Every October, the College Board releases its Trends in College Pricing report that highlights college cost increases for the current academic year and trends in the world of higher education. While costs can vary significantly by region and individual college, the College Board publishes average cost figures, which are based on its survey of 3,500 colleges across the country.

To read the Trends in College Pricing 2011 report, visit www.collegeboard.com/trends.

Note that the “total average cost” figure includes tuition and fees, room and board, books and supplies, transportation, and a small amount for miscellaneous expenses. This figure is often referred to as the “cost of attendance.”

Public colleges (in-state students)

• Tuition and fees increased an average of 8.3% from last year to $8,244
• Room-and-board costs increased an average of 4.0% to $8,887
• Total average cost for 2011/2012 is $21,447

Public colleges (out-of-state students)

• Tuition and fees increased an average of 5.7% from last year to $20,770
• Room-and-board costs increased an average 4.0% to $8,887
• Total average cost for 2011/2012 is $33,973

Private colleges

• Tuition and fees increased an average of 4.5% from last year to $28,500
• Room-and-board costs increased an average of 3.9% to $10,089
• Total average cost for the 2011/2012 year is $42,224

Student Aid Trends

The College Board also publishes an accompanying report every October called Trends in Student Aid that examines financial aid in more detail. To read the report, visit www.collegeboard.com/trends.

The College Board noted that last year, approximately 46% of all grant aid came from the federal government, 36% came from colleges, 9% came from state governments, and about 9% came from employers and other private sources. Grant aid is the most desirable type of financial aid because it doesn’t need to be paid back.

Source Broadridge Forefield. Compliance tracking number 2011-007935

The national tragedy of 9/11 – it is remarkable how a simple date abbreviation has become a historic symbol that can call forth powerful emotions – will be recalled elsewhere, too. At the western side of the Pentagon in Arlington County, Virginia, at the spot where Flight 77 hit at 9:37 a.m., visitors will remember as they visit the National 9/11 Pentagon Memorial, which was dedicated on September 11, 2008.

And in southwestern Pennsylvania, the Flight 93 National Memorial is taking shape on hallowed ground where at 10:03 a.m. 40 passengers and crew lost their lives in an open field after thwarting terrorist plans to crash the hijacked aircraft into a building in Washington, D.C. On September 10, Phase I of the memorial will be dedicated and that evening volunteers will set out 2,982 luminarias, one for each life lost in those 9/11 attacks.

Each of us has private memories of that day 10 years ago. We tend to remember where we were, what we heard first, and how difficult it was to make sense of what had happened to the mostly civilian men and women who had merely gone to work that day or boarded a plane, expecting to take a business trip or enjoy a vacation.

At 1 p.m. Sunday afternoon (Eastern Time), there will be a national Moment of Remembrance. A Senate resolution asks us to stop work and other activity for just one minute to remember the totality of 9/11/2001. It is just one small gesture in honor of those who perished or whose lives were forever altered by the attacks.

We wanted to share these thoughts with you as the nation honors those we lost.

Compliance: M11-1810

For decades, parades were held to honor those who use their skills to make the quality products for which the county became known. Speakers extolled the virtues of honest labor and pointed out the value of the people whose work is behind the scenes yet evident in the details of American manufactured goods and innovative technologies.

Gradually, Labor Day has become a holiday for end-of-summer family activities. You may be among those planning a sporting weekend or hosting or attending a relaxed backyard barbecue. No matter how you spend the day or the weekend, perhaps it’s worth thinking of those who build our cars and ranges, design our software and smartphones, and even those who in the military serve behind the lines as medical specialists, avionics repairers and vehicle mechanics – descendants of those who marched in those parades so long ago, those whose job skills make the country work as well as it does.

Financial markets will be closed on Labor Day, Monday, September 5, and our offices also will be closed that day. If you need to access your account information, please use Raymond James Investor Access, a service which is always available online.

Compliance: M11-1810

In 1863, Abraham Lincoln proclaimed that Thanksgiving would be observed on the final Thursday of November. That became the generally accepted tradition until 1939, when Franklin Roosevelt was persuaded that as the final Thursday was November 30 that year, the late date could have an adverse effect on retail holiday sales – an important consideration as the country was trying to stimulate an economy still emerging from the Great Depression. His proclamation that year moved Thanksgiving to November 23, a week earlier. The public outcry was deafening, and the 48 states split over whether to choose tradition or the newly proclaimed “Franksgiving.” The dates were also moved in 1940 and 1941. Finally, in December 1941, the president signed a congressional resolution making Thanksgiving a national holiday – it hadn’t held that status previously – and declaring that beginning in 1942 it would fall on the fourth Thursday of November.

The spat over the date of Thanksgiving is now merely an historical footnote to tradition as you enjoy dinner with family and friends. Whether you have a grand or modest celebration, you can no doubt find much to be thankful for, whether good health, good neighbors, the family members around your table – or even the fact that, slowly, the economy appears to be recovering from the Great Recession.

We wish you and your family a pleasant day of Thanksgiving. On our own account, we would like to say that we are very grateful to many people, including our clients who have worked with us to confront the economic challenges of the past few years.

This is a special day for families and friends, including ours in this office. In observance, our office will be closed on Thursday and Friday, November 25 & 26.  The U.S. financial markets will be closed on November 25th. If the need arises, of course, you can access your account through Raymond James Investor Access at any time.

We appreciate your allowing us to be of service to you and your family. Thank you.

Compliance approval: M11-1146

There has been a lot of talk lately in the media about Roth Conversions due to the limits for such conversions being lifted for 2010.  Although the limits have been lifted it still does not mean that converting your IRA to a Roth IRA is the right thing to do. 

Previously those individuals whose modified adjusted gross income was more than $177,000 for married couples and $120,000 for singles were not able to contribute to a Roth IRA.  However, in 2010 individuals whose income is higher than these levels  are able to convert their traditional IRA’s to a Roth IRA. This does not mean that you can contribute to a Roth IRA this year if your income is above these limits.  It only means that you can covert existing IRA’s to Roth IRA’s.    With this conversion, however, comes a hefty tax implication as taxes for that year are owed on the full amount that is converted.  Therefore, although it may be a great opportunity for those who have previously not been able to participate in this investment tool it may not be the best choice for everyone.  Our opinion is that converting your IRA to a Roth IRA is only worth it if you have money set aside outside the IRA now to pay the taxes on the conversion. 

 If you would like to discuss your personal situation with us please feel free to call our office at 801-295-7373 to determine if this conversion would be beneficial for you. 

AD #: C10-19734

In our last issue we gave you some information on the psychology of scams.  In this issue we will cover some tips to help you feel in control.

Simple Tips to Help You Take Control of Your Financial Security

1. Don’t be a courteous victim- You are under no obligation to be polite to someone who is asking for your money or trying to get you to do something you don’t want to do. If you feel uncomfortable and don’t want to continue the conversation hang up, simply state you are finished and leave. They will try to get you to stay. They are highly trained in overcoming objections, but stand your ground and keep moving! Don’t talk, just walk!
2. Don’t get rushed- One sign of a scam is the immediacy factor. They pressure you into making a decision (and a bad one at that) by telling you the offer is only good if you act now. Any truly worth while investment will be there tomorrow or the next day so do your homework on the investment.   
3. Stay in charge of your money- Beware of someone who says they are a professional and can handle everything. Even if you are in a discretionary agreement with your advisor, you should be working as a team with your money. You should both have a clear idea of the goal, what you as the client are comfortable with, and always know exactly what is being done with your money.
4. Don’t judge a person’s integrity by how they look/sound- An incredible amount of investors have been completely taken by people who they later described as having “looked or sounded so professional.” It is so easy to look the part, even talk the part, but creates no basis for trustworthiness. Do your research!
5. Don’t be dinner- Successful con artists will prey on your fears. As much as you want to think you are a unique individual you are undeniably like everyone else. There is something you are afraid of and it isn’t hard for con artists to find out what that is and use it against you.  Again, if their offer feels like your saving grace, your “would be broker” is taking no mercy when taking all you’ve got. When asking a con artist to describe their perfect victim you are likely to hear, “elderly widow or widower” because they often relied on their spouse to handle the money and now they don’t know what to do. Those who have received a windfall of insurance in the wake of a death of a spouse are prime targets for con artist. Always seek advice from family members and other professionals before deciding what to do with your money. You should know and trust your advisor. If you were referred by someone you know or if you know your advisor in a different setting these are good signs you are in good hands.
6. Never pay money directly to your advisor- An advisor asking you to write a check directly to him should be a HUGE red flag. Payment should always be made to the investment firm or the fund itself. For example your checks should be made payable to the broker/dealer your advisor is associated with (i.e. Raymond James).   
7. Not so easy access?- If a stockbroker or financial planner tries to stall you when you want your money this should be a red flag. They might start talking about “rolling over your profits.” There is a wide variety of legitimate roll- over plans out there and they are structured so that you will completely understand and see what is happening with your money and your access to your money does not change. There may be tax penalties, but you can still withdrawal.
8. Don’t be shy- Unfortunately, just like in physical abuse cases, those who have been victimized monetarily often don’t report it because they feel ashamed that they did not see it coming or they are afraid their families won’t trust them with their money anymore. This is not the case. It is vital that you speak up and early because it increases your chances of recovering your losses as well as helping protect others from the scam.

 If you would like to send this article in its entirety to those you love please call Sandy at 801-295-7373 and we will send it for you! 

Information shared in this series was derived from information found on: www.dfi.wa.gov/consumers/invest_scam_avoid.htm, www.finra.org/Investors/ProtectYourself/AvoidInvestmentFraud/FraudFighting101, www.goodfinancialcents.com. 

AD #C10-19734.

The claim: Beginning in 2011, you’ll be taxed on the value of your employer-provided health insurance

There are several e-mail campaigns making their way around right now claiming that, beginning in 2011, taxable income on Forms W-2 will be increased to reflect the value of employer-provided health insurance. A typical e-mail warns: “You will be required to pay taxes on a large sum of money that you have never seen. Take your last tax form and see what $15,000 or $20,000 additional gross does to your tax debt. That’s what you’ll pay next year. For many it also puts you into a new higher bracket so it’s even worse. This is how the government is going to buy insurance for the 15% who don’t have insurance and it’s only part of the tax increases.”

The facts:

While it’s true that, beginning in 2011, the health-care reform legislation requires employers to begin reporting the cost of employer-provided health-care coverage on an employee’s Form W-2, the cost is included for informational purposes only, to show employees the value of their health-care benefits. The amount reported is not included in income, and will not affect your tax liability.

The claim: Beginning in 2013, a new federal sales tax will apply to the sale of a home

The claim is that, beginning in 2013, all real estate sales will be subject to a new 3.8% federal sales tax. The e-mails making this claim generally contain some variation of the following text: “Under the new health-care bill–did you know that all real estate transactions are now subject to a 3.8% sales tax? The bulk of these new taxes don’t kick in until 2013 … If you sell your $400,000 home, there will be a $15,200 tax.”

The facts:

This claim, though inaccurate, has a basis in fact. There’s no federal sales tax being imposed on the sale of homes. But, beginning in 2013, the health-care reform legislation does impose a new 3.8% Medicare contribution tax on the net investment income of high-income taxpayers (individuals with adjusted gross income (AGI) exceeding $200,000, and married couples filing joint returns with AGI exceeding $250,000). Net investment income will include gain on the sale of a home. However, the tax will not apply to any gain from the sale of a principal residence that is excluded from income (individuals, if they qualify, can generally exclude the first $250,000 in gain from the sale of a principal residence; married couples filing joint returns can generally exclude up to $500,000). That means that in most cases, at least where a principal residence is concerned, the 3.8% tax would kick in only if your AGI exceeds the threshold above, and only if profit on the sale of the home exceeds $250,000 ($500,000 for married couples filing jointly).