JBL Financial Services, Inc.Jeffrey B. Lapidus, CEBSPresident7710 Carondelet AveSuite 333Clayton, MO 63105MO: 314-863-0008FAX: 314-863-0009jeff@jblfinancial.comwww.jblfinancial.com

July 2015What's New in the Housing Market for2015?

Five Steps to Tame Financial Stress

Prepaid Funeral Arrangements CanHave Grave Consequences

What is the Roth 401(k) five-year rule?

The Coach's CornerFrom your Retirement Coach and Advisor

What's New in the Housing Market for 2015?

See disclaimer on final page

Happy Summer Everyone!

We hope that you all are enjoying yourselves asthe vacation season descends on us. With all thetrip planning and adventuring that goes on in thesummer we know that financial planning isn'talways at the top of mind. However, with all theextra spending that comes with Summer trips, it'sa good idea to check in on your retirementplanning status.

Are you still on track to retire in your desired timeframe? Erin and I are here to help and would behappy to help answer any and all of yourquestions related to retirement and financialplanning and come up with a game plan that isright for you.

Additionally, if you have concerns aboutMedicare or health insurance, Erin is on hand tohelp you navigate through those questions.

Please call us at 314-863-0008 to set up yourfree Coaching Session today.This meeting is cost-free and obligation-free.

As always, we hope you enjoy our newsletter!

Jeff and Erin Lapidus

Home buyers and sellersfinally have reason tocelebrate in 2015. Afteralmost a decade oflimping along towardrecovery, it seems asthough the housingmarket has finally hit amore comfortable stride.

According to the S&P/Case-Shiller Home PriceIndices, well-known gauges of the U.S. housingmarket, real estate is finally showing healthysigns of improvement.

Data released by Case-Shiller at the end ofApril indicates that home prices have continuedto rise across the United States. (Source:S&P/Case-Shiller Home Price Indices, April2015) And as it turns out, no one factor isresponsible for the trend. Rather, a variety offactors are being credited for the recovery.

Low mortgage interest ratesThis year, mortgage rates have remained atall-time lows. (Source: Freddie Mac U.S.Economic & Housing Market Outlook, April2015) A slower-than-expected economicrecovery may be partly responsible, with theFederal Reserve holding off on raising interestrates until the economy is on more solidground. And while interest rates are expectedto go up at some point (possibly later this year),home buyers are taking advantage of thehistorically low rates while they can.

Less-stringent mortgage lendingObtaining a mortgage has gotten easier thisyear thanks to less-stringent lendingrequirements. (Source: Mortgage CreditAvailability Index, March 2015) A number ofchanges are being credited for makingmortgage lending more readily available.

Fannie Mae and Freddie Mac lowered theirdown payment thresholds this past Decemberto as little as 3% of a home's purchase price, aboon for first-time home buyers and buyers withlow down payment funds available.

In addition, the Federal Housing Administration(FHA) announced this past January that it willlower what it charges for annual mortgageinsurance premiums. The 0.5% decrease, from1.35% to 0.85%, is expected to reduce an FHAborrower's annual mortgage payment by $900per year, on average. (Source: U.S.Department of Housing and UrbanDevelopment, HUD No. 15-001)

Low housing inventoryA low housing inventory frequently gives homesellers the advantage, since it often leads to anincrease in housing prices. While inventorydoes vary by location, total unsold inventorywas on the lower end, with a 4.6-monthavailable supply. (Source: National Associationof Realtors, News Release, April 2015)

Buying a home is more affordable thanrentingAccording to Trulia's Rent vs. Buy Index, it wascheaper to buy a home than to rent one in all ofthe nation's largest 100 cities in late 2014. Andnationwide, owning was 38% less expensivethan renting, although the gap varied widely bylocation. (Source: Trulia.com, Rent vs. BuyIndex, October 2014)

Millennials are entering the marketDespite living with high student debt and a tepidjob market, millennials are finally entering thereal estate market. In fact, adults age 34 andyounger made up the largest percentage ofhome buyers in 2014, accounting for 32% of allhome purchases nationwide. (Source: NationalAssociation of Realtors, Home Buyer and SellerGenerational Trends study, 2015)

Of course, this doesn't mean that all millennialsare buying homes. Those with the higheststudent loan debt may have trouble meeting thedebt-to-income ratios required by lenders for amortgage. Others are postponing starting afamily, which affects their urgency to purchasea home.

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Five Steps to Tame Financial StressDo you sometimes lie awake at night thinkingabout bills that need to be paid? Does it feel asthough you're drowning in debt? If thisdescribes you, you might take solace in the factthat you're not alone. A recent report releasedby the American Psychological Association(APA) showed that 72% of adults feel stressedabout money at least some of the time, and22% said the amount of stress theyexperienced was extreme.1

The bad news is that stress can be responsiblefor multiple health problems, including fatigue,headaches, and depression. And, over time,stress can contribute to more significant healthissues, including high blood pressure and heartdisease.2 The good news is that there aresome simple steps you can take to reduce oreliminate some of the financial stress in yourlife.

1. Stop and assessThe first step in reducing financial stress is tolook at your situation objectively, creating asnapshot of your current financial condition. Sitdown and list all of your financial obligations.Start with the items that are causing you themost stress. For debts, include the principaldue, the applicable interest rate, and theminimum payment amount. If you're not alreadydoing so, review your bank account andcredit-card statements to track where yourmoney is going. The goal here is not to solvethe problem; it's to determine and document thescope of the problem. You might find that thisstep alone significantly helps alleviate yourstress level (think of it as facing your fears).

2. Talk to your spouseIf you're married, talk to your spouse. It'simportant to communicate with your spouse forseveral reasons. First, you and your spouseneed to be on the same financial page; anysteps you take to improve your situation aregoing to be most effective if pursued jointly.Second, not being on the same page as yourspouse is only going to lead to additionalstress. In fact, the APA report showed that 31%of spouses and partners say that money is amajor source of conflict or tension in theirrelationship.3 Additionally, your spouse orpartner can be a valuable source of emotionalsupport, and this emotional support alone canlower stress levels.4 If you're not married,family or friends might fill this role.

3. Take controlFirst, go back and take a look at where yourmoney is going. Are there changes you canmake that will free up funds you can save orapply elsewhere? Even small changes canmake a difference. And exerting control overyour situation to any degree can help reduceyour overall stress level. Start building a cashreserve, or emergency fund, by saving a littlebit each paycheck. Think of the emergencyfund as a safety net; just knowing it's there willhelp reduce your ongoing level of stress. Workup to a full spending plan (yes, that's anotherway of saying a budget) where you prioritizeyour expenses, set spending goals, and thenstick to them going forward.

4. Think longer termLook for ways to reduce debt long term. Youmight pay more toward balances that have thehighest interest rates. Or you might considerrefinancing or consolidation options as well.Beyond that, though, you really want to startthinking about your long-term financial goals,identifying and prioritizing your goals,calculating how much you might need to fundthose goals, and implementing a plan thataccounts for those goals. Having a plan inplace can help you with your stress levels, bothnow and in the future.

5. Get helpAlways remember that you don't need to handlethis alone. If the emotional support of a spouse,friends, or family isn't enough, or the level ofstress that you're feeling is just too much, knowthat there is help available. Consider talking toyour primary-care physician, a mental healthprofessional, or an employee assistanceresource, for example.

A financial professional can also be a valuableresource in helping you work through some ofthe steps discussed here, and can help directyou to other sources of assistance, like credit ordebt counseling services, depending on yourneeds.

The most important thing to keep in mind is thatyou have the ability to control the amount offinancial stress in your life.1,3,4 American Psychological Association,"Stress in America™: Paying with Our Health,"www.stressinamerica.org, February 4, 20152 Mayo Clinic Staff, "Stress Symptoms: Effectson Your Body and Behavior,"www.mayoclinic.org, July 19, 2013

Seventy-two percent ofadults report feelingstressed about money atleast some of the time, and22% say that the amount ofstress they experience isextreme.

Source: AmericanPsychological Association

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Prepaid Funeral Arrangements Can Have Grave ConsequencesAn important part of estate planning involvesconsideration of funeral or memorialarrangements, including paying for some or allof the costs in advance. Planning ahead notonly spares your survivors from the stress ofmaking these decisions, but prepaying for yourservices relieves your survivors from theburden of worrying about money during anotherwise difficult time.

Prepaid agreementOne way to prepay your funeral is by enteringinto a pre-need agreement with a funeral homeof your choice. The funeral home may agree to"lock in" costs for future funeral or burialservices at an agreed-upon price. This is oftendone through a trust or other arrangement thatyou can fund with cash, bonds, or lifeinsurance. At your death, the funds aredisbursed to pay for your funeral according tothe terms of the agreement.

But before entering into a prepaid arrangement,you may want to get answers to the followingquestions:

• What happens to the funds you've prepaid?How are they held? Do they earn interest?Are they safe?

• What happens if the funeral home goes out ofbusiness? What protections, if any, do youhave that your funds will be available whenneeded?

• Can you cancel the agreement and, if so, areyou able to receive a refund?

• If you move, can your funds be transferred toanother funeral home? Will the same termsapply? Is there a fee or cost to transfer yourfunds to another funeral home?

The Funeral RuleThere are some legal protections available toconsumers of funeral home services. TheFuneral Rule, enforced by the Federal TradeCommission (FTC), requires funeral providersto give consumers accurate, itemized priceinformation and other disclosures about funeralgoods and services. The Rule also prohibitsfuneral providers from misrepresentingservice-related requirements and fromengaging in unfair or deceptive practices.

The key feature of the Funeral Rule is theGeneral Price List, which entitles consumers toreceive itemized prices for the various goodsand services offered, allowing them tocomparison shop and to purchase goods andservices on an itemized basis, and not solely aspart of a package. For more information onshopping for funeral services, the Funeral Rule,and prepaying for some or all of the expenses

involved, visit the FTC consumer websitewww.consumer.ftc.gov.

State law protectionsThe Funeral Rule generally governs funeralproviders. It does not offer specific remedies orcauses of action for consumers who are victimsof funeral providers that do not comply with theRule. Laws in individual states regulate funeralproviders and help ensure that advancepayments are available when they're needed.However, protections vary widely from state tostate, sometimes providing a window ofopportunity for unscrupulous operators.

What can you do?Before entering into a prepaid agreement, hereare some steps you can take to safeguard yourfunds and ensure you'll get the services you'vepayed for:

• Find out what kind of consumer protectionyour state provides and whether it regulatesthe payment methods.

• Be sure that your funds or insurance policyare held in a trust at a reputable bank or otherfinancial institution that you can check on tobe sure your money or policy is safe. Youmay even be entitled to an annual statement.

• If you're funding some or all of the pre-needarrangements with life insurance purchasedthrough the funeral services provider, be surethe policy is permanent insurance, such aswhole life, and not term insurance (if yououtlive the term of the policy, there will be noinsurance proceeds to pay for your funeral).

• The agreement should address whathappens to any excess funds that may beavailable after paying for your services. Somepre-need contracts allow you to designatehow excess funds are to be disposed (e.g.,surviving family members, your church orother charity).

• Along those same lines, if you cancel thecontract, you may be entitled to a partial orfull refund, although some states allow thefuneral provider to retain a portion of thefunds, often depending on how long thecontract has been in existence.

Ultimately, be sure to tell your family about theplans you've made and where you'll keepimportant documents, such as your last will andtestament and any documentation you'veretained concerning your pre-need funeralarrangements.

Possible long-term carebenefit

Irrevocable funeral trusts mayalso help you qualify forlong-term care benefits throughMedicaid. These trusts may befunded with assets that wouldotherwise be countableresources for Medicaid. Trustassets, including life insurancedeath benefits, are notcountable resources whentrying to qualify for long-termcare benefits through Medicaid.And you can fund the funeraltrust right before applying forbenefits--there's no "look-back"period for these transfers. Thelegal expense to create anirrevocable funeral trust (IFT) istypically paid by the insurancecompany, which acts as theTrustee. There is typically noexpense to the insured party tocreate the IFT other than theone-time cost of the insurance.Almost all states impose a limiton the amount of money thatcan be placed in a funeral trust.Not all funeral trusts areconsidered to beMedicaid-exempt assets.Consult with your estateplanning attorney for help withyour individual circumstances.

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JBL Financial Services, Inc.Jeffrey B. Lapidus, CEBSPresident7710 Carondelet AveSuite 333Clayton, MO 63105MO: 314-863-0008FAX: 314-863-0009jeff@jblfinancial.comwww.jblfinancial.com

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2015

There are many ways to receive more straight talk and inputfrom your favorite Adviser and Retirement Coach:

Listen to my show "Straight Talk on Retirement" everySaturday from 10-11am on KTRS 550-AM.

I am accepting new clients so please do not hesitate to offeryour friends and family members the chance to visit me for afree coaching session- let's help them get their financial life ontrack!

Securities and advisory services offered through NationalPlanning Corporation (NPC), Member FINRA/SIPC, and aRegistered Investment Adviser. JBL Financial Services, Inc. andNPC are separate and unrelated companies. The information inthis article is not intended to be tax or legal advice, and may notbe relied on for the purpose of avoiding any federal taxpenalties. You are encouraged to seek tax or legal advice froman independent professional adviser. The content is derivedfrom sources believed to be accurate. Neither the informationpresented nor any opinion expressed constitutes a solicitationfor the purchase or sale of any security. This material waswritten and prepared by Broadridge.

What is the Roth IRA five-year rule?Actually, there are twofive-year rules you need toknow about. The first five-yearrule determines when you canbegin receiving tax-free

qualified distributions from your Roth IRA.Withdrawals from your Roth IRA--including bothyour contributions and any investmentearnings--are completely tax and penalty free ifyou satisfy a five-year holding period and oneof the following also applies:

• You've reached age 59½ by the time of thewithdrawal

• The withdrawal is made due to a qualifyingdisability

• The withdrawal is made for first-timehomebuyer expenses ($10,000 lifetime limit)

• The withdrawal is made by your beneficiaryor estate after your death

This five-year holding period begins on January1 of the tax year for which you made your firstcontribution (regular or rollover) to any RothIRA you own. For example, if you make yourfirst Roth IRA contribution in March 2015 anddesignate it as a 2014 contribution, your

five-year holding period begins on January 1,2014 (and ends on December 31, 2018). Youhave only one five-year holding period fordetermining whether distributions from anyRoth IRA you own are tax-free qualifieddistributions. (Roth IRAs you inherit are subjectto different rules.)

The second five-year rule is a little morecomplicated. When you convert a traditionalIRA to a Roth IRA, the amount you convert(except for any after-tax contributions you'vemade) is subject to income tax at the time ofconversion. However, your conversion isn'tsubject to the 10% early distribution penalty,even if you haven't yet reached age 59½.

But what the IRS giveth it can also taketh away.If you withdraw any portion of your taxableconversion within five years, you'll have to paythe 10% early distribution penalty on thosefunds that you previously avoided--unlessyou've reached age 59½ or qualify for anotherexemption from the penalty tax. This five-yearholding period starts on January 1 of the yearyou convert your traditional IRA to a Roth IRA.And if you have more than one conversion,each will have its own separate five-yearholding period for this purpose.

What is the Roth 401(k) five-year rule?The Roth 401(k) five-year ruledetermines when you canbegin receiving tax-freequalified distributions fromyour 401(k) plan Roth account.

While it's similar to the five-year rule thatapplies to Roth IRAs, there are importantdifferences.

Withdrawals from your Roth 401(k) planaccount--including both your contributions andany investment earnings--are completely taxand penalty free if you satisfy a five-yearholding period and one of the following alsoapplies:

• You've reached age 59½• You have a qualifying disability, or• The withdrawal is made by your beneficiary

or estate after your death

The five-year holding period begins on the firstday of the calendar year in which you makeyour first Roth 401(k) contribution (regular orrollover) to the plan. For example, if you makeyour first Roth contribution to your company's401(k) plan in December 2015, your five-yearholding period begins on January 1, 2015, andends on December 31, 2019.

If you participate in 401(k) plans maintained bydifferent employers, your five-year holdingperiod is determined separately for each plan.But there's an important exception. If you makea direct rollover of Roth dollars from your prioremployer's plan to your new employer's plan,your five-year holding period for the new planwill be deemed to start with the year you madeyour first Roth contribution to the prior plan.

For example, Beth made Roth contributions tothe Acme 401(k) plan beginning in 2011. In2015, she changed jobs and began makingRoth contributions to the Beacon 401(k) plan.Her five-year holding period for the Acme planbegan on January 1, 2011, and ends onDecember 31, 2015. Her five-year holdingperiod for the Beacon plan began on January 1,2015, and ends on December 31, 2019. In2015, Beth decides to make a direct rollover ofher Acme Roth account to Beacon's 401(k)plan. Because of the rollover, Beth's January 1,2011, starting date at Acme will carry over tothe Beacon plan, and any distributions shereceives from her Beacon Roth account after2015 (rather than 2018) will be tax free(assuming she's at least age 59½ or disabled atthe time of distribution).

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