Advantages of a Uniform Gift to Minors

Funding a Uniform Gift to Minors account for your children could provide some benefits not only for your children but for yourself, as well. Parents often use UGM accounts to help pay for their children’s education—including both college and pre-college costs.

Parents can make a contribution of up to $12,000 per year to a UGM account tax free. Earnings within the account are taxed at the child’s income level up to the first $1,700. Beyond that, it is taxed at the parent’s rate. The money can be used not only for education but for any other needs the child may have.

However, there can be a downside. UGM accounts are irrevocable—once you give the money to the child, the child can withdraw it at age 21 and use it for whatever he or she wishes. But if you feel the tax advantages of a UMG account might be a benefit to you and your family, you should ask your financial advisory about helping you set up a UMG account.

Farm Extension
April 4, 2007
9:00 AM to 3:00 PM
Stearns Historical Museum, St. Cloud
For reservations please call 1 800-467-6090 or visit www.wealthenhancement.com

Windows on Minnesota
April 23, 2007
6:30 PM
IDS Center (Floor 50), Minneapolis
Purpose: To provide investment information.
Speakers: Nate Ahlberg and Dave Bassitt from the Inland American Real Estate Trust, Inc.

To register for any of these seminars, please call
1-800-487-1952 or visit wealthenhancement.com

How to play Sudoku – Sudoku begins with some of the grid cells already filled with numbers. The object of Sudoku is to fill the other empty cells with numbers between 1 and 9 (1 number only in each cell) according the following guidelines.

1. Number can appear only once on each row.
2. Number can appear only once on each column.
3. Number can appear only once on each region.
4. A summary of these guidelines would be, that a number should appear only once on each row, column and a region.

Here is the puzzle. Good luck!

Complete the puzzle and enter it in our drawing for a $25 Gift Card to T.G.I. Friday's by mailing it to:

Wealth Enhancement Group
c/o Matt Krekelberg
1905 East Wayzata Boulevard
Wayzata, MN 55391

Be Prepared for Anything

Even in the best of times, it’s important to be prepared for a rough patch in your life. By taking a few important steps, you can give yourself the peace of mind of knowing you’re prepared for nearly all of the twists and turns that life may bring your way:

• Have an emergency fund in the bank equal to three to six months’ expenses to keep your finances on track.
• Be sure your financial records, including insurance, annuity and investment documents, as well as your will are up to date and can be found quickly if needed.
• Make sure information such as beneficiaries, account ownership and credit records are updated and accurate.

Taxes are likely to be somewhat more complex for couples. That could be a good thing. With two incomes, in many cases, you may have the means to participate in tax-reduction strategies that many people aren't familiar with. You could be shortchanging yourself if you do not investigate tax-reduction strategies that may be more affordable than you realize. Strategies that reduce taxes are not just for the superrich. Many of you could take advantage of them, but because the tax code can be so complex, you may not be aware of them.

You should also begin to pay attention-the earlier, the better-to the tax implications of eventual distribution strategies. You probably are well aware of taxes on your current income, but most people overlook the potentially significant impact of taxes on the distribution of retirement savings or estates. Accumulating assets is the narrow focus of most people, but a plan to distribute those assets requires attention long before retirement comes. Don't wait until it's too late. And don't forget to consider the implications for your distribution strategy, including taxes, of the wife outliving the husband.

CLICK HERE to get your free copy of our 24-page retirement booklet, “Planning for Retirement – Strategies for Your Life, Your Finances, and Your Future”. In this booklet, you’ll learn more about strategies and options for your future.  

Wealth Enhancement Group has helped thousands of Minnesotans plan for a comfortable retirement. With a team of experts well-versed in financial planning, investment management, and maximizing tax strategies, Wealth Enhancement Group will help you pursue the life you imagined.