2009 Financial Planning Tips

1) My own goals for 2009 are very simple:
a. Save more (15%+ of income)
b. Spend less (15% cuts across the board)
c. Build my personal and client investment portfolios in a manner that will excel when the market recovers.
d. Become a more important resource for my clients.

2) Work to maintain and cultivate personal friendships. At the beginning of every year, make a list
5-10 people that you want to be friends with in ten years. Over the course of 2009, make several
efforts to reach out to each person. Without cultivation, friendships fade away.

3) Do something special for your spouse every month in 2009. This is your most important
relationship and it requires care to succeed.

4) Give regularly to charities – I believe helping others can bring you good fortune.

Save More – the best investments are typically made when the markets are down.

5) Build and maintain your emergency fund! - 2008 really drove this message home. Depending
upon your risk tolerance, maintain at least 1 year of living expenses in very safe and liquid
investments. This should improve your peace of mind. You never know what life will throw at
you and having a backup fund – separate from your investment account, will enable you to
survive tough times.

6) Maximize your Roth IRA Contribution – Roth IRA’s are the best deal in town. Your investments
can grow tax free – for life! For those under age 50 the maximum contribution is $5,000; for
over 50 the limit is $6,000. Single taxpayers are fully eligible if their income is under $105,000
and for joint taxpayers, under $166,000. Even if you do not qualify, make sure your children
contribute to their Roth IRA.

7) Maximize your Retirement Plan Contributions – You should check your year-to-date
contributions to retirement plans to determine if they are on track to make their maximum pre-
tax contributions to their company provided retirement plan for the year. The dollar limit for pre-
tax contributions for 401(k), 403(b) and 457 plans is $16,500 in 2009. If you turn 50 in 2009 you
can contribute an additional $5,500, for a total of $22,000.

8) Invest in your Children’s or Grandchildren’s College Savings Plans – There are several choices
for college savings – Since the change in Kiddie tax laws in 2007, 529 college savings plan have become the only game in town. Save early and often – private colleges cost approximately $45k
to $50k per year!

9) MRD’s from IRA’s are suspended for 2009 - Pending Presidential approval, the Worker, Retiree,
and Employer Recovery Act of 2008 will temporarily suspend the minimum required distribution
requirements for 2009. Taking an MRD withdrawal from your IRA will be optional in 2009.

10) Small Business Owners should open a Retirement Plan - Small business owners and the self-
employed are eligible to open a retirement plan before year's end. Two of the best types of
retirement plans to consider are the SEP IRA or the Self-Employed 401(k) plan. These plans allow
the self-employed to contribute and save up to $49,000 in 2009. For more pros and cons about
your retirement savings choices, give me a call.

11) Cut all unnecessary expenses – We all spend money on things we do not need or use. Go
through your budget and cut out all unnecessary and under-utilized items. Make sure your
income supports your expenditures and allows you to save 15% + per year.

Spend Less – live within your means

12) Track your expenses – It is difficult to achieve your budget goals if you do not know where you
are.

13) Get rid of expensive debt – This is an important habit to break. Pay off credit card balances in
full every month. It will improve your credit rating and save lots of fees.

14) 2009 should be a great year to refinance your mortgage – 30 year mortgages for conforming
loans have dropped to 5.25%. Jumbo mortgages are still much higher but should decline. My
best guess is that the low in rates could be in the 1st half of 2009. If you are interested, I have
started tracking mortgage refinance options.

15) Pay your estimated taxes – It is better to pay now than to risk a penalty later.

16) Close unused bank, brokerage and credit card accounts – They do not die on their own. Even if
you have a zero balance, banks and brokerage accounts will leave your accounts open and may
even charge a fee. It takes about two minutes to draft, print and mail your closing account
letter.

17) Review your credit reports – Maintaining a high credit score can help you get loans when others
cannot. I use an Equifax service that notifies me of any changes to my credit card and loan
balances. I also monitor my children’s credit scores.

18) Telephone National Do Not Call Registry – If you want to stop annoying phone solicitations go to
https://www.donotcall.gov/default.aspx. Sign up your regular phone and cell phone.

19) Credit Card Opt-out – Call 1-888-567-8688 - Tired of annoying "pre-approved" credit card offers?
The four major credit bureaus have the right to sell your information to companies that want to
offer you a credit card. Fortunately, the credit bureaus must provide a way for consumers to
have their names excluded from pre-approval lists. Calling this number notifies all credit bureaus
with one phone call to not sell your credit history to credit card companies.

20) Evaluate your investment advisors and custodians – In 2008 we saw several major brokerage
firms collapse and the Madoff scandal unfold. You should evaluate your custodians and advisors
to ensure the safety of your money and independent verification of your balances. At Noyes
Capital, we are proud of our independent, fee-only business model. For more information please
review our website – www.noyescapital.com

Investments and Taxes

21) Don't take more risk than you can handle - In 2008, we all re-learned the meaning and
magnitude of investment risk. Now may be a good-time to re-evaluate your risk tolerance,
update your Investment Policy Statement (IPS) and rebalance your portfolio.

22) Managing municipal bonds has become more difficult – The failures of several municipal bond
guaranty services has forced investors to evaluate municipal bonds based upon their underlying
credit. Many bonds that used to be AAA are now rated BBB or worse. Your portfolio may be at
greater risk than you realize.

23) Manage your capital gains and losses – Take your losses short-term (under 1 year) and gains
long-term (over 1 year). The annual limit for deducting capital losses is $3,000. You can carry
forward all additional losses for your lifetime.

24) Don’t try to predict the future – nobody knows. Stay invested for the long-term.

25) Stock Option Planning – Oops, maybe next year.

26) The annual gift exclusion is $13,000 for 2009 - You can give any individual up to $13,000 in 2009
and the gift will be excluded from the US Gift Tax and will be received tax-free by the recipient.
Please keep records of your giving.

27) Update your Wills, Powers of Attorney and Medical Powers of Attorney at least every five
years. Having a current will is essential in today’s world.

Legal

28) Children over age 18 need their own wills, powers of attorney and health care proxies.

Your questions and suggestions are welcome. Good Luck in 2009!

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Scott P. Noyes, CFA, CFP is the President of Noyes Capital Management, LLC, an independent,
fee-only wealth management firm based in New Vernon, New Jersey. www.noyescapital.com.