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In This Issue
President's Message
Job Opportunity: Paraplanner
Outstanding Achievement Award
January 17th Program
Public Awareness Committee
American Taxpayer Relief Act of 2012
Upcoming Program Dates

January 17 


Valleyview, OH  44125

8:00 a.m.


Full breakfast buffet

8:15 a.m.


Program to follow 


February 21

Valleyview, OH  44125
8:00 a.m.
Full breakfast buffet
8:15 a.m.
Program to follow 

March 21

Valleyview, OH  44125
8:00 a.m.
Full breakfast buffet
8:15 a.m.
Program to follow

April 18
Valleyview, OH  44125

June/July/August No Programming 

Thanks to Our Partners  & Sponsors 
Platinum Partner: *Nationwide Financial

Gold Partners:
*Berson-Sokol Agency
*Charles Schwab Advisor Services

*Realty Capital Securities, LLC

Silver Partners: 
*American Funds
*Camelot Portfolios
*Cole Real Estate Investments
*Hylant Group
*Lord Abbett

*Ohio Tuition Trust
Security Benefit
*Security 1 Lending
*TD Ameritrade

*Trust Company of America
*Weitz Funds

If you would like to be a partner or a sponsor, please e-mail the FPA/NEO office at fpaneo@aol.com or call 440.899-5055 

Board of Directors 
Ken Paull, CFP

President Elect:
Adrienne Love, CFP

Kara Downing, CFP

Karen Bordonaro, CFP

Janice Cackowski, CFP
Laura Malone
Tina Myers, CPA, M.Tax
David Robertson, CFP
Douglas Robinson, CFP

Molly Balunek, CFP 
Join Our Mailing List
Job Opportunity

A growing regional wealth management and life planning company is searching for an experienced Paraplanner. The successful candidate will have experience in providing support to Financial Planners, including a working knowledge of retirement planning and cash flow management, tax planning & projections, estate planning and administration, charitable giving, education planning and employee benefits. You will be regularly interacting with high net worth clients with limited supervision while performing various financial planning, administrative and related clerical duties of a confidential nature. The ideal candidate must have a strong work ethic with the ability and willingness to learn quickly. They must also have strong administrative and communication skills with the ability to pay close attention to detail. A high level of proficiency in MS Office Suite is a necessity including use of MS Excel, PowerPoint, Word and Internet Explorer. Previous work experience in financial planning or wealth management is desired. Experience with accounting, tax planning, financial planning or portfolio management software is a plus. We offer an attractive salary and benefits package.


Email your introduction and resume to:



Attn: Human Resources

Milestone Anniversaries
10 Years
Paul Orchosky, CFP, CLU, ChFC, AIF  


5 Years   

Rebecca Tipton, CFP  


FPA/NEO January 2013 Newsletter
President's Message

Ken Paull, CFP


As we start 2013, and I think about my first message to our members, I promise not to use a certain five letter word that starts with a "c" and ends with an "f". I am sure we can all agree the media's excessive use of this word. Instead, I would like to mention the "Fiscal Future." The Fiscal Future is upon us, and it is what our clients are truly concerned about.


It is our responsibility to sift through the hype and put our clients' interests first. As professionals, we need to take action, stay educated, and help our clients stay focused on their goals. Our clients need us now more than ever to deliver our planning services in accordance with the FPA's Standard of Care: 

  • To put the client's best interests first;
  • To act with due care and in utmost good faith;
  • Do not mislead clients;
  • To provide full and fair disclosure of all material facts; and
  • To disclose and fairly manage all material conflicts of interest.

The FPA National Board of Directors has provided us with a Strategic Framework and the FPA's Strategic Directive:


"To be the recognized and unquestioned professional membership resource and advocate for CFP professionals by unapologetically embracing the concept of "one profession, one designation" as our sole business directive and policy filter."


"Speaking as One Voice" is our chapter's theme for 2013. It is encouraging to be surrounded by such a diverse, talented, and dedicated board of directors for the Northeast Ohio Chapter. We want to educate, motivate, energize, and unite our membership to embrace a common vision for 2013. Your board will be accessible and approachable, and we will continually look to you for suggestions on programming, pro-bono, educational opportunities, and sponsorships. In order to continue to be successful, the chapter needs your input to serve the entire membership better. If you are passionate about our profession and would like to volunteer on a committee, please contact me at 216-831-4900 or speak with one of our board members at our January 17th meeting.


            Here is to a healthy and successful 2013!

FPA/NEO Wins Outstanding Achievement Award


January 17, 2013 Breakfast Program


8001 Rockside Road

Valley View, OH  44125

8 am Registration

8:30 am Announcements with program to follow

11:00 am adjourn  


Erica E. McGregor, Counsel, Tucker Ellis LLP 
Susan L. Racey, Partner, Tucker Ellis LLP




We did not go over the fiscal cliff, so where are we?  First our speakers will review the provisions of the American Taxpayer Relief Act of 2012 governing federal estate, gift and generation-skipping transfer taxes and related income tax provisions. The impact of the repeal of the Ohio estate tax will also be discussed.


They will then focus on the practical impact of these federal and state tax law changes on clients and their estate plans.   


Cost:   $35 FPA/NEO Members  $60 Non-members
Click here to register on-line 



Public Awareness Committee   

by Jancie Cackowski


As a member of the FPA, you have the opportunity to be called upon by the media (indirectly through our chapter) to answer questions about our industry by becoming a part of our chapter's media relations team.  This opportunity allows you the possibility of being published in local and/or national publications. 


The goal of the media relations team is to deliver FPA news, messages, tools and resources, and to establish FPA as the authoritative resource in the financial planning community for the media, financial planning professionals and consumers.  


This is a great opportunity for you to represent both the national FPA and our local FPA chapter by educating the public, demonstrating our member's competencies and

increasing awareness of the FPA.  



Please note that you WILL NOT be called upon directly by the media.  The media directs their questions to the FPA and our chapter funnels those questions out to the media relations team to ask if you would like to respond to an inquiry.  You are under no obligation to respond to any or all of the inquiries.


If you have an interest in becoming an FPA member who is called upon for information and expertise on financial issues, please send an email to Janice Cackowski, Public Awareness Chair for the FPA Northeast Ohio Chapter at Janice@chapmanandchapman.com .

American Taxpayer Relief Act of 2012 extended the IRA charitable rollover provisions through December 31, 2013.  furthermore, along with any Qualified Charitable Distribution (QCD) made THIS MONTH counting as if it were made in 2012, any required or regular distributions that were taken from the IRA MONTH OF DECEMBER can be treated as a QCD if there is/was an offsetting charitable contribution.

How can you help your clients take advantage of the Charitable Rollover provisions for BOTH 2012 and 2013?
By Laura Malone, AEF

By contacting past IRA Rollover donors and those that may benefit and letting them know that this provision was part of the "Cliff" legislation. It may be a good time to see if they might be able to use this opportunity to further leverage 2012 or get a "jump start" on 2013. Please see the excerpt below from SEC. 208. Extension of Tax-Free Distributions from Individual Retirement Plans for Charitable Purposes in the American Taxpayer Relief Act of 2012.

SPECIAL RULES- For purposes of subsections (a)(6), (b)(3), and (d)(8) of section 408 of the Internal Revenue Code of 1986, at the election of the taxpayer (at such time and in such manner as prescribed by the Secretary of the Treasury)--

(A) any qualified charitable distribution made after December 31, 2012, and before February 1, 2013, shall be deemed to have been made on December 31, 2012, and

(B) any portion of a distribution from an individual retirement account to the taxpayer after November 30, 2012, and before January 1, 2013, may be treated as a qualified charitable distribution to the extent that--

(i) such portion is transferred in cash after the distribution to an organization described in section 408(d)(8)(B)(i) before February 1, 2013, and

(ii) such portion is part of a distribution that would meet the requirements of section 408(d)(8) but for the fact that the distribution was not transferred directly to an organization described in section 408(d)(8)(B)(i).

Who Could Benefit From a Charitable Rollover?

  • Clients whose charitable deductions are not itemized - IRA rollovers especially benefit the nearly two-thirds of Americans who do not itemize deductions and therefore do not receive a tax benefit for their charitable contributions.
  • Clients whose charitable gifts already exceed 50% - 30% limits of expected adjusted gross income for 2012 - This allows the donor to skip by these limits and give more.
  • Clients whose Social Security income is taxable - By avoiding the recognition of taxable income, the donor may have less of their Social Security income subject to income tax.
  • Residents of Ohio, Indiana, Michigan New Jersey, Massachusetts or West Virginia - These states provide no income tax break for charitable contributions. Consequently, they will save taxes by giving from their IRA instead of from their checking account.
  • Clients with Future Estate Tax implications - The combination of estate and income taxes on IRA assets can produce an effective tax rate of up to 80%. The Charitable IRA rollover exclusion gives individuals the opportunity to remove up to $100,000 of these assets from their estate with no tax consequences. Spouses can rollover up to $100,000 as well, if qualified.

Can donors make a qualified charitable rollover to a donor advised fund?

No. The IRS has excluded Donor Advised Funds from the Charitable IRA Rollover provisions. However, a donor can make distributions from the IRA in the traditional way, recognize the distribution as income, contribute those dollars to a Donor Advised Fund and calculate the charitable deduction in the normal way. The charitable deduction tends to offset the increase in taxes resulting from the traditional distribution, subject to annual Adjusted Gross Income (AGI) limits.  

Also, they can create a Designated Fund with American Endowment Foundation. In the designated funds, the donor specifies the charity or charities up front. These cannot be changed (as is the case in donor advised funds). We will distribute grant dollars to the specified charity or charities based on a spending policy, i.e. 5% of beginning of the year's balance. The donor can tell us when the grant process will start.

You may be interested in learning how clients and their advisors have partnered with AEF to create Designated Fund solutions like:

  • Scholarship Funds. Joan McGown wanted to establish a scholarship for graduates of the local public high school as a memorial to her deceased husband. Working with the School, Joan determined the criteria for applicant eligibility. The school reviews individual grant applications and identifies a student who best meets Joan's selection criteria. Each year AEF makes a distribution to the school, which, in turn, awards the scholarship to the student. The process is simple.
  • Donor Designated Funds. Joe Russert wants to support a local charity that is very important to him. The amount he intends to give would be a major portion the charity's annual budget. Joe is concerned about "spoiling them" with such a large outright contribution. Also, it may disrupt their ability to raise funds from other sources. He decided to establish a designated fund in his name with AEF that will make annual distributions to the charity through successive generations.
  • Anonymous Designated Funds. The Wilsons want to make a large IRA distribution to support specified favorite charities, but they don't want the charities or their neighbors to know it came from them. They decided to establish an anonymous fund with AEF that will make distributions to their designated charities over the next ten years.

To learn more about how to help your clients, please contact Laura Malone, CAP, Director of Gift Planning, AEF at 330-655-7552