage our clients to review their financial plans each year, we hold an annual office retreat to ensure that we remain on track and are able to serve our clients with clarity and efficiency. Bottom line, we must remain relevant to the needs of our clients.  With the economy, the government, technology, and sometimes even our personal lives in flux, we want and need to make sure that the path we’re on as a business and a team is still leading to our desired destination — namely, Improving Your Life Through Sound Financial Planning.

Thankfully, our core values are in place – integrity, excellence, discipline, and commitment – to guide us in serving and caring for our clients. And a lot of wisdom comes with our 25+ years of experience. We are happy to report that we had many positive changes in 2011, particularly with implementing new software and launching ClientView Live to digitally share documents with our clients. We are very excited about streamlining our processes even further in 2012 in order to provide the most efficient service possible without losing that “live” human-touch that we value so much here at TFG.

As always, we welcome your concerns and your compliments throughout the year…we want to hear how we may serve you better. Please understand that a referral of our services to your family, friends, or colleagues is the best compliment you could give. Take a few extra minutes and “LIKE” us on FaceBook by clicking here.

To start your financial planning for the year off on the right foot, check out this article: Getting Ready for Tax Season: Changes for 2012. You’ll find that the IRS has issued cost-of-living adjustments for the 2012 tax year that modify brackets, deductions, and other thresholds for inflation.  As always, feel free to share your thoughts on this subject and use us as a resource.

Robin

Return to www.TullFinancial.com

Getting Ready for Tax Season: Changes for 2012

The IRS has issued cost-of-living adjustments for the 2012 tax year that modify brackets, deductions, and other thresholds for inflation.

 Although most Americans will not have to worry about 2012 taxes until early 2013 when 2012 tax returns are due, self-employed individuals or anyone who must pay quarterly tax payments will want to plan ahead.

And there’s good news for those that do. The IRS recently announced cost-of-living adjustments for the 2012 tax year that bump up brackets, deductions, and other thresholds for inflation.

The following is a summary of the key changes for 2012.

• Exemptions are up: The personal and dependent exemption increases to $3,800, up $100 from 2011.
• Standard deductions have increased: The 2012 standard deduction increases to $11,900 for married couples filing a joint return, $5,950 for singles and married individuals filing separately, and $8,700 for heads of household.
• Tax-bracket adjustments: Tax-bracket thresholds have increased for each filing status (see table below).
• Estate tax exclusion has increased: The estate tax exclusion increases to $5,120,000, up from $5,000,000 for 2011. The annual exclusion for gifts will remain at $13,000.
• Earned income credits rise: The maximum earned income tax credit (EITC) rises to $5,891, up from $5,751 in 2011. The maximum income limit for the EITC increases to $50,270, up from $49,078 in 2011.
• Transportation benefits adjusted: The monthly limit on the value of qualified transportation benefits exclusion for qualified parking provided by an employer to its employees for 2012 rises to $240, up $10 from the limit in 2011. However, the temporary increase in the monthly limit on the value of the qualified transportation benefits exclusion for transportation in a commuter highway vehicle and transit pass provided by an employer to its employees expires and reverts to $125 for 2012.

Several tax benefits are unchanged in 2012. For example, the additional standard deduction for blind people and senior citizens remains at $1,150 for married individuals and $1,450 for singles and heads of household.

Details on these and other inflation adjustments can be found in Revenue Procedure 2011-52.

2012 Tax Brackets

	Single	Joint Filers	Married Filing Separately
10%	$0 – $8,700	$0 – $17,400	$0 – $8,700
15%	$8,700 – $35,350	$17,400 – $70,700	$8,700 – $35,350
25%	$35,350 – $85,650	$70,700 – $142,700	$35,350 – $71,350
28%	$85,650 – $178,650	$142,700 – $217,450	$71,350 – $108,725
33%	$178,650 – $388,350	$217,450 – $388,350	$108,725 – $194,175
35%	Over $388,350	Over $388,350	Over $194,175

As always, feel free to share your thoughts on this subject and use us as a resource.

Robin

Return to www.TullFinancial.com

This column is provided through the Financial Planning Association, the membership organization for the financial planning community, and is brought to you by Robert W. Tull, Jr. , a local member of FPA.

Tips for Charitable Giving

It’s not too late! You still have time to help someone in need through a charitable gift, and also benefit from the tax deduction for 2011. Just make sure the gift is postmarked by December 31st, or better yet, donate online using a credit card before year-end. Check out CharityNavigator.org, GuideStar.org, or the Better Business Bureau to make sure the organization is a 501(c)3, so you can actually get that deduction.

For more helpful tips on year-end charitable giving, watch my interview for CBN’s Newswatch, and click here to read the article.

As always, feel free to share your thoughts on this subject and use us as a resource.

Robin

Return to www.TullFinancial.com

Musings from the Maze

As I was standing between the labyrinth of ropes of the security-check line at Chicago O’Hare airport, I looked around and realized … like rats in a maze, we had been trained. Remove your shoes. Remove your belt. Remove your laptop from your bag. Put your three-ounce containers in a quart-sized baggie and put it in the bin. Wait your turn before walking through the scanner. Put your hands up over your head so we can scan your entire body…

And what is the “cheese” that we’re all trying to reach? It certainly isn’t the little bag of peanuts that we get on the plane…we’ve been trained to do without that as well.

Actually, I believe that ultimately, the goal of the maze is a sense of security…that all of the things we’ve been trained to do as travelers will somehow allow us to get from point A to point B alive and well. Yes, it may be a little taxing, a little stressful, and we may have to do without the little luxuries we’ve been accustomed to (bye-bye free peanuts), but in the end, we accomplished our goal…and that’s what makes us happy, satisfied, and grateful that we stuck to the training.

I believe the same principle can apply for saving. We can be trained to save our money…to make the needed adjustments and sacrifices that achieve the goal. And the goal is often the same as in air travel – security. Would finding ways to reduce luxuries, maximize your retirement plan contributions, stick to a budget, or maybe even do a little freelance work on the side, be worth it if you knew that you would ultimately achieve financial security?

No matter the adjustments you decide to make, I believe that we can train ourselves to acclimate to them for the long haul. But it does take discipline and a strong desire to reach your goal. If you break from the training one too many times, the entire regimen can fall apart, just like in air travel (just try to go rogue in the maze…you’ll get derailed by TSA faster than you can say “peanuts.”)

Yes, these are difficult economic times, but it’s nothing history has not seen before. If our minds can be trained to “keep up with the Joneses,” then they can definitely be trained to change our saving and spending habits in order to outlast the Joneses. Trust me…the cheese is worth it.

As always, feel free to share your thoughts on this subject and use us as a resource.

Robin

Return to www.TullFinancial.com