Dear Friends and Family,

“When all else fails, men will be reasonable.”

Fiscal Cliff Explained: This refers to the scheduled tax increases and spending cuts in the 2011 Budget Control Act. Options include:

• Let the policies go into effect, reducing the deficit but hurting growth.
• Cancel the tax hikes and spending cuts.
• Take a middle-ground approach.

We are hopeful that reason will prevail.

Tax-free investing: In a rising tax environment, consider common stocks. Appreciation is deferred until sale and taxed at capital gains rates. Stocks passed to heirs often receive a step-up in basis. Share buybacks further enhance tax efficiency.

ICE – In Case of Emergency: Program this into your phone with key contacts. First responders are trained to look for it.
Elder safety tips:

1. Insure or secure jewelry and valuables. Gift early if desired.
2. Pay bills electronically. Add a family member to monitor accounts. Go paperless to reduce exposure.
3. Consolidate accounts. Fewer CDs and savings accounts mean less paperwork and easier estate planning.

We wish you and your family Happy Holidays!

Sincerely,

Katz Family Financial