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

The Coach's Corner January 2016Assessing Portfolio Performance: ChooseYour Benchmarks Wisely

Are There Gaps in Your Insurance Coverage?

Estate Planning Strategies in aLow-Interest-Rate Environment

What is a phased retirement?

The Coach's CornerFrom your Retirement Coaches and Advisors

Assessing Portfolio Performance: Choose Your Benchmarks Wisely

See disclaimer on final page

Happy New Year!

Welcome to 2016 everyone! We hopethat you all had a very merry HolidaySeason with your friends and families.As we ring in the new year it's a greattime to meet with your financial advisersand touch base with them about yourRetirement Game Plans.

Are you where you want to be? Can youretire in your desired time frame? Asalways, Erin and I are here to help andanswer any questions you may have.

You can set up your FREE CoachingSession today by calling our office at314-863-0008!This meeting is cost-free andobligation-free.

Wising you a very sweet and prosperousNew Year,

Jeff and Erin Lapidus

You can't help but hearabout the frequent ups anddowns of the Dow JonesIndustrial Average or theS&P 500 index. Theperformance of both majorindexes is widely reportedand analyzed in detail by

financial news outlets around the nation.

Like the Dow, the S&P 500 tracks the stocks oflarge domestic companies. With 500 stockscompared to the Dow's 30, the S&P 500comprises a much broader segment of thestock market and is considered to berepresentative of U.S. stocks in general. Bothindexes are generally useful tools for trackingstock market trends, but some investorsmistakenly think of them as benchmarks forhow well their own portfolios should be doing.

However, it doesn't make much sense tocompare a broadly diversified, multi-assetportfolio to just one of its own components.Expecting portfolio returns to meet or beat "themarket" is usually unrealistic, unless you arewilling to expose 100% of your life savings tothe risk and volatility associated with stockinvestments.

Asset allocation: It's personalJust about every financial market in the world istracked by one or more indexes that investorscan use to look at current and historicalperformance. In fact, there are hundreds ofindexes based on a wide variety of assetclasses (stocks/bonds), market segments(large/small cap), and styles (growth/value).

Investor portfolios are typically divided amongasset classes that tend to perform differentlyunder different market conditions. Anappropriate mix of stocks, bonds, and otherinvestments depends on the investor's age, risktolerance, and financial goals.

Consequently, there may or may not be asingle benchmark that matches your actualholdings and the composition of your individualportfolio. It could take a combination of severalbenchmarks to provide a meaningfulperformance picture.

Keep the proper perspectiveSeasoned investors understand that short-termresults may have little to do with theeffectiveness of a long-term investmentstrategy. Even so, the desire to become a moredisciplined investor is often tested by the arrivalof quarterly or annual financial statements.

The main problem with making decisions basedon last year's performance figures is that assetclasses, market segments, or industries that dowell during one period don't always continue toperform as well. When an investmentexperiences dramatic upside performance, itmay mean that much of the opportunity formarket gains has already passed. Conversely,moving out of an investment when it has adown year could mean you are no longer in aposition to benefit when that segment starts torecover.

On the other hand, portfolios that are leftunattended may drift and begin to take on toomuch risk or become too conservative.Rebalancing periodically could help bring yourasset mix back in line with your preferredallocation.

There's really nothing you can do about globaleconomic conditions or the level of returnsdelivered by the financial markets, but you cancontrol the composition of your portfolio.Evaluating investment results through thecorrect lens may help you make appropriateadjustments and effectively plan for the future.

Note: Keep in mind that the performance of anunmanaged index is not indicative of theperformance of any specific security, andindividuals cannot invest directly in an index.Asset allocation and diversification are methodsused to help manage investment risk; they donot guarantee a profit or protect againstinvestment loss. All investments are subject tomarket fluctuation, risk, and loss of principal.Shares, when sold, may be worth more or lessthan their original cost. Investments that seek ahigher return tend to involve greater risk.Rebalancing may result in commission costs,as well as taxes if you sell investments for aprofit.

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Are There Gaps in Your Insurance Coverage?Buying insurance is about sharing or shiftingrisk. For example, health insurance will coversome of the cost of medical care. Homeownersinsurance will assume some of the risk of lossin the event your home is damaged ordestroyed. But oftentimes we think we'recovered for specific losses when, in fact, we'renot. Here are some common coverage gaps toconsider when reviewing your own insurancecoverage.

Life insuranceIn general, you want to have enough lifeinsurance coverage (when coupled withsavings and income) to allow your family tocontinue living the lifestyle to which they'reaccustomed. But changing circumstances mayleave a gap in your life insurance coverage.

For example, if you have life insurance throughyour employer, changing jobs could affect yourinsurance coverage. You may not have thesame amount of insurance, or the policyprovisions may differ. Whereas your prioremployer may have provided permanent lifeinsurance, now you may have term insurancethat will expire on a predetermined date.Review your income, savings, and expensesannually and compare them to your insurancecoverage, and be mindful that changingcircumstances may require a change in theamount of insurance coverage.

Homeowners insuranceIt's not always clear from reading yourhomeowners policy which perils are coveredand how much damage will be paid for. It'simportant to know what your homeownerspolicy covers and, more important, what itdoesn't cover.

You might think your insurer would pay the fullcost to replace your home if it were destroyedby a covered occurrence. But many policiesplace a cap on replacement cost up to the faceamount stated on the policy. You may want tocheck with a building contractor to get an ideaof the replacement cost for your home, thencompare it to your policy to be sure you haveenough coverage.

Even if your policy states that "all perils" arecovered, most policies carve out manyexceptions or exclusions to this generalprovision. For example, damage caused byfloods, earthquakes, and hurricanes may becovered only by special addendums to yourpolicy, or in some cases by separate insurance

policies altogether. Also, your insurer may notcover the extra cost of rebuilding attributable tomore stringent building codes, or your policymay limit how much and how long it will pay fortemporary housing while repairs are made.

To avoid these gaps in coverage, review yourpolicy annually with your insurer. Also, payattention to notices you may receive. What maylook like boilerplate language could actually besignificant changes to your coverage. Don't relyon your interpretations--seek an explanationfrom your insurer or agent.

Auto insuranceWhich drivers and what vehicles are covered byyour auto insurance? Most policies providecoverage for you and family members residingwith you, but it's not always clear-cut. Forinstance, a child who is living in a college dormis probably covered, but a child who lives in anoff-campus apartment might be excluded fromcoverage. If you and your spouse divorce,which policy insures your children, particularly ifthey are living with each parent at differenttimes of the year? Notify your insurer about anychange in living arrangements to avoid a gap incoverage.

Other gaps include no coverage for damagedbatteries, tires, and shocks. And you might notbe covered for stolen or damaged cell phonesor other electronic devices. Your policy mayalso limit the amount paid for a rental while yourvehicle is being repaired.

In fact, insurance coverage for rental cars mayalso pose a problem. For instance, your owncollision coverage may apply to the rental caryou're driving, but it may not pay for all thedamage alleged by a rental company, such asloss of use charges. If you're leasing a car longterm, your policy may cover the replacementcost only if the car is a total loss or is stolen.But that amount may not be enough to pay forthe outstanding balance of your lease. Gapinsurance can cover any difference betweenwhat your insurer pays and the balance of yourlease.

Policy terms and conditions aren't always easilyunderstood, and you may not be sure what'scovered until it's time to file a claim. So reviewyour insurance policy to be sure you've filled allthe gaps in your coverage.

If you own a condo, yourassociation's propertyinsurance may leave gaps incoverage. For example,most association insurancedoesn't cover your furniture,wall coverings, electronics,interior walls, and structuralimprovements made to theinterior of your unit. Reviewyour condo documents,particularly the association'smaster deed, its by-laws,rules and regulations, whichmay describe those parts ofyour unit the associationinsurance covers, and whichparts you may need toinsure.

Page 2 of 4, see disclaimer on final page

Estate Planning Strategies in a Low-Interest-Rate EnvironmentThe federal government requires the use ofcertain published interest rates to value variousitems used in estate planning, such as anincome, annuity, or remainder interest in a trust.The government also specifies interest ratesthat a taxpayer may be deemed to use inconnection with certain installment sales orintra-family loans. These rates are currently ator near historic lows, presenting several estateplanning opportunities.

Low interest rates favor certain estate planningstrategies over others. For example, lowinterest rates are generally beneficial for agrantor retained annuity trust (GRAT), acharitable lead annuity trust (CLAT), aninstallment sale, and a low-interest loan. On theother hand, low interest rates generally have adetrimental effect on a qualified personalresidence trust (QPRT) and a charitable giftannuity. But interest rates have little or no effecton a charitable remainder unitrust (CRUT).

Grantor retained annuity trust (GRAT)In a GRAT, you transfer property to a trust, butretain a right to annuity payments for a term ofyears. After the trust term ends, the remainingtrust property passes to your designatedbeneficiaries, such as family members. Thevalue of the gift of the remainder interest isdiscounted for gift tax purposes to reflect that itwill be received in the future. Also, if yousurvive the trust term, the trust property is notincluded in your gross estate for estate taxpurposes. If the rate of appreciation is greaterthan the IRS interest rate, a higher value oftrust assets escapes gift and estate taxation.Consequently, the lower the IRS interest rate,the more effective this technique can be.

Charitable lead annuity trust (CLAT)In a CLAT, you transfer property to a trust,giving a charity the right to annuity paymentsfor a term of years. After the trust term ends,the remaining trust property passes to yourdesignated beneficiaries, such as familymembers. This trust is similar to a GRAT,except that you get a gift tax charitablededuction. Also, if the CLAT is structured sothat you are taxed on trust income, you receivean up-front income tax charitable deduction forthe gift of the annuity interest. Like with aGRAT, the lower the IRS interest rate, the moreeffective this technique can be.

Installment saleIf you enter into an installment sale with familymembers, you can generally defer the taxationof any gain on the property sold until theinstallment payments are received. However, ifthe family member resells the property within

two years of your installment sale, any deferredgain will generally be accelerated. The two-yearlimit does not apply to stocks that are sold onan established securities market.

You are generally required to charge anadequate interest rate (based on IRS publishedrates) in return for the opportunity to pay ininstallments, or interest will be deemed to becharged for income tax and gift tax purposes.However, with the current low interest rates,your family members can pay for the property ininstallments while paying only a minimalinterest cost for the benefit of doing so.

Low-interest loanA low-interest loan to family members mightalso be a useful strategy. You are generallyrequired to charge an adequate interest rate onthe loan for the use of the money, or interestwill be deemed to be charged for income taxand gift tax purposes. However, with the currentlow interest rates, you can provide loans at avery low rate, and family members caneffectively keep any earnings in excess of theinterest they are required to pay you.

Effect of low rates on other strategies• Charitable remainder unitrust: You transfer

property to a trust, retaining a stream ofpayments for life or a number of years, afterwhich the remainder passes to charity. Youreceive a current charitable deduction for thegift of the remainder interest. Interest rateshave no effect if payments are made annuallyat the beginning of each year, and lowinterest rates have only a minimal detrimentaleffect if payments are made in any other way.

• Qualified personal residence trust: Youtransfer your personal residence to a trust,retaining the right to live in the home for aperiod of years, after which the residencepasses to your designated beneficiaries, suchas family members. The value of the gift ofthe remainder interest is discounted for gifttax purposes to reflect that it will be receivedin the future. The lower the IRS interest rate,the less effective this technique can be.

• Charitable gift annuity: You transferproperty to a charity in return for the charity'spromise to make annuity payments for yourlife (or for the lifetimes of you and yourspouse). You receive a current charitablededuction for the gift of the remainderinterest. The lower the interest rate, the lowerthe amount of your charitable deduction.Also, charities have generally been forced toreduce payout rates offered because ofeconomic uncertainties and thelow-interest-rate environment.

Low interest rates favorcertain estate planningstrategies over others, andthe interest rates used bythe IRS are at or nearhistoric lows.

There may be costs andexpenses associated withany of these strategies.Also, payments from thesestrategies are notguaranteed.

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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's the best way to back up my digital information?In writing or speaking,redundancy is typically notrecommended unless you'rereally trying to drive a pointhome. When it comes to your

digital life, however, redundancy is not onlyrecommended, it's critical.

Redundancy is the term used to refer to databackups. If you have digital assets that youdon't want to risk losing forever--includingphotos, videos, original recordings, financialdocuments, and other materials--you'll want tobe sure to back them up regularly. And it's notjust materials on your personal computer, butyour mobile devices as well. Depending on howmuch you use your devices, you may want toback them up as frequently as every few days.

A good rule to follow is the 3-2-1 rule. This rulehelps reduce the risk that any one event--suchas a fire, theft, or hack--will destroy orcompromise both your primary data and all yourbackups.

1. Have at least three copies of your data. Thismeans a minimum of the original plus twobackups. In the world of computerredundancy, more is definitely better.

2. Use at least two different formats. Forexample, you might have one copy on anexternal hard drive and another on a flashdrive, or one copy on a flash drive andanother using a cloud-based service.

3. Ensure that at least one backup copy isstored offsite. You could store your externalhard drive in a safe-deposit box or at atrusted friend or family member's house.Cloud storage is also considered offsite.

If a cloud service is one of your backup tactics,be sure to review carefully its policies andprocedures for security and backup of itsservers. Another good idea is to encrypt (thatis, create strong passwords that only you know)to protect sensitive documents and yourexternal drives.

So at the risk of sounding redundant (or drivingthe point home?), a good rule for data backupis to have at least three copies on at least twodifferent formats, with at least one copy storedoffsite. And more is always better.

What is a phased retirement?In its broadest sense, aphased retirement is a gradualchange in your work patternsas you head into retirement.Specifically, a phased

retirement usually refers to an arrangement thatallows employees who have reached retirementage to continue working for the same employerwith a reduced work schedule or workload.

A phased retirement has advantages for bothemployees and employers. Employees benefitfrom the opportunity to continue activeemployment at a level that allows greaterflexibility and time away from work, smoothingthe transition from full-time employment toretirement. And employers benefit by retainingthe services of experienced workers.

There may be other advantages attributable toa phased retirement. When you work duringretirement, your earnings can be applied towardliving expenses, allowing you to spend less ofyour retirement savings and giving them achance to potentially grow for future use. Youmay also elect to work for personalfulfillment--to stay mentally and physicallyactive and to enjoy the social benefits ofcontinuing to work with the same co-workers.

Not all employers offer a phased retirementoption, but if it's available, you may want toconsider whether you'll still have access toaffordable health care during this period,especially if you aren't old enough to qualify forMedicare. Also, some employer-sponsoredpension benefit formulas may place a higherweighting on earnings during the final years ofemployment. If you're lucky enough to have anemployer-sponsored pension plan, will workinga reduced schedule with presumably reducedpay negatively affect your pension benefit?Some employers offer life insurance to theirfull-time employees. However, this benefitmight be reduced or eliminated if you workfewer hours, which can affect your dependentsat your death.

Will a phased retirement affect your SocialSecurity retirement benefit? The Social Securitywebsite, socialsecurity.gov, provides somecalculators that can help you determine theimpact a phased retirement may have on yourbenefits.

Before enrolling in a phased retirementprogram, consider its impact on your entirefinancial picture.

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