The document provides information on 529 college savings plans and the benefits of starting to save for college early. It summarizes that 529 plans allow tax-free growth of savings and withdrawals if used for qualified education expenses. Contributions up to $14,000 per year per beneficiary are allowed without gift tax consequences. Starting to save early allows savings to grow through compounding over many years.

1. The Tucker-Fontana Group
of BB&T Scott & Stringfellow
4414 SW College Road, Suite 1450
Ocala, FL 34474
352-390-2825/855-506-0252
FAX 352-854-3303
www.TheTuckerFontanaGroup.BBTScottStringfellow.com
BBTScottStringfellow.com
J U N E 2 0 1 6
marketSHARE
marketDATA
quickSHARE
e market’s meteoric rise off the mid-February lows has slowed, but not before
the S&P 500 rebounded more than 15% at the recent peak. Higher oil prices,
surging commodities, sharply lower volatility and a softer U.S. dollar helped fuel
the fire. While equities understandably have settled, the pause did not interrupt the
ticking of the current bull market clock, which in early May surpassed 2,600 days in
duration, the second longest expansion in U.S. history. e path to claim the title is
a long one though: over 1,880 days to go to top the blitz that ended in 2000.
Emerging markets have been even better this year although these global “growth
engines” still lag developed market returns over the last year. In terms of style
performance, “value” has bested “growth” thus far in 2016 across all market cap
categories, yet the gap has been more dramatic among small caps where value has
outpaced by almost eight percentage points. And while high quality took a back seat
to low quality in more recent weeks, those characteristics were clear winners over
the last two years, a common result in periods of heightened (and current) macro
uncertainty.
Corporate profits are estimated to have declined at least -7% in the first quarter, the
fourth straight quarterly fall, according to Factset research. Still, some pundits have
alluded to a “better-than-expected” earnings season as a catalyst for the improved
market performance. Perhaps, but the estimate revision song contains a familiar
refrain: lower the bar and beat. Since January 1, Q1 estimates were revised down
nine percentage points to an -8% decline expectation by the end of March. Despite
the soggy earnings, market valuations are not overly expensive relative to history. e
S&P 500’s 2016 P/E is just a half-turn higher than the 30-year average, according to
consensus forecasts. For stock pickers, plenty of opportunities exist.
For fixed income markets, U.S. rates ticked up from February lows but all tranches
still remain below year end levels. e Fed continued to hem and haw over rate
trajectory and “seems” more hawkish, but market odds of a June increase are still
only 15% and just 30% for July. Speaking of increased uncertainty, U.S. election
headlines continue to claim the top spot on investors’ minds although if history is
any indication it should not add to investor nervousness. According to Goldman
Sachs research, the 12-month median total return for U.S. stocks following
presidential elections is 10%....for BOTH Democrat and Republican party winners.
e moral of the story? Focus on the opportunity provided by the “market of stocks”
rather than the daily, noisy gloom emanating from the “stock market.”
Source: Sterling Capital Management—5-18-16
Data as of 5-17-16
1
Source: Google Finance
2
Source: www.standardandpoors.com
3
Source: www.russell.com
4
Source: www.wilshire.com
Now is the time to schedule your
mid-year review. Please contact us
today for an appointment. Also, we
wish you a Happy Father’s Day and a
safe summer season.
Price YTD 1 Month 3 Months
Dow Jones 1
17,529 0.60% -2.05% 6.54%
S&P 500 2
2,047 0.16% -1.61% 6.25%
NASDAQ 1
4,715 -5.82% -4.51% 4.01%
Russell 2000 3
2,728 -3.36% -2.94% 8.56%
Wilshire 5000 4
21,001 0.10% -1.59% 6.98%

2. The information and statistics have been obtained from sources believed to be reliable, but we do not guarantee their accuracy or completeness. We do not undertake to advise the reader as to any changes in figures or our views.
marketSHARE was prepared by the BB&T Scott & Stringfellow Marketing Department for use by the firm’s financial advisors. Comments regarding tax implications are informational only. BB&T Scott & Stringfellow and its associates do
not provide tax advice. You should consult your individual tax professional before taking any action that may have tax consequences. Diversifying investments does not ensure against market loss and asset allocation cannot eliminate the
risk of fluctuating prices and uncertain returns. Past performance does not guarantee future results. 529 Plans are education savings plans operated by a state or educational institution designed to help families set aside funds for future
college costs. By investing in a 529 Plan outside your state of residence you may lose any state tax benefits. 529 Plans are subject to enrollment, maintenance, administration management fees and expenses. Please consider a Plan’s
investment objectives, risks, charges and expenses carefully before investing. This and other important information about 529 Plans are contained in the Plan’s disclosure document and prospectuses. Please read them and the Participant
Agreement carefully before you invest. Call your financial advisor for a prospectus. 529 Plans are subject to market risk and may be worth more or less than the original investment. BB&T Scott & Stringfellow is a division of BB&T Securities,
LLC, member FINRA/SIPC. BB&T Securities, LLC, is a wholly owned nonbank subsidiary of BB&T Corporation. Securities and insurance products or annuities sold, offered or recommended by BB&T Scott & Stringfellow are not a deposit,
not FDIC insured, not guaranteed by a bank, not insured by any federal government agency and may lose value.
J U N E 2 0 1 6
START SAVING TODAY…BE READY FOR COLLEGE
TOMORROW
Saving for a college education is an investment in the future. However, college
is expensive and the cost of attending will likely continue to rise. While
there are many sources of assistance to ease this burden, such as government
support, student aid programs, and scholarships, most parents cannot
eliminate the need to prepare for the cost of sending their children to college.
With the cost of a college education continuing to increase, it is important to
start saving early. One of the most attractive ways to do this is a 529 Higher
Education Savings Plan.
Created by Section 529 of the Internal Revenue Code, a 529 savings plan is
an education savings plan run by a state or an educational institution. ey
are designed specifically to save for higher education expenses. A 529 college
savings plan provides unique tax advantages not available with other college
savings options.
Benefits of Using a 529 Plan
¡
¡ Assets may be used for higher education, including undergraduate and
graduate school, community college and technical training. Tuition, fees,
room and board, books and supplies are all qualified higher education
expenses. Computers and certain computer-related expenses are considered
qualified expenses.
¡ You can contribute up to $14,000 a year ($28,000 for married couples
filing jointly) without gift-tax consequences. You may also invest $70,000
($140,000 for married couples filing jointly) at one time by taking
advantage of the accelerated gifting option.
¡ ere are no income limits on 529 plans. Also, you can make contributions
to both a savings plan and a Coverdell Education Savings Account
(Coverdell ESA) for the same beneficiary in the same calendar year.
¡ You can help save for anyone – child, grandchild, niece, nephew or even
friend. You may also change the beneficiary to another member of the
beneficiary’s family.
¡ You control the assets, so you determine the amount and timing of
withdrawals. e investment mix can be changed once a year and when the
beneficiary is changed.
You have many college savings options – that prospect can be overwhelming.
at is why, when it comes to investing for college, you’ll want the advice of
a professional. Contact us to customize a strategy that is appropriate for
your needs.
INVESTING EARLY MAKES SMART
INVESTING
You’ve heard the phrase, “ e early bird catches the
worm.” e same idea can be applied to investing.
e sooner you start an investment program, the
more likely you will achieve your financial goals.
e reason is simple: the sooner you invest,
the longer your money has time to compound.
Compounding is the money that you earn
on principal, plus the money that was earned
earlier. Wealthy investors have been relying on
compounding to build wealth for years, as it
enables assets to grow rapidly over time.
For example, if you invest $100 monthly in a
security that earns eight percent annually, you’d
have $18,012 in 10 years and $140,855 in
30 years. e more you invest, the greater the
potential for growth. If you add another $100 each
month to the same investment, you’d have $36,025
in 10 years and $281,710 in 30 years.
e power of investing early takes on even greater
significance when you invest in retirement plans,
such as IRAs. at’s because all earnings grow
tax-deferred for as long as they remain in the
plan. You pay taxes on earnings only when you
withdraw them, usually at retirement when you
will presumably be in a lower tax bracket.
How do you develop the discipline to invest
regularly? Develop a habit of setting money aside
for investing before you pay your monthly bills.
Once you get into this routine, you’ll see how
quickly you can accumulate wealth. In time, you
may even be encouraged to increase the amount
of money you invest regularly, such as when you
receive a salary increase or bonus.
Whether you want to achieve a comfortable
retirement, a college education for a child or
grandchild or build assets for a future purchase,
such as a first or second home, start an investment
plan today. If you have any questions, please call
our office today. We are always happy to help.
Earnings in the account can grow free from federal and state taxes.
Withdrawals are also free from federal tax and generally free from state
income tax if used for qualified higher education expenses.