FAMILYMATTERS

Fall 2012

Family Investors Company

THE LIGHTER SIDE

Attitudes are contagious. Are yours worth catching? Things turn out best for people who make the best out of the way things turn out. Life is simple but we insist on making it complicated. I must do something always solves more problems than Something must be done. Put your future in good hands your own!

WhAts hAPPenIng!
Advanced Medical PlanningWill be presented by Anthony Cavallo, JD,CPA on Wednesday, November 7th. Having the right health care documents can help protect your assets. Learn what types of documents you need. This course is not just for seniors. Accidents happen every day. Learn how you can help protect your loved ones in times of crisis. Aging Parents 101will be presented by Julie Reich, Director of Special Programs, Sage Eldercare on Tuesday, November 13th. As parents age, roles often become blurred and it can be difficult to talk to your parents about accepting any kind of help. It is imperative to take action before a crisis happens. Come for a discussion on the types of challenges your parents may be encountering as they try to remain in their home and an overview of the types of support and options available. (Sage Eldercare is a non-profit group founded in 1954 and located in Summit, NJ. Visit their website at sageeldercare.org) All programs begin at 7PM and will be held at the Family Investors Company office. Admission is free, but a reservation is necessary as seating is limited. Call the office at 908.322.1800 or send an email to info@familyinvestors.com to confirm your attendance. Bring a friend.

amily Investors Company is pleased to offer our Fall program schedule:

in this issue
Mututal Funds: Facts and Fancy 2 Child Identity Theft 2 Investment Idea Darraugh A. Valli . . . . . . . . . . . . . . 3 Compliance Chat Diana Cilluffo 4 Investment Terms 4 Family Chatter
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We WoulD lIke to tAke thIs oPPortunIty to WIsh our FrIenDs AnD ClIents A Very hAPPy thAnksgIVIng AnD A joyous holIDAy seAson!

ITS FaLL anD ITS GoInG To GET CoLD

The 2013 Farmers Almanac says that temperatures will be much colder this winter from the East Coast westward to a line from the Dakotas to Texas. With the coming of fall, soon the heat in your home will be turned on. Before heating season is in full force, have your heating system checked. Call for an appointment with your local gas company or your oil furnace maintenance company to come and check your heating system. Properly maintained heating equipment can save you money. It can also help prevent waiting for the repairperson when the temperature is 10 outside. Experts advise to keep your thermostat set at 68. If you are not home during the day, set your thermostat even lower and have it return to the normal temperature one hour before you are due home. Put on a sweater or sweatshirt. Conserve energy and invest your savings.

Family Investors Company 265 South Avenue Fanwood, NJ 07023 908-322-1800 info@familyinvestorscom wwwfamilyinvestorscom

Mutual Funds: Facts and Fancy

The combined assets of the nations mutual funds increased by $161.5 billion, or 1.3 percent, to $12.338 trillion in July, according to the Investment Company Institutes official survey of the mutual fund industry. Over the past two decades, on an asset-weighted basis, average expenses paid by mutual fund investors have fallen significantly. In 1990, investors on average paid 99 basis pointsor 99 centsfor every $100 in assets invested in equity funds. By contrast, expenses averaged 79 basis points for equity fund investors in 2011, a decline of 20 percent from 1990, according to the Investment Company Institute.

PlAnnIng your estAte

What are the consequences to your legacy with the estate tax laws? Some of our clients have worked, in conjunction with Family Investors Company, with a knowledgeable local tax attorney, specializing in elder law issues, who can give insights and advice concerning this. Give your representative a call if you have any concerns about the passing of your estate to your designated heirs. We are here to help you and put you at ease.

ConsIDerAtIon
As the holidays approach, consider those less fortunate than you. Whether it is your time or a monetary donation, please gIVe. Local religious organizations have food banks, giving trees and other ways you can help. As the old adage goes,Tis better to give than receive. thanksgiving Day: As we express our
gratitude, we must never forget that the highest appreciation is not to utter words, but to live by them John Fitzgerald Kennedy

experts agree that 25% of take home pay is the maximum amount that should go towards housing.

(This includes mortgage, property taxes and homeowners insurance.

760 is the magic credit score number you need to qualify for the lowest interest rate on a new car

or home. Pay your bills on time and pay down your debt to increase your credit score!

ChIlD IDentIty theFt

According to credit reporting agency, TransUnion, children make a tempting target for identity thieves because theft of a childs identity may go undetected for years! After a child is born, most parents apply for a Social Security numberwhich is all that is required to open most credit accounts . It could be years until a child applies for credit in his or her own name . This makes it easy for identity theft to go undetected for years AND create serious consequences .

Your child begins to receive suspicious mail, like pre-approved credit cards and other financial offers sent to adults in his or her own name You try to open a financial account for him or her but find out one already exists, or the application is denied because of poor credit history A credit report already exists in your childs nameand in that case, your childs identity has already been stolen. If you believe your childs identity has been stolen, TransUnion has a Child Identity Inquiry Form available online to submit details about your concerns You can also email childtheft@transunioncom DO not email sensitive identifying or account information Experian and EquiFax also offer this service
2 Family Investors Company FAMILYMATTERS Fall 2012

how do you know if your childs identity has been stolen?

InVestMent IDeA
by Darraugh A Valli, VP

Dont Forget
The Scotch Plains Business and Professional Association will hold their annual Holiday Festival on Sunday, December 2nd on the Municipal Grounds. Be sure to stop by and see Steve Santa Goldberg .

n this year of a presidential election, the talk is taxes, spending and the deficit. However, both the President of the United States and you and your family need a sound financial plan. The economy will have a big role in what happens this November. Deficit spending will have our children or grandchildren footing the bill for spending money the government does not have. On a personal level, making a sound basic spending plan for the finances of a family shows us that we should always strive to: Balance our budget Curb our spending Reduce our debt Invest for our future Prepare for any financial disasters. Keep your family finances simpledont spend what you dont have! Let us help in you in preparing your Net Worth statement to track your monthly income and monthly expenses.

email Addresses
Email addresses are no longer available in the Market Report or on the Family Investors Company website. The email addresses which have been published in the past are, however, still valid. When in doubt, you can always email: info@familyinvestors.com

Percentages
Earning 1% or less on your savings and paying 18% or more on unsecured and non-tax deductible (i.e. credit card) debt does not make sense. Presidential Election Day is almost here and the political ads are inundating the media. Family Investors Company urges all clients to vote and make your voice heard as to who YOU want to govern the country. Which man do I want appointing a possible 4 Supreme Court justices in the next 4 years? Voteits your right and your responsibility as a citizen. Creditkarma.com is a web site that will give you your credit score absolutely free (no credit card required) and will also give you hints to increase your credit score. Creditkarma also monitors your credit. Creditkarma is available online for your computer or at the app store. (Family Investors Company provides this information but does not
receive any compensation or remuneration )

holiday Closings
The Family Investors Company office follows the schedule of the New York Stock Exchange. Our office will be closed on thursday, november 22nd and will close at 1PM on Friday, november 23rd. The office will close at 1PM on Monday, December 24th and be closed tuesday, December 25th. The office will close at 4PM on December 26th, 27th & 28th. The office will be closed january 1st and january 21st, 2013.

Retirement
Investing for retirement is a tricky proposition and getting personal attention is becoming very important, but that is what Family Investors Company is all about! We are a small, independent firm, that does not have an in-house line of mutual funds or investment products. We help people with their retirement planning, estate planning (with the assistance of an attorney if need be), minimizing taxes and other investment goals they may have. Over 90% of our business is from referrals. That is what we are especially proud of! We have been doing this for over 52 years. We still like the personal touch and individual service we provide. Call our office when you need assistance.

hAPPy holIDAys!
Our office is open on Saturdays, by appointment only, for the convenience of our clients. You can receive Family Matters via email or online at our website. We would be happy to send it to you quarterly as soon as it becomes available. Please email us at: info@familyinvestors.com to request this service.
Fall 2012 FAMILYMATTERS Family Investors Company 3

Compliance Chat
by Diana Cilluffo The FINRA Conduct Rule 2280 requires investment firms to annually inform clients of the FINRAs Public Disclosure program regarding investment firms and individual representatives. You can check the background of the investment firms and the representatives with whom you do business by calling FINRA at their toll free number: 1-800-289-9999 or via the internet at www.finra.org There is also a brochure available detailing the Public Disclosure Program. Family Investors Company urges you to take advantage of this free service.

Peter Chemidlin, President of Family Investors Company with joseph nitti, winner of the drawing for a 39 HDTV held at the Fanny Wood Street Fair on september 30, 2012 in Fanwood.

InvESTmEnT TERmS
You hear investment terms on television and read them in print media and on the internet. But what do they mean? Here is a primer of some common investment terms: rights offering: An offering of common stock to investors who currently hold shares which entitles them to buy subsequent issues at a discount from the offering price. glass-steagall Act: A 1933 Congressional Law which authorized deposit insurance and prohibited commercial banks from owning brokerage firms. This rule has softened and many banks now own discount brokers, sell mutual funds and participate in underwritings. tailgating: The unethical practice by a broker of placing an order for the same security that a customer of his/hers has just placed, ,hoping to profit from whatever information the customer might be trading on. two Dollar Broker: The name for a floor broker who performs trades for other brokers, who are usually too busy to do all of their trades themselves. In return, they are paid a fee by the other broker. The name originated because the original fee they were paid was two dollars. series 63: The Uniform Securities State Law License required by some states to be a stockbroker.

FamILy CHaTTER
Fred Chemidlin has been busy volunteering at St. Helens Church to refurbish the pew prayer book holders. Fred and wife, Barbara, recently vacationed at Williamsburg, Virginia. Peter Chemidlin, wife, Joan and children, Tighe and Morgan, vacationed at the Grand Canyon, Bryce Canyon, Zion National Park, Sedona and Las Vegas. Darraugh Valli, husband Peter, and children Micaela and Sean, spent many weekends at the Jersey Shore with family and friends. Matt Chemidlin, wife Janice, and children Angela and Scott, rented a cabin at Wharton State Forest overlooking Atsion Lake. steve goldberg and wife, Pat, spent the Labor Day weekend in Boston bringing daughter, Melissa, to Northeastern University where she begins her junior year. neil schembre and daughter, Breea, vacationed in Vermont and visited the Vermont Teddy Bear Factory. emmy salerno and husband, Charles, are excited for another wedding! Son, Joseph DeLuca became engaged to Colleen Daly! Their first grandchild, Charles, just began Kindergarten. joe and Valerie Chemidlins granddaughter, Megan, graduated from Villanova University with a BS in Nursing.

Family Investors Company

FAMILYMATTERS

Fall 2012