New Tax Law Passes

2011 Tax Summary

The House and Senate have voted, and President Obama has signed the new Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act of 2010). The new law includes a number of tax breaks for many taxpayers. Here are some highlights that a client may wish to discuss with their tax professional or attorney:

Current tax rates and certain tax breaks extended for two years

• The Tax Relief Act extends the tax rates of 10%, 15%, 25%, 28%, 33%, and 35% for another two years.
• The new law extends for two years the repeal of the phaseout of personal exemption for certain high-income taxpayers.
• The new law also extends for two years the repeal of the limitation on itemized deductions for certain high-income taxpayers.

Capital gains and dividends

• The Tax Relief Act sets capital gains and qualified dividends tax rates at 0% and 15% for another two years.

AMT patch

• The new law increases the AMT exemption amounts for two years.

Estate tax

• The Tax Relief Act sets the estate tax exemption at $5 million per person and $10 million per couple for estates of decedents dying in 2011 and 2012.
• The new law reunifies gift and estate taxes. The gift tax exemption increases to $5 million per person for gifts made in 2011 and 2012.
• The new law also caps the tax rate at 35% for estates, gifts, and generation-skipping transfers.
• The new law provides a choice for estates of decedents who died in 2010 to use the new estate tax exemptions/rates with a stepped-up basis rule, OR to use the existing 2010 law with no federal estate tax but a limit in the amount of basis step-up that is allowed.
• The new law allows for "portability" of the estate tax exemption, meaning that any unused estate tax exemption of a deceased spouse can be carried over and utilized by the other spouse who dies second.

Other points of interest:

• The employee withholding portion of the Social Security payroll tax will be reduced by 2.0% for 2011 (e.g., 6.2% withholding is reduced to 4.2%).
• Extends for 2010 and 2011 the ability of taxpayers age 70½ or older to exclude from gross income up to $100,000 of qualified charitable distributions.
• Extension of unemployment insurance benefits for 13 months.

The points outlined here are just highlights of the new laws if you would like to learn more detail please consult with your tax advisor. If you are in search of a trustworthy and effective tax advisor please call me at 610-695-8748 or email me at roy@yourwealthadvocate.com

If you have other questions about retirement planning or personal investment coaching you can get more information at yourwealthadvocate.com.

End of Year Financial Checklist

With 2011 right around the corner now is a great time to get your finances in order.

There is still time to save some money this year and get yourself into good habits for next year and beyond. All of the items mentioned below can be daunting however a good financial advisor can help you with most of them. If you have annual reviews some of these should have already come up and dealt with.

Looking back at your finances in the past year help you see where you need to make necessary improvements to your financial future. You should access your debts as well as your investments and your life, health and homeowners insurance policies.

Insurance Policies

Take a look at your insurance policies and make sure your beneficiaries are correct and decide whether you have enough coverage for the current debt and life circumstance you are experiencing. For example; did you add new children or dependents that you need or account for in your estate planning or in the event of a tragic event.

With health insurance take a look at your deductibles if you have one maybe you can schedule that physical or get those new glasses before the end of the year to bring you over the top. This also is a reason to check on your flexible spending accounts.

Retirement Accounts

Have you reached your limit for contributions for your IRA and or 401K/403B plans? Investigate whether or not you should make those contributions and maximize them. If you inherited an IRA make sure that you have taken your minimum distribution for the year. If you miss this one you get dinged by uncle same 50 percent of the distribution amount.

Investments

This has been a pretty good year for most of us but maybe you should look over your investments for losses you may be able to harvest for tax loss. Also make sure that your investments are suitable for you based on your time horizon and risk tolerance.

Charitable Contributions

See how much you have donated to your favorite tax deductible charity and make those contributions before the end of the year.

Debt

List all of your outstanding debt obligations and decide how much of that you want to pay off in the coming year. You may want to consolidate your credit card debt to lower interest rates or maybe pay off some smaller high interest balances.

I hope the list above will inspire many of you to take some action in improving your financial life. If you need help with a strategy or changes in any of the above I am glad to help. You may be able to find more helpful information at my website, http://www.yourwealthadvocate.com

Can Using An Advisor Really Improve the Bottom Line? - Financial Planning

Can Using An Advisor Really Improve the Bottom Line? - Financial Planning

Five ways new estate tax deal affects you Robert Powell's Your Portfolio - MarketWatch

Five ways new estate tax deal affects you Robert Powell's Your Portfolio - MarketWatch

Do we assume too much risk?

Assume or Transfer

The media and the financial industry have indoctrinated us to assume the amount of risk that we should take in order to achieve an expected return. Most brokers will ask you your risk tolerance and then devise a plan with products that make you assume the risk that you can stand and hope for an expected return.

The principles of prosperity says the opposite. In order to be prosperous think risk transfer not risk assumption. You say how do I do that? For many a simple whole life insurance policy is moving the risk to the insurance company. The insurance company guarantees the cash value of the policy and while we are contributing our premiums to it the company is usually paying on average a 5 to 7 percent return.

Where, in todays market can you get a consistent, guaranteed return of 5 to 7 percent? I will take those odds all day long, especially after seeing what the market has done in the last 10 years.

If you want to find out more about how to transfer your risks and create a life of prosperity instead of living a life of scarcity give me a call at 610-695-8748 to discuss the possibilities. You can also visit my website at to get more details.

Build Your Crash Proof Nest Egg

It is a fact that today unfortunately less than 25% of companies large and small offer defined benefit plans for their employees as a regular benefit. For those unfamiliar with the term defined benefit you can boil that down to a pension plan. So how do you plan your retirement when you have to rely on your own resources to provide for your non-working years.

The first step in the development of a non-destructible retirement plan is to have some funds with which to work. Primarily these funds come from savings and investments that hopefully you have acquired over your working years. The second step is to develop a relationship with trusted advisor who can coach you through the process of a plan for prosperity for the rest of your life.

Once you have all of the above factors in place you can develop an investment philosophy with your coach. An investment philosophy is based on your beliefs about the market, your risk tolerance and your time horizon. Your investment philosophy is the basis for the mindset you have in the decision making when you chose your investments. Some questions you might ask yourself when pondering an investment philosophy are what is your true purpose for money and how will you use it to fulfill your life dreams. Do you need to provide for loved ones or are they OK? Are there additional resources that will come in once you are gone for your spouse and your heirs? You definitely have to do some soul searching, but a good investor coach will help you with that.

The next item on the agenda should be how you are going to implement this plan. Will it be from your current investments or do they need to be changed? Your coach will help you with these decisions as well, he/she should ask the right questions so that with his/her knowledge suggest the correct plan of action to use.

Once your plan for prosperity is in place you should be able to relax and not worry about market conditions or fluctuation. A properly put together plan should transfer risk for a solid return not assume risk for a potentially better return. Do't be fooled by advisors who try to "sell" you products that he/she thinks are best for you, it has to feel right in order for it to work for you.


If you have any questions or want to investigate your Investment Philosophy you can visit my website at yourwealthadvocate.com or call me to set up an interview at 610-695-8748

Roy Innella Investor Coach

IRA Rollovers � Rollover Your 401K, 403B or 457 Plan � Grow Your Retirement Savings

IRA Rollovers � Rollover Your 401K, 403B or 457 Plan � Grow Your Retirement Savings

Why rollover your 401K to your own IRA account? This article explains why to do it.

Video - Quantitative Easing Explained - National Right Side Politics | Examiner.com

Video - Quantitative Easing Explained - National Right Side Politics | Examiner.com

Nicely done video on Quantitative Easing.

Lump Sum or Pension Payout

You have worked a great job for many years, and built up a nice pension payout, but you have the choice of taking the payout or taking a lump sum. How do you know which is best for you? How do you handle that large sum of money? What am I giving up by taking the payout and not the lump sum.

The questions above are common of clients who come in to see me. Most have been referred by someone I already am serving and have found a solution through using my services. The choice you make is very important and will impact the rest of your life so you really need to do some soul searching before you come to an answer.

I like to apply the Principles of Prosperity before helping folks make a decision like this. After taking them down that path they are more confident in their decision because they are comfortable with the risk decisions they made. Questions that need to be asked are what is your current financial need, and what do you think your needs will be in the future? Also can I get something in the commercial market that will pay me better than the payout option.

My job as a financial coach is to research all of the options available and " test" their viability with my client. Usually the client is comfortable with their decisions after we have done a thorough review using this process.

If you are faced with this problem and need help with the decision making process I can coach you through it so you are more confident and can explore all of your options. If you need help with it you can call my office at 610-695-8748 or email me at roy@yourwealthadvocate.com.

The Intelligent Investor: Why Your Adviser Is Scared to Set You Straight - WSJ.com

The Intelligent Investor: Why Your Adviser Is Scared to Set You Straight - WSJ.com

Here is where an investor coach is different from a financial advisor. A financial coach works with clients to enhance and grow their cash flow along with asset growth. Investor education is the best way to help investors prudently work with investment products and strategies and retain peace of mind.

Broker vs. Investment Advisor

Broker vs. Investment Advisor

Efficient Advisors | Efficiency is Everything.

Efficient Advisors | Efficiency is Everything.

The Whole Truth about Getting a Mortgage.

The level of misinformation out there concerning mortgages can be disconcerting. Do you put down more or less? Do you pay it off now or later? Is a 15 year term better than a 3o year term?

Many Americans make inefficient use of their money because of the lack of complete information coming from mortgage companies, banks, media, CPA’s, and friends and family who they believe know more than they (or you) do.

There are many factors to deciding which way you should go with your mortgage, not the least of which is whether the peace of mind you might get is worth tying up your nest egg into the house.

As a financial coach using the Principles of Prosperity I feel a responsibility to my clients to become involved with this decision making if necessary.

A friend of mine Kim Butler has written a great book called "The Whole Truth about Your Mortgage" In her book she covers the complete analysis of determining what is best for you.

If you would like a copy of the book give me a call at 610-695-8748 and I will see that you get it for you or whoever in your circle of influence could use it. You can also email me at roy@yourwealthadvocate.com and let me know it you are interested in getting it.

What is the best investment?

People often ask me "what is the best thing I can invest in right now"? My response is usually returned with a question. That question is "what do you think you should be investing in right now"? Sometimes I get a perplexed look like "Why are you asking me when you should be the all knowing about investments"?

When you go to the doctor and ask him "What's wrong with me"? Doesn't he ask you a lot of questions before he makes a judgement as to what your ailment might be? The secret to finding the right investment is asking the right questions and finding the right answers to those questions as they pertain to you and only you. A good financial coach won't suggest solutions without ample time and due diligence.

Warren Buffet has said: " There is no such thing as a bad or good investment " What did he mean by that? It is up to the investor to decide what investment is best for her/him. Because no one can be all knowing and figuring that out without some great financial coaching is difficult at best.

There are many factors that change to determine whether an investment is good or bad. There should be many questions asked, and some give and take about what is needed by the investor before a prudent financial decision can be made. I ask financial wisdom questions before beginning an engagement with my clients these questions can be found by clicking here.

If you are unhappy with the solutions your advisor has given you and want a second opinion to see what other alternatives are out there you might want to give my office a call at 610-695-8748 or email me at roy@yourwealthadvocate.com

Who do you go to for financial advice?

For most people this is a hodge podge of answers. Depending on your personality type you may seek the counsel of a trusted friend whom you know is successful, or a relative like a parent or a rich uncle. Before you get that advice are you asking yourself how qualified is this individual to give this advice?

Some people who have come in to see me have gotten advice after I have raised issues for them that they hadn't thought of. Some of them come back to me and become clients and others don't and will follow the advice of some unqualified individual like their next door neighbor or maybe a golfing buddy or that parent or rich uncle.

If you are using a stock broker for financial direction you may be in good hands, however they are not trained to be a fiduciary. A fiduciary is someone who will only suggest what is in the best interest of the client. They are not trained to be an advocate. Even though the new laws and financial regulations are changing they haven't gone into effect yet. As of today a broker only is required to suggest what is suitable for their clients. There is a big disparity between what is suitable versus what is best for a particular client. The advisor must ask many personal questions regarding the situation before suggesting a solution.

If you want to know if what you have invested is prudent for your situation or just suitable give me a call at 610-695-8748 or email me at roy@yourwealthadvocate.com and I will be happy to set up a complimentary consultation. After all what have you got to lose?

Consternation about Investing?

Whether the market is going up down or sideways there is always some concern about the market and how that relates to or is influenced by the economy. It is a proven fact that long term investing combined with proper diversification is the first principle of successful investing. Harry Markowitz proved that in 1952 when he developed Modern Portfolio Theory and computers verified it in the early nineties and he even won a Nobel prize for it.

So how do you know how to properly diversify? There are certain asset categories that fulfill the proper methods of diversification. It is up to your advisor to know what these asset categories are and how they apply to your portfolio. I apply these methods of investing to certain clients depending on their age and risk tolerance and apply my fiduciary responsibility to my decision making as well. Just having a lot of "stuff" is not diversification, you must have the right stuff and the right amount of it. If you want to learn more about how this can apply to you visit my website or call me at 610-695-8748.

Enhancing the Flow of Money

Did you know that your life insurance cash value can do 7 jobs at once? The fact that it does so many jobs makes it a valuable asset in creating your own path to prosperity. If you want to learn more let me know and I will send you a white paper on it.

Whenever making a financial decision you should evaluate how it affects the 7 principles of prosperity and adjust your decision accordingly. I have a simple test that I can send you for doing this.

If you want information on either of the subjects above do not hesitate to call me or email me. Of course there is more information on my website: http://www.yourwealthadvocate.com

Please comment below to help spread the good word.

The Flow of money

One of the Principles of Prosperity is to focus on cash flow as well as net worth when building your life plan for wealth. As we build wealth in our life this becomes more and more apparent. The velocity of money in your life and how it flows though an asset is more important than the flow of money to an asset. If you money gets stuck in an asset then it becomes unavailable to use in other areas of your life. The biggest example for most people is the amount of money that is tied up in your home. Here is an asset that adds to your net worth yet your flow of dollars is stuck in the asset and not flowing through it.

When building assets be sure to take a look at the implications of where the dollars will go and be sure to take a look at the opportunity costs that you are giving up when you tie the money up.

For more information on this topic visit my website by clicking here

PROSPERITY PRINCIPLES

It’s easy to get sidetracked and to fall back into the same traditional, outdated, and ineffective perspectives. Here’s a helpful reminder to ensure you keep Prosperity Economics at the center of your attention.

Think – Owning a prosperity mind-set eliminates poverty; scarcity thinking keeps you stuck!

Ask yourself: Do I wonder, “Oh my gosh, what’s going to happen?” Wouldn’t it be more productive to say, “Oh my gosh, what can happen?”

· When you think from prosperity as opposed to thinking from poverty, when you think from abundance as opposed to thinking from scarcity, you make different decisions. So, in each case it’s important that you think from a prosperous mindset.

· Now, the alternative of this obviously is to think from scarcity, and when you do, it keeps you stuck. It eliminates your confidence; it disables your ability to move forward. Scarcity thinking or poverty thinking is what holds people back. It’s what holds your money back; it’s what holds your capability back.

· We want to help you in every endeavor to think from a prosperity point of view and own that prosperity point of view. No matter what is going on in your life, you can own, act, and think outward from prosperity.

These principles can be employed on your own, but are best used when in concert with the Prosperity Economics strategies with your advisor.

Scarcity or Abundance Which do you prefer?

Are you in a scarcity mindset?

When helping my clients I prefer to coach them as opposed to "selling" a product from the financial industry. Of course there are always exceptions to this rule, but for the most part a "fee only" structure works best with most people.

My mission is to help my clients create more wealth than they can spend in a lifetime. We do this by co-creating plans that help them make powerful decisions. Decisions that maximize the amount of money coming in and minimize the amount of money going out. Below is a video where I explain how I work.

My Vision:

Our mainstream society today does not provide formal or adequate financial education to prepare for your financial future. Instead you are bombarded with offers to get rich quick and do it yourself strategies. The indoctrination of micro-economic thinking gets most investors bogged down with things like average returns, short term objectives and other minutia which is a micro economic focus.

My goals include educating and coaching you to “catch up” on what you may have missed in learning proper prosperity principles. For most people that means coaching to achieve peace of mind, by using a macro - economic or holistic view of thinking with more certainty of cash flow.

For more information go to my website: