Maryville, Tenn. — Mary Beth West Consulting, LLC, a public relations and reputation management firm in Maryville, Tenn., won “Best in Show” and multiple top honors at the annual awards dinner of the Public Relations Society of America (PRSA) Volunteer Chapter on May 12 at Hunter Valley Farm.

The event also honored Kevin Painter of LeConte Wealth Management with the Community Service Award, which recognizes an individual or organization who has used public relations practices to improve the quality of life within East Tennessee communities.

The agency won “Best in Show” for the 2010 holiday media relations campaign for Dandy Lions as well as 10 “Award of Excellence” honors in the following categories:

• Public Service: Blount Education Initiative
• Media Relations: Dandy Lions 2010 Holiday Campaign
• Public Affairs/Government: Expanding Oak Ridge National Laboratory’s Scientific User Community
• Marketing Consumer Products: Rainscapes
• Marketing Consumer Services (Financial): LeConte Wealth Management
• Marketing Business-to-Business: Interactive Springboard 2010 Launch Campaign
• Writing (Column): LeConte Wealth Management “Purpose-Built Portfolio”
• Collaterals (Direct Mail): Rainscapes 2010 Direct Mail Campaign
• Website (Professional Service): Rainscapes website
• Blogs: Mary Beth West Consulting “In the Profession” Blog

Joe Bogardus, Mary Beth West, Amy Schwinge, Mallorie Mendence and Tyra Haag following the V Awards ceremony.

Interactive Springboard – a collaboration between Mary Beth West Consulting and Knoxville-based Blue Media Boutique – shared top honors for the newly redesigned Avistelé website; Avistelé Lifestyle Communities is managed by Knoxville-based RenaissancePG.

 “I’m so appreciative of the clients we’ve been privileged to serve,” said agency principal Mary Beth West. “Throughout my career, I’ve held tremendous respect for the public relations profession; my team is honored with the overwhelming response by our colleagues to recognize the work we so highly value.”

Painter – a graduate of Maryville High School and co-founder of LeConte Wealth Management– was  honored with the Community Service Award.

“Kevin has been a client for three years and a dear friend for many years longer,” said West. “Of all the colleagues I have in my age cohort in the local community, I can think of no one who takes on more community service efforts to support the non-profit, social service and arts sectors than Kevin.” 

Established in 2003 and located in the Law Building in downtown Maryville, Mary Beth West Consulting works with clients to advance their communications, relationships and reputations to meet business objectives. 

The firm’s services include integrated brand marketing communications strategies and campaigns; media, community and employee relations programs; social and interactive media strategies and program management; crisis preparedness; and special events.

Maryville, Tenn. – For local Blount County residents Kevin Painter, Bill Eanes, Bryan Daniels, Chip Webb, Will Carver and Lynn Cox, roasting great barbecue is not just a fun past-time – it’s nearly a spiritual calling, and all for a good cause. 

On Saturday, April 9, starting at 6 p.m., these six cooks along with friends and event sponsors will host the first-ever Relay Roast at Smithview Pavilion, with live music by the Chillbillies to benefit Blount County Relay for Life, which raises funds locally for the American Cancer Society. 

As barbecue aficionados armed with a moniker that harkens to Painter’s day job as a financial adviser, the team proudly flies their banner as the “Capitalist Pigs” of Blount County. 

With a mix of passion, humor and secret-in-the-sauce, the team has roasted barbecue competitively for some 10 charitable and community events over the past three years. 

For their first-ever Relay Roast, however, the Pigs are stoking up the heat.  While they raised $3,000 last year for Relay for Life, this stand-alone event is expected to net more than $10,000. 

“We want this to be a major fund-raiser for Relay for Life, with the hope that it will become an annual event,” Painter said.  “We’ve already raised $8,000 in ticket sales and sponsorships so far – more than we’ve ever raised as a team for the other benefits we’ve supported.  Relay Roast is looking to be a sell-out event, all the while boosting awareness for Blount County Relay for Life, which is coming up in June.”

The public can purchase tickets, $30 each, at Dandy Lions, Chip Webb Family Dentistry or at the Blount Chamber.  Sponsors include Blount Today, Chip Webb Family Dentistry, EddieCheck, LeConte Wealth Management and C2RL Engineers.  The public can learn more about Relay Roast by following the event on Facebook.

“If you find yourself in a hole, stop digging,” said Kevin Painter, co-founder and managing partner at LeConte Wealth Management.  “Folks need to realize that they can make a change in their financial lives, but they first must change their behavior; the first step in the process is to keep a positive attitude about making changes in the new year.”

LeConte Wealth Management recommends the following steps to create a new financial life in the new year:

• Analyze your current situation.  Are you spending more than you are earning?  Have you clearly defined your saving, investing and retirement goals?
• Push away from the table.  The next step to creating a new financial life is to change your current habits.  Do not go back for that second helping of eggnog for example. 
• You must have a financial vision and plan, then stick to it.  “Vision without execution is hallucination.”  Many people attribute this quote to Thomas Edison, but it is not confirmed where or when he said it.  Either way, this quote is great motivation to keep your New Year’s resolution to live a better life financially. 

In addition to changing habits, getting serious about finances also includes assessing risk.  LeConte points out that there are many types of risks that investors face.  Most focus on the risk of losing money.  Many often overlook interest rate risk, the risk of inflation or higher prices, the risk of not being able to sell a home when they need to or the risk of not having enough money to educate a child or retire when the time comes. 

“During the holiday season, it’s far easier to overindulge at a holiday party than to get up for a morning jog; excuses are much easier to make than appointment with your Stairmaster as old habits die hard,”  said Hoy Grimm, co-founder and managing partner at LeConte Wealth Management.  “If you’ve been financially irresponsible, it’s far simpler to continue to abuse the credit card rather than save your pennies for a purchase down the road.”

For more information about LeConte Wealth Management and access to a variety of free online financial tools and calculators, visit http://www.lecontewealth.com/.

ABOUT LECONTE WEALTH MANAGEMENT, LLC:
Established in 2007 and located at 269 Cusick Road, Alcoa, Tenn., 37701, LeConte Wealth Management, LLC (http://www.lecontewealth.com/) and can be reached at (865) 379 2800, helps clients develop a plan to accumulate and preserve their wealth in pursuit of their unique financial goals.  With more than 30 years of cumulative experience, the firm’s team provides asset management, retirement planning, estate planning, risk management and business planning. Securities and Advisory Services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser.

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“It is perhaps a bitter irony of economic downturns that charities can fall on hard times when their missions are most important,” said Andy Oakes, financial planner at LeConte Wealth Management.  “Unfortunately, it appears that charitable donations are projected to be down this year.”

LeConte Wealth Management suggests donors who are motivated and financially able to be charitable this year, should add a “charitable checklist” to the year-end tax plan to make sure that the charitable donation does the most good for the charity and for the donor’s taxes.  These tips for a charitable checklist include:

• Know your charity.  Make sure that the causes you support are accountable in how they pursue their mission.  You might ask what percentage of donations goes toward administrative expenses.  Any rate beyond 20 percent may indicate a lack of fiscal discipline.  Verify their status as a “qualified” charitable organization, which can be denoted by a 501(c)3 designation.  This can make a difference in how much you can ultimately deduct for tax purposes.
• Be a “deliberate” donor.  Maximizing tax benefits takes careful consideration in how and what you donate.  For example, rather than simply writing a substantial check, you could donate highly appreciated stock, which might be deductible at the fair market value of the investment and avoid capital gains taxation.  Some arrangements like a charitable remainder trust allow you to benefit from an income stream generated by an asset that will ultimately go to charity.  As with other financial planning considerations, charitable donations should be approached holistically in order to ensure that they properly coordinate with your overall financial picture and optimize any applicable tax benefits.
• Put your accountant on your Christmas card list.  Most of us do not think of our tax advisers until March or April, but by then, it can be too late to meaningfully take advantage of tax saving strategies.  Before the end of the year, ask your accountant to help you construct a projection of your tax liabilities along with some advice about year-end planning to reduce taxes, increase deductions, etc.  You also should verify how your charitable donations will be treated for tax purposes to determine 1) how much is deductible, 2) what documentation of the gift the IRS will require, and 3) from where the gift should come within your financial resources.

“At a time of year that promotes reflection on the blessings we have and charity for those who have not, be sure that your gifts don’t leave you owing more than you should to your least favorite charity, the IRS,” said Oakes.

For more information, including free financial tools and calculators, visit http://www.lecontewealth.com/.

ABOUT LECONTE WEALTH MANAGEMENT, LLC:
Established in 2007 and located at 269 Cusick Road, Alcoa, Tenn., 37701, LeConte Wealth Management, LLC helps clients develop a plan to accumulate and preserve their wealth in pursuit of their unique financial goals.  With more than 30 years of cumulative experience, the firm’s team provides asset management, retirement planning, estate planning, risk management and business planning. Securities and Advisory Services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser.

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Alcoa-based LeConte Wealth Management conducted a survey of East Tennesseans in February of last year, just as the reality of the recession’s long-term economic impact was sinking in for consumers. 

When asked about their confidence in meeting or maintaining their retirement goals, 49 percent of East Tennesseans ages 35 and up indicated decreased confidence, with 41 percent of retirees citing decreased confidence. 

At the national level, the nonprofit, Washington, DC-based Employee Benefit Research Institute released its 20^th annual Retirement Confidence Study for 2010 in March, citing that while “Americans’ confidence in their ability to retire appears to be stabilizing . . . their self-described preparations for retirement continue to erode.”

The report found that a growing number of U.S. workers report that they have “virtually no savings and investments,” with more than half of workers (54 percent) reporting that “the total value of their household’s savings and investments, excluding the value of their primary home and any defined benefit plans, is less than $25,000.”

The study also reported that one-quarter of workers indicated plans to postpone their planned retirement age, and among the reasons, “the poor economy,” “a change in their employment,” “inadequate finances,” and “the need to make up losses in the stock market.”

As recovery from the recession continues to plod along with very modest, incremental gains, LeConte Wealth Management responds to several retirement-focused questions that the firm is routinely asked by clients and other East Tennesseans:

Q:  What are the top three financial mistakes retirees make?  LWM:

1. Spending too much and depleting savings early – The biggest question on the minds of our retired clients when we first meet is, “Do I have enough to last?”  In the absence of a formal retirement distribution plan, a simple rule of thumb is to access no more than 4 percent per year from investments to make sure the goal of outliving savings is achieved.  For example, if a retired couple has $3,000 in monthly Social Security, and an $800,000 nest egg, they should likely withdraw no more than $2,600 per month from savings.  That would give them a total of $5,600 in monthly income.
2. Overlooking health care costs – The healthcare landscape may be changing in America, but it is unlikely to become any less expensive.  Pre-retirees tend to underestimate how much they are likely to have to spend on healthcare in retirement.  Several examples are retiring early without a plan to bridge the gap until Medicare eligibility at 65, not accounting for supplemental insurance needs beyond Medicare coverage and the likelihood of requiring eventual nursing care.  Accounting for these costs should be part of every pre-retiree’s target budget.
3. Investing too aggressively – When a person goes from building savings to accessing income in retirement, their portfolio should become fairly conservative.  That is because a severe market decline, like 2008, can permanently compromise a retiree financially.  Take the above example of a couple who rely on the portfolio to generate $2,600 per month.  If their investments lose 20 percent of their value that could translate to more than $500 in potentially lost monthly income.

Q:  Why do you think some people do not plan or plan inadequately for retirement?  What are the most common reasons you see?

LWM:  In short, it’s often fear of the unknown.  When people are afraid of the answer to a question, they may not ask the question.  Many people don’t know what their retirement will look like, and they are afraid they will not have enough money to support their retirement.  They also may be afraid that if they seek advice from a professional, they will be sold a financial product they do not understand or will not help them reach their retirement goal. 

Q:  What should a basic retirement plan include?  What questions should it answer?
LWM:

1. Projections – How much income can I reasonably expect from my investments?  Retirement projections are number-crunching exercises that allow a person to see the effects of longevity, inflation, taxes and investment performance on retirement income with the objective of determining how much income one can count on from a portfolio.  Be aware of assumptions that seem overly optimistic, like aggressive investment returns or unrealistic inflation and tax rates.
2. Investment Allocation – How should I be investing across all of my accounts?  At LeConte, we spend a lot of time talking about the difference between a “collection of securities” and a “purpose-built portfolio.”  Where the “purpose” is retirement, the investments should be allocated to take as little risk as necessary to ensure not just that it meets your income needs now, but that it will continue to do so for the rest of your life.
3. Distribution Plan – How do I access my investments for income?  This final piece involves the logistics of creating your retirement paycheck.  It determines when and from which accounts to take money and should address any tax ramifications.

Successful retirement income strategies have four ongoing objectives:

1. Provide the cash flow necessary to maintain your lifestyle.
2. Maintain an appropriate investment allocation to optimize risk-adjusted return.
3. Minimize tax liability.
4. Ensure the sustainability of your retirement income through your lifetime.

Q:  What are some common regrets that you see retirees having?

LWM:  It all funnels back to a lack of competent advice and guidance.  Common regrets include: “If I had known what a difference in income it could have meant, I would probably have worked for one or two more years”; “I lost so much money in 2008; I didn’t realize how much risk I was taking with my portfolio”; and “I bought an investment without understanding all of the details, and now I am having trouble getting anyone to explain it to me.” 

Q:  When should people start planning for retirement?

LWM:  The short answer is if you plan to retire, you should be planning for retirement now. 

Q:  How important is it for couples to agree on a retirement plan?

LWM:  It is very important and often overlooked by financial advisers as a necessary first step in retirement planning.  Many pre-retired couples are surprised to find that their conceptions of retirement differ dramatically.  We encourage clients to take a step back and think more conceptually about how they envision their retirement, rather than beginning with number crunching, investment allocation or distribution rates.  Consider the following fundamental questions:

• Where do we want to live?
• How will we spend our time?
• What continuing family obligations, either to children or parents, will we have?
• Are there special things like travel or hobbies that you’ll want to pursue immediately, but probably not for the duration of your retirement? 

Q:  What are common sources of income during retirement?

LWM:  Social Security, pension and savings are common retirement income sources.

Retirees can be divided into two main groups, those with and those without pensions.  For those with pensions, the security of their retirement income is provided by that pension benefit from their employer.  Fewer companies provide pension benefits, and thus, a greater number of retirees will be responsible for creating their own retirement security.

For those without pensions, they must rely on their savings to provide income beyond Social Security.  This makes it imperative to have a well-developed plan in place to avoid overspending or taking too much investment risk, which can lead to running out of money.

Q:  Are there any common scams (current or past) that retirees should be aware of to avoid, based on your knowledge?

LWM:  Any financial strategy should have a clear connection to maintaining retirement security and avoiding unnecessary risk.  For example, although a reverse mortgage might be suitable for an elderly person desperately in need of supplemental income, taking out a mortgage to invest its proceeds is virtually never an advisable practice.  An investment product or strategy may very well be a scam if there is obscurity in how it works or how the person selling it to you is compensated.  

Q:  Would you suggest that retirees downsize liabilities/cut expenses after retirement?

LWM:  We suggest that no one should retire before securing conservative projections of how much they should be spending in retirement.  Then, it’s critical not to overspend.

One emerging trend that may spell trouble for pre-retirees is their continued reliance on home equity to finance more than their home.  The genesis of the 30-year mortgage decades ago was predicated on the assumption that homeowners would pay off debt on their homes before they retired.  The aftermath of our recent credit binge has unfortunately left many homeowners carrying staggering amounts of mortgage debt into retirement.

As debt relates to retirement planning, one should consider the effects of continued mortgage payments in retirement on reduced levels of income.  Conventional advice suggests that any major debt like auto loans, home mortgages or even large credit card balances be paid off before retiring.

Q:  What are your thoughts on retirees working part-time?

LWM:  Just as working for the same company for 30 years has become an antiquated notion, so has the “clocking out, forever-and-always” retirement.  We have found that some clients make a healthier transition to retirement (financially, emotionally and lifestyle-wise) by gradually reducing their work schedule and responsibilities.  One client affectionately called it his “full time, part time, no time” transition.

And while more common among small business owners or solo practitioner professionals, it also has become the reality for those who may have lost their jobs in the past two years.  For those not quite ready to retire, working part-time, contracting with a previous employer or doing some freelance work may provide the extra time their portfolio needs to grow or bridge the gap until Social Security eligibility.

More financial information and access to free financial tools and calculators are located at www.lecontewealth.com.

ABOUT LECONTE WEALTH MANAGEMENT, LLC:
Established in 2007 and located at 269 Cusick Road, Alcoa, Tenn., 37701, LeConte Wealth Management, LLC helps clients develop a plan to accumulate and preserve their wealth in pursuit of their unique financial goals.  With more than 30 years of cumulative experience, the firm’s team provides asset management, retirement planning, estate planning, risk management and business planning. Securities and Advisory Services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser.

    By Amy Schwinge

We hope you have found our blogs focusing on media relations for the month of May useful and interesting.

Not trying to toot our own horn (well, maybe a little), the team at Mary Beth West Consulting is honored to have received multiple awards from the Public Relations Society of America this spring, including several for media relations and related strategic communications tools.

I thought I would share a little background on what we did to receive some of these recognitions, particularly with respect to managing media relationships effectively.

As a first example, we kicked off our public awareness campaign for the Blount Education Initiative (BEI) with a news conference.  On that front, make sure you have content to support inviting media to a news conference.  In this day and time of limited budgets and resources, the last thing you want to do is ask a journalist to leave the office for a news conference if what you have to share could be sent via an e-mail. 

The BEI news conference was appropriate, because we had newsworthy – and rather detailed, statistics-driven information – to share, along with introductions of the leaders driving BEI’s mission to make education the local community’s top priority.  We released compelling results of a new survey outlining current perceptions as related to education and quality of life for the area.  We also introduced the media to the “faces” of the Blount Education Initiative as they explained the reason and need for BEI’s existence along with a summary of BEI’s strategic plan.  This news conference also allowed us to meet many of the journalists face to face with whom we would be working during the public awareness campaign.

For LeConte Wealth Management, we met with members of the media individually whenever possible to introduce and recommend LeConte as financial experts on a host of topics and advocates for financial literacy.  We also shared numerous consumer finance issues-driven news releases to spread the word.

As a third example, we had a dual strategic plan for national publications and local coverage for Todd Richesin Interiors, and we didn’t have the luxury of meeting the national media face to face.  In order to cut through the clutter of other media pitches received by such publications as Traditional Home and House Beautiful, we launched our relationship building with editorial decision makers by carefully ascertaining what specific types of projects and design personalities they were covering and queried them on both subject matter and information-receipt preferences they found useful.  We then sent photo-intensive information kits about Todd and his work, including written “case study” profiles of his work style and individual approach for each project.  We were able to forge relationships with local media and national publications alike, resulting in Todd receiving a great deal of local and national coverage, such as:

• An eleven-page spread highlighting one of Todd’s projects in Key West, Fla., in Traditional Home (June/July 2010 issue)
• Traditional  Home (March 2010 issue): “20 Young Designers to Watch”
• House Beautiful (December/January 2010 issue): “Next Wave of Top 20 Designers”

Collectively, these examples show that each client is different, so a different media relations approach is warranted for each.  Don’t try cookie-cutter formulas; they don’t work.  Remember, it is called media “relations” for a reason; you must take the time and effort to establish genuine relationships with your media contacts, focused with their own audiences in mind.

The event also honored Mallorie Mendence – senior account service coordinator at Mary Beth West Consulting and a Maryville native – with the PRSA Rising Young Professional Award, which recognizes an outstanding public relations professional in East Tennessee who has worked for six years or less in the field.

The agency won public relations campaign “Award of Excellence” honors in the public service category for its Blount Education Initiative Public Awareness Campaign and in the marketing consumer services—financial category for its LeConte Wealth Management Marketing Campaign.

The firm’s work producing strategic communications tools also received “Award of Excellence” honors in five areas:  non-profit media relations for the Blount Education Initiative; consumer services media relations for LeConte Wealth Management; media kit development in the service category for Todd Richesin Interiors; press conference implementation for the Blount Education Initiative; and external web site development for Blount Education Initiative.

The web site award was shared by the agency with Knoxville-based interactive firm Blue Media Boutique, which together with Mary Beth West Consulting launched Interactive Springboard in early 2010 to formalize the firms’ collaboration in online and social media strategy research, reputation management and measurement. 

In addition, Mary Beth West Consulting won four “Award of Quality” honors for several news releases and media relations campaigns.

“For me, one of the most rewarding parts of managing this firm has been building a team of professionals who share high values for producing great work that meets clients’ business objectives and also serving the public in meaningful ways,” said agency principal Mary Beth West.  “I’m proud of my team, and I’m also appreciative of the clients we’ve been privileged to serve.”

Mendence – a graduate of Maryville High School – joined Mary Beth West Consulting in December 2007, following her graduation with honors from Berry College in Rome, Ga., with a degree in public relations, as well as completion of a summer internship with Mary Beth West and other practicum experience. 

In her position with the firm, Mendence works with the account team to coordinate campaigns for agency clients.  She serves on the board of directors of Maryville City Schools Foundation and is a past board member of the Community Food Connection. 

Established in 2003 and located in the Law Building in downtown Maryville, Mary Beth West Consulting works with clients to advance their communications, relationships and reputations to meet business objectives. 

The firm’s services include integrated brand marketing communications strategies and campaigns; media, community and employee relations programs; social and interactive media strategies and program management; crisis preparedness; and special events.

Alcoa, Tenn.— Just as the film “The Wizard of Oz” can thrill a child, perhaps nothing instills a greater sense of innocence, fear and deliverance for adults than the IRS.
 
“After all, what could motivate a taxpayer more than the thought of peeking behind the curtain to discover a new way to minimize taxes,” said Andy Oakes, financial adviser for LeConte Wealth Management. 

For taxpayers in 2010, the “yellow brick road” is the Roth IRA conversion, which takes advantage of two IRS provisions that are limited to this year alone.  However, according to Oakes, consumers need to take precautions.

“Using the ‘Oz’ analogy, the flying monkeys in this story are not IRS agents — instead, they’re the bankers, insurance agents and stock brokers who would counsel a client to convert a Roth IRA simply to close a sale rather than to help the client realize retirement dreams,” Oakes said.

LeConte Wealth Management offers several tips for navigating these tricky IRA waters:

First the Facts:
Two things have changed for 2010. In previous years, if one’s income exceeded $100,000, a Roth IRA conversion was not an option. This limit has been eliminated.  More importantly, the typical Roth IRA conversion generates taxes due in the year the conversion takes place.  For 2010 only, however, the tax due from conversion can be delayed and split between tax years 2011 and 2012. 

“These taxes must still be paid—just at a later date,” said Oakes. 

To Convert or Not to Convert:
It is important for consumers to ask themselves, “When do I want to pay tax on my accumulated retirement money?”  According to Oakes, the correct answer should be, “When my tax bracket is lowest.”

First, take a look at your tax return for 2009 once it has been filed and determine your “marginal tax bracket,” also known as your personal top tax rate.  Then, think about what your income will be in the future, specifically, in retirement.  If your tax rate will go up in the future, it may be worth converting. If you will be in the same or a lower tax bracket, it is likely not worth converting. 

“Consumers should be sure that their choices on converting or not benefit them, not someone else,” Oakes said.

Below are some commonly asked questions and red flags that LeConte Wealth Management encourages consumers to watch out for if approached to convert a Roth IRA:

1. “My adviser says that if I convert, I can leave my IRA to my kids tax-free.” 

That may indeed be the result, but keep in mind that if your heirs will be in a lower tax bracket than you, converting could mean a bigger tax bill.  Paying now does not always mean paying less when it comes to taxes.

2. “My insurance agent recommended converting an old 401(k) to a Roth IRA using an annuity that will give me guaranteed income in retirement.” 

Converting has nothing to do in itself with what types of investments you choose.  Given that 401(k) plans can have very low expenses, and that some variable annuities have recurring annual expenses approaching 4 percent, you should be wary of conversion as justification to alter your investment strategy.  This is a classic bait-and-switch where a good strategy and a bad product do not a happy investor make.

3. “Someone at my bank suggested converting my IRA to a Roth IRA, but I was concerned that I wouldn’t have the money to pay the extra taxes in 2011 and 2012.  They said not to worry and that I could take a loan on my 401(k) or get a home equity loan to make up the difference.” 

Not having a ready source of funds to pay taxes is perhaps the biggest obstacle to conversion.  Three things you should avoid altogether in coming up with the money to pay taxes on conversion are 1) depleting your cash reserve or emergency fund, 2) taking any sort of loan, and / or 3) taking a distribution from the retirement account, which may incur early withdrawal penalties.  If you do not have a liquid source of capital to pay the taxes, converting is probably not right for you.

Bottom Line:
You should be able to answer “yes” to all of the following questions:
1. Is it probable that a conversion will reduce the overall tax I will pay on my retirement savings?
2. Do I have enough money outside my retirement accounts to pay the tax?
3. Does converting make sense given my specific financial goals?

Visit LeConte Wealth Management’s Web site for more financial information and access to free financial tools and calculators. 
ABOUT LECONTE WEALTH MANAGEMENT, LLC:
Established in 2007 and located at 269 Cusick Road, Alcoa, Tenn., 37701, LeConte Wealth Management, LLC helps clients develop a plan to accumulate and preserve their wealth in pursuit of their unique financial goals.  With more than 30 years of cumulative experience, the firm’s team provides asset management, retirement planning, estate planning, risk management and business planning. Securities and Advisory Services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser.

Fiduciary responsibility can be defined as the ethical and/or legal relationship of confidence or trust between two or more parties. The AIF designation signifies knowledge of fiduciary responsibility and the ability to implement policies and procedures that meet a defined standard of care. The designation is the culmination of a two-day course and examination.  

 “The AIF designation will allow me to consult with retirement plan trustees and business owners on their fiduciary responsibility to their employees,” Painter said.   

Fi360, based near Pittsburgh, Pa., is the first full-time training and research facility for fiduciaries and conducts training programs at universities throughout the United States and abroad.

ABOUT LECONTE WEALTH MANAGEMENT, LLC:
Established in 2007 and located at 269 Cusick Road, Alcoa, Tenn., 37701, LeConte Wealth Management, LLC helps clients develop a plan to accumulate and preserve their wealth in pursuit of their unique financial goals.  With more than 30 years of cumulative experience, the firm’s team provides asset management, retirement planning, estate planning, risk management and business planning. Securities and Advisory Services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser.

About fi360
Fi360 offers training, tools and resources to promote a culture of fiduciary responsibility and improve the decision making processes of investment fiduciaries – individuals who manage money for others. It licenses the Prudent Practices for Investment Fiduciaries from the Foundation for Fiduciary Studies. Fi360 provides investment education and training programs and awards the Accredited Investment Fiduciary® (AIF®) and Accredited Investment Fiduciary Analyst™ (AIFA®) professional designations through the Center for Fiduciary Studies. It develops sophisticated Web-based tools and reporting, including the innovative Fiduciary Score™ and the Family Fund Fiduciary Rankings™ for trustees and investment professionals through Fiduciary Analytics.

“Wishful thinking won’t get the job done when it comes to improving one’s financial health,” said Hoy Grimm, managing partner at Alcoa, Tennessee-based LeConte Wealth Management. 

In order to help community members make positive changes to their monetary belt, LeConte suggests following the below five simple steps:

Resolution No. 1:  Take control of your financial future.
Stop hoping that you will have enough money (or income) to fund your future — start saving more money now. The economy may get better or it may get worse, but you can take control of your individual situation to prepare either way. Find the one thing that is sucking the financial life out of you and get rid of it! It could be a hobby, your house or your car.

Resolution No. 2:  Take control of your spending.
If you do not know where your income is going, you probably won’t have any left to save! Look back at the money you spent in 2009. Find one habit, activity or thing that you paid good money for that you now regret. Resolve to replace it with one new behavior that will improve your financial future in 2010.

Resolution No. 3:  Assess the limits of your fiscal self control.
Are you a saver or spender? Do you budget and balance your checkbook or do you rely on “retail therapy” more than financial discipline? Take some time at the beginning of the year to be realistic about your behavior and what you need to change to make 2010 a financial success. Either from a friend or professional, seek help in addressing your greatest behavioral weakness. Do you realize that large retail businesses spend millions on research, store design and product displays to induce you to spend more than you intend? You can counter this by not giving them the chance to work their marketing magic. In other words, stay off the enemies “turf.”

Resolution No. 4: Take control of your credit score.
For better or worse, financial institutions weigh your credit score heavily before extending an offer to you. You cannot change the past, but you have total control of your financial future. Make 2010 the year that you learn what your credit score is and how to improve it. Some improvements are very easy and with a small effort you can save money by reducing your cost of credit. Armed with your improved credit score, call all of your banks, credit card companies and insurance companies to bargain for their best rates. Be aggressive. Lenders are more eager to keep their best customers than they are to terminate their worst. Lenders more than likely will offer you an incentive to stay if you have a high credit score. 

Resolution No. 5: Assess the risks in all your investments.
Many investors spend most of the time looking at the potential return of a particular investment while dismissing the risks. They ask, “How much can I make on this?” If they see a stock chart, they instinctively imagine the line ascending instead of declining. In 2010, try asking, “How much risk will I have to assume for the potential to make a certain return?” Professional money managers live in the world of “risk adjusted returns” and if you are serious about your financial future you should too. Risk is defined in many different ways. You are aware of the risk of capital loss. Are you equally aware of interest rate risk, reinvestment risk, inflation risk, liquidity risk and currency risk? Which one is exerting the greatest influence on your investments? What can you do about it in 2010?

“Even making small financial adjustments can yield worthy results,” said Kevin Painter, managing partner at LeConte Wealth Management.

Visit LeConte Welath Management’s web site for free financial calculators and additional information.

ABOUT LECONTE WEALTH MANAGEMENT, LLC:
Established in 2007 and located at 269 Cusick Road, Alcoa, Tenn., 37701, LeConte Wealth Management, LLC helps clients develop a plan to accumulate and preserve their wealth in pursuit of their unique financial goals.  With more than 30 years of cumulative experience, the firm’s team provides asset management, retirement planning, estate planning, risk management and business planning. Securities and Advisory Services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser.