RJR Financial Planning: Proceed with Caution

As we mentioned in a previous e-mail, times of uncertainty can lead to opportunities. However, someone else’s “sales pitch” may not be appropriate for you. There are many institutions that see this economic climate as opportunistic and attempt to cross sell some of their products to customers. Before you even consider placing your hard-earned dollars into another product, please know that as your trusted and unbiased financial advisors, we can provide you with guidance regarding whether it is the right choice for you based on your goals and objectives and also conduct a product analysis to uncover costs, potential surrender charges and how long you may have to keep the account/contract. If you have been approached to make changes, please proceed with caution, and ask questions to make sure you understand the product and any underlying costs associated with it. For additional information, please feel free to contact our office at 203-790-4949.

RJR Client Service: Required Minimum Distribution

The year you turn 70½, you are generally required to withdraw a minimum amount of money from your tax-advantaged retirement accounts. This amount is called a required minimum distribution, or RMD. Note that you can always take more than the RMD amount.  You generally have to take RMDs from any retirement account in which you contributed tax-deferred assets or had tax-deferred earnings. These accounts include:

• Traditional IRAs
• Rollover IRAs
• SIMPLE IRAs
• SEP-IRAs
• Most Keogh accounts
• Most 401(k) and 403(b) plans

There are a few exceptions.  Roth IRAs are an exception. You are not required to take RMDs from a Roth IRA during your lifetime, nor can you satisfy your RMD requirement with a withdrawal from a Roth IRA.   If you have any questions regarding your RMD, please contact your Client Service Manager.

RJR & Our Team: Total Firm Technology

Laurie Ham, Chief Operating Officer and Chief Compliance Officer, has been heading up a team to bring total firm technology to Robert J. Reby & Company. This effort allows us to integrate our systems with new technology such as document imaging that will facilitate answering more questions on the phone without having to do additional research and look through paper files. Reducing the amount of paper, as well as lessening the potential for errors through enhanced technology and systems that talk to each other, will enable us to provide even better customer service. Technology is accelerating rapidly in the financial advisory business and we plan to use it to provide you with the best solutions and advice possible.

RJR Financial Planning: Fannie Mae and Freddie Mac

The government takeover of Fannie Mae and Freddie Mac is designed to put downward pressure on mortgage rates and to ensure that home loans remain available. Those goals are made clear in the statements made by public officials. The primary mission of the two mortgage giants "now will be to proactively work to increase the availability of mortgage finance," says James Lockhart, who will temporarily govern Fannie and Freddie. Lockhart, head of the Federal Housing Finance Agency, adds that his agency will examine Fannie's and Freddie's fees "with an eye toward mortgage affordability." Treasury Secretary Henry Paulson says the government has three objectives: "market stability, mortgage availability and taxpayer protection." That's another signal that the government wants mortgages to remain available, at good rates, to borrowers with a low risk of default. In light of Lehman Bros.’ bankruptcy filing and the Bank of America takeover of Merrill Lynch, please feel free to call us if you have questions

RJR Client Service: Form ADV

Many of you have probably heard the term Form ADV, but are unsure of what it is or, more importantly, what it means to you. The ADV form is just that, a form that is required to be filed by all Registered Investment Advisors. The form is divided into two basic parts, Part I and Part II. The ADV is both an application for Investment Advisor registration and a disclosure document for clients and potential clients. Some information that is contained in a firm’s ADV includes information regarding the firm’s assets under management, number of employees, the educational and work history of the advisors, fee schedules and services provided. RJR clients may request a copy of form ADV by calling our offices. You can also view our ADV on our website, www.robertreby.com; go to About Us and click on the ADV tab. Robert J. Reby & Co., Inc. is an SEC registered RIA.

RJR & Our Team: The Gift of Work

This is the time of year where the Training Calendar at RJR really fills up. Each year all of our Representatives are required to complete continuing education courses that focus on a variety of industry topics. These courses help to ensure that team members are up to date on various regulatory issues as well as firm policies and procedures. In addition, each year we hold an internal Compliance Meeting. The purpose of this meeting is to review our processes to ensure that we are doing all that we can to protect your privacy and to maintain the high standards of professional conduct that we demand from our team members. Also, in late August a few of our team members had the opportunity to attend a seminar sponsored by the Young President’s Organization of which Bob is a member, entitled “The Gift of Work”. The workshop concentrated on internal business strategies and how to make meetings (a necessary part of any business) and communications more effective, less time consuming, therefore allowing us to spend even more time focusing on the financial life planning problems of you, our valued clients.