February 2013

American Reliance Group

Phone: 509-323-2887 Fax: 509-323-2889 www.argplanning.com

Spokane, WA 99205 1814 N Normandie Street American Reliance Group Kelly C. Ruggles

History of Valentines Day Saint Valentine was said to have demonstrated courage and valor in helping Christian martyrs being perscuted under Emperor Claudius II in Rome, during a time when giving any kind of aid to Christians was considered a crime. Valentinus was arrested and imprisoned for this crime. He was condemned to death. He was beaten with clubs, stoned and finally beheaded outside the Flaminian Gate on Feb. 14th . After his death, this gate was known as Porta Valentini, later being renamed Porta Popolo. There is a legend that says while awaiting his execution, he befriended his jailer's blind daughter whose sight he restored to her. According to Alfonso Villiegas, in his book "Lives of Saints" the jailer was Asterios, one of the Emperors lieutenants. He and his family were converted to Christianity by St. Valentine and they were condemned to death by Claudius II. Furthermore, according to legend, on the eve of Valen tinus' death, he wrote a farewell message to the jailer's daughter and signed it. This is how Valentines Day evolved.

Most Recommended Valentines Day Quotations

Love is a noble act of self-giving, offering trust, faith, and loyalty. The more you love, the more you lose a part of yourself, yet you don't become less of who you are; you end up being complete with your loved ones -Irene Where there is love there is life -Mahatma Gandhi Love is a flower that is made to bloom by two gardeners - Anonymous Life without love is like a tree without blossom and fruit -Kahlil Gibran The love we give away is the only love we keep - Elbert Hubbard Love is giving more than expected and being there when least expected - Anonymous

Kelly C. Ruggles , Spokane, WA., does not intend to provide personalized investment advice through this publication and does not represent the strategies or services discussed are suitable for any investor. Investors should consult with their financial advisors prior to making any investment decision.

Valentines Day Pie

1- 8 oz cream cheese 1 tsp vanilla 1-9 inch graham cracker crust 1 c. Powdered sugar 1 8 oz cool whip 1 16 oz can cherry pie filling Beat cream cheese and powdered sugar until combined. Mix in vanilla. Fold in whipped topping. Transfer to Pie crust. Top with Cherry Pie filling. Refrigerate for 1 hr before serving. Enjoy

Social Security, Medicare Reports Highlight Need to Save

As typically happens every spring, the trustees' reports for both Medicare and Social Security were released on April 23, 2012. The reports presented a challenging fiscal outlook on programs that are the bedrock of retirement security for many Americans. Medicare trustees estimate that funds used to pay hospital insurance (Medicare Part A) will be depleted in 2024.1 Expenditures for hospital insurance have exceeded income every year since 2008, and trustees believe this situation is likely to continue until the fund is exhausted. Although the 2024 date, only 12 years from now, may seem ominous, the trustees believe it is optimistic. Certain assumptions that the trustees used, such as a 30% reduction in physician reimbursement rates scheduled to take effect in 2013, would be highly disruptive; and the trustees anticipate Congress will take action to change this scenario. Implementing either a smaller reduction or no reduction in the reimbursement could increase costs and accelerate the date when funds are depleted. Social Security also is facing funding hurdles, with trustees of this program anticipating that two trust funds, one supporting disability benefits and the other for retirees, will be exhausted in 2033, three years earlier than last year's estimate.2 The trustees believe that there will be sufficient non-interest income to fund approximately 75% of scheduled benefits during 2033. The fund that pays for disability benefits is likely to be exhausted even earlier, in 2016. Social Security and Medicare together account for one-third of the federal budget.3 Costs are increasing rapidly because of the aging of the population and increasing medical costs.

Selling a Home in a Depressed Market

For many households, home equity is an important component of net worth and accessing home equity frequently involves selling a house. While selling a home in a depressed market is challenging, it is possible when homeowners plan appropriately. The process may start several months before the house formally goes on the market. The key is to view your property objectively as a potential buyer would. If viewing your property objectively is not easy for you, a real estate professional may be able to help. You may be able to sell your home in a depressed market by pricing it appropriately, conducting necessary repairs before your home is listed for sale, and enhancing eye appeal. Structural Repairs: Take an inventory of items that are broken or outdated and could potentially emerge as issues during a home inspection. Windows or doors that will not open easily, peeling paint, shingles falling off a house or garage, and similar issues convey the impression that the owner does not pay attention to a property. By fixing these or other items before putting the house on the market, you are eliminating something that a potential buyer could use as leverage in negotiating a lower price. If you forego repairs and attempt to sell your house as a handyman special, you may need to price it accordingly and it may take longer to sell. Many potential buyers are not looking for a fixer-upper and will only consider properties that are in move-in condition. The Right Price: Setting an initial asking price that is too high may cause your house to sit on the market longer than it otherwise would. Either on your own or with help from a real estate professional, review selling prices of comparable properties in your neighborhood. Buyers are likely to look at many properties before extending an offer, and it may be to your advantage to price your home equal to or slightly below comparable offerings if you want a quick sale. Eye Appeal: Go beyond structural repairs and try to create as much eye appeal as possible. If you store large items, such as building materials or a boat, try to locate them elsewhere while the house is on the market. The illusion of extra space will appeal to many buyers. Clean out your garage, porches, basement, attic, and other storage spaces and discard items you no longer use. Tidy up counters, mantels, and display areas. Keep up with lawn mowing, snow shoveling, weeding, and other landscaping chores. Consider purchasing potted flowers or other items that could improve the appearance of your deck or porch. If you Current reading: lack the time for home maintenance, consider hiring a cleaning service or lawn maintenance company before your home is advertised for sale. The Travelers Gift If the local real estate market is not in your favor, try capitalizing on areas that you Thank You Janet for the recommendation. can control to move your house in a depressed market.
2013 Standard & Poor's Financial Communications. All rights reserved. 2013 Kelly Ruggles News Letter . Kelly C Ruggles, Spokane, WA., President Of American Reliance Group, Inc., is a registered investment advisor.

Social Security

What the Reports Mean The importance of the trustees reports for both Social Security and Medicare is a matter of debate. The thought of imminent financial problems is unsettling for retirees and workers, especially those who lack the resources to fund retirement expenses, especially health care. But there are actions that might help the fiscal situations facing Social Security and Medicare. Each of these steps is likely to involve advantages and disadvantages: Raise the Medicare tax on wages, which currently is 2.9% of all wages. A report published on money.cnn.com suggested that increasing the tax rate to 4.25% would help to ensure solvency for the next 75 years.4 Increase the Social Security payroll tax rate, which currently is 12.4% of the first $110,100 in wages. Change formulas used to reimburse providers of medical services. Alter rules regarding who is eligible for Medicare and the types of services Medicare will cover. Adjust age thresholds when Americans can receive Social Security benefits. Currently, beneficiaries can apply for reduced benefits at age 62. There may be changes to Social Security and Medicare that no one can anticipate currently. Keeping abreast of developments affecting these two important programs can help you prepare for the years ahead. Challenges for Retirees Those who anticipate retiring during the next few years, or who currently are retired, may want to evaluate their dependence on Social Security and Medicare. Accessing additional sources of income, especially for health care, may be beneficial when the futures of Social Security and Medicare are uncertain. There may be changes to Social Security and Medicare that no one can anticipate currently. Keeping abreast of developments affecting these two important programs can help you prepare for the years ahead.
1 2

Source: The Boards of Trustees, Federal Hospital Insurance and Federal Supplementary Medical Insurance Trusts Funds, 2012 Annual Report , April 23, 2012. Source: Social Security Administration, "Social Security Board of Trustees: Projected Trust Fund Exhaustion Three Years Sooner Than Last Year," April 23, 2012. 3 Source: The Wall Street Journal, "Stress Rises on Social Security," April 24, 2012. Source: money.cnn.com, "Medicare Funding Runs Short by 2024, Trustees Say," April 23, 2012. 2013 Standard & Poor's Financial Communications. All rights reserved.

Kelly