Presented by John B. Steiger

With the beginning of 2014 upon us, you may be setting goals and resolutions for the New Year. Starting fresh is always a great feeling, but the scale of what we set out to accomplish sometimes becomes overwhelming as the year progresses. The question is, how can you stay motivated to meet your financial goals in 2014?

Financial tips for every month

For many people, checking off items on a long list of to-dos brings a great sense of satisfaction. To help you keep moving toward your goals, we’ve created a month-by-month checklist of some key financial tasks to consider throughout the year. You might even find that you’ve completed some of these items already!

January

Establish a will or trust with an estate attorney. Although many people avoid thinking about estate planning, getting your affairs in order is one of the greatest gifts you can give your loved ones. If you’ve already established a will or a trust, sit down and review the documents with your attorney, making any necessary changes.
Create a budget. Establishing a monthly plan for spending and saving is an excellent way to help keep your finances in check, whether you’re reevaluating your financial life or just trying to maintain good habits.
Get ahead on your mortgage. If you can swing it, consider making a full extra payment toward your mortgage principal, which may help shorten the length of your loan.

February

Review life, home, and auto insurance. It’s a good idea to check your coverage regularly. Have you experienced a major life event in the past year, such as a marriage or birth? Any significant changes in your personal life may require you to reevaluate your coverage.
Revisit beneficiary designations for life insurance/retirement accounts. Do you need to add a new beneficiary or change a designation? Review your accounts to ensure that the correct people are listed.

March

Check your investment portfolio allocations and current holdings. As your financial advisor, we monitor your investment portfolio and holdings regularly. Nonetheless, you should be aware of where and how your assets are invested.
Explore loans, grants, and other sources of financial aid. There are many ways to finance college and postgraduate education expenses. If you have a college-bound child, it’s wise to get an early start researching the options available to you. The government-sponsored website http://studentaid.ed.gov is a great place to begin.

April

Review your online social security statement. Check your benefits information and earning record, and update any outdated personal information, such as your address or phone number.

May

Review 401(k), IRA, and SEP plans. No matter your retirement goals, keeping an eye on your balances and making regular contributions is essential. Depending on your circumstances, consider increasing the amount you contribute. (Retirement planning is equally important for self-employed individuals, who can take advantage of many of the same savings vehicles.) We encourage you to meet with us to discuss the investment allocations in your 401(k) or other plan.

June

Check your credit report. Request your free credit report at www.annualcreditreport.com and review it carefully for mistakes or suspicious charges, which could be a sign of identity theft.
Shred old documents. Any financial documents that you no longer need, such as bank and investment statements, should be destroyed to ensure that they don’t fall into the wrong hands.

July

Research 529 savings plans. Withdrawals from 529 plans are tax-free when used for qualified higher education expenses, making them an excellent way to save for a child or grandchild’s schooling.

August

Review online accounts. Take a look at the usernames and passwords you currently use for your online accounts. If the passwords are too basic or if you’ve held onto them for too long, consider changing them as a security precaution.

September

Assess your overall investment goals and strategy. It’s wise to reevaluate your financial goals every year, especially if you’ve had any major changes or unexpected events in your life. We can discuss your situation and help you adjust your financial plan accordingly.
Revisit your budget. Look back at the plan you made in January and decide whether to adjust your budget or stick to your current strategy.

October

Contact your CPA for year-end tax planning. Before tax season hits, it’s a good idea to speak with a certified accountant about changes in your personal circumstances, expiring tax breaks, and so on.
Consider charitable giving. Donating to charity at year-end is a popular way to do good while reaping potential tax deductions. Charitable giving may be another item you wish to discuss with your CPA.

November

Review the balance in your flexible spending account (FSA). FSAs require special attention so that you don’t lose unused funds at year-end. Under a new law, employers may allow employees to roll over $500 in FSA funds to the next year. Be sure to check the rules of your FSA plan and review your available balance.

December

Consider refinancing high-interest debt. Consolidating your mortgage, credit card, or car loan payments can make your financial life more efficient (and possibly lower your overall interest rate).
Pay off credit card balances every month. For the New Year, make a resolution to pay off your credit card balances every month, if you’re not doing so already.

Milestone events
In addition to the monthly tasks outlined here, keep these significant planning milestones in mind as you near retirement age:

Age 50: Consider making catch-up contributions to IRAs and qualified retirement plans.
Age 55: You can take distributions from 401(k) plans without penalty if retired.
Age 59½: You can take distributions from IRAs without penalty.
Ages 62–70: You can apply for social security benefits.
Age 65: You become eligible for Medicare.
Age 70½: You must begin taking required minimum distributions from IRAs, 401(k)s, and 403(b)s.

Although this may seem like a lot of information to take in at once, glancing at the checklist each month and being ready for important retirement-related dates can greatly improve your sense of financial security, granting you peace of mind in 2014—and beyond.

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.

IRS CIRCULAR 230 DISCLOSURE:
To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

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John B. Steiger is a financial consultant located at 460 Totten Pond Road Suite 600 Waltham, MA 02451. John offers securities as a Registered Representative of Commonwealth Financial Network®, Member FINRA/SIPC. John can be reached at 781.547.5621 or at john@financialconnector.com.

© 2013 Commonwealth Financial Network®

At Cleary, we are committed to a holistic approach of protecting and preserving our clients’ financial assets. Give us a call today at 617-723-0700 and let us know how we can help you.

The Professional Services Council (PSC) is the national trade association of the government professional and technical services industry. The PSC mission is to provide value to their members by being the leading advocate and resource for the federal professional and technical services industry. In December the group held a conference outlining SCA for Executives. The conference addressed training, Contracting Officers, and Paying SCA Wages and Fringe Benefits.

• Training. SCA compliance is difficult because the regulations are complicated and it touches various departments and personnel in your organization. It is important to make sure your employees working in accounting, human resources, program management, contracts and executive management are properly trained. Al Corvigno, President MARAL, LLC holds a two day SCA training class at the PSC facility three times a year. You may e-mail him at acorvigno@marallc.com or call him at 252-312-4853, if you would like more information.
  Al has over 40 years of experience in SCA and runs the SCA program for PSC, along with his one day SCA courses in Arlington, VA, and at client locations nationwide. It is the only SCA training program that includes a technical manual along with a 24/7 technical hotline.
• Contracting Officers. Many contractors have had problems and or issues dealing with their respective Contracting Agencies. The PSC training is helpful if and when an issue arises. If your employees are properly trained contractors will have a”road map” to follow insuring they have attempted to comply with the SCA.
  If an issue arises with a Contracting Officer it is often recommended that the contractor utilize a “third party” advocate, such as a DOD Labor Advisor, who is responsible for that contract and can speak to the Contracting Officer and reconcile the issue.
• Paying SCA Wages and Fringe Benefits. Contractors should not pay wage increases or fringe benefit health and welfare costs until their contracts have been modified by their Contracting Officer. Making increased payments before your contract is modified can compromise your company’s position when and if a request for an equitable adjustment is submitted.

It is important to make the proper business decisions and comply with the SCA because some of the items discussed have the potential to “make or break” your contract.

At Cleary, we know how important a comprehensive benefits package can be to your continued success. Give us a call today at 617-723-0700 and we will work with you to create a plan that meets your fringe-benefit obligations and provides your employees with valuable benefits.

The Affordable Care Act’s Essential Health Benefits (EHB) provision created ten general categories of benefits outlined below. The requirements apply to all fully insured health plans offered in the individual and small group insured markets both inside and outside of the Exchanges. EHB requirements do not apply to ASO plans, fully insured large group plans or any grandfathered plans. All plans (even those that are not required to offer EHB) that include Essential Health benefits must remove any annual or lifetime dollar limits. The pricing impact of EHB will vary in each state depending on that states benchmark plan and the state specific EHB definition. EHB will become effective in the fully insured small group and individual markets upon renewal in 2014.

The following are the ten Essential Health Benefits:

Prescription Medications
This is currently an option with most plans but not mandatory. However, the new law will make all small group and individual plans cover at least one drug in each class and category of the United States Pharmacopeia. Prescription costs will count toward upfront expense caps.

Ambulatory Services
This is also called outpatient care, and it happens when a person goes in to be treated and leaves the same day. Most health plans currently offer this form of coverage, but the new law will ensure that network sizes for these offerings are sufficient.

Mental Health
Coverage will be limited to a specific number of sessions, and patients may be billed a small amount for each one.

Rehabilitative Services
People who suffer injuries or illnesses today may or may not have rehabilitative services on their policies. The new plans must cover these services and equipment items such as braces, canes, wheelchairs, walkers and other essential devices. Habilitative services will also be added, and these are rarely covered in existing plans. They help people cope with the slow effects of long-term illnesses such as multiple sclerosis.

Hospitalization
With the new law, an insurer must provide coverage for hospital stays. However, patients may be responsible for 20 percent or more of the total bill if an out-of-pocket limit has not been reached. With average hospital stays often exceeding $2,000 per day, experts felt that this was an important inclusion.

Emergency Care
Under most existing plans, emergency care is covered. Many providers charge a fee for out-of-network emergency services, or they may require pre-authorization. With the new law, these two requirements will no longer exist.

Maternity And Newborn Care
The new law will classify prenatal care as a preventative service, so there will be no extra cost. It will also require all insurers to cover childbirth and infant care.

Pediatric Care
Although few current health plans cover dental, orthodontic and vision care, the new law will set provisions for those areas for kids under the age of 19. Each one will be able to receive medically necessary orthodontic care, fillings, x-rays and two teeth cleaning sessions per year.

Wellness And Preventative Services
The purpose of this benefit is to keep the number of needs-related doctor visits down. Experts say that if people make healthier choices for their lifestyles, the need for serious medical care will lessen. Every person will be allowed one free wellness visit per year, and 50 other preventative health services are also available.

Laboratory Services
Preventative screening tests will be required as part of the new law, but patients may still be billed a small amount for diagnostic tests. Costs may range from $20 to up to 30 percent of an MRI.

Other changes to expect in 2014

Out-of-Pocket Maximum limits – The new accumulation rules for out-of-pocket maximum (OOPM) which apply for all funding types and employer sizes. The OOPM will be $6,350 (for self only coverage) and $12,700 (for other than self-coverage) in 2014, with future increases indexed for inflation. All cost sharing for EHB must accumulate to the OOPM. For plans that have in and out-of-network benefits, only the in-network benefits are subject to the OOPM.

Excessive waiting period limitations – In group markets of all sizes and funding, a maximum waiting period of 90 days will take effect on January 1, 2014 upon a group’s renewal.

Small group deductible limits – The deductible caps is for Small Groups plain in 2014 have been set at $2,000 for single coverage and $4,000 for family coverage. The deductible caps will be will be indexed for inflation.

Pre-existing condition – This exclusion must be removed for all members, not just those under age 19, and all fully insured plans must have guaranteed issue and renewability

Health insurance plans will certainly see several changes as the new law takes effect.

At Cleary, we know how important a comprehensivee benefits package can be to your continued success. Give us a call today at 617-723-0700 and we will work with you to create a plan that meets your business objectives, takes into account state and federal laws, and capitalizes on incentives and innovative solutions now being offered.

Federal Contractors must focus on how the Patient Protection Affordable Care Act (PPACA) may soon affect their bottom line. As the changes brought about by the PPACA Act approach, many Federal Contractors are unaware of the potential cost increases bearing down on them.

According to Cloud Business Advisors (an innovative employee benefits brokerage and consulting firm) and Proskauer law firm for Employee Benefits and (ERISA) law. There are four key components to PPACA:

• Individual Mandate (delayed to 2015)
• Subsidies
• Penalties
• Insurance Mandates
• State Mandates
• Employer Mandates

Companies must also adhere to the following PPACA mandates:

• Individual Annual Penalties for Not Maintaining Coverage
• Premium Assistance Tax Credit
• 2013 Federal Poverty Guidelines
• Exchanges: What the states are doing and not doing and how exchanges work
• What is a Large Employer
• Parent- Subsidy Controlled Group
• Brother- Sister Controlled Group
• Who do you have to offer coverage to
• What are the Penalties and how to avoid them
• Affordability Safe Harbors
• 90 Day Waiting Period
• Timing and Determination of Eligible Employees
• Taxes and Fees

When the Department of Labor, Wage and Hour Division, Washington, DC was asked a question regarding how they would be involved in integrating the PPACA with the Service Contract Act (SCA); they responded that both the PPACA and Service Contract Act are separate and must be handled individually.

For example: If a contractor does not offer fringe benefits and pays cash in lieu of benefits to service contractor employees (which is permitted by SCA), is this a violation of PPACA since no benefits are offered?

This is just one example of many questions relating to SCA and PPACA that must be resolved by individual contractors and companies prior to 2014.

If you violate the SCA Act, you may face a DOL Compliance Officer who will investigate; but if you violate the PPACA Act you can face the IRS or another Federal Administrative Agency.

These investigations are time consuming and complicated, and take an experienced individual from your company to handle them. Under SCA you may face penalties and or debarment; however we have yet to see what penalties may be handed out for PPACA violations.

At Cleary, we know how important a comprehensive benefits package can be to your continued success. Give us a call today at 617-723-0700 and we will work with you to create a plan that meets your fringe-benefit obligations and provides your employees with valuable benefits.

Presented by John B. Steiger

You may have a will in place, but have you taken steps to ensure that your children won’t be left bickering over inheritances once you’ve passed away? In even the most close-knit clan, grief over a family member’s passing can bring tensions to the surface, especially when money is involved.

A typical scenario

Throughout their marriage, John and Jane Smith had kept a close eye on their finances. Working with their financial advisor, they’d saved and invested carefully over the years, and they planned to leave a sizable inheritance to their three children, Jack, Olivia, and Harry. Unfortunately, though they had prepared a will, John and Jane failed to outline exactly who would get what. They named Jack, the eldest child, as the beneficiary on their life insurance policy and other accounts, assuming he would divide up the funds equally. They left meaningful family jewelry to Olivia, because she was their lone daughter, and gave Harry all of their artwork, since he loved to paint.

Because the children had always been so close and gotten along so well, John and Jane figured they would split everything three ways and, if someone wanted a specific item, they’d work out an equitable arrangement. But things didn’t turn out as the Smiths had planned. Upon discovering that he was the sole legal beneficiary of his parents’ accounts, Jack decided to keep the money for himself, using it to pay for the vacation house he and his wife had long dreamed of buying. In his view, Olivia and Harry had received their fair share of the family estate and there was no need to split the money three ways. A family inheritance feud ensued, with Olivia and Harry vowing never to speak to Jack again.

Tips for keeping the peace

You may be thinking, “That would never happen to my family!” But situations like this are all too common. To help prevent inheritance conflict among your children, consider these suggestions:

Be realistic and communicate openly. Your children may be expecting a significant inheritance, one that could help them purchase a home, pay for their children’s education, or simply make them rich. To avoid disappointment, it’s important to give them a sense of where you stand financially and to emphasize that your finances may change, depending on medical expenses or other unexpected costs.

Keep your documents up to date. Be sure to update your will and beneficiary designations to reflect life events such as marriages, divorces, new grandchildren, and so on. Keeping your documents current will help ensure that you don’t unintentionally include someone who’s no longer part of your family or exclude someone you wish to benefit.

Address personal property specifically and separately. In addition to your last will, leave a separate list of personal property with instructions detailing who should inherit each item. The list should describe each piece of property you wish to gift, leaving no room for interpretation. That said, if you’re not sure of how to write a will, you could either consult a lawyer or get it done using sites like 12Law.com.

Don’t task the oldest beneficiary with distributing your assets. It’s not wise to leave one child to handle the distribution of your assets, trusting he or she will do the right thing. If you want all of your children to inherit equally, put them all down as beneficiaries.

Give everyone a role. Dividing assets equally can help reduce conflict among heirs, but it’s important to think about the division of responsibilities as well. When you assign responsibility for handling your estate, you’re making a statement about whom you think is capable and trustworthy. Consider how your children will react and, if possible, assign everyone a role, even a small one, to play in the decision-making.

Explain yourself. What happens if you don’t want to split your assets equally among your children? Many parents consider this option if one child is financially successful while another is struggling. If you plan to distribute your assets unequally, write a personal note to accompany the will, explaining your reasoning. This may help reduce any resentment your heirs may feel.

Eliminate uncertainty with a trust. A common estate planning tool, a trust can help you manage and control the distribution of your assets in the event of your death. Through a trust, you can elect to distribute your assets in increments if you pass away before your children are mature enough to manage money wisely-for instance, one-third at age 25, another third at 30, and the final installment at age 35. You might also consider using a trust to hold a distribution until a later date if your child has financial problems or creditor concerns. Aside from that, you may want to hire an estate planning attorney from a firm similar to J.S. Burton PLC to assist you in writing a last will. Your estate planning attorney can also help you reduce any estate or inheritance taxes. They can also help the executor of your will transfer assets to your beneficiaries after you die. They can also assist with probate if it becomes necessary.

Protecting your legacy

Though the estate planning process involves many legal responsibilities, it’s important not to lose sight of the personal aspects. If you plan to leave an inheritance to your children, be sure to consider ways to reduce conflict once you’re gone. You can sit and discuss these with Estate Planning Lawyers Gold Coast or wherever your property is based so that they can help you decipher a rational solution, in the interest of both you and your family members.

By carefully planning and setting expectations ahead of time, you’ll help protect the most valuable part of your legacy-your family.

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Investors should consult a tax preparer, professional tax advisor, and/or lawyer.

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John B. Steiger is a financial consultant located at 460 Totten Pond Road Suite 600 Waltham, MA 02451. He offers securities as a Registered Representative of Commonwealth Financial Network , Member FINRA/SIPC.. He can be reached at 781.547.5621 or at john@financialconnector.com.

2013 Commonwealth Financial Network

At Cleary, we are committed to a holistic approach of protecting and preserving our clients’ financial assets. Give us a call today at 617-723-0700 and let us know how we can help you.