News and Notes from Ellen R. Siegel & Associates
December 2011

May this holiday season bring you and your loved ones health, wealth, and joy ... and the time to enjoy them!

You still have two weeks for tax planning - we hope this newsletter can save you a bit of money.

10 Important Tax Tips:

While you're up in the attic or closet-diving for holiday decorations, lock in one last tax deduction by gathering up your old stuff. (You must be an itemizer.)

1. If you're in the 25% tax bracket and you donate $1,000 worth of clothing and household goods to charity, you could possibly deduct $250 from your taxes. Take a photo of the donation in its good condition. Be sure the charity is an approved charity - meeting IRS conditions. Figure the value of the item if purchased in a thrift store. Add the values up. If the total is less than $250, you need only keep a list of the items donated. If it is $250-$500, ask the charity for written acknowledgement or a receipt. If it is more than $500, get a receipt and fill out Form 8283 when you file your taxes.
2. Take advantage of the residential energy credit.
3. Gift appreciated stock to your favorite charity (in addition to the closet cleaning mentioned above!)
4. Consider converting pre-tax retirement savings to a Roth IRA.
5. Sell stocks with gains in 2011 to absorb capital loss carryovers or to lock in gains at the 15% rate.
6. Maximize your retirement plan contributions (401k do it NOW, IRA do before you file.)
7. Take advantage of expiring tax deductions - sales tax, tuition, classroom expense, mortgage insurance premiums.
8. Gift up to $13,000 to family members, and gift now. The exemption is as high as it has ever been and drops next year.
9. Ask your tax professional to look at planning to avoid or reduce the impact of the AMT.
10. Bunch itemized deductions when possible.

Important Tax Alert:

The IRS moved 1099 mailing deadline to February 15 to furnish Consolidated 1099 Tax Information statements to clients from January 31 to February 15. LPL Financial is required to report your sales, dividends and other distributions paid by investment companies on the Consolidated 1099 Tax Information Statement (1099 DIV, INT, B, MISC, OID).

As it is common for investment companies to amend tax information, LPL Financial will request a supplemental mailing extension in the event investment companies do not furnish tax information to LPL Financial by the February 15 deadline. This additional extension attempts to minimize the number of corrected 1099s resulting from amended reporting sent by investment companies. The mailing dates for the 1099-R and 1099-Q forms will remain the standard deadline of January 31, 2012.

Tax Reminder:

The IRS moved the 1099 mailing deadline to from January 31 to February 15. LPL Financial is required to report your sales, dividends and other distributions paid by investment companies on the Consolidated 1099 Tax Information Statement (1099 DIV, INT, B, MISC, OID). As it is common for investment companies to amend tax information, LPL Financial will request a supplemental mailing extension in the event investment companies do not furnish tax information to LPL Financial by the February 15 deadline. This additional extension attempts to minimize the number of corrected 1099s resulting from amended reporting sent by investment companies. The mailing dates for the 1099-R and 1099-Q forms will remain the standard deadline of January 31, 2012.

Times are changing...shouldn't your 401k change, too?

We offer a 401k review, analysis and recommendation service. Call or email us for more information and a fee quote. Please indicate "401k" in the reference line of your email to Info@siegelplanners.com, or call Matt at (305) 665-2130.

Gift Certificates for Financial Planning

It's been a tough year for some folks. In the spirit of the holidays, if you have someone in your life who would benefit from a session with a CERTIFIED FINANCIAL PLANNER™ PRACTITIONER, please contact us to arrange a gift certificate for a complimentary session.

2012 Outlook-from the LPL Financial Research Team

Click here for a letter from Jeff Kleintop, our Chief Market Strategist.

Best wishes for the happiest, healthiest holidays ever,

Ellen

Ellen R. Siegel, CFP^®, ChFC, CLU

Ellen R. Siegel & Associates
7344 SW 48 Street, Suite 301
Miami, FL  33155
Visit www.siegelplanners.com for more information.

(305) 665-2130
(305) 665-3504 (fax)

Why would a client partner with an advisor affiliated with LPL Financial? This video shows the 4 key reasons why LPL Financial advisors lead the industry.
http://siegelplanners.com/video.html

Important Disclosures:
The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
Stock investing may involve risk including loss of principal. The Standard & Poor's 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific investment advice or recommendations for any individual. To determine which investments may be appropriate for you, consult me prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.
The LPL Financial family of affiliated companies includes LPL Financial and UVEST Financial Services Group, Inc., each of which is a member of FINRA/SIPC.
Not FDIC/NCUA Insured | Not Bank/Credit Union Guaranteed | May Lose Value Not Guaranteed by any Government Agency | Not a Bank/Credit Union Deposit
Securities and financial planning offered through LPL Financial. Member FINRA/SIPC.

Why would a client insist on working with a Certified Financial Planner certificant? Our Standards of Professional Conduct ("Standards") require all CFP® certificants to place the interests of their clients ahead of their own at all times. A CFP® certificant who provides financial planning services is required to do so with the duty of care of a fiduciary: acting in utmost good faith, in a manner he or she reasonably believes to be in the best interest of the client. (See Rule 1.4 of CFP Board's Rules of Conduct)

CFP Board's active enforcement of the Standards is a key factor that differentiates the CFP® certification from other credentials within the financial services industry. I am proud to be a CFP®.

Please join me for our Everglades Appreciation Day on Christmas Day. This will be repeated on Saturday, February 18, 2012 as well.

For general information please visit our site at www.siegelplanners.com.