New Retirement Plan Limits for 2013

The 2013 retirement plan contribution limits have been announced. Whether your retirement is around the corner or a long way off, now is the time to start planning and thinking about how you might be able to take advantage of next year's higher retirement plan contribution limits!

2013 Retirement Contribution Plan Limits

$17,500	Employee 401(k) and 403(b) elective deferrals, an increase of $500.
$5,500	Catch-up elective deferrals if age 50 or older—no change.
$51,000	Annual defined contribution plan limit, up $1,000.
$255,000	Annual compensation limit for defined contributions plans, up $5,000.
$115,000	Highly compensated employee threshold.
$12,000	SIMPLE plan deferral, up $500.
$113,700	Social Security tax wage base, up $3,600.

If these terms and concepts are Greek to you, it's time to consult your independent, fee-only financial planner! He or she can help you create a plan that takes full advantage of the retirement contribution options available to you.

About Bruce J. Berno, CFP^®
Bruce J. Berno, CFP^® is the founder of Berno Financial Management, Inc. a fee-only comprehensive personal financial planning and investment advisory firm headquartered in Cincinnati, Ohio. Since 1993, Berno Financial Management has been helping individuals and families achieve financial peace of mind. For more information about Berno Financial Management, visit http://www.bernofinmgt.com.

Alzheimer's Disease, Long-Term Care and More: Plan for the Unexpected in November

For you trivia lovers, November is:

• Alzheimer's Disease Awareness Month
• Long-Term Care Awareness Month
• National Family Caregivers Month

Certainly, no one really wants to dwell on Alzheimer's disease, long-term care or family caregiving, especially around the holidays. Unfortunately, while we don't want to think about these topics, we should.

You or someone you know may have had personal experience with one or more of these issues. These tough situations involve both financial and psychological considerations. Hurricane Sandy should remind us that advance planning is always beneficial and no planning at all leaves people most at risk.

So ask yourself:

• Have you and your siblings had a discussion about who would help take care of Mom or Dad if they develop Alzheimer's disease?
• Can you identify the most common early symptoms of Alzheimer's disease?
• Have you had discussions with your parents about how they would like to be cared for if and when the day comes when they can't live independently?
• Have you educated yourself about long-term care insurance? Do you know how benefits are triggered, what services are covered and what the costs are?
• Whether or not you choose to buy insurance, do you know the local care providers that you could call when you need advice?
• If you have a family member or friend who is a caregiver, is there anything you can do to help?

While we would rather feast on turkey and watch football at Thanksgiving, starting a conversation while the family is together may make you all more thankful in the long run.

About Bruce J. Berno, CFP^®
Bruce J. Berno, CFP^® is the founder of Berno Financial Management, Inc. a fee-only comprehensive personal financial planning and investment advisory firm headquartered in Cincinnati, Ohio. Since 1993, Berno Financial Management has been helping individuals and families achieve financial peace of mind. For more information about Berno Financial Management, visit http://www.bernofinmgt.com.