aying “I do” means shifting the thought process from “mine” to “ours” in multiple aspects – including those pertaining to your finances.

While the financial implications of marriage may not have been in the forefront of your thoughts when you decided to tie the knot, they shouldn’t be overlooked when planning your new lives together.

Whether you’ve just started thinking about marriage or you’ve already made the trip down the aisle, all couples should have an open discussion of the following items to avoid potential roadblocks that may arise when your financial lives merge.

Account managementOne of the first questions newlyweds ask themselves is whether or not it makes sense to establish joint accounts. Having joint bank and credit card accounts may simplify payment for household expenses and keep the flow of funds central and easily accessed by both spouses. They can also make spouses feel emotionally closer and more like a couple. However, there are drawbacks to having shared accounts. When your spouse makes a withdrawal or purchase you don’t know about, it can make managing money and tracking account balances more difficult. Any debt or delinquencies of your spouse will inherently become yours as well. In addition, there’s little room for privacy when you share accounts – which isn’t necessarily bad - until one wants to surprise the other with a gift. One option for partners is to establish one or more joint accounts for household savings and expenses but keep separate accounts for personal use. Many states allow individual accounts to be set up with a payable on death (POD) registration that

Continued on page 2

Quarterly InsIghts

InsIde thIs Issue:

Money & Matrimony 1

Recent News 1

Market Comments 2

JFS Launches New Reporting System 3

Upcoming Events 4

Continued on page 3

April 2014

Recent news:Our recent spring seminars presented clients with timely discussion and insight into what’s happening in the financial markets today and how they can prepare for what’s to come.

JFS President and Founder, Bob Jazwinski, led the discussion for our March event, “2014: Five Years from the Crisis,” which highlighted the historical and current events that have shaped the landscape of financial markets today. Topics of the evening included market recovery from the 2009 economic crisis, benefits of portfolio volatility, and our expectations for future returns. To view the presentation, visit www.jfswa.com and click on the JFS News and Resources tab.

Our April seminar featured guest speaker, Kathy Jones, Fixed Income Strategist for Charles Schwab Center for Financial Research. Her presentation, “Fixed Income Markets in 2014: Strategies to Stay Ahead,” delivered a current snapshot and broad perspective of the fixed income environment. Kathy

will allow the account to be passed directly to your spouse without having to go through probate.

CreditYour credit scores don’t merge when you get married, but both are considered when applying for loans on purchases made together. While the partner with the lower credit score can drag the other’s down, the score of the higher earner is of particular importance. This is because lenders will generally make the spouse with the higher income the primary borrower. Before applying for any joint loans, be aware of both of your credit scores, and take any necessary steps to improve and protect them. You can each get free copies of your credit reports from the three major credit reporting agencies – Experian, Transunion, and Equifax. Make sure to carefully examine each credit report (they won’t necessarily contain the same information) and correct any errors that may be negatively impacting your score.

Estate planningGetting married is a good reason to create or update estate planning documents, which may include wills, durable powers of attorney, or health care directives. Beneficiary information on life insurance policies, retirement accounts and trusts should also be evaluated and updated as needed, especially if they still list an ex-spouse as the beneficiary. Having spouses listed as the beneficiary on your retirement accounts will give them the ability to roll the account(s) into their own IRA, giving them the potential to benefit longer from tax deferral.

S

Money & Matrimony: Navigating Your Financial Futures Together

Quarterly Insights, April 20142

MaRket coMMents Equity markets were volatile in the first quarter of 2014. Comparative indexes show Q1 2014 and full year 2013 performance as follows: S&P 500: 1.8% and 32.4%; Russell 2000: 1.1% and 38.8%; and MSCI EAFE: 0.8% and 23.3%. MSCI Emerging Markets (0.4%) and (2.3%). Bar-clays Capital Aggregate Bond index was up for the quarter at 1.8% and down for 2013 at (2.0%).

While the returns for 2014 to date look fairly flat, they belie the vola-tility we experienced. World markets were affected by a change in US Federal Reserve leadership to Janet Yellen, concerns over the viability of European economic recovery, slow-down in China’s growth, and most recently, the Russian takeover of Crimea, a part of the sovereign na-tion of Ukraine.

Over the past five years, the US has experienced a long, very slow expansion. 2014 started slowly in large part due to the severe weath-er. However, March appeared to be bouncing back with sales up, stron-ger job growth and the highest level of consumer confidence in six years. Overall, the recovery appears on track. Housing is still affordable, consumer spending has been helped by the wealth effect and government spending is flat to slightly up. Corpo-

rate earnings per share, as measured by the S&P 500, were at an all-time high in the last quarter of 2013 at $28.24/share, while profits as a share of GDP reached 10.2%, another high. On the other hand, leverage, the ratio of total debt to total equity, has averaged 171% since 1994 but is currently only at 104%; in other words, corporate borrowing is at a 20 year low. Virtually all valuation measures are at their 15 year aver-age, leading us to believe the US eq-uity markets are fairly valued.

Overseas, we believe Europe is un-dervalued and has room to grow. Unlike the US, Europe suffered a double dip recession and continues to dig out. We believe their equities will show stronger growth in the next several years as the EU reign of aus-terity is loosening and interest rates are down. Deflation continues to be a concern, and the EU is committed to taking action needed to reduce this risk. While US earnings per share are at all-time highs, those in the EU are 25% lower than in 2007 and have much room for growth.

Emerging markets were down in 2013 and continue to be down in 2014. However, relative to devel-oped markets, as measured by a comparison of forward price earn-ings ratios, they are the cheapest

Portfolios 3 Month 1 Year 3 Year 5 Year100% Stocks 1.2% 18.8% 10.4% 19.7%100% Bonds 1.8% -0.1% 3.75% 4.80%

75% Stocks/25% Bonds 1.4% 14.1% 8.7% 16.0%60% Stocks/40% Bonds 1.5% 11.2% 7.7% 13.7%50% Stocks/50% Bonds 1.5% 9.4% 7.1% 12.2%40% Stocks/60% Bonds 1.6% 7.5% 6.4% 10.8%25% Stocks/75% Bonds 1.7% 4.6% 5.4% 8.5%

The table summarizes returns from stocks and bonds by various asset allocations. Stocks include the following allocations: 42% S&P 500, 18% Russell 2000, and 40% MSCI All Cap World ex US. Bond returns are based on the Barclays Capital Aggregate Bond Index. Returns for 3 and 5 years are annualized. Past performance is no indication of future results.

Index returns for periods ending March 31, 2014

Market Comments

they have been in a decade. The world slowdown has had its effect, but demographically, emerging markets are likely to have stronger growth as time goes on. Histori-cally, countries with a higher per-centage of older citizens (over 64) grow the slowest while those with the lowest percentage have sig-nificantly faster economic growth. The percentages of older citizens in the US, Germany and Japan are 20%, 32% and 39%, respectively, while in Korea, India, Brazil, Mexico and China they are 13%, 8%, 11%, 10% and 12%. While growth may take some time, we believe emerging market investing will make a strong contribution to your returns.

We will continue to rebal-ance your portfolios where warranted to take advantage of these anticipated develop-ments in the equity markets. Bonds, especially short to in-termediate duration high qual-ity bonds, continue to have a place in portfolios to provide for income needs and to re-duce volatility, and we will continue to discuss your needs with you.

Please don’t hesitate to call us with your concerns and to continue planning for your fu-ture. You are our first priority, and we look forward to hear-ing from you. §

TaxesOnce you’re married, consider how your tax withholdings may need adjusted on w-4 forms. Spouses will also need to determine if they benefit more from filing jointly or separately – each option can make sense in different circumstances. Couples filing jointly generally enjoy lower tax rates on their combined income, but that doesn’t mean it’s the best option for you. For instance, if one spouse is self-employed and the other prefers to remain unaffiliated with the business, filing separately would make the most sense. Also, if one partner has outstanding payments owed to the IRS, the other may prefer to keep a separate filing status until the payments are cleared. Spouses can also pass an unlimited amount to each other without owing gift or estate taxes. Additionally, married partners benefit from having $500,000 instead of $250,000 worth of tax-free capital gains on the sale of a jointly owned primary residence.

New RisksAs with other major life events, insurance needs

should be reevaluated when you get married. Couples need to do a careful evaluation of their income needs and consider how they would get by if one or both spouses were faced with job loss. Stay-at-home spouses, whom are often overlooked for insurance needs, should have enough coverage to pay for the help to replace them if they were to pass away or become disabled.

New BenefitsWhile marriage may pose new risks, it also offers new benefits. If both partners are employed, you can potentially pick and choose among each other’s health insurance or benefit plans and select those that best suit your needs and save you the most money. Spousal benefits are also available through the Social Security Administration, even if one of you hasn’t worked enough to otherwise be eligible for benefits. §

Source: Forbes

“Today the greatest single source of wealth is between your ears.”

- Brian Tracy

April - Women in Leadership Development (WILD) ConferenceJFS Founder and Managing Principal, Bob Jazwinski, will deliver a timely economic update that will ad-dress the current state of economy and markets and how it affects your financial planning strategies. Dates and details coming soon!

May - Phoenix Award RecognitionAdvisors will extend invitations to clients that they feel will benefit most from the topic. If you have a specific interest in a topic, please let your advisor know so that we are sure to include you. In addition, you are welcome to bring a guest who would find the information helpful. We also welcome suggestions for future seminar topics, so we can continue to provide meaningful seminars.

Recent News, cont’d.

s we announced in our first quarter newsletter, we recently made a significant investment in portfolio

management software. The new technology allows us to improve efficiency which, in turn, enables our team to spend more time interacting with clients.

One of the most exciting features of the new reporting system is the ability to extract key data points from the software to use them for key decision making and represent that data in previously unavailable formats. We are truly excited to enhance the way clients interact with JFS both through use of the reports as well as the robust and interactive client portals, which will be available for client use on June 30.

Due to the new technology, the overall appearance of the reports has changed. While the overall format of the reports remains unchanged, enhancements such as the inclusion of a combined portfolio analysis page provide meaningful portfolio data. The combined portfolio analysis (as pictured in a sample report) incorporates asset allocation, net cumulative investment, and portfolio performance charts, to provide a quick, visual snapshot of clients’ total investments.

We have also uploaded a brief online demonstration of the new report format to our website, www.jfswa.com, under the News and Resources tab.

Additionally, your JFS service team remains available to walk you through your report and answer any remaining questions you may have. §

JFS Launches New, More Robust Reporting System for Clients

Quarterly Insights, April 2014

addressed how investors can find yield in a prolonged, low interest rate environment as well as how to protect themselves from rising interest rates. If you’re interested in obtaining additional information or presentation materials from this event, please contact your lead advisor.

We are pleased to announce that JFS Wealth Advisors has been selected to receive the Shenango Valley Chamber of Commerce Phoenix Award in the category of growth- large service. This award recognizes sales and employee growth in the retail/service field for companies operating in the Shenango Valley. We are honored to receive this recognition and are grateful to our clients, employees and community members who have helped our company achieve this growth over the years. JFS will formally receive the award at the Phoenix Awards Ceremony on May 22.

We are also excited to report that JFS Chief Operating Officer, Chief Compliance Officer, and Managing Principal, Laura Blaire, has been selected as a 2014 Mercer County ATHENA

Award nominee. The ATHENA Leadership Model identifies eight distinct attributes that are reflective of women’s contributions to leadership: authentic self, relationships, giving back, collaboration, courageous acts, learning, fierce advocacy, celebration and joy. Laura’s possession of these qualities makes her a true asset to our firm, and we are delighted to see her receive this nomination. For more information about the ATHENA Award and recognition ceremony on April 22, visit www.lawrencemercerathena.com.

JFS Cares: The JFS Charity Committee is pleased to report it is well on its way to meeting the annual fundraising goal for its 2014 campaign. This year’s campaign supports the American Cancer Society, a nationwide, community-based, voluntary health organization dedicated to eliminating cancer as a major health issue through research, education, advocacy, and service. We are looking forward to new and continued fundraising activities and events throughout the year to bring greater awareness and support to this worthy cause. §

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To advise JFS if you serve as an officer or director of a publicly traded company or if there is any change relative to your service as an officer or director of a publicly traded company. Unless JFS is advised to the contrary, we will assume that you do not serve in such a capacity.

Thank you to all of our clients for allowing JFS Wealth Advisors to serve your financial needs. We appreciate the opportunity.

JFS Clients - Please Remember:

JFS Insights, October 20134

Upcoming Events

JFS is a SEC registered, investment adviser with its principal place of business in the Commonwealth of Pennsylvania. JFS and its representatives are in compliance with the current registration require-ments imposed upon registered investment advisers by those states in which JFS maintains clients. JFS may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. This brochure is limited to the dissemination of general information pertaining to its investment advisory/management services. Any subsequent, direct communication by JFS with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospec-tive client resides. For information pertaining to the registration status of JFS, please contact JFS or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov). For additional information about JFS, including fees and services, send for our disclosure statement as set forth on Form ADV from JFS using the contact information herein. Please read the disclosure statement care-fully before you invest or send money.

A copy of the JFS Wealth Advisors’ privacy disclosure and Form ADV Part 2 are available upon request.

Use your smartphone to scan our QR code to take you directly to our website to learn more.

Phone: 724-962-3200

Fax: 724-962-4611

Toll Free: 1.877.745.1700

info@jfswa.com

www.jfswa.com

Relationships Built on Loyalty and Trust.

The mission of JFS Wealth Advisors is to foster lifetime relationships with individuals, families, and organizations, assisting them with meeting life’s challenges and financial goals. Please contact our office directly if there is any change in your financial

condition or investment objectives. For a full list of services, staff members, and other items of interest, please visit our website.

1479 N. Hermitage RoadHermitage, PA 16148

April - Making Your Business Work for You in RetirementIf you’re a business owner or partner, it’s crucial to recognize the value your firm possesses and how it can continue to benefit you well into retirement years. Simply closing the doors and walking away could potentially leave you missing out on a tremendous opportunity to maximize the company’s value over time. JFS Wealth Advisors’ Managing Principal and Chief Financial Officer, Janet Earle, and Retirement Plan Specialist, Deb Stiger, will discuss the steps in creating a succession plan - whether it’s a partner buyout, merger, or acquisition - as well as investment options that will keep your money working for you. This event will be a part of the Women in Leadership Development (WILD) Conference on Wednesday, April 30 at Gannon University in Erie, PA.

May - Phoenix AwardsIndividuals, businesses and organizations within the Shenango Valley will be honored for dis-tinguished achievements in the following categories: new business startup, entrepreneurship, innovation, growth in large/small manufacturing, growth in large/small service, non-profit ser-vice and facility beautification. This event will be held on Thursday, May 22 at the Corinthian in Sharon, PA.

Quarterly Insights, April 20144

We encourage you to stay up to date on current topics of interest by following us on Twitter ‘@JFSWealth’, and connect with our team on our LinkedIn and Facebook pages.