LPL FinancialDonner Wealth ManagementEd Donner, CFP®CERTIFIED FINANCIAL PLANNER™6767 N. Wickham Rd Ste 400Melbourne, FL 32940321-956-3447ed.donner@lpl.comwww.donnerwealth.com

September 2016

Quiz: Test Your Interest Rate Knowledge

How to Get a Bigger Social Security RetirementBenefit

The Importance of Saving for Retirement at a YoungAge

I'm thinking about asking my parents to move in withme and my family. Is there anything I need toconsider?

Quiz: Test Your Interest Rate Knowledge

See disclaimer on final page

From Summer heat to Tropical Storms with lots ofrain. As we get into the busiest part of HurricaneSeason, it might be a good idea to check yoursupplies and make sure you have emergencychecklists handy. We want everyone to be safe.Also, reminder about the Melting Pot Dinner on Sept13th at 6:30pm - we have a few slots still available,but they won't last long. Call Rebecca today toRSVP!!

We have added a new portfolio risk tool on ourwebpage called RISKALYZE . If you go to ourwebpage below and click on FREE PORTFOLIORISK ANALYSIS , it will rank your risk levelaccordingly to make sure you are investedaccordingly. This is a free service if you areinterested.

You can now find us at: www.donnerwealth.com -this site also includes a portal for you to access yourLPL account view. We are really excited about thisnew site and welcome your feedback as well.

Also, please check out the Donner WealthManagement Facebook Page and "LIKE" us. I try tokeep it updated with new and interesting information.The highest compliment you can pay us is thereferral of a friend or relative!

Ed

In December 2015, theFederal Reserve raised thefederal funds target rate to arange of 0.25% to 0.50%, thefirst rate increase from thenear-zero range where it hadlingered for seven years.Many economists viewed this

action as a positive sign that the Fed had finallydeemed the U.S. economy healthy enough towithstand slightly higher interest rates. Itremains to be seen how rate increases will playout for the remainder of 2016. In the meantime,try taking this short quiz to test your interestrate knowledge.

Quiz1. Bond prices tend to rise when interestrates rise.

a. True

b. False

2. Which of the following interest rates isdirectly controlled by the Federal ReserveOpen Market Committee?

a. Prime rate

b. Mortgage rates

c. Federal funds rate

d. All of the above

e. None of the above

3. The Federal Reserve typically raisesinterest rates to control inflation and lowersrates to help accelerate economic growth.

a. True

b. False

4. Rising interest rates could result in loweryields for investors who have money incash alternatives.

a. True

b. False

5. Stock market investors tend to lookunfavorably on increases in interest rates.

a. True

b. False

Answers1. b. False. Bond prices tend to fall wheninterest rates rise. However, longer-term bondsmay feel a greater impact than those withshorter maturities. That's because wheninterest rates are rising, bond investors may bereluctant to tie up their money for longerperiods if they anticipate higher yields in thefuture; and the longer a bond's term, the greaterthe risk that its yield may eventually besuperceded by that of newer bonds. (Theprincipal value of bonds may fluctuate withmarket conditions. Bonds redeemed prior tomaturity may be worth more or less than theiroriginal cost.)

2. c. Federal funds rate. This is the interestrate at which banks lend funds to each other(typically overnight) within the Federal ReserveSystem. Though the federal funds rate affectsother interest rates, the Fed does not havedirect control of consumer interest rates suchas mortgage rates.

3. a. True. Raising rates theoretically slowseconomic activity. As a result, the FederalReserve has historically raised interest rates tohelp dampen inflation. Conversely, the FederalReserve has lowered interest rates to helpstimulate a sluggish economy.

4. b. False. Rising interest rates could actuallybenefit investors who have money in cashalternatives. Savings accounts, CDs, andmoney market vehicles are all likely to providesomewhat higher income when interest ratesincrease. The downside, though, is that ifhigher interest rates are accompanied byinflation, cash alternatives may not be able tokeep pace with rising prices.

5. a. True. Higher borrowing costs can reducecorporate profits and reduce the amount ofincome that consumers have available forspending. However, even with higher rates, animproving economy can be good for investorsover the long term.

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How to Get a Bigger Social Security Retirement BenefitMany people decide to begin receiving earlySocial Security retirement benefits. In fact,according to the Social Security Administration,about 72% of retired workers receive benefitsprior to their full retirement age.1 But waitinglonger could significantly increase your monthlyretirement income, so weigh your optionscarefully before making a decision.

Timing countsYour monthly Social Security retirement benefitis based on your lifetime earnings. Your basebenefit--the amount you'll receive at fullretirement age--is calculated using a formulathat takes into account your 35 highestearnings years.

If you file for retirement benefits beforereaching full retirement age (66 to 67,depending on your birth year), your benefit willbe permanently reduced. For example, at age62, each benefit check will be 25% to 30% lessthan it would have been had you waited andclaimed your benefit at full retirement age (seetable).

Alternatively, if you postpone filing for benefitspast your full retirement age, you'll earndelayed retirement credits for each month youwait, up until age 70. Delayed retirement creditswill increase the amount you receive by about8% per year if you were born in 1943 or later.

The chart below shows how a monthly benefitof $1,800 at full retirement age (66) would beaffected if claimed as early as age 62 or as lateas age 70. This is a hypothetical example usedfor illustrative purposes only; your benefits andresults will vary.

Birth year Full retirementage

Percentagereduction atage 62

1943-1954 66 25%

1955 66 and 2months

25.83%

1956 66 and 4months

26.67%

1957 66 and 6months

27.50%

1958 66 and 8months

28.33%

1959 66 and 10months

29.17%

1960 or later 67 30%

Early or late?Should you begin receiving Social Securitybenefits early, or wait until full retirement age oreven longer? If you absolutely need the moneyright away, your decision is clear-cut;otherwise, there's no ''right" answer. But taketime to make an informed, well-reasoneddecision. Consider factors such as how muchretirement income you'll need, your lifeexpectancy, how your spouse or survivorsmight be affected, whether you plan to workafter you start receiving benefits, and how yourincome taxes might be affected.

Sign up for a my SocialSecurity account at ssa.govto view your online SocialSecurity Statement. Itcontains a detailed record ofyour earnings, as well asbenefit estimates and otherinformation about SocialSecurity.

1 Social SecurityAdministration, AnnualStatistical Supplement, 2015

Page 2 of 4, see disclaimer on final page

The Importance of Saving for Retirement at a Young AgeIf you're an adult in your 20s, you are enteringan exciting stage of life. Whether you've justgraduated from college or are starting a newcareer, you will encounter many opportunitiesand challenges as you create a life of your own.

As busy as you are, it's no surprise thatretirement may seem a long way off, especiallyif you're just entering the workforce. What youmay not realize, however, is that there are fourvery important advantages to begin planningand saving for retirement now.

1. Money management skillsNow that you're out on your own, it's importantto start taking responsibility for your financeslittle by little. Part of developing financialresponsibility is learning to balance futuremonetary needs with present expenses.Sometimes that means saving for a short-termgoal (for example, buying a new car) and along-term goal (for example, retirement) at thesame time.

Once you become used to balancing yourpriorities, it becomes easier to build a budgetthat takes into account both fixed anddiscretionary expenses. A budget can help youpursue your financial goals and develop strongmoney management skills. If you establishhealthy money habits in your 20s and stick withthese practices as you grow older, you'll have amajor advantage as you edge closer toretirement.

2. Time on your sideWhen you're young, you have the benefit oftime on your side when saving for long-termgoals (like retirement). You likely have 40-plusyears ahead of you in the workforce. With thatmuch time, why not put your money to workusing the power of compounding?

Here's a hypothetical example of howcompounding works. Let's say that at age 25,you start putting $300 each month into youremployer's retirement savings plan, and youraccount earns an average of 8% annually. Ifyou continued this practice for the next 40years, you would have contributed $144,000 toyour account, accumulating just over $1 millionby the time you reached age 65. But if youwaited 10 years until age 35 to start makingcontributions to your plan, you would haveaccumulated only $440,000 by age 65.

Note: This hypothetical example ofmathematical compounding is used forillustrative purposes only and does notrepresent any specific investment.

Taxes and investment fees are not considered.Rates of return will vary over time, especiallyfor long-term investments. Investments offeringthe potential for higher rates of return alsoinvolve a higher degree of risk. Actual resultswill vary.

3. Workplace retirement benefitsIf your employer offers a workplace retirementplan such as a 401(k) or 403(b), you may findthat contributing a percentage of your salary(up to annual contribution limits) will makesaving for retirement easier on your budget.Contributions are typically made on a pre-taxbasis, which means you can lower your taxableincome while building retirement funds for thefuture. You aren't required to pay any taxes onthe growth of your funds until you takewithdrawals. Keep in mind that distributionsfrom tax-deferred retirement plans are taxed asordinary income and may be subject to a 10%federal income tax penalty if withdrawn beforeage 59½.

Depending on the type of plan, your employermay offer to match a percentage of yourretirement plan contributions, up to specificlimits, which can potentially result in greatercompounded growth and a larger sum availableto you in retirement.

If you don't have access to a workplaceretirement savings plan, consider opening anIRA and contribute as much as allowable eachyear. An IRA may offer more investmentoptions and certain tax advantages to you.

If you have both a workplace plan and an IRA,one strategy is to contribute sufficient funds toyour workplace plan to take advantage of thefull company match, and then invest additionalfunds in an IRA (up to annual contributionlimits). Explore the options available to find outwhat works best for your financial situation.

4. Flexibility of youthAlthough there's a good chance you havestudent loans, you probably have fewerfinancial responsibilities than someone who isolder and/or married with children. This meansyou may have an easier time freeing up extradollars to dedicate toward retirement. Get intothe retirement saving habit now, so that whenfuture financial obligations arise, you won't haveto fit in saving for retirement too--you'll alreadybe doing it.

Millennials and RetirementPlanning

A September 2015 studyfound that 60% ofmillennials think planningfor retirement is harder thansticking with a diet andexercise plan. By contrast,61% of baby boomers thinkdieting/exercising is harder,and 51% of Gen Xers thinkretirement planning isharder.

Source: "Will MillennialsEver Be Able to Retire?"Insured Retirement Instituteand The Center forGenerational Kinetics,September 2015

Page 3 of 4, see disclaimer on final page

LPL FinancialDonner Wealth ManagementEd Donner, CFP®CERTIFIED FINANCIALPLANNER™6767 N. Wickham Rd Ste 400Melbourne, FL 32940321-956-3447ed.donner@lpl.comwww.donnerwealth.com

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2016

The opinions voiced in this materialare for general information onlyand are not intended to providespecific advice orrecommendations for anyindividual. To determine whichinvestment(s) may be appropriatefor you, consult your financialadvisor prior to investing. Allperformance referenced ishistorical and is no guarantee offuture results. All indices areunmanaged and cannot beinvested into directly.

The information provided is notintended to be a substitute forspecific individualized tax planningor legal advice. We suggest thatyou consult with a qualified tax orlegal advisor.

LPL Financial Representativesoffer access to Trust Servicesthrough The Private TrustCompany N.A., an affiliate of LPLFinancial.

I'm thinking about asking my parents to move in withme and my family. Is there anything I need to consider?Many members of the"sandwich generation"--agroup loosely defined aspeople in their 40s to 60s who

are "sandwiched" between caring for their ownchildren and aging parents--find themselves inthe position of raising a family and looking afterthe needs of aging parents. If the time hascome when you and your parents think that itmay be in their best interest to live with you,you should discuss the implications and how itwill impact your entire family.

Your first topic should be to have all your familymembers share their expectations for livingtogether. No doubt your parents will want to feelpart of your household. However, you'll want toknow how much they want to participate inday-to-day activities in your home. Forexample, if able, would they be willing to takeon some responsibilities, such as babysittingand transporting kids to school or otheractivities? Will they participate in other familyactivities, such as meals and social events?

Next, consider whether your home can properlyaccommodate your parents. Do you haveadequate privacy/space for your parents, or will

you need to remodel or renovate an existingarea of your home? Will your parents be able tomove around your home easily, or do you needto install appropriate safety devices? Commonmodifications and repairs for aging familymembers may include grab bars in bathrooms,an automatic chair lift for stairs, and a ramp forwheelchair access.

You will also need to explore the financialimpact. Will your parents contribute tohousehold expenses, or will you cover theirportion? Do they have enough money to helpsupport themselves during their retirement? Ifnot, will you be able to support themfinancially?

While having multiple generations livingtogether in the same home can be a rewardingexperience, it can also be challenging at times.As a result, it's important to keep the lines ofcommunication open between you, yourspouse, your children, and your parents. Doingso can help ensure a happy and healthy homeenvironment for your entire multigenerationalfamily.

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