"Help! I’m Facing a Larger than Expected Tax Bill,"

Contributed by: Matt Trujillo, CFP®

Every year, as the initial filing date approaches for federal tax returns, inevitably a client calls or emails with something along the lines of “Help! I owe the feds some money! Is there anything I can do to avoid the tax?!” 

I can certainly empathize with getting hit with an unexpected tax bill, and depending on your situation sometimes there are perfectly legal ways to avoid an unexpected tax bill. I have summarized a list of ideas below to keep in mind in case you find yourself in this situation:

Max out the HSA

If you have a qualified high deductible health plan and have an account established, you can defer up to $6,650 in 2015 and this can be done up to the filing deadline of April 18th for 2016.

SEP IRA

For 1099 earners look at setting up and contributing to a SEP IRA; this can be as much as 25% of your net income after expenses that are accounted for on the 1099 income.

Spousal IRA contribution

Maybe you work and have access to a 401(k) or 403(b) plan so you’re not able to make a deductible IRA contribution, but don’t rule this out entirely as your spouse could potentially make a deductible IRA contribution even if they aren’t working. Up to $5,500 for those under 50 and $6,500 for those over 50.

All of the aforementioned can be done right up to the filing deadline of April 18th for 2016, so it makes sense to review these even if it's passed December 31st of the calendar year! If none of these apply to your situation and you are wondering how to avoid owing a big tax bill again on next year’s tax return, consider the following ideas to help mitigate the upcoming year’s tax liability:

Max out 401(k)’s

For those under 50, you can contribute $18,000 and for those over 50 you can contribute $24,000. This has to be done through payroll deduction so you only have until December 31st of the calendar year to defer money into the plan and avoid income tax.

Deferred Compensation Plan

Some plans will allow you to defer your entire salary if desired so make sure you explore the options in your plan and know the specifics of how it works. These plans can be subject to substantial risk of forfeiture, so be very careful and make sure your organization is on solid financial footing before contributing to these plans.

Increase withholding on your paycheck

Nothing fancy here. Sometimes it's just as simple as sending an email to human resources and letting them know you want to withhold more state and federal taxes from your paychecks so you don’t get hit with a big tax bill at the end of the year.

Be sure to consult with a tax professional before implementing any of these strategies. 

Matthew Trujillo, CFP®, is a Certified Financial Planner™ at Center for Financial Planning, Inc. Matt currently assists Center planners and clients, and is a contributor to Money Centered.

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Any opinions are those of Matt Trujillo and not necessarily those of Raymond James Financial Services.

Webinar in Review: Social Security Filing Changes

Contributed by: Clare Lilek

Social Security is probably top of mind for a lot of you reading. Either you’ve heard about the changes being made to filing tactics regarding social security, or you’re getting ready to file and want to know the best strategy to use, or even how it works. We understand it can be complicated, and that’s why we’re here; to make sure you’re getting the most out of your social security benefit. Matt Trujillo, CFP®, held a webinar on the recent changes made to social security and how they could impact you and your spouse. He also went through a few scenarios of spousal benefits in order to clarify how the social security math equation works. He also explained a couple filing strategies that you and your spouse can take advantage of.

Calculating Your Benefits

First of all, Matt stressed that when you file for social security, your benefits statement is a snap shot in time. A predetermined formula uses the Full Retirement Age of 66 as the filing age and your previous work history for determining benefits. Your actual benefits you will receive might not correspond with this statement since it’s a picture of your benefits using your current situation as the determining factors, not your future situation. This is helpful to keep in mind as you’re going through the filing process.

Matt goes through three different examples of spouses filing for benefits in order for you to better understand how filing for social security works, and how that math formula benefits you and your spouse. He also provides a few things to keep in mind when deciding when to file, who should file, and the possibility of increasing surviving spouse benefits.

Recent Changes to Social Security

Finally, Matt discussed the two major changes occurring in social security and whom they affect: the end of Restricted Application and the end of the File & Suspend strategy. If you were thinking of utilizing either of these methods, for the Restricted Application if you turned 62 years on or before 12/31/2015, then you are grandfathered in to this advanced filing strategy. In order to File & Suspend, you have to have currently reached Full Retirement Age, and then you have until April 30th, 2016 to take advantage of this strategy. Please contact your planner if you believe you qualify for either of these tactics. For more information on the changes, please check out this blog.

Overall, this is just a quick teaser of the information you’ll find in the webinar recording below. Watch the video and if you have further questions on what this information means for you, please contact us. We’re here to help you navigate!

Clare Lilek is a Challenge Detroit Fellow / Client Service Associate at Center for Financial Planning, Inc.

The Importance of Reviewing and Updating Estate Planning Documents

Contributed by: Nick Defenthaler, CFP®

Estate planning is typically not an area that most of us get excited about. Let’s be honest, it can be a tough thing to discuss and dig into. Proper estate planning, however, and sometimes more importantly simply staying on top of your plan and keeping your documents up to date, is an essential part of your overall financial game plan. Far too many of us don’t have any documents drafted, period. If we do, chances are they were prepared more than 10 years ago – and we all know how much life can change over the course of a decade! Here are a few things to consider when going through the process of updating your documents:

Reviewing Beneficiaries

One of the simplest things we can do to ensure assets are passed on to who we want, is to have the proper beneficiaries listed on all accounts. This may seem like a “no brainer” but I can’t tell you how many times we’ve discovered, after reviewing accounts with clients, that changes need to be made. Recently, we worked with a new client who was in the process of “end of life planning” for her mother who had recently become divorced. While reviewing accounts and the estate plan with the attorney, we discovered that mom’s ex-husband was still listed as the primary beneficiary on an IRA that totaled nearly $500,000.  Although her trust had been updated to have her assets pass to her children post-divorce, the beneficiary designations were not updated on one of her largest assets. Many people are shocked to find out that although a will or trust may stipulate one thing in regards to asset distribution, a beneficiary designation trumps those documents. Luckily, we were able to help the mother switch the beneficiary of her IRA to her children approximately one week before her passing. This highlights the need to take reviewing beneficiaries extremely seriously, which is why we do this annually with you during your review meeting.

Reviewing Trustees, Personal Representatives, and Powers of Attorney

Just like we tell clients in regards to their financial plan, the same goes for their estate plan – it’s not a “one and done” type of thing. Something this important requires a process and the need to review and stay on top of it as the years go by and as life changes. It can be an eye opener for clients when we share with them who they have listed as a trustee in their trust, a personal representative in their will, or as a power of attorney for medical or financial purposes. Many times, those listed are parents who are now deceased or are siblings that now live on the other side of the country. At the time the documents were drafted listing those individuals made perfect sense, but maybe now the client’s children are mature and responsible enough to be in charge of their parent’s estate and to be their decision maker if needed. Typically, we recommend reviewing your documents every 3 years and immediately after a life event such as a marriage, death of a spouse, divorce, birth of a child, etc. 

As you can see, staying on top of your estate plan is extremely important. It’s also vital to keep these documents well organized and ideally provide copies to your financial planner and have your attorney retain copies as well. We also stress to communicate your wishes and to have open conversations with those who you name to administer your estate. This will help to keep everyone on the same page and help to avoid potential conflict that could arise during a time frame that family should be coming together and not stressing over dollars and cents.

Nick Defenthaler, CFP® is a CERTIFIED FINANCIAL PLANNER™ at Center for Financial Planning, Inc. Nick is a member of The Center’s financial planning department and also works closely with Center clients. In addition, Nick is a frequent contributor to the firm’s blogs.

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This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Nick Defenthaler and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. You should discuss any legal matters with the appropriate professional.

Retirement Behavior Zone

Contributed by: Timothy Wyman, CFP®, JD

Let’s face it; market volatility isn’t a whole lot of fun for any investor—unless that volatility is on the upside, of course. When investments experience downward volatility it can be hard on the psyche. In my experience, however, there is one group that is hit especially emotionally hard: those clients that are on either side of two years from their retirement date. While those with long term horizons feel some pain, it is generally muted because the funds are needed in the distant future and it doesn’t seem to bother them as much. Similarly, those that have been in retirement for a while seem to have the “been there – done that” mentality. They have been through volatility before, hopefully have weathered past storms, and understand volatility is part of the process to potentially get fair returns over time.

But how about those within two years, either side, of retirement? Often times, these clients are the most concerned, and rightfully so. The time that folks switch from being a net saver for so many years to a net spender is emotionally challenging in many cases. As former partner Dan Boyce used to say, it feels like you are eating your seed corn. (Full disclosure – this city boy never really understood it but many a client nodded as if to confirm the saying!).

According to research underwritten by Prudential Securities, “economic researchers have found that emotions play a significant role in how people make financial decisions.” At first, my response was a yawn and a hope that Prudential didn’t pay too much for such a conclusion. Fortunately there was more to the study, something with a little more meat on the bone. The study suggests that the five years before and after retirement is critical. That understanding this behavioral risk becomes even more important. Two specific risks cited in the study include sequence risk and behavioral risk.

At the risk of downplaying behavior risk, it is one that we have some control of, after all. Poor investor behavior during this two year of period within retirement can be hazardous to your financial health, for a long time if not forever. What’s the prescription? Yes this is self-serving, but working with a third party professional can help improve investor behavior. Vanguard suggests that behavioral coaching may bring about as much as 150 basis points (or 1.5%) of value add by advisors.

The second risk, sequence risk, is very real and much less controllable. Large negative returns early in retirement can indeed impact one’s retirement years. Fortunately, for many, one large loss year usually isn’t enough to derail years of proper planning. Again, what’s the prescription? In general, utilizing multiple asset classes, multiple investment styles, and multiple managers (aka asset allocation & diversification) provides enough risk parameters to lessen the potential sequence risk. 

If recent volatility has hit you especially hard (emotionally or in dollars) give us a call. If you are a current client we welcome the opportunity to review your portfolio and your plan, and if you are not a current client we welcome the opportunity to provide another opinion.

Timothy Wyman, CFP®, JD is the Managing Partner and Financial Planner at Center for Financial Planning, Inc. and is a contributor to national media and publications such as Forbes and The Wall Street Journal and has appeared on Good Morning America Weekend Edition and WDIV Channel 4. A leader in his profession, Tim served on the National Board of Directors for the 28,000 member Financial Planning Association™ (FPA®), mentored many CFP® practitioners and is a frequent speaker to organizations and businesses on various financial planning topics.

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This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Timothy Wyman and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Past performance is not a guarantee of future results. Investing involves risk and investors may incur a profit or a loss regardless of strategy selected. Raymond James is not affiliated with and does not endorse the opinions or services of Vanguard or Prudential Securities. Diversification and asset allocation do not ensure a profit or protect against a loss. There is no guarantee that using an advisor will produce favorable investment results.

Solutions for Serving Seniors and Vulnerable Older Adults

Contributed by: Sandra Adams, CFP®

I recently had the honor of speaking on a panel at the IA Watch Compliance Conference in Washington DC on the topic of "Solutions for Serving Seniors and Vulnerable Older Adults.” Conference attendees, who were financial firm owners, compliance officers, and financial advisors in compliance roles, attended the conference to get up-to-speed on industry hot topics such as SEC filing changes, Cyber Security, and, of course, how to best serve their aging client demographic.

The panel consisted of myself, Ronald Long, a Compliance officer from Wells Fargo Advisors, and Michael Creedon, a Gerontologist and Social Worker who writes and speaks on issues related to older adults. As the only financial planner and practitioner in attendance that works directly with clients, I was glad to be able to give practical tips for how to best help clients while continuing long term relationships with client families.

The message of the panel was clear:

No matter what our position, it is our job to best serve clients and their families, and addressing the issues of potential diminished capacity and other long term care issues head-on is the best way to do that.

I hope that presenting at this and other conferences is one more step towards spreading the word on this very important message to advisors in our industry!

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

Social Security: Calculating your Benefit in 7 Steps

Contributed by: Matt Trujillo, CFP®

When Social Security is concerned, you may find yourself wondering: “How is my benefit calculated?”

To help you understand, I’ve laid out the 7 steps it takes to calculate your Social Security benefit:

• Step 1: Enter earnings from each year into the chart below into Column B. Only enter earnings up to the “maximum earnings” figure from column A. So for instance in 2001 if you earned $200,000 you would only enter $80,400 into column B because that is the maximum credit you can earn for that year. All earnings after $80,400 didn’t pay into social security for that year. For the years you didn’t have earnings or didn’t pay into social security enter $0 into Column B.

• Step 2: Multiply the amounts in Column B by the index factors in Column C and enter the total in Column D. This gives you an estimated value of your past earnings in current dollars. 

• Step 3: From Column D, pick 35 years with the highest amounts and add these amounts together.

• Step 4: Divide the total from Step 3 by 420 (this is the number of months in 35 years); be sure to round down to the nearest whole dollar figure with whatever total you come up with. This figure is your average indexed monthly earnings

• Step 5: Multiply the first $856 from Step 4 by .90; from $857 to $5,157 multiply by .32; and from $5,158 and up multiple by .15

  • This is probably the most confusing part so let me give an example:
    Step 4 average indexed monthly earnings = $8,000; 
    $856 * .9 = $770.40
    $5,157-$857= $4,300 * .32 = $1,376
    $8,000-$5,157= $2,843 * .15 = $426.45

• Step 6: Add all the figures up from Step 5 and round down; if we use our previous example this would be $770.40 + $1,376 + $426.45 = $2,572.85 rounded down would be $2,572.

• Step 7: Multiply the amount in Step 6 by 75%. Whatever figure you get is your estimated monthly retirement benefit if you retire at age 62.

I hope you find these 7 steps useful and easy to navigate. When it comes to retirement planning and Social Security benefits, if you have questions or concerns any of the planners here at The Center are willing and able to help you!  

Matthew Trujillo, CFP®, is a Certified Financial Planner™ at Center for Financial Planning, Inc. Matt currently assists Center planners and clients, and is a contributor to Money Centered.

Three Ways to Establish and Improve your Credit Score

Contributed by: Matt Trujillo, CFP®

In a previous blog I discussed how your credit report is composed and what goes into a credit report; I would encourage you to check out to find out how your score is calculated. Now, I want to discuss methods for improving your credit score, if you are unhappy with your current number, and/or establishing credit if you are just getting started.

First, let’s start by establishing how you get credit. If you want to establish credit, you need a regular source of income. The income can be derived from a job, trust fund dividends, government benefits, alimony, investment dividends, or any number of sources. What’s important is that you have some kind of continuing and predictable cash flow. Without regular income, you cannot demonstrate an ability to make regular payments. Establishing a regular source of income is your first step.

Once you have a steady source of income it is time to start applying for credit. If you are just starting out or are looking to repair credit, I recommend starting small. Here is a short list of ideas that you can consider for getting easy access to credit and slowly starting to improve or establish your score.

An overdraft line of credit on your checking account at your bank

• Here is how it works. You have a checking account. You apply for and are granted an overdraft line of credit in the amount of $500. Your checking account balance is $40. You write a check for $75. When the check is presented to the bank for collection, the bank does not return it for insufficient funds. Instead, it credits your checking account in the amount of $100. Now you have a balance of $140 in your account. The bank can honor the $75 check, leaving you with $65 in the account. The bank bills you monthly for the $100. You can repay the $100 all at once, or make minimum monthly payments. You will be charged interest and perhaps a service fee. Although it may not look like a loan, it is. Activity on these accounts is regularly reported by many banks.

Getting a secured credit card

• Many credit issuers offer secured credit cards. A secured credit card provides you with an open line of credit secured by a cash deposit. These types of cards typically come with a high interest rate. Here is how a secured credit card works. You give the credit card issuer a cash deposit. The credit issuer gives you a credit card with a credit limit equal to the cash deposit. You can charge up to the credit limit using the card, and then make monthly payments on the balance. If you fail to make the payments, the credit card issuer uses your cash deposit to cover the unpaid balance. If you make your payments as agreed, you will eventually establish credit (or improve your current score) and qualify for an unsecured credit card. The secured credit card issuer will return your deposit, less any unpaid balance due, when you cancel the account.

Using collateral when applying for new lines of credit

• When you secure credit, you give the lender collateral to back your loan. The risk is reduced for the lender. If you do not pay, the lender can use the value of the collateral to satisfy the debt. Collateral can be anything of value, but usually takes the form of cars or real estate. If you have something of value, but no credit rating, you may be able to acquire credit by offering to post your valuables as collateral.

These are just a few simple and easy ways to either establish credit or improve your credit score in order to build a credit report you are comfortable with.  

Matthew Trujillo, CFP®, is a Certified Financial Planner™ at Center for Financial Planning, Inc. Matt currently assists Center planners and clients, and is a contributor to Money Centered.

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The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Matt Trujillo and not necessarily those of Raymond James.

E-Signature: Fast, Easy, and Accurate

Contributed by: Melissa Parkins, CFP®

Raymond James has recently partnered with DocuSign, so we are now able to send most documents to you for an electronic signature. No more printing, signing, and scanning forms back to us – it can now all be done online! The only requirements are an email address and a text-enabled phone to receive an authentication code needed to access the forms for electronic signature.

Here are the steps to use this new feature:

• You will receive an email from us alerting you that a document is awaiting your signature. Click View Documents to begin.

• In the browser window that opens, verify that the phone number shown for you is correct (if not, contact us), then click Send SMS to send a text message to the phone number listed with your access code.

• Enter your access code, in your email, and click Confirm Code.

• You will be asked to review the disclosure and select the checkbox saying you agree to use electronic signature. Click Continue.

• Click Start to begin the signing process. You won’t be able to add, delete, or modify anything. If you do discover missing or inaccurate information, contact us.

• When you click the first Sign or Initial tag in the document, you will be asked to adopt your signature. Choose whether you want to use a preformatted style or draw your signature in, then click Adopt and Sign to save your signature and return to the document.

• After you are done reviewing the document, click Finish.

For a more visual guide, please visit the E-signature Resources page: http://raymondjames.com/esignature/

We hope you are as anxious to use this new feature as we are. Next time you have to sign a Raymond James document, ask us to send it to you for your E-signature so you can try it out for yourself! 

Melissa Parkins, CFP® is an Associate Financial Planner at Center for Financial Planning, Inc.

A Change to Your American Funds CollegeAmerica 529 Plan

Contributed by: Melissa Parkins, CFP®

If you have 529 Plan(s) with American Funds CollegeAmerica, a change is coming this year that you should be aware of.

What is happening?

On June 24, 2016 your CollegeAmerica 529 account will be transferred out of the custody of American Funds, and into the custody of Raymond James.

What does this mean?

• Better communication, efficiency, and service for you! Raymond James will now hold your CollegeAmerica 529 account assets instead of American Funds.
• Communications about your account will now be more consistent and clear. Statements and tax documents will all come from Raymond James, instead of multiple communications from multiple sources.
• If your 529 account is currently enrolled in systematic purchase plans at American Funds, they will continue without any disruptions or delay. The information will be transferred to Raymond James to continue any automatic transactions that are currently set up.
• Your Raymond James account number for your 529 account will not change. The CollegeAmerica Program will continue to govern your account, but Raymond James will now hold the account.
• The change will not affect the value of your investments, and there will not be any fees for this transfer.

What other information will you be receiving?

• You will receive a letter from Raymond James at the beginning of April with the details of this change. If you have more than one CollegeAmerica 529. You will receive multiple mailings, one for each account.
  • This letter will state that your financial advisor (us) will now be your single point of contact for managing your American Funds CollegeAmerica 529 account. We have always been your main point of contact for these accounts. So you will continue to call or email us with any requests related to your accounts.
• You will receive a statement from American Funds after June 24 reflecting a zero balance, because your investments in the 529 account will no longer be held by American Funds. The statement will show a transfer out of the 529 plan.
• Two year-end statements will be sent for your 529 plan in early 2017: one from American Funds and one from Raymond James. Your year-end statement from American Funds will indicate that the funds transferred out.
• If you had any reportable transactions before June 24, you will receive a 1099-Q tax document from American Funds. If you had any reportable transactions after June 24, you will receive a 1099-Q tax document from Raymond James. These would also both come in early 2017.

In a nutshell, not much is changing from your end. This change will allow us to more timely and efficiently service your 529 accounts, since we will no longer need to go through American Funds for any processing. This means better service to you! Please call us if you have any questions.

Melissa Parkins, CFP® is an Associate Financial Planner at Center for Financial Planning, Inc.

Insurance Basics: How Disability Insurance is underutilized but Critical

Contributed by: Nick Defenthaler, CFP®

As we continue through our insurance basics blog series, we move on to discuss disability insurance.  According to the Social Security Administration, studies have shown that just over 25% of today’s 20 year-olds will become disabled at some point before reaching age 67. Wow! This is a pretty staggering statistic –these odds are far greater than a pre-mature death, which is what life insurance is typically purchased to protect against (see my last Insurance Basics blog on Life Insurance). However, often times when we discuss disability insurance with clients, we find that it’s an area of confusion. Many aren’t even sure if they have coverage or they may believe that Social Security will kick in and be enough. For most of us, especially if you’re in the early stages of the “accumulation mode” of your career, your earnings power, or human capital, is most likely your largest asset both now and into the foreseeable future. A disability can wreak havoc on this “asset” which is essentially why disability insurance is purchased. Let’s look at the basic types of coverage:

Short-term vs. Long-term Disability

Long-term disability typically has what’s known as an “elimination period” of how many days must pass before benefits begin. This is often called the “time deductible” of the policy which in many cases is 90-120 days. Benefits can pay out up until age 65, however, most policies have a stated period of time where benefits would be payable. To help bridge this gap of coverage, a short-term disability policy can come in handy because benefits will usually begin within a week or two of disability and continue for up to one year, although benefits typically last between three to six months. Short-term disability policies can be a great backstop to preserve your emergency cash fund, typically at a fairly reasonable cost. 

Group Coverage

As with life insurance, many employers offer a form of disability insurance to their employees as part of their benefit package. Sometimes the employer will pay for the premium in full and other times the employee will have the option to pay for premiums (fully or partially). You may be asking yourself, “Why would an employee want to pay for the group coverage instead of having the employer foot the bill?”  Great question, with very important ramifications! If the employer pays your premiums in full, the entire amount of your benefit if needed (typically between 50% and 60% of your pay up to certain limits) would be taxable. If you as the employee were paying for the premiums in full and you needed the coverage, benefits paid out would NOT be taxable. If you were only paying a portion of the total premium, say 20%, only 20% of the benefits paid would be non-taxable to you as the employee. The tax treatment of benefits will have a large impact on the net amount of benefit that actually hits your bank account so it’s important to understand who’s paying for what if you have access to a group disability policy at work.

Individual Coverage

As the name implies, individual coverage is purchased by you through an insurance company – the policy is not offered through your employer. A major benefit of purchasing an individual policy is that the coverage is portable. You can take it with you if you change jobs because it’s not tied to your company’s benefit package (most group policies are non-portable). Another advantage (or disadvantage depending on how you look at it), you are paying for the coverage so if benefits are needed, they will not be taxable to you. With an individual policy, you have control over selecting the definition of disability that your policy uses (any occupation, own occupation, etc.) and you’d also have the option to add any additional features to the policy (for an additional cost), known as “riders.”

As you can probably tell, we’re just scratching the surface on disability coverage. As I mentioned, it is often times the most over looked part of a client’s financial plan and coverage types, despite its high probability and significant risk of long-term financial loss.  At minimum, check with your employer to see if group coverage is offered (both long-term and short-term) and consult with your financial planner on whether or not it is sufficient or if additional coverage would be recommended. If you have questions about your current coverage or how you think disability insurance should fit into your financial plan, give us a call!

Nick Defenthaler, CFP® is a CERTIFIED FINANCIAL PLANNER™ at Center for Financial Planning, Inc. Nick is a member of The Center’s financial planning department and also works closely with Center clients. In addition, Nick is a frequent contributor to the firm’s blogs.

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Sources: https://www.ssa.gov/planners/disability/

The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Nick Defenthaler and not necessarily those of Raymond James. Guarantees are based on the claims paying ability of the issuing company. Long Term Care Insurance or Asset Based Long Term Care Insurance Products may not be suitable for all investors. Surrender charges may apply for early withdrawals and, if made prior to age 59 ½, may be subject to a 10% federal tax penalty in addition to any gains being taxed as ordinary income. Please consult with a licensed financial professional when considering your insurance options. You should discuss any tax or legal matters with the appropriate professional.