Issue #11, November 2014

The Most Expensive Roller Coaster Ever Made Is...

by: Scott Russell

Ironically, my daughter's school science project for the past several weeks was the building of a roller coaster. The purpose of the project was to learn and put into practice basic physics concepts. However, given the volatility of the financial markets as of late, that same experiment could have been used to teach principles of global finance. In fact, although I believe Disney's Expedition Everest is still at the top of the list of most expensive roller coasters at $100 million, I would contend that our financial markets should soundly be sitting on top of the list.

As we've discussed in previous articles, one of the keys to investing is removing natural human emotion from it. That said, at the same time it is important not to lose another human trait, insight. Given Bill's and my years in the industry and the many financial soothsayers we've listened to over that time, we have found it is very difficult for anyone to accurately forecast the markets on a consistent basis over the long-term. Although there may be circumstances where a small portion of a portfolio should have an element of tactical management, we believe in proper asset allocation adjusted over time.

I found a great example of this as I've been speaking to my mother concerning her finances in the wake of my father's passing. She made the comment to me that often she would get scared during market turmoil and try to convince my father to "cash out" of certain investments they owned. Luckily, probably due to his engineer mindset, my father took a much more scientific approach to investing. Subsequently, my mother has learned to appreciate what at many times caused her a considerable about of anxiety. However, it should not be interpreted that inaction is the key to successful investing; to the contrary, it is proactive actions such as putting a plan in place, proper allocation, rebalancing, tax planning, and a disciplined long-term process that will provide the most opportunity for success.

Try to not buy into the "fear" that you see on T.V. and don't become obsessed with watching the news of the impending demise. Those are things you can't control. Focus on things you can control, like being with family or having discussions with us about your portfolio.

To your massive success!

Daily Life

by Kimberli Cummings

I had the distinct pleasure of speaking with our globetrotting clients about their recent travels to Scotland. Jeff narrated, leaving me with a desire to visit Scotland soon or at least re-watch many of my favorite films that were filmed there, i.e.; Chariots Of Fire, Braveheart, Harry Potter and The Di Vinci Code to name a few.

Jeff is a history buff and was able to get his 'fix' with all the historic eye candy from one corner to the next in Edinburgh with it's stunning castles, monuments and cathedrals galore. Jeff and Pat were able to see 3-4 major sights in a day. Jeff was surprised at how few historic figures were represented through the city, the 2 most revered being William Wallace and his Braveheart memorials and Robert The Bruce, former King of the Scots memorials found here, there and everywhere. He was the most famous warrior of his 14th century generation.

The Scots are big on their independence, witnessed by the couple during the historic vote that took place during their stay. I was surprised to learn that the Scottish people did NOT vote to become independent of England. The vote for independence failed by an 8% margin. Jeff and Pat were able to sense the emotion and energy of the entire town, which left me a bit awed.

Eating their way through Edinburgh was quite easy as they found any and every kind of food available throughout their journey, from pizza to lamb but not many traditional Scottish dishes aside from Haggis and black pudding.

Holy thundercloud! It never rained in 14 days but was 60 degrees and partly sunny every day. There goes my assumption that Scotland and Ireland are very much alike.

Jeff's best take way moment was playing golf on the Old St Andrews Golf Course. I think I heard the scribble of a pen as Jeff checked it off his bucket list.

Nearby was a day of sightseeing at the ruins of St. Andrews Castle; breathtaking! The biggest surprise of the trip was when Jeff casually said, 'oh, and I drove 1100 miles in 11 days' and on the opposite said of the street! Jeff is THE MAN! Not to leave Pat's magic moment fading, she got to 'walk on water' at the famed Rosslyn Chapel, brought to life by Dan Brown in The Da Vinci Code! I am ready to pack my bags for Rosslyn.

From Loch Ness monsters to fairies, Scotland weaves both a concrete and imaginary yarn from town to town and century to century. We feel it's deep history, which is beloved and kept current even in this 21st century thanks in part to a few scenes filmed in Glenfinnan for Harry Potter films.

I had to let Jeff hang up. I could tell he was ready to unpack all their souvenirs; especially his golf memorabilia that made him end our call with a big smile.

Happy travels to all!

In This Edition 

The Most Expensive Roller Coaster by Scott Russell

Daily Life by Kimberli Cummings

Bill's New Book: "Why Didn't My CPA Tell Me That?"

New IRA Contribution Limits

"Why Didn't My CPA Tell Me That?"

Understanding the difference between tax prep & tax planning could save you thousands! America's Top Certified Tax Coaches, including Bill Cummings, share dozens of write-offs you've never heard of.

New contribution limits:

Many IRA and retirement plan limits are indexed for inflation each year. On October 23, 2014, the IRS issued the inflation-adjusted numbers for 2015, and many of the limits have increased.

For example, the elective deferral limit for 401(k), 403(b), and 457(b) plans rises to $18,000 in 2015, up from $17,500 in 2014. The catch-up limit rises to $6,000 in 2015, up from $5,500 in 2014. The maximum IRA contribution for 2015 is $5,500, unchanged from 2014 (the catch-up limit also remains unchanged at $1,000). However, the phaseout ranges for determining the deductibility of traditional IRA contributions, and for determining whether an individual can contribute to a Roth IRA, have increased for 2015. In addition, the maximum amount that can be contributed to a defined contribution plan has increased from $52,000 to $53,000 for 2015.

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Bill recently spoke at the USF & Florida's CPAs Accounting Conference held on October 24, 2014. His presentations were entitled

"How to make working optional" and "The unexpected caregiver".

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William Cummings is an Investment Advisor Representative with securities and investment advisory services offered through Transamerica Financial Advisors, Inc. (TFA) Member FINRA, SIPC, and Registered Investment Advisor. Cummings Financial Organization, Inc. and TFA are not affiliated. Neither TFA nor its representatives provide legal, tax nor accounting advice. Persons who provide such advice do so in a capacity other than as a registered representative of TFA.

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