Southern Trust FinancialPlanningMarc WolffPresident - Investments1943 Morrill St.Suite 1Sarasota, FL 34236941-308-0041mwolff@southerntrustfinancial.comwww.Southerntrustfinancial.com

January 2015Healthy Resolutions Can Pay Off (Literally)

No Matter What Your Age, Your SocialSecurity Statement Matters

All About IPOs

When do I need to submit college financialaid forms?

January, 2015

Healthy Resolutions Can Pay Off (Literally)

See disclaimer on final page

If you made a NewYear's Resolution toget healthy, you mayget more bang foryour resolution buckthan you bargainedfor. That's becausehealthy habits canbenefit your walletas well as yourbody.

The link between health and moneyAccording to the Centers for Disease Controland Prevention (CDC), chronicconditions--including diabetes, heart disease,and cancer--account for more than 75% of allhealth-care costs nationwide. Nearly half of allAmericans have a chronic disease, which canlead to other problems that are devastating notjust to health but also to a family's finances.People with a chronic condition pay five timesmore for health care each year, on average, asthose without a chronic disease.*

Many chronic diseases can be linked to fourbehaviors: tobacco use, excessive alcoholconsumption, poor eating habits, and inactivity.*A closer look at each of these behaviorsdemonstrates the health-money connection.

Tobacco and alcoholThe American Cancer Society (ACS) reportsthat the average price of a pack of cigarettes inthe United States is $6.36. That means theaverage annual cost for a pack-a-day smoker ismore than $2,300. However, the averagehealth-related cost to a smoker, says the ACS,is $35 per pack--or $12,775 per year forsomeone who smokes a pack a day.

The National Institute on Alcohol Abuse andAlcoholism defines moderate drinking as onedrink per day for women and two for men.Drinking more than that can lead to healthproblems, including various forms of cancer aswell as impairment of your brain, heart, liver,and pancreas. Such outcomes have economiccosts. The CDC reports that in 2006, thenational cost of excessive alcohol consumptionwas $223.5 billion, 42% of which was

shouldered by excessive drinkers and theirfamilies.

Eating habits and activity levelProper nutrition and regular exercise are vital tostaying healthy, but they can also save youmoney. For example, reducing the amount ofhigh-in-saturated-fat products, processedfoods, and red meat in your diet can result inbenefits to your heart and wallet. Replacinghigh-fat ingredients in some recipes withhealthier, low-cost options--such as usingbeans instead of ground beef--can help trimyour grocery bills. And replacing high-caloriemeals eaten at restaurants with meals made athome using fresh, in-season ingredients canbenefit both body and bank account.

Current guidelines from the U.S. Department ofHealth and Human Services recommend atleast 2½ hours of moderate physical activity perweek. Many opportunities exist in everyday lifeto both accumulate active minutes and savemoney. Instead of driving to your destination,walk or ride a bike. Do your own yard work orhouse cleaning instead of hiring help. Go for ahike or play ball with your kids rather than goingto the movies or visiting an amusement park.

Long-term considerationsChronic disease also has indirect long-termcosts. Leaving the workforce for extendedperiods--or having to retire early--means fewerpaychecks, less chance to benefit fromworkplace-provided retirement plans andhealth-care benefits, and lower earnings toapply toward Social Security benefits. Inaddition, chronic diseases often necessitatehome renovations, the hiring of specialized careproviders, or even permanent nursing care.When viewed over the long term, taking stepstoday to reduce your risks of getting sick downthe road may make good health and financialsense.

*Sources: Centers for Disease Control andPrevention, the Department of Health andHuman Services, and the Partnership to FightChronic Disease

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No Matter What Your Age, Your Social Security Statement MattersFifteen years ago, the Social SecurityAdministration (SSA) launched the SocialSecurity Statement, a tool to help Americansunderstand the features and benefits thatSocial Security offers. Since then, millions ofAmericans have reviewed their personalizedstatements to see a detailed record of theirearnings, as well as estimates of retirement,survivor, and disability benefits based on thoseearnings. Here's how to get a copy of yourstatement, and why it deserves more than justa quick glance, even if you're years away fromretirement.

How do you get your statement?In September 2014, the SSA began mailingSocial Security Statements to most workersevery five years. Workers attaining ages 25, 30,35, 40, 45, 50, 55, and 60 who are not receivingSocial Security benefits and are not registeredfor an online account will receive a statement inthe mail about three months before their nextbirthday. Workers older than age 60 will receivea statement every year.

But why wait? A more convenient way to viewyour Social Security Statement is online. First,visit socialsecurity.gov to sign up for a personalmy Social Security account (you must be 18 orolder to sign up online). Once you have anaccount, you can view your Social SecurityStatement anytime you want, as often as youwant.

Check your estimated benefitsYour Social Security Statement gives youinformation about retirement, disability, andsurvivor benefits. It tells you whether you'veearned enough credits to qualify for thesebenefits and, if you qualify, how much you canexpect to receive. As each Social SecurityStatement notes, the amounts listed are onlyestimates based on your average earnings inthe past and a projection of future earnings.Actual benefits you receive may be different ifyour earnings increase or decrease in thefuture. Amounts may also be affected bycost-of-living increases (estimates are intoday's dollars) and other income you receive.Estimated benefits are also based on currentlaw, which could change in the future.

Retirement benefits

Although Social Security was never intended tobe the sole source of retirement income,retirement benefits are still very important tomany retirees. Your statement shows estimatesof how much you can expect to receive if youbegin receiving benefits at three different ages:your full retirement age (66 to 67, depending onyour birth year), age 62 (your benefit will be

lower), or age 70 (your benefit will be higher).When to start claiming Social Security is a bigdecision that will affect your overall retirementincome, so if you're approaching retirement,this information can be especially useful. Buteven if you're years away from retirement, it'simportant to know how much you might receive,so that you can take this information intoaccount as you set retirement savings goals.

Disability benefits

Disability is unpredictable and can happensuddenly to anyone at any age. Disabilitybenefits from Social Security can be animportant source of financial support in theevent that you're unable to work and earn aliving. Check your Social Security Statement tofind out what you might receive each month ifyou become disabled.

Survivor benefits

Survivor protection is a valuable Social Securitybenefit you may not even realize you have.Upon your death, your survivors such as yourspouse, ex-spouse, and children may beeligible to receive benefits based on yourearnings record. Review your Social SecurityStatement to find out whether your survivorscan count on this valuable source of income.

Review your earnings recordIn addition to benefit information, your SocialSecurity Statement contains a year-by-yearrecord of your earnings. This record is updatedwhenever your employer reports your earnings(or if you're self-employed, when you reportyour own earnings). Earnings are generallyreported annually, so keep in mind that yourearnings from last year may not yet be on yourstatement.

It's a good idea to make sure that your earningshave been reported correctly, becausemistakes do happen. You can do this bycomparing your earnings record against pasttax returns or W-2s you've received. This is animportant step to take because your SocialSecurity benefits are based on your averagelifetime earnings. If your earnings have beenreported incorrectly, you may not receive thebenefits to which you're entitled.

What if you find errors? The SSA advises youto call right away if any earnings are reportedincorrectly. The SSA phone number is1-800-772-1213 (TTY 1-800-325-0778).

Don't assume that SocialSecurity is just for retirees; it'smuch more than a retirementprogram. According to theSSA, approximately 21% ofindividuals currently receivingbenefits are younger thanretirement age who arereceiving disability or survivorbenefits.* Get in the habit ofchecking your Social SecurityStatement every year to findout what role Social Securitymight play in your financialfuture.

*Source: Fast Facts & FiguresAbout Social Security, 2014

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All About IPOsMaybe you've heard someone talking aboutinvesting in "a hot new IPO" and wonderedwhat all the fuss was about. Or maybe you'veheard about a company "going public" andthought about whether you should invest in it. Ifyou're unfamiliar with initial public offerings(IPOs), here's a review of some basics.

What is an IPO?As the name implies, an initial public offeringrepresents the first time a company issuesshares of stock that are available for purchaseby the public (in other words, when it "goespublic"). The sale of the company's stock istypically intended to attract new capital that thecompany can use to expand. IPOs might beconsidered the rock stars of the investing world;when the company has generated a lot ofinterest leading up to its IPO, the initialresponse from investors can make headlines.

How does an IPO work?Once the decision is made to go public, acompany hires an investment bank tocoordinate underwriting issuance of the IPOshares. The underwriter (or team ofunderwriters) guarantees it will purchase all ofthe company's shares on the day the stock isissued. However, underwriters typically do notintend to keep all of those shares, so theymarket them to other firms and financialinstitutions in advance of the actual IPO date.Firms that want to subscribe to the IPO indicatetheir interest in buying a certain number ofshares (though they're not bound to followthrough on that purchase). This process givesthe underwriting firm(s) an idea of how muchinterest the IPO will generate. If there's a lot ofinterest and a large number of subscribers, theoffering price can rise before the IPO date; ifinterest is low, the offering price will likelyreflect that as well.

However, the offering price may be verydifferent from the price at which the stocktrades on its first day. That's because once thesubscribing firms have begun trading sharesthey've bought, the price can changedramatically, depending on the overall level ofmarket interest. At that point, as with any stock,shares are sold to the highest bidder. The morelimited the supply of shares available, thehigher those bids are likely to be. That's whyyou may sometimes read headlines about theprice of an IPO jumping on its first day.

What happens after the IPO?Even if an IPO is eagerly awaited, there's noway to know exactly what will happen once thestock starts trading. Yes, an IPO's price canskyrocket, but it can also go nowhere or

disappoint--or skyrocket and then disappoint.Facebook's May 18, 2012, IPO was one of themost highly anticipated IPOs in recent years.And yet on its first day of trading, after an initialpop it closed up only 23 cents--roughly.006%--from its offer price; at the close oftrading three weeks later, it was down roughly30% from its offer price (though it subsequentlyrebounded and as of October 2014 had roughlydoubled from the first-day close).*

What's behind such volatility? One reason isthat after any initial jump in price, theinstitutional firms that have subscribed to theIPO may want to take any profits quickly. Also,executives at companies that go public oftenhave signed what's called a "lock-up"agreement; for a certain time after the IPO,they're prohibited from selling shares that mayhave been granted as part of theircompensation package. Such agreements aredesigned to help support the stock's priceduring the lock-up period, which lasts at least90 days but can be longer. However, once thelock-up expires, executives are free to tradetheir stock. If many of them sell simultaneously,the sudden increase in the supply of shares onthe market may cause the stock's price to fall.

What if I want to invest in an IPO?One challenge with trying to invest in an IPO issimply gaining access to the shares. In thecase of a stock that's in high demand, firmstypically reserve IPO shares for their largest ormost valued clients. For example, a firm mightoffer its IPO shares only to investors who havea certain level of assets with the firm or aminimum trading volume. If you're a smallinvestor and are being offered IPO shares, itcould be because the demand for them is lessthan expected, which could have implicationsfor your investment in them.

Even though past performance is no guaranteeof future results, an IPO can be especiallydifficult to analyze for its long-term potentialbecause it doesn't even have a track record toreview. One tool is what's known as a "redherring." This is an initial prospectus thatcontains pertinent information about thecompany; it's issued after the Securities andExchange Commission declares the registrationstatement effective. However, be aware thatthough the red herring is subject to SECreporting regulations, it's part of a salescampaign by the underwriters to try to drum upinterest in the IPO. Don't be tempted to invest inan IPO just because it's an IPO; think aboutwhether it fits into your overall investmentstrategy and tolerance for risk.

All investing involves risk,including the possible lossof principal, and there canbe no guarantee that anyinvesting strategy will besuccessful.

*Data source: Yahoo!Finance historical prices forFacebook, Inc. (FB) on May18, 2012; June 8, 2012; andOctober 7, 2014.

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Southern Trust FinancialPlanningMarc WolffPresident - Investments1943 Morrill St.Suite 1Sarasota, FL 34236941-308-0041mwolff@southerntrustfinancial.comwww.Southerntrustfinancial.com

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2015

Securities offered throughSecurities America, Inc. MemberFINRA/SIPC. Marc Wolff,Registered Representative. Advisorservices offered through SouthernTrust Financial Planning. MarcWolff, Financial Planner. SouthernTrust Financial Planning, Forefield,and the Securities Americacompanies are not affiliated.

Representatives of SecuritiesAmerica do not provide tax or legaladvice. Please consult theappropriate professional regardingyour situation.

Do you understand the definition of financial aid?The term "financial aid" goeshand in hand with paying forcollege. But it can meandifferent things to differentpeople, and often the term is

used in various ways, even by colleges.

"Financial aid" is money that can help studentspay for college. Many people think of studentloans when they hear the term financial aid, butloans are just one part. In addition to loans,financial aid includes scholarships, grants, andwork-study jobs. Scholarships and grants aregifts; they do not need to be repaid. Loans, onthe other hand, have to be repaid with interest,while work-study jobs are a work obligation forthe student. Aid can be need-based ornon-need-based, though most people think offinancial aid as being strictly need-based.

Loans. The main sources of loans are thefederal government and private lenders.Students with the greatest financial need areeligible for the government's subsidizedStafford Loan and Perkins Loan ("subsidized"means Uncle Sam pays the interest while thestudent is in school and during certain otherperiods); all students are eligible for thegovernment's unsubsidized Stafford Loan. The

loan amounts are capped each year.

For parents, the government offers PLUSLoans, which let parents borrow up to the fullcost of their child's education. Private lendersalso offer student loans and parent loans.Generally, the government offers morefavorable loan repayment options than privatelenders, most notably several income-sensitiverepayment options.

Grants & scholarships. Though students withthe greatest financial need typically qualify for afederal Pell Grant, the main source of grantsand scholarships for the majority of students iscolleges. College grants and scholarships canbe based on financial need (as determined bythe college's own aid form) or on merit, whetheracademic, athletic, or some other talent.Colleges vary widely in the type (need-based ormerit-based) and amount of grants andscholarships they offer. As your familyresearches college options, exploring thesedifferences is probably the single biggest thingyou can do to optimize your bottom line.

Work-study jobs. The government underwriteswork-study jobs for the neediest students, butcolleges may also offer campus jobs that arenot necessarily based on need.

When do I need to submit college financial aid forms?It depends on the form you'refilling out and whether yourchild is a new college studentor a returning student.

College deadlines for thefederal government's financial aid form, theFAFSA, might be anywhere from February 1 toApril 1 for both new and returning students. Butit's in your best interest to submit the FAFSA assoon after January 1 as possible (it can't besubmitted before January 1) because somegovernment aid programs operate on afirst-come, first-served basis.

The FAFSA relies on tax information from theprevious year, so it's helpful to have your taxreturn already completed. However, if you don't,you can still file the FAFSA using estimatednumbers and then go back later and updateyour FAFSA with final tax numbers once you'vecompleted your tax return (the governmentoffers an online tool--the IRS Data RetrievalTool--that allows you to import your taxinformation directly into your FAFSA). TheFAFSA captures two data points: the financialpicture of both the parent(s) and the student forthe previous year.

The main financial aid form that most collegesuse to distribute their own aid, the CSS Profile,is due anywhere from February 1 to March 1 fornew students applying to college regulardecision (or November 1 to December 1 fornew students applying early decision or earlyaction) and by April 15 for returning students.The CSS Profile captures six data points: thefinancial picture of both the parent(s) andstudent for the previous year, and an estimatedfinancial picture of parent(s) and student for thecurrent year and for the following year.

Even if you don't think your child will qualify forneed-based federal financial aid, you shouldconsider submitting the FAFSA if: (1) you wantyour child to be eligible for an unsubsidizedStafford Loan (a non-need-based federalstudent loan available to any student); and/or(2) you want your child to be considered forcollege need-based aid--colleges generallyrequire both the FAFSA and the CSS Profilebefore they will consider your child for collegeneed-based aid.

Both the FAFSA and the CSS Profile can besubmitted online, and you must file them foreach year that you want your child to beconsidered for aid.

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