In this issue:
	Our question of the quarter: Year-End Tax Tips Charitable Giving - Year Round Holiday Client Celebration From Angela Thomson, CFP.

Year-End Tax Tips

It is time for year-end tax planning and there are several opportunities for individuals and businesses. If you are saving for college for the children, and are a resident of Rhode Island, consider the "529 Plans" as a vehicle for those savings. With a maximum adjustment of $1,000 from income, you could save up to $99 on your Rhode Island tax bill, representing up to an annualized 9.9% return on your initial investment. Also, remember, while each person can give any other person $11,000 each year gift tax free, there is an unlimited amount of gifting that is allowed by statute for a qualified transfer directly to an educational organization described in IRC section 170(b)(1)(A)(ii) for the education or training of giftee. Time to talk to those grandparents! Taxpayers who report small businesses on their tax return will be able to defer more of their income using one of the various types of plans available (i.e. Simple, SEP, etc.) Depending on the plan selected, there are various amounts of contributions that could be paid to each plan and deducted from your income. Also, do not forget to support charities. It is an excellent way to give back to people who need a little extra and increase your amount of itemized deductions. An often-overlooked deduction is the charitable contributions you make when donating non-cash items to various charities. Examples include, but are not limited to, the donation of a car to the American Lung Association, a piece of Artwork to your local Rotary Club, or clothing to the Salvation Army. Have a happy, healthy, and now wealthier new year. Many thanks to Rob Gessman, CPA, MST at Gessman, Tragar & Co., Ltd. for providing us this year-end information. Question regarding specific tax questions can be directed to Rob at 401.943.7000. _______________________________________________ _______________________________________________

Charitable Giving - Year Round

As Rob alluded to, take advantage of non-cash donations by year-end, but don't forget there are many charities that accept year-round gifts. One such charity is The First Step Program. This program was created by the DCYF Youth Advisory Board to help teens in transition. Once a child turns 18, they are no longer wards of the state and need to establish themselves in apartments or dorms. Getting started for these young people is often difficult. They don't have parents' basements or attics to raid, in order to furnish an apartment with an old sofa, linens, dishes or small appliances. This is a great way to get rid of "stuff" occupying space in your home and provide some basic household items to young people that have no family to rely on. For further information on this program and how to donate items contact Kathi Crowe at 401.528.3790, with the RI Foster Family Parents Association. _______________________________________________ _______________________________________________

Holiday Client Celebration

Save The Date Saturday, December 13th from 7:00 to 10:00 p.m. Coastal Financial Planning, Inc. will be hosting its annual client appreciation event. Please contact us as soon as convenient and let me know if you will be attending. I am looking forward to seeing you all and if you have guests that you would like to introduce to me and my company's services, please bring them along. _______________________________________________ _______________________________________________ Reminder - Changes for 2004 Coastal Financial Planning, Inc. will be changing its portfolio mangement arangements for new clients starting on January 1st, 2004. Beginning next year, our portfolio minimums for active asset management will increase to $100,000. We will continue to provide services for existing clients with smaller balances. New clients that do not meet our minimums will be encouraged to establish electronic accounts and utilize our services on an hourly basis to facilitate their planning and investing process. I hope you have all been pleased with the service and the success you have experinced within your portfolios this year, as well as the advice and guidance I have provided you throughout the year. If you know anyone who could benefit from my services, please offer my name as a financial source.

From Angela Thomson, CFP.

Your planner in the news. Angela was recently quoted in November's Providence Journal on the mutual fund scandals that have been surfacing. The article focused on what you should do with your money going forward, as well as the fiduciary responsibilities employers have with the plans they provide their employees. Angela Thomson is the founder of Coastal Financial Planning. She is a graduate of Bryant College. She completed her CFP® course work in conjunction with Northeastern University, and is a CFP® licensee. Additionally, she is a registered investment advisor. She serves as an adjunct professor at Bryant College teaching the CFP® Program. Angela Thomson serves as an officer for the Financial Planning Association of Rhode Island. She also volunteers as a Money Mentor, working in conjunction with the Commonwealth of Massachusetts Treasurers office and also with the Rhode Island Chapter of the Financial Planning Association. Coastal Financial Planning is located at 13 East Butterfly Way, Lincoln, RI 02865.