WORTH A REED
IN THIS ISSUE
Do Politicians Really Make a Difference ?
 Identity Theft and You
 Employee Spotlight
 Developing Lists and Goals
Fourth Quarter 2012 Newsletter By Reed Financial Services
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Do Politicians Really Make a Difference in Our Lives?
Jim Reed, CEO
Clearly their role is to set tax and spending policies and to establish regulations that guide and protect us in our daily lives. However, historically major legislative changes appear to only come substantially after disasters. The
safety net of the Social Security benefits system was not passed until 1935, which was well
into the Great Depression following the 1929 market crash. Eisenhower got the Interstate
Highway System Bill passed well into the 50’s, as a result of the Cold War. Following a
very difficult period in the 70’s, which included an oil embargo, long lines at the gas stations, inflation growing to 13% annually, and the Fed raising interest rates to 20% to reduce
inflation, the Reagan tax cuts were enacted in the early 80’s. These Reagan tax cuts had
strong bi-partisan support and significantly lowered tax rates, which in turn freed up much
needed capital from the sale of business and real estate holdings. Most sessions of Congress merely “twink” or makes small changes to laws and in recent years, they have been
very slow to make much needed changes.
The private sector, by comparison, invents something and then moves full speed ahead.
Invention of the steam engine allowed the trains to accelerate the expansion into the West.
Development of the combustion engine moved us from horse and buggy to cars which
allowed the freedom to move away from downtown areas frequently near water to the suburbs, i.e., the development of Shaker and Cleveland Heights areas in the 20’s and 30’s. Big
computers with punch cards were developed in the late 40’s. The invention of the computer chip in the late 70’s led to PC’s and by the early 1990’s, we had the Internet. Today,
we can nearly work or buy anything anywhere online. One company, Apple, in the last 10
years, has single handedly revolutionized our lives with an iPod, an iPhone, an iPad and
soon an iTV (which will connect to everything). This significant tech explosion has also
allowed the global economy to come from nearly nothing to about 50% of the world economy in the last 25 years.
The common theme of all of this is that the business community simply keeps inventing
better mousetraps that consumers want. If cost or regulations become too onerous in one
Securities offered through Comprehensive Asset Management and Servicing, Inc. (“CAMAS”), 2001 Hwy 46, Ste. 506, Parsippany, NJ 07054,
1-800-637-3211, Member FINRA/SIPC. Reed Financial Services, Inc., is independent of CAMAS.
Issue: 4Q12
Identity Theft and You
Mark Lisachenko, Operations Manager
Identify theft cases continue to make headlines. It’s
almost impossible to get through the day without
being exposed to advertisements from identity theft
protection companies such as LifeLock®, Identity
Guard®, and even the big three credit bureaus
(Equifax®, Experian®, and TransUnion®). So what can we do to stay protected?
As a starting point, if you currently own a home take a look at your homeowner’s
insurance policy. You may be surprised that you have some form of coverage
already. If not, contact your agent as it may be a minimal fee (for example, $25 a
year for $25,000 toward expenses from a theft). Even if you have coverage contact your agent to understand exactly what the policy does and does not cover
and what the protection limits are. Next, determine if a do-it-yourself approach
or a hired protection service is right for you.
Worth a Reed
Personal Notes
Mark Lisachenko, Operations Manager
My 90 day review at
Reed Financial Services has come due
and as one last rite
of passage, Jim asked
me to write something for the newsletter. Moving from
16 years in a large
corporate environment to a small office has been the
expected change of
culture plus some
and one that I truly
appreciate.
I am
very lucky to be part
of such a strong and
energized team and look forward to contributing to
the organization. In my position at RFS, I help support the IT functions of the company and other aspects of internal operations. I also perform the accounting/bookkeeping for the company. Even though
they hide me in the back office, I look forward to
meeting all of you.
Identity theft protection services
The internet of course is inundated with articles on identity theft protection services both pro and con. These services range anywhere from $9 to $30 a month
with extra ‘premium’ plans available for more and discounts offered for a yearly
rate or family plan. If you do choose to pay for a service the most important
thing is to truly understand what you are paying for. Are you only paying for
assistance once a theft occurs or does the service provide preventative measures
as well? Are you covered from the financial loss of the actual theft or just expenses from resolving the theft? Some services only monitor one of the big three
credit bureaus and they have different degrees of ‘monitoring’. The definition of
what legal fees are covered is also very sketchy. Keep in mind that creditors will
not necessarily speak to a third party to resolve a credit violation (some services
may request a limited power of attorney from you to try), so be aware the vendor I grew up in Chardon Township, OH, part of a family
of six. I graduated from Miami University in 1996 with
will not necessarily save on your time commitment in the event a crime occurs.
a major in Management Information Systems. After
Do it yourself
school I pursued my IT career with positions at Ernst
As an alternative to paying for identity theft protection services you can provide & Young, Western Reserve Systems, and Medical Muyour own proactive protection with a little time and leg work. Each of us is enti- tual of Ohio. I enjoyed my time as a programmer/
tled to a free yearly report from each of the big three credit bureaus developer and later years as a project manager. Dur(www.annualcreditreport.com). Another big weapon that is available is a credit ing that time, I attended many of the RFS social func‘freeze’. The freeze prevents false new accounts from being opened in your name. tions which allowed me to get to know the staff and a
The freeze needs to be done with each of the big three credit bureaus and little about the business. When Amanda first mencharges vary by state (for Ohio it is $5 for each bureau for each action and for all tioned an opening at RFS, I was very intrigued and the
states free if you prove you were an identity theft victim). You can then rest as they say is history. Most of my friends and ex‘unfreeze’ a request from a new specific creditor after which you would need to coworkers laughed at the prospect of working with
‘re-freeze’ that account.
their spouse. While we certainly have our days, we are
The best advice we have seen over and over is to be vigilant about who you give very fortunate to have the best role models in Jim and
information to and remember to treat your digital valuables just like you would Marsha to look up to.
your physical assets. It’s very important to keep up to date on the latest criminal
scams. For a great article on the latest scams and attempts to steal your identifying information, pick up the October 2012 edition of Consumer reports or visit
the article onlinehttp://www.consumerreports.org/cro/magazine/2012/10/
protect-yourself-from-the-latest-scams/index.htm.
Amanda and I have been married for 14 years and have
been blessed with two children. Our oldest, Kate, is
about to turn seven and Jack just turned four. We live
in Mentor with our latest addition Mack, a Golden
Retriever/Australian Shepherd mix. When we aren’t
busy with the kids’ activities, you will probably find
The Federal Trade Commission (www.ftc.gov/idtheft) has a great library of re- me cheering on the Buckeyes, Browns, Cavs, and Indisources on identity theft ranging from choosing an identity theft service to what ans. When I can sneak out, I also enjoy fishing and jet
to do if you become a victim. Another nice resource to check out is the Con- skiing.
sumer Federation of America (www.idtheftinfo.org) which provides similar docuIf you have any ideas on how RFS can improve our use
ments. Please contact RFS if you have any questions or need assistance with
of technology, please drop me a line. We have a lot of
identity theft or identity theft protection.
projects we would like to implement but look forward
to your ideas on how we can better serve you.
Securities offered through Comprehensive Asset Management and Servicing, Inc. (“CAMAS”), 2001 Hwy 46, Ste. 506, Parsippany, NJ 07054,
1-800-637-3211, Member FINRA/SIPC. Reed Financial Services, Inc., is independent of CAMAS.
3690 Orange Place ▪ Suite 240 ▪ Beachwood, OH 44122 ▪ 216-464-2090 ▪ www.reed-financial.com
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Issue: 4Q12
Worth a Reed
“Autumn is a second spring when every leaf is a flower.” ~ Albert Camus
Politicians (continued from pg. 1)
area, then production locations are simply
moved to lower cost areas and the increased
Fall is my favorite time of year. I enjoy watching the change in colors, feeling the cool air, costs are passed onto the consumers.
hearing the crunch of leaves under foot, having a fire and pulling out my favorite sweater Clearly, there are times when tax policy, lack
there of, or increased regulation can slow
that has been put away for the summer.
innovation and economic expansion. GenerIt is also the busiest part of the year with a lot to do in my household. Besides the obvious
ally, at least historically, the business comholiday activities both of my children were born in early fall and are at the ages where
munity keeps moving forward regardless of
birthday parties are a must. I find myself making list of things that must be done for year
the legislative drag.
end. So, to help simplify your life a bit amid the rush, here are some of the things that
should also be on your list:
As I am writing this article about two weeks
1. Use up flexible spending accounts. Flexible spending accounts are use it or lose it. before the election, I don’t know what or
So now is the time to get final doctor appointments scheduled before year end. This who voters will choose. However, I do know
from talking with a number of our investincludes the dentist and eye doctor. If you don’t have any appointments, then make
ment managers, innovation continues to
sure you are not running low on any medications which could be ordered.
take place around the world and corpora2. Contribute to your Retirement Savings. If you are contributing to a 401(k) remember the maximum is $17,000 with a $5,500 catch-up is you are over the age of 50. tions continue to increase their profits. I
If you don’t have a 401(k) plan you can contribute up to $5,000 into a traditional or a also firmly believe that regardless of the
Roth IRA which also has a $1,000 catch up for those over 50. The cut off for IRA con- election outcome, the so called “fiscal cliff”
will be substantially avoided. It has now
tributions is April 15th of next year while 401(k)s have a deadline of December 31st.
3. Pull your credit report. This is free and a must do. Take the time to pull and review been over four years since the financial sysyour credit report for accuracy. If you have young children it is a good rule of thumb tem collapsed in the United States, so it
seems enough time has elapsed for our polito review theirs also.
ticians to make some major decisions.
4. Make a Charitable Contribution. It is the time of year to be thankful and giving.
Amanda Lisachenko, VP of Investments
5.
So evaluate the donations you have made year to date and which ones that still need
to be made. Not only will it make you feel good but you will get a tax deduction
Start setting your goals for 2013! Most of us make some sort of New Year’s resolution that will normally fizzle out before we start because they are too vague. So when
setting goals make sure they are Specific, Measurable, Attainable, Relevant and Time
-Bound. This is the SMART goal system.
So to prove to you that I am serious about my to-do list, I am going to set five personal
and professional goals that you can hold me accountable to in the coming year:





Reorganize my closet – This is a very simple goal but honestly it is a mess and embarrassing. My goal is to have this goal completed by the next newsletter.
Study and Pass the Series 24 – This is an exam for my Principal license and has been
on my to-do list for a couple years. Now that all of you know this it will no longer be
on my list after this year.
Run a 5k – This is a big one for me. I hate running, but it is something that I have
always thought about doing, so I would like to have at least one 5k run by summer.
Host a family dinner once a month. I am fortunate to have family in the area and
thought that it would be a wonderful tradition to start a family dinner monthly.
Become more involved with charitable organizations. I am currently beginning to
work with a couple of organizations but am looking to get more involved over the
coming year.
Once some clarity on the tax rates for the
future is developed, we think “investor fears”
will subside, corporations will go back to
hiring and spending and hopefully our investments will start to appreciate.
Run with Reed!
To ensure Amanda will meet her goal, a race has
already been selectedApril 21, 2013- Fleet Feet 5K, a Pepper Pike community event which benefits Beech Brook, a behavioral
health agency supporting local families.
Other staff members at Reed Financial will also be
running this race...some who will also be running their
first 5K, while others will just be running for a great
cause! We welcome our clients to join us too!
3 Step Plan to Running your First 5K!
Step 1: Plan out what race you plan to run and tell
everyone! A race keeps you accountable!
Step 2: Get ready to RUN! Pick a training plan to
By sharing this with everyone I’m hoping to motivate others. Over the coming year, I will follow which allows for a gradual buildup to allow your
let you know how I am progressing on my goals. I would love to hear some of your goals body to adapt to 3.1 miles. Follow the schedule!
for this coming year as well or even suggestions for a great simple recipe for the family
Step 3: Race Day! Execute and Enjoy!
dinner.
5K training plans worth checking outDo make time in the next month to go over the important year end to do list. These are
* Couch to 5K (http://www.c25k.com/)
things that will not only make you feel good, but will also make your accountant happy.
* 5-k Training Novice (http://www.halhigdon.com/
training/50933/5K-Novice-Training-Programthere are
The views and opinions expressed are those of Reed Financial Services. All views and opinions are as of this date and are subject to change without notice. All
information is believed to be from reliable sources, however, we make no representation as to its completeness or accuracy. All economic and performance information is historical and not indicative of future results. Investing involves risk and you may incur a profit or loss.
Securities offered through Comprehensive Asset Management and Servicing, Inc. (“CAMAS”), 2001 Hwy 46, Ste. 506, Parsippany, NJ 07054,
1-800-637-3211, Member FINRA/SIPC. Reed Financial Services, Inc., is independent of CAMAS.
3690 Orange Place ▪ Suite 240 ▪ Beachwood, OH 44122 ▪ 216-464-2090 ▪ www.reed-financial.com
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