FINANCIAL NETWORK CONCEPTS LLC
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NETWORK
NEWS
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September 2005
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To Our Clients investments and future long-term obligations.
This would mean shifting approximately 20%
Again the news of catastrophe on our soil has away from their stock investments into bonds
hit us. In 2001 it was foreigners who wreaked or cash. This may have a significant impact on
havoc and now it is Mother Nature. The the fixed income markets and interest rates.
worst of it has not yet been discovered but
the story will unfold in the coming weeks as INTRODUCING . . .
the death toll rises. For those of you who
have friends and relatives in this area of the We would like to announce our new website.
country our thoughts and prayers are with You can go to www.FinNetConcepts.com and
you. Possessions for the most part can be read this newsletter on line along with several
replaced but lives cannot. To see people each financial articles and links to various calculators.
day not knowing if their children or extended You can also get stock quotes, be able to email
family members are alive or dead is so us directly and even refer others to us by way of
disheartening and makes us thankful for all of completing a short statement. The general
the things that we have. information will change monthly but generic
information that might pertain to your
The US Census Bureau states that in July of investments such as changes in fund managers
this year the first of 76 million baby boomers or new regulations coming out will be posted
will turn 59 ½ and be eligible to withdraw as they happen so log on frequently to find out
penalty free from their individual retirement the latest.
accounts. This puts pressure on various
financial institutions to have cash on hand to For those of you who don’t have access to a
meet this demand. There is currently a surge computer I will still be mailing out the
in worldwide demand for longer-term newsletter to you and corresponding in the
Treasury bonds, which is putting downward regular way. If you would like to dispense with
pressure on long-term interest rates. Currently the mailing of your copy please let us know and
there is proposed legislation to beef up we will take you off our direct mailing list.
private pension plans, which could be as
much as $600 billion under funded. The new We are also in the process of redesigning our
rules would require plans, which guarantee business cards and stationery to reflect our new
specific income benefits, to match their website address.
P.O. Box 310645 * Newington, CT 06131-0645 * (860) 665-1344 * (860) 666-0740 Fax
Securities offered through H. Beck, Inc., 67 Lamp Lighter Lane, Newington, CT 06111 * (860) 665-1344 Member NASD/SIPC
Carol Miller-Pekrul, ChFC®, and Janice Dabate, CFP®
are Registered Representatives of H. Beck, Inc., which is independent of Financial Network Concepts, LLC.
Page 2 Network news
A simple lesson in investment Beware of living trusts
terms Living trusts have been promoted as a way to
When we meet with new investors we try to avoid estate taxes and probate. “Trust mills”
use uncomplicated language to explain the which routinely target older Americans are
various types of investments. Some of the promoted in mass mailings, newspaper ads and
terms we use below are as follows: seminars. Most of the trusts sold are boilerplate
documents that aren’t tailored to the specific
Stocks are also called equities because they needs of families, which is the reason for setting
represent ownership in a corporation. one up in the first place.
Bonds can be called income investments
because they are loans to the corporations or For some people a living trust is a good estate-
government entities. Bonds pay interest that planning tool that is used to transfer ownership
is considered income. of your assets before you die. If they are
Cash or bills are investments that are short- handled properly they allow wealthy people to
term and low risk. reduce the amount of taxes owed by their heirs
and they are also a good way to make sure
When we speak about diversification we use certain wishes are carried out. For moderate
all three asset classes to help protect your and low income they probably are not a good
portfolio against losses in any one category. idea as they can damage your eligibility to
By analyzing your risk tolerance we can receive Medicaid. They also don’t help you
determine the proper asset mix. While it avoid estate taxes contrary to many claims.
doesn’t guarantee that you’ll make a profit, or Another claim is to avoid probate. Probate is
take a loss, it’s an important risk management
the legal course followed to ensure wills are
strategy.
accurately executed. Many states have adopted
Although we can’t guarantee what will uniform codes that simplify the costs and time.
happen in the future, there has been a long- If you do have one, make sure that the assets
standing relationship between risk and that are supposed to be transferred into it are.
reward. Although there are no guarantees Also make sure the language is appropriate for
over the long term, riskier investments tend to you. A mistake in a boilerplate trust had
generate higher rewards. Investments that conflicting language as to what age
tend to fluctuate more in the short term tend grandchildren are to inherit property. In many
to have higher returns than ones that are instances a properly prepared will can
more stable. accomplish the same thing for a modest estate.
In 2006 each person can leave up to one
When we balance investments between million dollars tax-free and an unlimited amount
different categories it is called asset allocation. to a spouse.
By using various classes of stocks, bonds and
cash mixed in with international, we can If you determine that you need a living trust,
diversify your assets. The individual spend the money and take care of those special
percentage in each category is called your needs that you might have, otherwise experts say
asset allocation strategy and depends on just get a will.
many things that we discuss with you during Required Minimum Distributions
our meetings including your expectations
about returns, your financial goals and your In October we will begin calculating the IRA
overall investment portfolio to name a few. minimum distribution amounts for those who
are 70 ½ and over. For those not on an
Hopefully this explanation will clarify some of automatic plan we will contact you with the
the terms we use and help you get a clearer amount needed to be withdrawn and follow up
understanding of our investment process. with the required paperwork. If you have any
questions, please call the office for further
clarification
Page 3 network news
Privacy notice
Each year we are required to inform you of our privacy policy through a Privacy Notice (Reg S-P) .
Below is our privacy notice:
H. Beck, Inc.
67 Lamp Lighter lane, PO Box 310645, Newington, CT 06131-0645
Member NASD/SIPC
Our Privacy Commitment:
We recognize that protecting the privacy and security of the personal and confidential information we
collect about you is an important responsibility. The following information will help you understand our
privacy policy and how we will handle and maintain confidential personal information as we fulfill our
obligations to protect your privacy. Personal information refers to nonpublic financial or health
information obtained by a registered representative of H. Beck, Inc. in connection with providing you a
financial product or service.
We collect personal information to help us serve your financial needs, offer new products or services,
provide client service and fulfill legal and regulatory requirements. The type of information that we
collect may include:
- Information we receive from you on applications and related forms such as
financial information, address, social security number, etc.
- Information about your transactions and relationships with us.
- Information we receive from third parties in order to issue and service policies.
We will not disclose personal information about current or former clients except as permitted or
required by law. We do not sell any personal information about you to any third party. In the normal
course of business, personal information may be shared with persons or entities involved in servicing
and administering products and services on your behalf.
We have procedures in place that limit access to personal information to those employees,
representatives and service providers who need to know such information in order to perform business
services or market products on behalf of H. Beck, Inc. We educate our employees on the importance or
protecting the privacy and security of confidential personal information. We maintain physical,
administrative, technical procedural safeguards that comply with federal standards to guard your
nonpublic personal information.
We will update our policy and procedures where necessary to ensure that your privacy is maintained
and that we conduct our business in a way that fulfills our commitment to you. If we make any material
changes to our privacy policy, we will make that information available to you.
Regards,
Carol Miller-Pekrul, ChFC Janice Dabate, CFP®