Southern Trust FinancialPlanningMarc WolffPresident - Investments1943 Morrill St.Suite 1Sarasota, FL 34236941-308-0041mwolff@southerntrustfinancial.comwww.Southerntrustfinancial.com

May 201415 Facts about Social Security

Tips for Traveling Abroad

Saving for the Future: Start Now or StartLater?

My parents can't manage aloneanymore. What should I do?

May, 2014

15 Facts about Social Security

See disclaimer on final page

It's easy to take SocialSecurity for granted whenretirement is years away, butwith 94% of the U.S.workforce covered by SocialSecurity,* it's likely that thisprogram will play a role inyour financial future, perhapseven sooner than you think.Here are some facts andstatistics from the Social

Security Administration that highlight whySocial Security is important to so many people.

Retirement benefitsThe Social Security program began in 1935 asa way to protect individuals against economichardship. Over the years, Social Security hasgrown to include several other types of benefits,but Social Security is still synonymous withretirement.

Did you know that ...

• Approximately 70% of Social Securitybenefits are paid to retirees and theirdependents**

• 73% of workers elect to receive reducedbenefits early, before their full retirement age*

• The average monthly retirement benefit is$1,262**

• The maximum monthly retirement benefitpayable in 2014 is $2,642 for someoneretiring at full retirement age***

Survivors benefitsUpon your death, your surviving spouse,ex-spouse, children, or dependent parents maybe eligible to receive benefits based on yourearnings record. These benefits can be avaluable source of income when your familyneeds it the most.

Did you know that ...

• Survivors of deceased workers account forabout 11% of Social Security benefits paid**

• About 96% of persons aged 20 to 49 havesurvivors protection for their children under18 and for their surviving spouse who caresfor those children****

• The average monthly family benefit isapproximately $2,561 for a widowed motheror father and two children*

Disability benefitsDisability benefits from Social Security can helpprotect you and family members that rely onyou for financial support in the event that due tosickness or injury you're unable to work andearn a living.

Did you know that ...

• Disabled workers and their dependentsaccount for 19% of Social Security benefitspaid**

• Approximately 90% of workers age 21 to 64and their families are protected againstlong-term disability****

• The average age of a worker receivingdisability benefits is 53.2**

• The average monthly benefit for a disabledworker is $1,130**

Other factsHere are some other facts about SocialSecurity that you may not know:

• 55% of adult Social Security beneficiaries arewomen**

• More than 3.4 million children under age 18and students age 18 to 19 receive SocialSecurity benefits**

• Social Security provides at least half of totalretirement income for 74% of nonmarriedbeneficiaries age 65 or older**

All of the following source publications can befound on the Social Security Administration'swebsite, www.ssa.gov.

*Annual Statistical Supplement, 2013,published February 2014

**Fast Facts & Figures About Social Security,2013, published July 2013

***Fact Sheet: 2014 Social Security Changes,published October 2013

****Social Security Basic Facts, published July2013

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Tips for Traveling AbroadFor many people, there's perhaps nothing moreexciting than traveling to a new country,experiencing different cultures, tasting exoticfoods, and exploring unfamiliar landscapes. Butbefore you take off on an internationaladventure, consider that a little preparation anda few precautions can help prevent a lot ofunexpected headaches.

Obtain and copy necessarydocumentationMost U.S. citizens need a valid U.S. passportfor international travel. Although some countriesallow you to enter with just a birth certificateand driver's license, all people traveling abroadby air must have a valid passport to reenter theUnited States. Those traveling by land or seamust have proof of both their U.S. citizenshipand identity; in many of these cases, the newU.S. passport card will suffice. You do not needa passport to travel to or from a U.S. territory(e.g., U.S. Virgin Islands or Puerto Rico).

It can take up to six weeks to receive apassport, so plan accordingly. Expeditedoptions are available for additional fees. Alsonote that some countries will not accept apassport that expires within six months of yourtrip. Contact the embassy of your destinationcountry for more information.

Finally, be sure to make copies of yourpassport, itinerary, airline tickets, and otherimportant documents. Leave one set with afriend or relative at home and carry the otherset with you, separately from the originals.

Plan ahead to stay healthySome countries require inoculations and othermedical preparations before entering. You canresearch your destination atwww.travel.state.gov. In addition, U.S. Centersfor Disease Control offers information aboutyour destination's medical requirements atwww.cdc.gov/travel/.

Many health insurance companies do not coverpolicyholders while they are in a foreigncountry. Even if you and your family arecovered, you may not receive the samebenefits overseas. Contact your insurer'scustomer service department to find out if youhave coverage while traveling abroad, and ifany restrictions apply. If needed, you cantypically purchase short-term supplementalhealth coverage from an insurance company,travel agent, tour operator, or cruise line. Thesepolicies are often combined with medicalevacuation coverage, which helps defray thecosts of an emergency medical trip back home.

If you take prescription medication, bring atleast enough to last your entire trip. Carry

medications in their original, labeled containersand pack them in your carry-on luggage. Askyour pharmacist for the generic name of yourmedications in case you need more whileabroad, and ask your doctor to write a letterexplaining your need for the medications. Somecountries restrict the types of medicationsallowed into the country without medicaldocumentation.

Finally, review the options for health care atyour destination before you arrive. It's best toprepare for an unpleasant surprise rather thanhave to search for a doctor at the moment youneed one.

Avoid costly mistakesPlanning to use your mobile phone? Contactyour carrier and review your plan forinternational roaming. Calling, texting, andposting updates to your social media sites canbe extremely expensive if you don't plan ahead.

Similarly, ask your credit or debit card bankabout foreign transaction fees. Since many donot charge these fees, it may pay to shoparound. Also, inform your card companies thatyou will be traveling so that they won't suspendyour card for suspicious activity while you'reaway, and can provide a toll-free numbershould you need to contact them.

If you plan to use cash or traveler's checks,keep some on your person and some in aseparate safe location. Also, before deciding touse traveler's checks, be sure to confirm theyare readily accepted. And remember to checkexchange rates so you can accurately calculateyour vacation budget.

Consider travel/baggage insuranceIn addition to supplemental health insurancecoverage, you may want to consider purchasingtravel insurance, particularly if the peace ofmind outweighs the premium cost. Some typesof policies protect you in case the trip iscancelled or interrupted due to certain events,such as weather, illness, or death of a lovedone. Investigate whether your credit card ortravel club offers this type of coverage as well.

Although most airlines will reimbursepassengers for luggage lost during transit (up tocertain limits), you might also want to considerbaggage insurance for protection when yourbags are not in possession of the airline.

These are just a few tips to consider beforetraveling overseas. For more comprehensiveinformation, visit the U.S. State Departmentwebsite at www.travel.state.gov.

Check with the U.S. StateDepartment for travel alertsand warnings. You mightalso consider registeringwith the U.S. government'sSmart Traveler EnrollmentProgram (STEP), athttps://step.state.gov/step/.STEP assists U.S. citizenstraveling and living abroad.

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Saving for the Future: Start Now or Start Later?There are many ways to try to reach a futuregoal. You can save now, or you can save later(or perhaps do both). But there is an advantageto putting your savings and earnings to work foryou as early as possible.

Compound earningsIf you save $1,000 now and invest it at anassumed 6% annual rate of return, in 1 yearyou would have $1,060, in 2 years about$1,124, and in 10 years about $1,791. Yourearnings compound as you earn returns onyour earnings. Your $1,000 initial investmentincreases through compounding to $1,791.*

Compounding at workFor example, let's say you start saving now.You save $5,000 at the beginning of each yearin years 1 to 20 and put it into an investmentthat earns a hypothetical 6% annually. At theend of 30 years, you will have accumulatedabout $349,150.

Alternatively, let's say you start 10 years later.You save $5,000 at the beginning of each yearin years 11 to 30. Once again, you earn anassumed 6% annually on that money. At theend of 30 years, you will have accumulatedabout $183,928.

In each of these examples, you've put aside atotal of $100,000. However, by starting now,you accumulate about $165,222 more than ifyou start later, and all of that is from earnings.By starting now, rather than putting it off, youhave put your money and the power ofcompound earnings to work for you.

Years Start Now Start Later

1 - 10 $5,000

11 - 20 $5,000 $5,000

21 - 30 $5,000

Saved $100,000 $100,000

Earnings $249,150 $89,928

Total $349,150 $183,928

Now, let's look at a different situation. Let's sayyou would like to start later but accumulate thesame amount as if you had started puttingmoney aside now. In this case, you would needto save more, about $8,954 at the beginning ofeach year in years 11 to 30, in order toaccumulate $349,150 after 30 years.

In this example, you would need to save a totalof about $179,085. That's $79,085 more than ifyou had started earlier, when compoundingcould have helped make up that difference.Compound earnings don't have as much time to

work for you when you postpone gettingstarted.

Years Start Now Start Later

1 - 10 $5,000

11 - 20 $5,000 $8,954

21 - 30 $8,954

Saved $100,000 $179,085

Earnings $249,150 $170,065

Total $349,150 $349,150

Strike a balanceOf course, you could accumulate even more ifyou do both. For example, if you set aside andinvest $5,000 at the beginning of each year inyears 1 to 30 and earn an assumed 6%annually on that money, at the end of 30 years,you will have accumulated about $419,008.This is substantially greater than the $183,928accumulated if you invest $5,000 in years 11 to30, while somewhat greater than the $349,150accumulated if you invest $5,000 in years 1 to20.

But maybe you can't afford to set aside $5,000now. Could you manage $3,000 this year,increase that amount for next year by 3% to$3,090, and continue to increase the amountset aside by 3% each year? If that money earnsan assumed 6% annually, you will haveaccumulated about $351,520 at the end of 30years, slightly more than the $349,150accumulated if you save $5,000 each year inyears 1 to 20.

Compared to saving $5,000 a year for 30 years,you've contributed almost as much here($142,726 compared to $150,000), but yourearnings are substantially less ($208,794compared to $269,008) because your largestcontributions came in later years and had lesstime to work for you.

Year Constant Increasing

1 $5,000 $3,000

2 $5,000 $3,090

...

29 $5,000 $6,864

30 $5,000 $7,070

Saved $150,000 $142,726

Earnings $269,008 $208,794

Total $419,008 $351,520

No matter how you save toreach a future goal, there isan advantage to puttingyour savings and earningsto work for you as early aspossible.

All examples arehypothetical and are notguaranteed. Fees and taxesare not shown and couldreduce the amount available.

*All investment involvesrisk, including the possibleloss of principal.

Page 3 of 4, see disclaimer on final page

Southern Trust FinancialPlanningMarc WolffPresident - Investments1943 Morrill St.Suite 1Sarasota, FL 34236941-308-0041mwolff@southerntrustfinancial.comwww.Southerntrustfinancial.com

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2014

Securities offered throughSecurities America, Inc. MemberFINRA/SIPC. Marc Wolff,Registered Representative. Advisorservices offered through SouthernTrust Financial Planning. MarcWolff, Financial Planner. SouthernTrust Financial Planning, Forefield,and the Securities Americacompanies are not affiliated.

Representatives of SecuritiesAmerica do not provide tax or legaladvice. Please consult theappropriate professional regardingyour situation.

What is an assisted-living facility, and how do I chooseone?What is an assisted-livingfacility? The wide number ofoptions available makesdefining the term difficult.

Generally, however, assisted-living facilitiesprimarily serve senior citizens who need morehelp than those who live in independent livingcommunities.

These facilities typically offer rental rooms orapartments, housekeeping services, meals,social activities, and transportation. Theirprimary focus is social, not medical, but somedo provide limited medical care. Other termsused to describe assisted-living arrangementsare board and care homes, rest homes, andcommunity residences. Continuing careretirement communities (CCRCs), also calledlife care communities, fit loosely into thiscategory as well, although they provide whatother assisted-living facilities do not: long-termnursing care and guaranteed lifetime services.

How do you choose an assisted-living facility?Definitely plan on touring the facilitybeforehand. Some facilities are large, caring forover a thousand people. Others are small,caring for fewer than five people. Consider

whether the facility meets your needs:

• Do you have enough privacy?• How much personal care is provided? What

happens if you get sick?• Can you be asked to leave the facility if your

physical or mental health deteriorates?• Is the facility licensed or unlicensed?• Who is in charge of health and safety?

And read the contract carefully--this may saveyou time and money later if any conflict overservices or care arises.

As for the cost, a wide range of care isavailable at a wide range of prices. If you havelong-term care insurance, check your policy.These contracts normally pay a specified dollaramount per day (typically $40 to $150) forcertain skilled, intermediate, or custodial care inassisted-living facilities, for some specifiedperiod of time (usually two to five years).Medicare probably will not cover your expensesat these facilities, unless those expenses arehealth-care related and the facility is licensed toprovide medical care.

My parents can't manage alone anymore. What should Ido?Are one or both of yourparents having healthproblems, suffering mentallapses, or just slowing down

with age? Do you find they can't manage ontheir own anymore? If so, you'll want toconsider the various living arrangements thatare available to older individuals. Before youbegin, however, you'll want to talk to yourparents and siblings.

Sometimes the best option is to have yourparents move in with (or closer to) you. Thatway, you avoid having to use your parents'assets (or your own) to pay for a nursing homeor other facility. You won't have to worry aboutyour parents potentially receiving inadequatecare from strangers. And your parents willprobably appreciate the gesture of love andself-sacrifice on your part. However, the cost offeeding, clothing, and caring for your parentscan be high, especially if you're forced to giveup a job to be home with your parents. Anddon't underestimate the emotional andpsychological impact.

What if your parents' care is more than you canhandle? You may then wish to consider some

type of assisted-living arrangement. The broadterm "assisted living" encompasses a range offacilities and services designed to help seniorswho can't live independently. The assistanceprovided may be short- or long-term and mayfocus on social services, medical care, or somecombination of the two. Depending on yourparents' conditions and needs, one or more ofthe following assisted-living arrangements maybe worth considering:

• Nursing homes• Assisted-living communities• Continuing care retirement communities• Alzheimer's/dementia care specialty facilities• Retirement communities• Active senior communities• Home health care• Hospice care• Adult day-care services

And don't be afraid to talk to a social worker,your parents' physicians, or other professionals.They can offer you support, and recommendsolutions that best meet your parents' needs.

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