February 2014 Newsletter

There are many reasons for you to lease a car versus buy a car, but too often it is the auto dealer's profit motive that determines which method you use. To help make sure you do not become a victim of this, here are some things to consider.

When to lease Here is a check-list of things that may sway you toward leasing your next vehicle; Lower up-front cash requirement You prefer a new car every couple of years You do not drive many miles each year You are not hard on your vehicle When to purchase You plan to have the car for years Low car loan interest rates and payments You drive more miles than a lease allows A late model used car seems perfect

Know the leasing tricks of the trade

If you think leasing a vehicle is an option for you, here are some tips to ensure you are making the best deal.

	Negotiate first. Negotiate the price before telling the dealer you wish to lease. The purchase price you negotiate should be the price the dealer uses in calculating the lease payments as well as an outright purchase. If it is not, this technique forces the dealer to disclose this fact.
	What is the APR? Ask the dealer to disclose the effective Annual Percentage Rate (APR) built into the lease. If the dealer gives you a lease factor instead of an interest rate, multiply the lease factor by 24 to get a general interest rate.
	Turn in value. Ask what the projected turn-in value of the car is at the end of the lease. This value is often overstated by the dealer to artificially lower your lease payment. It can also impact your ability to purchase your vehicle at the end of the lease.
	Clarify added costs at lease end. Many customers have been surprised with a high mileage surcharge for excess miles and charges for "excessive" wear and tear when the car is returned at the end of the lease.
	Shop around. Since many of the costs associated with a lease are hidden from view, it is best to shop for the best deal.

Knowing the questions to ask before you shop for a new vehicle can help you make the best objective decision regarding a lease versus buy alternative. It may just help you stay in the driver's seat during dealer negotiations.

There is little question that one of the biggest concerns of parents today is their childrens' on-line safety. There are few barriers keeping young children from setting up a Facebook account or a free service through Google. Thankfully, in the FTC issued amendments to the Children's Online Privacy Protection Rule (COPPA) additional safeguards are in place. In short the COPPA rules:

Require commercial websites and online services that target children under 13 to obtain verifiable parental consent before collecting personal information from children. The rules apply to online services that target children or where the business knows that their users include children under the age of 13. New requirements broaden who must comply with the rules and strengthen the ability to limit the information that may be maintained.

When does this come into play?

The COPPA privacy requirements typically come into play with your children in the following situations:

	Social Media: Using Facebook accounts, Twitter, Tumblr, and others
	Gaming: Playing games that use the internet to allow kids to play video games together
	Mobile Apps: Downloading applications for ipads, Nooks, Kindles and smart phones
	On-line shopping: Shopping online; especially product purchases like itunes (MP3s) and ring tones.
	Texting: Using applications like "snap texting" and other communication tools that open up our children to fairly significant privacy challenges

What you need to know

	Become aware of the existence of the law. Your children should be required to get your ok prior to joining these services.
	The FTC is authorized to fine non-conforming companies up to $16,000 per violation for noncompliance.
	Review the COPPA regulations and remind violating suppliers that they must comply with this important privacy regulation.

Now that the federal Unified Estate and Gift Tax has a level of certainty in it, here are the updated figures for 2014.

Maximum Estate and Gift Tax rate 40% Inflation adjusted estate exclusion: $5.34 million Annual Gift Giving Exclusion: $14,000 ($28,000 per couple) Observations: Portability of an unused estate exclusion to a spouse is possible There is an allowed deduction to account for estate taxes paid to a state Use the annual gift giving exclusion as an estate planning tool for yourself and your heirs

So while you still can't take it with you, at least the federal government will let your survivors take more of it with them.

Here are 2013 rates for your reference as well.