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2008 Newsletter Deadlines: January 15 (February issue) | February 15 (March issue) | March 15 (April issue) | April 15 (May issue) | May 15 (June/July issue) | July 15 (August issue) | August 15 (September issue) | September 15 (October issue) | October 15 (November issue) | November 15 (December issue) | December 15 (January 2009 issue)

Because Frost Bank has generously supported our web site and online newsletter for the past 2 years and will do so again this year, we will continue to post articles by Nancy L. Thomas, Vice President @ Frost Bank. They are really helpful, and the Alliance deeply appreciates her contributions and the financial support provided by Frost Bank for this website.

Submitted February 2008

Quick Tax Savings Ideas

As we prepare our tax returns, take this opportunity to evaluate some tax smart strategies.

1. An easy way to reduce taxable income is to participate in a company sponsored retirement plan.   If your employer doesn't offer one, establish your own deductible IRA.  If you’re the employer there are many affordable retirement plans for every size business.
2. If you list dependents on your tax return, are you taking advantage of the savings tools the available to you to help fund your child's education, such as a Coverdell Savings Account or 529 Savings Plan.
3. Section 8a and 9a do you have interest and or dividends earned that are triggering a taxable event.   A possible solution is consider tax-deferred or tax-free investments.
4. If you are 701/2 and taking out your required mandatory distribution (RMD), as shown on 15a and 16a, what are you doing with the money?   We can't avoid the RMD, but we can put that money to work for you.   You might also consider making a tax-free donation to a tax-exempt charity funded with your RMD.
5. Is your income over the provisional income limits, and you're now being taxed on your social security benefits - see line 20a, consider tax deferred investments to reduce some of your taxable income.

           
Final Thoughts

• Getting a refund - You're withholding too much.  By working with a tax professional you can stop giving the government a interest-free loan from your hard-earned money, and instead have it work for you.  Adjust your withholdings on the W-4.
• Owe on your return - Recalculate your W-4 or estimated tax payment to prevent withholding too little.

January 2008

ORGANIZING YOUR FINANCIAL DOCUMENTS…it’s as easy as 1,2,3.
Submitted by Nancy L. Thomas, Vice President at Frost Bank

I recently moved, and was forced to go through files and boxes of financial documents. This process although time consuming was cathartic for me.

In my profession as a financial advisor, I see many clients who literally bring in shoe boxes of papers with little clue what they are, and what to do with them. I put together this guide to help us organize our financial documents.

Step #1: Identify what you have. Go through your boxes or files of papers, and organize them as to account or type of document (i.e. Home owners insurance, auto insurance, account statements.) Then organize them into two categories; Active Documents such as bank and investment statements. These Active Documents are accounts where you receive monthly or quarterly statements. The second category is Permeate Records. These are records you need to maintain but do not generally need on a frequent basis.

As a rule of thumb you should review your “active documents” such as bank and investment statements as they are sent to you, comparing them to your previous statement to insure accuracy and accountability. Once you are assured there are no errors, you can destroy the prior statement, saving the current statement for your next review.

An easy way to organize these “active documents" is to get a three-ring binder or accordion folder and organize your “active documents" by category. 3

Step #2: Check to see if the “active” accounts/policies are still appropriate to have. I’ve worked with several clients who reviewed the documents and realized they were paying life insurance premiums, they no longer needed.

Step #3: There are some records you need to keep on a more permeate basis.
These "permeate records" should be stored in a safe place, and should be accessible by a trusted family member.

A final thought, working in a bank I see all to often, family members who can’t locate documents, or don’t have access to the documents then need to help their loved- one’s. Write a Letter of Instruction that contains a general out line of where your important documents are stored, so that in the event a trusted family member or friend needs to
access them they are easy to locate.

Keep it for 3 Years

• Household Bills
• Credit Card Statements
• Receipts for Minor Purchase

Keep it for 7 Years

• Cancelled Checks, Bank Statements, and Check Registers
• End of the Year Pay Stub
• Tax Returns and supporting documentation

Keep Forever, or until up-dated

• Receipts for Home Improvements
• Receipts for Major Purchases
• Year-End Investment Statements
• Gift Tax Returns
• Insurance Policies
• Inheritance Documents
• Will, Trust
• Health Care Proxy/Living Will/ Directive to Physicians
• Power of Attorney
  

Frost Financial Management Services would like to offer a confidential financial
review and an efficiency study of your insurance. This offer is complimentary
to members of the Bexar County Medical Alliance.

For more information on ideas in this article, please contact Nancy Thomas at her office (210.220.6532 or 800.121.1292).

This communication is for informational purpose only. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. It is based on information generally available to the public from sources believed to be reliable. We do not represent that it is accurate or complete and is subject to change. Changes to assumptions may have a material impact on returns. Any comments or statements made herein do not necessarily reflect those of Cullen/Frost Bankers, Inc. its subsidiaries and affiliates. This communication and any accompanying document(s) are confidential and privileged. They are intended for the sole use of the addressee. If you receive this transmission in error, you are advised that any disclosure, copying, distribution or the taking of any action in reliance upon the communication is strictly prohibited. If you have received this communication in error, please contact me by returning this email or by telephone.

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Nancy L. Thomas serves as a Vice President with Frost National Bank and is an Investment Officer for the Frost Financial Management Group.

She works personally with her clients in areas of wealth management, specializing in retirement planning, education savings, and insurance design.

Her mission is to help clients make smart decisions with their money. She accomplishes this by establishing financial plans using strategically diversified portfolios.

She has been heard on local radio and TV stations, speaking on financial topics. Nancy also presents numerous public and private seminars on investing.

A graduate of The Ohio State University, Nancy has been in the financial services industry for over 15 years. She currently holds the following registrations; Series 7, 6 and 63. Nancy is a licensed life agent.

Nancy serves as vice president of the Fair Oaks Ranch Elementary PTO Board, and is a member of the San Antonio Estate Planners Council, and the National Association of Female Executives. In 2004, Nancy was awarded the Top 40 Rising Stars in San Antonio by the Business Journal.

Nancy lives in Fair Oaks Ranch with her husband, and their two children.