Social Security is a lot like the ozone layer—we all know it’s there now and we count on it being there in the future. Yet most people don’t know much more about it than that. Here’s a short list of interesting facts about Social Security.

1)    Social Security benefits do not automatically start coming in the mail the first day of normal retirement age. They must be applied for. The easiest way is to set up an appointment with the local Social Security office or call 1-800-772-1213.

2)    To get an official statement of all the earnings recorded in your Social Security account, an estimate of your current disability and death benefits and an estimate of future retirement benefits, fill out Form #7004 Request for Social Security Statement, obtainable at your local office.

3)    If you do not find and correct errors in your Social Security record within three years, they become part of your permanent record. Therefore, you might want to check on them every three years or so.

4)    You can work during retirement, but if you earn too much it will reduce the size of the benefits you are receiving from age 62 up to your normal retirement age. The limits on such earnings are currently $14,160 for 2009. Benefits are reduced by $1 for every $2 that you earn over this amount. After you attain your normal retirement age, you may work as much as you want with no reduction in benefits, although they may become taxable if you earn too much.

5)    You can increase the size of your retirement benefit by delaying collecting your benefits and by remaining on the job past full retirement age. This higher benefit comes from extra earnings toward your account and a credit awarded for this patience, ranging from 3 percent to 8 percent of your benefit depending on your date of birth.

6)    For people born after 1937, normal retirement age will increase. For example, if you were born in 1940, full retirement age is 65 and 6 months; born in 1950, it is 66. Anybody born in 1960 or later will be eligible at age 67.

7)    Social Security disability benefits do not continue past normal retirement age. The month before you attain normal retirement age the disability benefits are automatically converted to retirement benefits.

8)    There is a limit to the amount of benefits that can be paid on each Social Security record called the Maximum Family Benefit, generally around 150 to 180 percent of the worker’s benefit. If this limit is exceeded, the family benefits are reduced.

9)    Ex-spouses, widows and divorced widows may all be eligible for benefits on a spouse’s record. Provided the requirements are met, they may even all be collecting on the same worker’s record.

10)    There are two Social Security trust funds: one used to finance retirement and survivor’s benefits and the other used to finance the disability program. Money not used to pay current benefits is invested only in U. S. Government Treasury bonds.

Social Security is a significant resource for many retired individuals. Spend some time with your financial planner learning about what part these benefits should play in your retirement planning future.

This material was prepared by Raymond James for use by Dan L. Bay of Raymond James Financial Services, Inc. Member FINRA/SIPC).

Dan L. Bay is a vice president with Tri Counties Bank and branch manager with Raymond James Financial Services located at 780 Mangrove Ave., Chico. Dan can be contacted at 530-898-0415 or toll free 1-866-822-4753. Tri Counties Bank Investment Services is a department of Tri Counties Bank. Securities and investment advisory services are offered exclusively through Raymond James Financial Services, Inc., Member FINRA/SIPC, an independent broker/dealer, and are: ●NOT FDIC insured ●NOT GUARANTEED by Tri Counties Bank or any other federal government agency. ●Subject to risk and may lose value.

By Dan L. Bay

By Scott Camp

In almost any area of activity there’s a time when someone says, “We’ve got to get back to the basics if we’re going to make it.” This is said with a knowing, authoritative voice, and everyone else says, “Yes, that’s right!” as though some particularly intelligent thing had just been said. What usually happens is…
• People keep doing what they’ve been doing; only they do it with more vigor and energy
• Or…they do things they haven’t been doing (not all of which are the right things)—at least for a little while. Then they fall back into their normal behaviors.

So what are “The Basics” in business? Well, every business has its own. Retail is different from manufacturing, which is different from nonprofits, which is different from…well, you get the idea. Here are some universal “Basics”:

FIRST IMPRESSIONS ARE IMPORTANT!
• What does your parking lot look like?
• If you have windows, are they clean?
• Does your front door have peeling, sun-faded decals from every organization or credit card you work with?
• If you have a receptionist, make sure he/she is well groomed, well dressed and knows how to greet people politely and quickly.
• Have you ever called your business on the phone and really listened to what the person answering the phone says?
• What about your reception area? Is it the storage area for your bottled water and extra supplies or other “stuff”?
• If there’s a help-yourself coffee or refreshment area, is it neat, orderly and complete?
• Is there a restroom available to customers? Does someone have the responsibility to check it regularly throughout the day?

WHAT ABOUT YOUR COMPETITORS?
• You should be “shopping” your competitors regularly—at least once a quarter.
• If you have salespeople, have them do the shopping. You should do it at least once a year yourself. Sometimes you can do this over the phone. Other times you may have to visit their location.
• What is it you want to know when you shop them?
o How do their prices compare to yours on similar products?
o Will they negotiate prices if pushed?
o How quickly can they deliver?
o What do they say about you, and other competitors, when you tell their salesperson you’re going to look around at XYZ?
o Can you learn anything from them that they are doing better than you are?

MARKETING IS AN INVESTMENT, NOT AN EXPENSE.
• It is easier to get more revenue from people with whom you’re already doing business than it is to go out and get new business.
o Do you have a current customer list in a usable database? If not, why not?
o If so, how often do you “attack” it with new messages, new products, reduced prices, incentives to come in, rewards for shopping with you or for recommending friends of theirs who could be customers?
• Do you have ways to measure the effectiveness of the marketing you do?
o When a media rep wants your business, tell them to figure out how you can measure the effectiveness of what they’re offering, and if they can’t do that, find something else that can be measured.
o Once you know what’s working, take money away from what isn’t and increase your investment in what is.
o When media reps offer big discounts for long-term advertising commitments, give them an alternative proposal…“ I won’t make a long-term commitment, but if what I do works and I keep renewing my ads with you, then I want a retroactive discount when my total investment reaches what the long-term commitment would have been.” If they won’t do that, find another medium.

People may say, “This is all old stuff. There’s nothing new here!”

EXACTIMUNDO…That’s why it’s called getting “Back to the Basics.” The “Basics” are called the “Basics” for a reason.

Scott Camp consults with the Redding Chamber of Commerce on marketing and political issues and has a private business consulting practice. He has more than 25 years experience in retail, manufacturing and advertising. He can be reached at 530-736-1181 or e-mail to: scott.camp@sbcglobal.net.

By Dan L. Bay

Market uncertainty rises every time the Dow Jones Industrial Average (an unmanaged index of 30 widely held stocks) takes off on a volatile ride. Investors wonder if we’re facing a downturn or bear market. I know some clients are worried, afraid that if they don’t sell now they’ll lose more money; yet if they do sell, they might miss a rebound. The only certain thing about volatile markets is that they are uncertain.

Fortunately, there is now a way to remain invested in equities while protecting the future income on an existing retirement portfolio. By simply shifting some assets into a variable annuity with a living benefit, such as a Guaranteed Minimum Withdrawal Benefit (GMWB), you can assure yourself retirement income from a known minimum investment—and the amount may be at least twice the amount of your investment.

When you add a GMWB to a variable annuity, the provider tracks a separate “income account” alongside your regular account. The income account is guaranteed to grow at a rate of 5 percent to 7 percent per annum for at least 10 years (no withdrawals allowed ), and it can be tapped to provide a lifetime income equal to 5 percent of its value at the time the income begins. Generally, you have to be at least 59½ to receive lifetime income.

The graph above shows how this concept can work in an extremely poor market. Although the account value shows virtually no growth over the decade shown, its income account grew at 7 percent per year. In any year, you have the option of receiving 5 percent of the income account balance for life.

However, only the account value is available for lump sum withdrawal, and withdrawals over the 5 percent allowed by the GMWB will negatively impact the benefit.

Of course, such a low return over almost 10 years is very unlikely. But suppose this concept was put to the test in a period similar to 1997–2006, based on the performance of the S&P 500? There were strong gains initially, then a three-year bear market followed by

four strong years. You may have seen little progress overall during this 10-year period. But look at the graph below to see how the “income account” works along with the regular account to capture gains during the up years while still growing in the down years.

From 1997 to 1999, the regular account grows faster than 7 percent per year. Therefore, the insurance company increases the “income account” to match the regular account. Each time the “income account” increases (the industry calls it a “step up”), the insurance company compounds the 7 percent on the basis of this higher amount, so any market gains are captured. When the market goes south, as it did from 2000 to 2002, the “income account” continues to grow at 7 percent. Although the market recovered nicely from 2003 through 2006, you can see the regular account is still well below the income account. At this point you can: 1) choose to receive the annuity account value, 2) begin to receive 5 percent income or 3) allow both accounts to continue to grow (you should be aware that some products will stop compounding the 7 percent after 10 years).

Dan L. Bay is a vice president with Tri Counties Bank and branch manager with Raymond James Financial Services located at 780 Mangrove Ave. in Chico. In 2007, Dan was recognized as one of the top 50 bank financial advisors in the country by Bank Investment Consultant magazine, based on production-to-retail-deposit ratio. Dan has been a member of the Raymond James Advisory Counsel since 2002 and has been awarded to the Leaders Counsel in 2002, 2003, 2005, 2006 and 2007(based on production). Dan can be contacted at 530-898-0415 or toll free 1-866-822-4753. Tri Counties Bank Investment Services is a department of Tri Counties Bank and both are independent of Raymond James Financial Services, Inc. Securities and investment advisory services are offered through Raymond James Financial Services, Inc., Member FINRA/SIPC, an independent broker/dealer, and are: ●NOT FDIC insured ●NOT GUARANTEED by Tri Counties Bank or any other federal government agency. ●Subject to risk and may lose value.

Investors should carefully consider the investment objectives, risks, charges and expenses of variable annuities carefully before investing. The prospectus contains this and other important information. Prospectuses for both the variable annuity contract and the underlying funds are available from my office and should be read carefully before investing.
Variable Annuities are long-term investment alternatives designed for retirement purposes and are subject to market fluctuation, investment risk and possible loss of principal. Withdrawals of taxable amounts are subject to income tax and if made prior to age 59½, may be subject to a 10 percent federal tax penalty.
All guarantees are based on the claims paying ability of the issuing company. Guarantees do not apply to the investment performance or safety of the underlying sub-accounts in the variable annuity. Past performance is no guarantee of future results. The selection of additional protection features, options or riders will result in higher variable annuity charges.