This document is a newsletter from August 2005 from Compass Financial Services. It provides updates on recent events held for clients, including a trip to Summerset Winery and a ladies luncheon. It also previews upcoming planned events, such as a wine tasting and cooking classes. The newsletter aims to foster community and engagement among clients while promoting the services of Compass Financial.

1. August 2005
The NavigaTor Financial Advice for the Adventures of LIfe
F
Life explained by a Greek
inancial advisors sometimes lose sight of the big
picture. After analyzing quarterly returns, asset
allocation mixes and the latest changes - IRA dis-
tribution requirements, it’s easy to assume the sun rises Kurtis Pearson, C.F.P.
kurtis.pearson@lpl.com
and sets in numbers. We want to be different. We need to
do good work with all that financial stuff, but at the end
of the day, it’s what you need the money to do for you
and your family that really matters. This short story says
it best. Thanks to Nancy in our office for sharing this
with all of us.
“Twenty, perhaps
- Kurtis Pearson, C.F.P.
Steve Conard
twenty-five years,” re- Financial Consultant
A boat docked in a tiny Greek village. An American plied the American. steve.conard@lpl.com
tourist complimented the Greek fisherman on the qual- “And after that?
ity of his fish and asked how long it took him to catch Afterwards?”
them. That’s when it gets
“Not very long,” answered the Greek. really interesting,”
“But then, why didn’t you stay out longer and catch answered the American,
more?” asked the American. The Greek explained that laughing. When your Michele Bjorkgren
his small catch was sufficient to meet his needs and those business gets really big, Director of Client Services
of his family. you can start selling michele.bjorkgren@lpl.com
The American asked, “But what do you do with the stocks and make
rest of your time?” millions!”
“I sleep late, fish a little, play with my children, and “Millions? Really?
take a siesta with my wife. In the evenings I go into the And after that?”
village to see my friends, dance a little, play the bou- “After that you’ll
zouki, and sing a few songs. I have a full life.” be able to retire, live in Nancy Economos
The American interrupted, “I have an MBA from a tiny village near the Compliance Adminisrator
Harvard and I can help you. You should start by fishing coast, sleep late, play nancy.economos@lpl.com
longer every day. You can then sell the extra fish you with your grandchildren,
catch. With the revenue, you can buy a bigger boat. With catch a few fish, take a
the extra money the larger boat will bring, you can buy siesta with your wife,
a second one and a third one and so on until you have an and spend your evenings
entire fleet of trawlers. singing, dancing and
Instead of selling your fish to a middleman, you can playing the bouzouki Julie Greer
negotiate directly with the processing plants and maybe with your friends. Sales Assistant
even open your own plant. You can then leave this little julie.greer@lpl.com
village and move to Athens, Los Angeles or even New
COMPASS
York City! From there you can direct your huge enter-
prise.”
“How long would that take?” asked the Greek.
FINANCIAL SERVICES

2. Kurtis Pearson
appears regularly on KCCI TV.
What is a Strategic Alliance
A strategic alliance is a business professional
that we recommend to our clients. There are many
professional services that are complimentary to
financial planning. Some of our alliances include
Gail Hilsabeck, Benefit Source, Inc. - 453-9462
Compass (Health Insurance Specialists), Steve Baker, CPA
- 285-5546 (Accounting and Tax Services), Jason
Kaiman, Commercial Federal Bank - 440-7444
Strategic Alliances (Mortgage Loan Specialist), Brian Cole, Brooks
Lussem Insurance - 243-4289 (Auto and Hom-
eowners Insurance), Greg France, Betts Lexus -
253-9900.
Planning Tip
New rules regarding IRA’s
This rule may be of interest to people in their
Will you need the required withdrawals from an
70s and older who don’t need the IRA income
individual retirement account to cover living expenses
and who’d prefer leaving the money to grow tax
once you retire? If the answer is “no,” then you may
deferred for the benefit of their heirs rather than
be interested in a new rule passed by the Internal Rev-
drawing it down through required minimum dis-
enue Service that makes it easier for traditional Indi-
tributions. Keep in mind, however, one of the
vidual Retirement Account (IRA) owners to convert
bigger drawbacks to converting from a regular
to a Roth IRA and thereby avoid mandetory distribu-
IRA to a Roth IRA is the up-front tax payment
tions altogether.
that will be due on the money being converted.
The rule, which went into effect January 1, 2005,
If you are doing a little forward planning and
states that individuals who have reached age 70 1/2
like the idea of no required minimum distribu-
and are already taking required minimum distributions
tions, be sure you understand how the Roth IRA
(RMDs) from a traditional IRA no longer have to in-
— and a Roth conversion — might affect you.
clude RMDs when computing their modified adjusted
As with any major financial decision, care-
gross income (MAGI) – which is your taxable income
ful consultation with your tax and financial advi-
less any amounts being converted from an IRA to a
sors is a good idea before you make your choice.
Roth IRA.
In addition to helping you with calculations and
Why is this new rule significant? A conversion
projections, your advisors are likely to understand
isn’t allowed if your MAGI is greater than $100,000.
how tax-law changes may affect your retirement
This threshold is the same for all taxpayers regardless
investments. Remember, your retirement could
of their filing status. Because of this limitation, those
last 20 years or more. How you live tomorrow
who were taking RMDs from their traditional IRAs
could depend on the choices you make today.
were finding that those distributions were pushing
them over the $100,000 limitation and were then pro-
hibited from converting those funds to the Roth IRA.
COMPASS
Excluding IRA income from an individual’s
MAGI enhances the possibility that more retirees will
meet the $100,000 eligibility threshold for converting
FINANCIAL SERVICES
to a Roth IRA.

3. Compass Financial clients
enjoyed a day at Summerset Winery
Brown Bag & Books!
Thursday, July 7
As a team at Compass, we are reading togeth-
er; we each take a turn to select an author/title
and the group reads and discusses the story at our
Summer 2005
weekly staff meetings. Brown Bag and Books
was created with this in mind. We wanted to share
with our avid reading clients the type of literature
Client Events
we have been enjoying. This event was well re-
ceived. Lunch was provided by Palmers. Ray
Vignovich was our guest and offered insight and
an update on the West Des Moines Library. Cli-
ents who attended shared some of their favorite
book titles; we also received emails from clients their favorite wine compliments of Compass Financial!
who could not attend, sharing their recommenda- For more information regarding Summerset Winery log
tions. Here are some of the favorites: onto their website at www.summersetwine.com!
“Nickel & Dimed: On (Not) Getting By In America”
Gilded Emporium
by Barbara Ehrenreich
Thursday, August 4
“My Sisters Keeper” by Jodi Picoult
Girls Rock!!! Michele, Nancy and Julie hosted
“Truman” by David McCullough
a luncheon for ladies only at the Gilded Emporium,
“The March of Folly – From Troy to Vietnam”
by Barbara Wertheim Tuchman owned and operated by Aubrey Dunbar of Adel. We en-
“Devil In The White City” by Erik Larson joyed the company, the food THE DESSERTS!! and the
“The Road Less Traveled” shops on the square!
by M. Scott Peck, MD
“Captivating – Unveiling The Mystery of a Woman’s
WDM Chamber Business Before
“Soul” by John & Staci Eldredge
“The Wedding” by Nicholas Sparks Breakfast at Compass Financial!
Tuesday, August 23
This event was a huge success.... sponsored by the
Summerset Winery
West Des Moines Chamber it is designed to showcase
Sunday, July 17
area businesses and allow folks to meet Chamber mem-
Thanks to Ron and Linda, owners of The
bers. We opened this event up to our clients and we
Summerset Inn and Winery in Indianola for
were pleased with the response. Greg France, Sales-
hosting such a great event. Every Sunday dur-
man from Betts Auto Campus was our spotlight guest.
ing the summer, the winery provides live music
He brought 2 LEXUS vehicles for clients to view and
and wine tasting. Compass Financial clients met
test drive. The door prize given away was three pre-sea-
there for an afternoon of relaxation, great music
son Kansas City Chiefs tickets, plus a parking pass! Go
and of course WINE TASTING! It was HOT, but
Chiefs!
it was a great time. Each of our guests enjoyed
Upcoming Events:
Thursday, September 22 Thursday, December 8
Compass Financial’s Third Annual Wine Compass Financial’s Holiday Open House
Tasting Event at Jester Park.
Thursday, October 20
Watch Your Mail or Email for details on these events
Gourmet Cooking Classes at Des Moines
– Thanks for your business!!
Golf and Country Club.