Blaise Benoist, AIF®Managing Partner, BWSBranch Manager, RJFS390 N. Orange Ave. Ste. 2300Orlando, FL 32801407-900-2185blaise.benoist@raymondjames.comwww.benoistws.com

1st Quarter 2015Key Numbers for 2015

10 Financial Terms Everyone Should Know

Investor, Know Thyself: How Your BiasesCan Affect Investment Decisions

Should I be worried about a FederalReserve interest rate hike?

Financial Insight QuarterlyYour Source for Financial Well-BeingKey Numbers for 2015

See disclaimer on final page

Every year, the Internal RevenueService (IRS) announcescost-of-living adjustments thataffect contribution limits forretirement plans, thresholds fordeductions and credits, and

standard deduction and personal exemptionamounts. Here are a few of the keyadjustments for 2015.

Retirement plans• Employees who participate in 401(k), 403(b),

and most 457 plans can defer up to $18,000in compensation in 2015 (up from $17,500 in2014); employees age 50 and older can deferup to an additional $6,000 in 2015 (up from$5,500 in 2014)

• Employees participating in a SIMPLEretirement plan can defer up to $12,500 in2015 (up from $12,000 in 2014), andemployees age 50 and older will be able todefer up to an additional $3,000 in 2015 (upfrom $2,500 in 2014)

IRAsThe limit on annual contributions to an IRAremains unchanged at $5,500 in 2015, withindividuals age 50 and older able to contributean additional $1,000. For individuals who arecovered by a workplace retirement plan, thededuction for contributions to a traditional IRAis phased out for the following modifiedadjusted gross income (AGI) ranges:

2014 2015

Single / headof household(HOH)

$60,000 -$70,000

$61,000 -$71,000

Married filingjointly (MFJ)

$96,000 -$116,000

$98,000 -$118,000

Married filingseparately(MFS)

$0 - $10,000 $0 - $10,000

Note: The 2015 phaseout range is $183,000 -$193,000 when the individual making the IRAcontribution is not covered by a workplaceretirement plan, but is filing jointly with a spousewho is covered.

The modified AGI phaseout ranges forindividuals making contributions to a Roth IRAare:

2014 2015

Single / HOH $114,000 -$129,000

$116,000 -$131,000

MFJ $181,000 -$191,000

$183,000 -$193,000

MFS $0 - $10,000 $0 - $10,000

Estate and gift tax• The annual gift tax exclusion remains

$14,000• The gift and estate tax basic exclusion

amount for 2015 is $5,430,000, up from$5,340,000 in 2014

Personal exemptionThe personal exemption amount has increasedto $4,000 (up from $3,950 in 2014). For 2015,personal exemptions begin to phase out onceAGI exceeds $258,250 (Single), $309,900(MFJ), $284,050 (HOH), or $154,950 (MFS).

Note: These same AGI thresholds apply indetermining if itemized deductions may belimited. The corresponding 2014 thresholdamounts were $254,200 (single), $305,050(MFJ), $279,650 (HOH), and $152,525 (MFS).

Standard deductionThe standard deduction amounts have beenadjusted as follows:

2014 2015

Single $6,200 $6,300

HOH $9,100 $9,250

MFJ $12,400 $12,600

MFS $6,200 $6,300

Note: The 2015 additional standard deductionamount (age 65 or older, or blind) is $1,550 iffiling as single or HOH (unchanged from 2014)or $1,250 (up from $1,200 in 2014) for all otherfiling statuses. Special rules apply if you can beclaimed as a dependent by another taxpayer.

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10 Financial Terms Everyone Should KnowUnderstanding financial matters can be difficultif you don't understand the jargon. Becomingfamiliar with these 10 financial terms may helpmake things clearer.

1. Time value of moneyThe time value of money is the concept thatmoney on hand today is worth more than thesame amount of money in the future, becausethe money you have today could be invested toearn interest and increase in value.

Why is it important? Understanding that moneytoday is worth more than the same amount inthe future can help you evaluate investmentsthat offer different potential rates of return.

2. InflationInflation reflects any overall upward movementin the price of consumer goods and servicesand is usually associated with the loss ofpurchasing power over time.

Why is it important? Because inflation generallypushes the cost of goods and services higher,any estimate of how much you'll need in thefuture--for example, how much you'll need tosave for retirement--should take into accountthe potential impact of inflation.

3. VolatilityVolatility is a measure of the rate at which theprice of a security moves up and down. If theprice of a security historically changes rapidlyover a short period of time, its volatility is high.Conversely, if the price rarely changes, itsvolatility is low.

Why is it important? Understanding volatilitycan help you evaluate whether a particularinvestment is suited to your investing style andrisk tolerance.

4. Asset allocationAsset allocation means spreading investmentsover a variety of asset categories, such asequities, cash, bonds, etc.

Why is it important? How you allocate yourassets depends on a number of factors,including your risk tolerance and your desiredreturn. Diversifying your investments among avariety of asset classes can help you managevolatility and investment risk. Asset allocationand diversification do not guarantee a profit orprotect against investment loss.

5. Net worthNet worth is what your total holdings are worthafter subtracting all of your financial obligations.

Why is it important? Your net worth may fundmost of your retirement years. So the faster andhigher your net worth grows, the more it may

help you in retirement. For retirees, a typicalgoal is to preserve net worth to last through theretirement years.

6. Five C's of creditThese are character, capacity, capital,collateral, and conditions. They're the primaryelements lenders evaluate to determinewhether to make you a loan.

Why is it important? With a betterunderstanding of how your banker is going toview and assess your creditworthiness, you willbe better prepared to qualify for the loan youwant and obtain a better interest rate.

7. Sustainable withdrawal rateSustainable withdrawal rate is the maximumpercentage that you can withdraw from aninvestment portfolio each year to provideincome that will last, with reasonable certainty,as long as you need it.

Why is it important? Your retirement lifestylewill depend not only on your assets andinvestment choices, but also on how quicklyyou draw down your retirement portfolio.

8. Tax deferralTax deferral refers to the opportunity to defercurrent taxes until sometime in the future.

Why is it important? Contributions and anyearnings produced in tax-deferred vehicles like401(k)s and IRAs are not taxed until withdrawn.This allows those earnings to compound,further adding to potential investment growth.

9. Risk/return trade-offThis concept holds that you must be willing toaccept greater risk in order to achieve a higherpotential return.

Why is it important? When considering yourinvestments, the goal is to get the greatestreturn for the level of risk you're willing to take,or to minimize the risk involved in trying for agiven return. All investing involves risk,including the loss of principal, and there can beno assurance that any investing strategy will besuccessful.

10. The FedThe Federal Reserve, or "the Fed" as it'scommonly called for short, is the central bank ofthe United States.

Why is it important? The Fed has three mainobjectives: maximum employment, stableprices, and moderate long-term interest rates.The Fed sets U.S. monetary policy to furtherthese objectives, and over the years its dutieshave expanded to include maintaining thestability of the entire U.S. financial system.

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Investor, Know Thyself: How Your Biases Can Affect InvestmentDecisionsTraditional economic models are based on asimple premise: people make rational financialdecisions that are designed to maximize theireconomic benefits. In reality, however, mosthumans don't make decisions based on asterile analysis of the pros and cons. Whilemost of us do think carefully about financialdecisions, it is nearly impossible to completelydisconnect from our "gut feelings," that naggingintuition that seems to have been deeplyimplanted in the recesses of our brain.

Over the past few decades, another school ofthought has emerged that examines howhuman psychological factors influenceeconomic and financial decisions. Thisfield--known as behavioral economics, or in theinvesting arena, behavioral finance--hasidentified several biases that can unnerve eventhe most stoic investor. Understanding thesebiases may help you avoid questionable calls inthe heat of the financial moment.

Sound familiar?Following is a brief summary of some commonbiases influencing even the most experiencedinvestors. Can you relate to any of these?

1. Anchoring refers to the tendency tobecome attached to something, even when itmay not make sense. Examples include apiece of furniture that has outlived itsusefulness, a home or car that one can nolonger afford, or a piece of information that isbelieved to be true, but is in fact, false. Ininvesting, it can refer to the tendency toeither hold an investment too long or placetoo much reliance on a certain piece of dataor information.

2. Loss-aversion bias is the term used todescribe the tendency to fear losses morethan celebrate equivalent gains. Forexample, you may experience joy at thethought of finding yourself $5,000 richer, butthe thought of losing $5,000 might provoke afar greater fear. Similar to anchoring, lossaversion could cause you to hold onto alosing investment too long, with the fear ofturning a paper loss into a real loss.

3. Endowment bias is also similar toloss-aversion bias and anchoring in that itencourages investors to "endow" a greatervalue in what they currently own over otherpossibilities. You may presume theinvestments in your portfolio are of higherquality than other available alternatives,simply because you own them.

4. Overconfidence is simply having so muchconfidence in your own ability to selectinvestments for your portfolio that you might

ignore warning signals.5. Confirmation bias is the tendency to latch

onto, and assign more authority to, opinionsthat agree with your own. For example, youmight give more credence to an analystreport that favors a stock you recentlypurchased, in spite of several other reportsindicating a neutral or negative outlook.

6. The bandwagon effect, also known as herdbehavior, happens when decisions aremade simply because "everyone else isdoing it." For an example of this, one mightlook no further than a fairly recent andmuch-hyped social media company's initialpublic offering (IPO). Many a discouragedinvestor jumped at that IPO only to sell at asignificant loss a few months later. (Some ofthese investors may have also suffered fromoverconfidence bias.)

7. Recency bias refers to the fact that recentevents can have a stronger influence onyour decisions than other, more distantevents. For example, if you were severelyburned by the market downturn in 2008, youmay have been hesitant about continuing orincreasing your investments once themarkets settled down. Conversely, if youwere encouraged by the stock market'ssubsequent bull run, you may haveincreased the money you put into equities,hoping to take advantage of any furthergains. Consider that neither of theseperspectives may be entirely rational giventhat investment decisions should be basedon your individual goals, time horizon, andrisk tolerance.

8. A negativity bias indicates the tendency togive more importance to negative news thanpositive news, which can cause you to bemore risk-averse than appropriate for yoursituation.

An objective view can helpThe human brain has evolved over millenniainto a complex decision-making tool, allowingus to retrieve past experiences and processinformation so quickly that we can respondalmost instantaneously to perceived threats andopportunities. However, when it comes to yourfinances, these gut feelings may not be yourstrongest ally, and in fact may work againstyou. Before jumping to any conclusions aboutyour finances, consider what biases may be atwork beneath your conscious radar. It mightalso help to consider the opinions of anobjective third party, such as a qualifiedfinancial professional, who could help identifyany biases that may be clouding your judgment.

In psychology, "heuristics"refers to the mentaldecision-making short-cutsthat individuals developover time based on pastexperiences. Whileheuristics can be helpful inavoiding unnecessarydeliberation, they can alsolead to misleading biasesthat can derail even themost well-thought-outfinancial plan.

Page 3 of 4, see disclaimer on final page

Blaise Benoist, AIF®Managing Partner, BWSBranch Manager, RJFS390 N. Orange Ave. Ste. 2300Orlando, FL 32801407-900-2185blaise.benoist@raymondjames.comwww.benoistws.com

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2015

This information, developed by anindependent third party, has been obtainedfrom sources considered to be reliable, butRaymond James Financial Services, Inc.does not guarantee that the foregoingmaterial is accurate or complete. Thisinformation is not a complete summary orstatement of all available data necessary formaking an investment decision and does notconstitute a recommendation. Theinformation contained in this report does notpurport to be a complete description of thesecurities, markets, or developments referredto in this material. This information is notintended as a solicitation or an offer to buy orsell any security referred to herein.Investments mentioned may not be suitablefor all investors. The material is general innature. Past performance may not beindicative of future results. Raymond JamesFinancial Services, Inc. does not provideadvice on tax, legal or mortgage issues.These matters should be discussed with theappropriate professional.

Securities offered through Raymond JamesFinancial Services, Inc., memberFINRA/SIPC, an independent broker/dealer,and are not insured by FDIC, NCUA or anyother government agency, are not deposits orobligations of the financial institution, are notguaranteed by the financial institution, andare subject to risks, including the possibleloss of principal.

Is it possible to accidentally disinherit my heirs?Yes. One of the most tragicestate planning mistakes isunintentionally disinheriting anheir. Here are some of themost common ways this

unfortunate situation can occur.

One cause of accidental disinheritance may bethe simplest: failure to make a will. In this case,property generally passes according to theintestacy laws of the state in which you're"domiciled," and these laws vary widely fromstate to state. For example, if you are marriedand have children, state intestacy law mightleave one-third or one-half of your estate toyour spouse and the balance to your children.This may or may not be what you would havewanted.

Making an ineffective or faulty will can alsoresult in misdirected allocations. For example,you may fail to provide for children born afteryou make your will (this is what happened toAnna Nicole Smith and Heath Ledger). Thelesson here is to forgo the do-it-yourself kit andhire an estate planning attorney to draft andexecute your will, which should be reviewedevery year or two.

Failing to update your will can also result inallocations that are made according to an oldwill. This can lead to unwanted allocations (forexample, the effective disinheritance of childrenwhen Mom or Dad remarries and everythingpasses to the new spouse). Make it a rule toreview and update your will periodically,especially after major life events such asmarriage, a birth or adoption, divorce, or adeath in the family. Also consider updatingbeneficiary designations (for life insurancepolicies, retirement accounts, payable on deathaccounts, etc.) annually. And remember thatbeneficiary designations trump provisions madein your will.

A fourth cause of accidental disinheritance iswhat's known as "ademption." This is the failureof a specific bequest made in a will because theproperty no longer exists in the decedent'sestate for some reason. For example, youmight leave your car to your son in your will,and then sell or gift it to someone else beforeyou die. A similar situation can occur when alife insurance policy is allowed to lapse (socheck your policies and don't forget to make thepremium payments).

Should I be worried about a Federal Reserve interestrate hike?After years of record-lowinterest rates, at some pointthis year the Federal Reserveis expected to begin raising its

target federal funds interest rate (the rate atwhich banks lend to one another funds they'vedeposited at the Fed). Because bond pricestypically fall when interest rates rise, any ratehike is likely to affect the value of bondinvestments.

However, higher rates aren't all bad news. Forthose who have been diligent about savingand/or have kept a substantial portion of theirportfolios in cash alternatives, higher ratescould be a boon. For example, higher ratescould mean that savings accounts and CDs arelikely to do better at providing income than theyhave in recent years.

Also, bonds don't respond uniformly to interestrate changes. The differences, or spreads,between the yields of various types of debt canmean that some bonds may be under- orovervalued compared to others. Depending onyour risk tolerance and time horizon, there aremany ways to adjust a bond portfolio to helpcope with rising interest rates. However, don't

forget that a bond's total return is a combinationof its yield and any changes in its price; bondsseeking to achieve higher yields typicallyinvolve a higher degree of risk.

Finally, some troubled economies overseashave been forced to lower interest rates on theirsovereign bonds in an attempt to provideeconomic stimulus. Lower rates abroad havethe potential to make U.S. debt, particularlyTreasury securities (whose timely payment ofinterest and principal is backed by the full faithand credit of the U.S. Treasury), even moreattractive to foreign investors. Though pastperformance is no guarantee of future results,that's what happened during much of 2014.Increased demand abroad might help providesome support for bonds denominated in U.S.dollars.

Remember that bonds are subject not only tointerest rate risk but also to inflation risk, marketrisk, and credit risk; a bond sold prior tomaturity may be worth more or less than itsoriginal value. All investing involves risk,including the potential loss of principal, andthere can be no guarantee that any investingstrategy will be successful.

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