Fiscal Fitness Jan'17

Fiscal

BUSINESS & MONEY: YOUR GUIDE TO ACHIEVING FINANCIAL WELL-BEING

Talkin’ Taxes From tax laws to tax scams

+

Budgeting Investing Your Credit Score

Emerging Entrepreneurs Going 3-D with Dimensions Works

WORKING FOR YOU Piccin & Glynn is a personal injury and wrongful death law firm with roots in Ocala since 1974.

John Piccin graduated from Villanova University and The University of Michigan Law School and has been litigating on behalf of injured clients and serving the community for decades. His daughter, Katherine (Katie) Glynn, graduated from Eckerd College and St. Thomas University School of Law. She was an assistant state attorney in Marion County, practiced with Piccin & Glynn and was then recruited as the first in-house general counsel for the Clerk of the Circuit Court, where she later became Chief Deputy of Courts. Katie recently decided to rejoin her father and help advance the family law firm into the future.

John and Katie handle all types of crashes— motor vehicle, trucking, motorcycle, bicycle, boating and aircraft—plus other personal injury and wrongful death claims. Other practice areas include medical and professional malpractice, product and premises liability, and insurance coverage disputes, particularly insurance company “bad faith.”

Piccin & Glynn prides itself in its trial expertise and is recognized as a Preeminent Law Firm with the highest rating for legal abilities, conduct, ethics, reliability and diligence.

If you want lawyers who will passionately work to pursue your legal rights following a tragedy or significant financial loss, give either John or Katie a call. They are confident that they will obtain for you the justice you deserve.

PG

PICCIN & GLYNN ATTORNEYS AT LAW

320 NW 3rd Ave., Ocala (352) 351-5446 • (800) 969-5446 • Fax: (352) 351-8057 john@piccinlaw.com • katie@piccinlaw.com piccin&glynn.com

Contents

BUSINESS & MONEY: YOUR GUIDE TO ACHIEVING FINANCIAL WELL-BEING PUBLISHER

Kathy Johnson

kathy@healthylivingmagazines.com OFFICE/PRODUCTION MANAGER

Cynthia Brown

art@healthylivingmagazines.com

JANUARY 2017

ART CREATIVE DIRECTOR GRAPHIC DESIGNER

Kristy Taylor

...... Building A Business

PHOTOGRAPHERS EDITORIAL

John Jernigan fotolia.com

...... Stock Up

EXECUTIVE EDITOR

Karin Fabry-Cushenbery

karin@healthylivingmagazines.com MANAGING EDITOR

Melissa Peterson

melissa@healthylivingmagazines.com ASSOCIATE EDITOR & SOCIAL MEDIA SPECIALIST

SALES DIRECTOR OF SALES

Dean Johnson

deanjohnson@healthylivingmagazines.com

Sharon Morgan DIRECTOR OF CORPORATE DEVELOPMENT

CONTRIBUTING WRITER

ACCOUNT EXECUTIVES

Laurel Gillum

..... Talkin’ Taxes

.......... Don’t Get Scammed

SALES MANAGER

Cealia Athanason

cealia@ocalastyle.com

02 04 06 08 10 12 13

....... Let’s Get Fiscal

Jessi Miller Castro

.......... Budgeting Basics

Penny Miller • penny@healthylivingmagazines.com Peggy Sue Munday • peggysue@healthylivingmagazines.com Cecilia Sarco • cecilia@ocalastyle.com

........... Fully Invested

OCALA PUBLICATIONS, INC.

o: 352.732.0073 › f: 352.732.0226 › 1007 E. Fort King St., Ocala, FL 34471 › healthylivingmagazines.com HEALTHY LIVING MAGAZINES / JANUARY 2017 / VOL. 1, NO. 1 Published monthly by Ocala Publications, Inc. All contents © 2017 by Ocala Publications Inc. All rights reserved. Nothing may be reprinted in whole or in part without written permission from the publisher. For back issues or advertising information, call (352) 732-0073. Return postage must accompany all unsolicited manuscripts and artwork if they are to be returned. Manuscripts are welcomed, but no responsibility can be assumed for unsolicited materials. “Promotional” and “Promotional Feature” denote a paid advertising feature. Publisher is not responsible for claims and content of advertisements.

Tax and Business Consulting Services Accounting Auditing

“We value the relationships established with our clients and believe that our success results from their success. Our top priority is to provide each client with professional, confidential and timely service, aimed at providing unparalleled personal attention.”

334 NW Third Avenue Ocala t: 352-732-0171 f: 352-867-1370 www.djcocpa.com

Ficsal Fitness JAN ’17 healthylivingmagazines.com

1

Let’s Get Fiscal

T

he same report by Citizens Advice, a network made up of independent charities out of the United Kingdom, found nearly three in four people said debt worries were having an impact on their mental health—and more than half admitted their physical health was affected.

Even though a direct connection between our overall health and our checkbooks may or may not be visibly apparent, physical, mental and financial health are most definitely connected.

When your finances are stable, you’re less likely to worry, and reducing stress and anxiety can have a direct impact on reducing illness and disease. And thankfully, the beginning of a new year is the perfect time to get both your fiscal and physical health in order.

Follow these simple tips for a happier mind and bank account in 2017.

Pack a lunch from home instead. Eating at home won’t only help you save more hard-earned money, it will also help you lose weight, too.

Eat out less often.

Reduce your car insurance.

This goes for dinner and lunch. Avoid fast-food visits during the work day.

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big bucks. There are plenty of websites online to help you find the best deal and biggest discounts.

Track your spending.

So many Americans live paycheck to paycheck, just one major incident from serious financial trouble. This year, vow to get a better handle on how you’re spending your money. Writing down all your spending for one month and then analyzing how you could have spent your money wiser might be a real wakeup call.

Start an emergency fund.

Have a magazine membership you never use? Can you live with a little less data on your cell phone plan? Lowering or eliminating bills will free up some extra money in your budget. So call your credit card company and see if you can get your interest rate lowered, or finally cut the cord and cancel your TV service and opt for a cheap Netflix or Hulu membership instead.

Even if your financial situation doesn’t allow you to save big sums of money, every little bit will help during a major unexpected event, such as car repairs or the loss of a job. Make it a priority to “pay yourself first” each payday, and put this money in an account that isn’t easily accessible. If that money can be deposited automatically to the account through your payroll company, that’s even better.

Shopping around for new car insurance every few years could save you some

Lower or eliminate a monthly bill.

Sources: citizensadvice.org.uk, money.usnews.com, setforlife.com, cashmoneyforlife.com, clark.com

When almost four out of five adults reported in 2012 that they were losing sleep most nights because of debt, the theory that fiscal fitness has a direct link with physical fitness finally stuck.

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3

Building A The Beegles are pursuing their dreams through 3-D printing.

BY CEALIA ATHANASON PHOTOGRAPHY BY JOHN JERNIGAN

J

eff and Mindy Beegle are doing something they’ve always wanted to do. In the summer of 2015, they opened their own business, Dimension Works, inside the Power Plant Business Incubator in downtown Ocala.

“We both left our solid, comfortable careers,” Jeff says. “It was a big decision.”

There wasn’t one defining moment that pushed them to make the decision, either. They knew they wanted to own their own business and had looked at several different industries. When they discovered the niche for 3-D printing, they narrowed their research. Mindy has a background in business and marketing, and she worked at Signature Brands for 14 years before Dimension Works opened. Jeff’s background in machinery, tooling and plastics design had him working at Hale Products, Inc. for 15 years. With their areas of expertise, 3-D printing just made sense.

A few years ago, Jeff and Mindy attended RAPID, a 3-D printing and additive manufacturing trade show, in Long Beach, California, where they decided to partner with EnvisionTEC, a manufacturer of 3-D printers that use UV light to cure photopolymer resin. Jeff and Mindy have two EnvisionTEC printers—a desktop one they take to shows for demonstrations and a larger one that’s about 6 feet tall. Both printers can achieve excellent precision through liquid resin.

The resin is cured by UV light, so there is no temperature component involved. Jeff dips the corner of a sheet of copy paper

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“We

both left our solid, comfortable careers. It was a big decision.”

– Jeff Beegle

into the resin and demonstrates how this works with a UV flashlight. Within seconds, the resin hardens into place. Jeff and Mindy have five materials in-house that they can use to achieve different qualities per product, but there are about 40 materials available to them through EnvisionTEC. They’re able to print readyto-use products, along with prototypes.

Their final printer takes up the entire back part of the printing room.

It’s a 3-D platform printer that uses a filament to build products as big as 1 meter by 1 meter by 1/2 meter. The plastic filament melts into layers on the tabletop platform. There’s a giant gear in the corner of the office as an example of how big these printed products can be. It printed for four days straight, but building time varies by product.

Jeff and Mindy print tiny, detailed parts and products, as well. Jeff holds out the printed version of an engagement ring setting. He explains that a jeweler would take this readyto-use product, dip it in ceramic, melt out the printed product and pour the desired metal into the new ceramic ring mold. Essentially, the printed product was a precise and easily replicated mold for a mold, lessening the work time of hiring an artist to carve one out.

Jeff’s and Mindy’s skill sets work well together. Mindy calls and visits clients, reviews finances and handles the budget, and Jeff designs and builds products.

Depending on the client’s needs, Jeff can help them create and complete designs.

“Some [clients] have no in-house design abilities,” Jeff says. “I design the 3-D models in SolidWorks.”

Once the design is finished, the file is sent to the printer, and the process begins. Jeff and Mindy maintain a quick turnaround for their clients and are constantly working on different projects. Products range from kitchen gadgets to medical devices, and business has been steady.

“One of the things I really like is that every day is different,” Mindy says.

“We don’t know what we’ll be working on in the next two weeks,” Jeff adds.

He can start the day building a certain product and then begin a completely different one in the afternoon.

Being entrepreneurs and business owners for the first time has been an adjustment for the couple, but their involvement in the Power Plant Business Incubator has really helped.

“They provide access to lawyers and other professional services,” Mindy says.

It’s helped them build connections and has taught them some of the aspects of being entrepreneurs that

they weren’t familiar with. Jeff and Mindy are also members of the Ocala/Marion County Chamber and Economic Partnership, the Mid-Florida Manufacturers Association and the Volusia Manufacturers Association.

Being connected with manufacturers through these associations is one of the main ways they expand their clientele, even to several national companies.

“There are global companies we’ve been able to work for that we never would have imagined happening,” Mindy says.

But it’s a lot of work. They put in a minimum of 40 hours each week, depending on orders. Jeff will sometimes work late into the night, but it’s different putting the work in for himself rather than for someone else.

Any given day, Jeff will usually arrive to work around 7:30am, and Mindy will take care of getting their two boys, ages 6 and 3, off to school before coming in around 8:15am.

“There’s more flexibility but more responsibility,” Mindy says.

They’re already looking at plans to expand in the future.

LEARN MORE › Dimension Works › Located inside the Power Plant Business Incubator › (352) 612-0080 › dimension.works

Ficsal Fitness JAN ’17 healthylivingmagazines.com

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Stock Up It takes money to make money. We’ve all heard it. But is it true?

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DRIPS

Dividend reinvestment plans (DRIPs) allow you to invest small amounts of money into dividend-paying stocks by purchasing directly from the company. Companies like Coca-Cola, Verizon and Johnson & Johnson are just a few of the companies that allow you to make regular purchases of very small amounts of stock and reinvest the dividends. This can add up to a big investment over time.

ETFs

Exchange-traded funds (ETFs) are investments traded on stock markets, much like stocks. The ETF holds assets like stocks, commodities or bonds. You can buy as little as one share of an ETF through a broker, and some of these ETFs track the performance of the total stock market and the bond market.

Target Date Funds

Target date funds keep your retirement date in mind by changing your percentage of stocks and bonds to keep your money safe as you approach retirement age. Some of these funds require a minimum of $1,000. They are great for investors who don’t want to manage a portfolio on their own.

401(k)

If you have a 401(k), invest there first. You should always fund your 401(k) before outside investments, especially if your company is willing to match any of your funds.

Source: forbes.com

W

alking around New York City while sipping a latte and checking stocks is not typically part of everyone’s life. On the contrary, the average American’s day consists of paying a dreaded bill or two, followed by a trip to the grocery store while trying to stick to your monthly budget, leaving many people without enough money to invest—or so they think.

Cutting back on certain expenditures can help with issues that limited funds may pose. How much do you spend a week on coffee? What about lunches during the work week? Purchases such as these add up throughout the week.

It’s much easier to break small habits than to overwhelm yourself with big life changes. Saving just $10 a week leads to $40 a month in extra cash. At the end of one year, you will have nearly $500 to invest.

Nobody wants $500 to burn a hole in their pockets. Here are some options for putting your hard-earned cash to better use.

PROMOTIONAL FEATURE

The Right Choice P

urchasing a vehicle can often be a tedious task; a task that usually involves quite a bit of research and comparison. It’s the second most important buying decision, after the purchase of your home.

Finding a vehicle may be a difficult task, but that’s just the beginning.

Today, there are several different options for purchasing a vehicle. New vehicle owners can either pay cash, finance or lease a new car. And in today’s world, leasing is becoming the best choice for many people.

There are several factors that make leasing a vehicle the best option. Leasing can give you a lower monthly payment compared to regular financing. Most of our customers keep a vehicle an average of three to six years. What that means is most people could lease two vehicles for six years and still save money.

Cost of ownership is also a lot lower when leasing a vehicle. Most leases are covered under factory warranty for the duration of the lease. After three years, most bumper-to-bumper warranties expire. If anything goes wrong and you own the vehicle, you may be responsible for repairs.

Flexibility is also a benefit to leasing. With a lease, you can turn the vehicle in after your contract is fulfilled, but if you fall in love with the vehicle and choose to purchase it, you still can. At time of delivery, you will know exactly how much it will cost you to purchase the vehicle at the end of your lease.

Now let’s talk about some of the most common oppositions we hear when it comes to leasing a new vehicle.

Village Ford often hears, “I don’t like leasing because I don’t own the vehicle.” In reality, as long as you are under a lease agreement, the vehicle is yours. You can trade it in or decide to

In reality, as long as you are under a lease agreement, the vehicle is yours. You can trade it in or decide to purchase it at any time. You can also customize it with tint, rain guards or other accessories you might want. purchase it at any time. You can also customize it with tint, rain guards or other accessories you might want.

We also get asked, “What if I get in an accident while I’m under my lease?”

While under a lease, you are still insured by your insurance company, which means you can get the vehicle repaired and not have to worry about being penalized by the lease company.

If you get in an accident in a vehicle that you own, you have to worry about

depreciation due to an accident being reported on the vehicle. This becomes an issue when trading a car in or trying to sell it. With a lease, you can just turn it in—and not worry about it! Let Village Ford help you make the right decision for your budget and lifestyle.

Do you have some questions? Come on in for a cup of coffee. Contact General Manager Scott Reece today.

VILLAGE FORD S US 441, Belleview (352) 233-2900 MYVILLAGEFORD.COM

Ficsal Fitness JAN ’17 healthylivingmagazines.com

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Talkin’ Taxes The changes you should know about for the 2017 tax year.

Y

ou have your getaway planned, your dream car waiting to be purchased or a credit card balance anticipating that lump of tax return money. For many of us, that’s the way it works during tax season, and if that’s you, listen up.

This year, some taxpayers will have to wait longer for their refund.

The IRS has heightened security to nip tax fraud in the bud, and effective since January 1, they will be holding Earned Income Tax Credit- and Additional Child Tax Credit-related returns until February 15. That’s one of the changes the IRS made to tax laws for the 2016 filing season. Now that it’s the new year, you can get a head start on your financial planning because we’re here to fill you in on the most important tax law changes that will affect next year’s filing season.

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Brackets And Rates

Federal income tax is based on your annual income. That’s what your W-2 tells you at the end of each year. The more money you make, the more taxes you owe. Your income amount puts you in the appropriate tax bracket, and the brackets are divided into the following percentages of owed income: 10, 15, 25, 28, 33, 35 and 39.6. The marginal tax bracket you fall into represents the tax rate you have to pay. You could jump from one bracket to another if your earnings increase, but only the money you earned within the higher bracket will be taxed at that higher rate.

Tax rates increase every year to account for inflation. This year, the income owed within each bracket has increased by a few hundred dollars, at the most.

Alternative Minimum Tax

Standard Deduction

This is an amount single taxpayers and married couples filing separately can subtract from their taxable income. This year’s deduction of $6,350 is up $50 from last year’s. The amount for married couples filing jointly has increased by $100 since 2016 and is now $12,700. And the standard deduction for heads of households went up $50 to make it $9,350 for 2017.

An additional standard deduction has been increased to $1,250 for those older than 65 or who are blind. If those qualifying for this deduction are also unmarried and not surviving a spouse, the deduction is increased to $1,550. For a taxpayer who can be claimed as a dependent by another taxpayer, the standard deduction cannot exceed either $1,050 or $350 plus the dependent’s earned income— whichever amount is greater.

Pease Limitations

High-income taxpayers who itemize deductions—like charitable donations, home mortgage interest deductions, state and local tax deductions and miscellaneous ones—are subject to Pease limitations, which just means the total of their itemized deductions must be reduced by the lesser of these two amounts: • 3 percent of the adjusted gross income that exceeds specified threshold amounts • 80 percent of the amount of itemized deductions for that tax year In other, less-complicated words, the amount of itemized deductions above a certain limit will be minimally reduced.

Personal Exemption

For every dependent and taxpayer you claim on your tax return, you get taxfree money to deduct from your total income amount. This year’s personal exemption amount is $4,050, the same as last year’s. Keep in mind that for high-income taxpayers, phase-outs (reductions of tax benefits) begin at different levels of adjusted gross income. The purpose of phase-outs is to keep tax benefits going to low- and middle-class taxpayers. Your level of income will determine whether your personal exemptions are affected by a phase-out.

Let’s say you’re a high-income taxpayer who qualifies for low tax payments because of tax benefits. You would have to pay a supplemental tax, the Alternative Minimum Tax. The AMT was set up by the IRS to limit the benefits that some high-income taxpayers receive.

Because of this tax, certain individuals, corporations or estates can’t get away with avoiding taxes; they must at least pay the AMT amount.

To prevent this tax from potentially affecting low- and middle-class taxpayers, AMT exemptions were established. Lower-income taxpayers subtract exemptions from the minimum tax amount, while high-income taxpayers phase out of the exemptions making them ineffective toward the AMT. Now, these exemptions have been permanently adjusted for yearly inflation.

Kiddie Tax

For those under 19 years of age, unearned income up to $1,050 isn’t subject to tax. If their income exceeds $2,100, it is taxed at the parent’s rate.

Tax Credits

The maximum amount taxpayers filing jointly with at least three children receive under the Earned Income Tax Credit (EITC) is $6,318. For the Child & Dependent Care Credit, the only amount that will change is the credit amount determined to be refundable, which is $3,000 in expenses.

LEARN MORE › For more information, visit irs.gov or see a certified public accountant or other tax professional.

Sources: irs.gov, irs.com, forbes.com, amtadvisor.com, taxfoundation.org

Ficsal Fitness JAN ’17 healthylivingmagazines.com

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Pros and Conning J. Russell George, the U.S. Treasury inspector general for tax administration, describes the

outbreak of IRS fraud as the “largest scam of its kind” that he has ever seen,

› Call to demand immediate payment or call about taxes owed without first having mailed a bill

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› Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe › Require you to use a specific payment method for your taxes, such as a prepaid debit card › Ask for credit or debit card numbers over the phone › Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying

(800) 829-1040. The IRS workers can help solve the issue. › If you don’t owe taxes, call and report the incident to the U.S. Treasury inspector general of tax administration at (800) 366-4484 or at tigta.gov. › File a complaint with the Federal Trade Commission at FTC.gov.

Add “IRS Telephone Scam” to the notes section of the complaint.

Help! I’ve received a fraudulent phone call!

› If you get an email that’s ostensibly from the IRS, do not open any attachments or click on any links in the email. Send it to phishing@irs.gov.

› If you owe federal taxes or think you may owe taxes, hang up and call the IRS directly at

Please note the IRS will never use unsought email, text messages or any forms of social media to discuss your personal tax issue.

At the hint of a tax scam, here’s what you should do:

Sources: irs.gov, cbsnews.com

H

ow are so many people falling victim to the same trap?

Happening in every state and at a rapid pace, callers are claiming to be from the IRS, telling victims they owe money for unpaid taxes and must pay using a prepaid debt card or wire transfer. The recipient is then threatened with arrest, deportation or loss of a business or driver’s license. These scams artists typically know information that lends to their credibility, such as the last four digits of the taxpayer’s Social Security number. Additionally, they call from a number that mimics that of the IRS. There are even a few reports of taxpayers receiving followup calls from the police and emails that appeared to be signed by IRS officials.

Any one of these tell-tale signs should immediately alert you to a scam.

Remember: The IRS will never:

with nearly 20,000 complaints of fraud to back his statement up.

Impact of the 2016 Election on Future Tax Policies A new president usually ushers in changes in tax policy. Although it is unclear whether the tax code changes that Donald Trump has envisioned will be enacted into law in their current form, read on for a sneak peek of what he has in mind.

Donald Trump has called for reducing the top corporate tax rate from its current level of 35 percent to 15 percent. He also called for compressing the number of individual income tax brackets from seven under current law to three and for reducing the top rate from its current-law level of 39.6 percent. Trump called for rate brackets of 12 percent, 25 percent and 33 percent. However, the proposals he discussed lack technical details to explain how specific provisions would operate, and we may not see any full proposals until his administration sends its first tax-and-spending plan to Congress in 2017.

Contact our office for updates!

Hema Rupnarain, CPA, P.A. CERTIFIED PUBLIC ACCOUNTANT

The Villages Office 13940 N. US Hwy 441, Suite 206 The Villages, FL 32139

Ocala Office 1306 East Silver Springs Blvd.

Ocala, FL 34470

352.255.3795

352.351.9880

Email: info@hemacpa.com Website: www.hemacpa.com

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11

Budgeting Basics D

o you ever check your bank statement and think you’ve been robbed? Money is hard to come by and even harder to hold onto—especially when not properly accounted for.

Some think the word “budget” is a bad word. Instead of thinking of a budget as something that restricts you, however, think about its efficiency. Having a savings and spending plan will help you achieve future goals, not to mention prepare you for unexpected events.

Likened to a cushion, a savings account gives you something to fall back on.

So how does one master a budget plan? Follow these helpful steps for the perfect budgeting guide.

Calculate

You will need to know your net pay, the money left over after deductions.

Included in this figure will be tips, supplementary income, side jobs, etc.

Needs vs. wants

Divide your budget into basic categories. You could make a list (housing, food, auto, entertainment, savings, clothing, medical, miscellaneous, etc.), or you can organize this list into the basics of needs (home

and utilities) and wants (entertainment and clothing).

Expenses

Set your goal

Whether your hopes are to get out of debt or to start saving for your next vacation, a goal is a must, encouraging you to stick to your budget.

Save the receipts for every item you buy over the next month. At the end of the month, you will have an estimated figure of what you spend in each category, as long as there was nothing out of the ordinary like repair work.

Include the extras

When figuring your auto finances, for example, remember all that the category entails, such as the car payment, car insurance, gas, etc. The more detailed you are, the more likely you are to achieve success.

Stick to the plan

Creating a plan is one thing; following it is another. After the first month of budgeting, reevaluate your budget based on your spending. Maybe you

Add it up

Total your monthly expenditures, and compare it to what you make each month after taxes. You will need to choose which method best suits you to keep track of your budget. Some prefer computer software, such as Quicken or Microsoft Money.

didn’t need quite as much for gas as you thought you would. Maybe you needed a little extra for food. At any rate, as time goes on, you will learn to balance your account in a way that benefits your lifestyle.

THERE’S AN T APP FOR Tg anHd A finance

budgetin Here are some ted. lp get you star he apps that can

Mint: Money et & Manager, Budgce Personal Finan for Free, available iOS & Android

l Personal Capitavesting Budgeting & In for Free, available iOS & Android — Pocket Expensecial Personal Finan Assistant for Free, available iOS & Android Sources: thebalance.com, aol.com

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healthylivingmagazines.com JAN ’17 Ficsal Fitness

do it for them, mutual funds are an investment worth considering.

As with any investment, mutual funds require the investor to do a substantial amount of homework before allocating their money. Here are a handful of mutual funds to consider for the upcoming year:

When it comes to investing, many Americans consider mutual funds a wise way to save for retirement and other goals. As with any investment, these funds have their pros and cons—and it pays to be educated on both.

T

o start the education process, you’ll need to know just what a mutual fund is. A mutual fund is a company that pools money from many investors and invests the money in stocks, bonds, short-term moneymarket instruments, other securities or assets, or some combination of these investments. Moreover, each share represents an investor’s proportionate ownership of the fund’s holdings and the income those holdings generate.

bonds in the fund’s portfolio. They take their time selecting investments.

With this being said, if you choose to invest in a fund, all control will be in the hands of the mutual fund money managers who run the portfolio.

Typically, all mutual funds charge annual expenses that vary based on the account value. For example, the average for managed funds is around 1.5 percent or lower if not as actively managed.

Advantages And Drawbacks

Are Mutual Funds Right For You?

Mutual funds are appealing for several reasons. For one, they are managed by professionals, whose career it is to constantly monitor the stocks and

For those who don’t have the time necessary to manage an investment portfolio and don’t mind paying a yearly expense ratio to have an expert

T. Rowe Price Financial Services (PRISX) › Minimum Initial Investment: $2,500 › Large-cap stocks include: Citigroup (C), JPMorgan Chase (JPM) and State Street (STT) Vanguard Health Care (VGHCX) › Minimum Initial Investment: $3,000 › Large-cap stocks include: Bristol-Myers Squibb (BMY), Allergan (AGN) and UnitedHealth Group (UNH) Fidelity Select Retailing Portfolio (FSRPX) › Minimum Initial Investment: $2,500 › Large-cap stocks include: Amazon (AMZN), Home Depot (HD), Priceline (PCLN), Netflix (NFLX) and O’Reilly Automotive (ORLY) Vanguard Intermediate-Term Investment Grade (VFICX) › Minimum Initial Investment: $3,000 › Large-cap stocks include: HSBC (HSBC) and Medtronic (MDT)

Ficsal Fitness JAN ’17 healthylivingmagazines.com

Sources: sec.gov, investorplace.com, frugalrules.com, money.usnews.com

Fully Invested

Vanguard 500 Index (VFINX) › Minimum Initial Investment: $3,000 › Large-cap stocks include: Apple (AAPL), Microsoft (MSFT) and General Electric (GE)

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