Focusing on What You Can Control

Contributed by: Josh Bitel, CFP®

May is Mental Health Awareness Month, and as we all know, managing stress can go a long way in improving mental health. Personally, I have always been a bit of a “worry wart” and often have to remind myself not to sweat the small stuff and focus on what I can control. And of course, as a financial planner, I find this very easy to relate to investing and saving for retirement! Below is a graphic from J.P. Morgan that I have shared many times with clients. Just as we try to do in our personal lives, managing what we can control and not worrying about other factors can go a long way in relieving some of the stress that comes with saving for retirement.  

The major area that we as investors often become fixated on (and rightfully so!) is market returns. Ironically, as the chart shows, this is an area we have no control over. The same goes for policies surrounding taxation, savings, and benefits. As you can see, employment and longevity are things we do have some control over by investing in our own human capital and our health. In my opinion, the areas that we have total control over—saving vs. spending and asset allocation and location—are what we need to focus on. We try to have clients focus on consistent and prudent saving, living within (or ideally, below) their means, and maintaining a proper mix of stocks and bonds within their portfolio. Over the course of 35+ years of helping clients achieve their financial goals, The Center has realized that those two areas are the largest contributors to a successful financial plan. 

With so many uncertainties in the world we live in that can impact the market, it is always a timely reminder to focus on the areas we have control over and make sure we get those right. If we do, the other things that we might be stressing over will potentially fall into place. If you need help focusing on the areas of your financial well-being that you CAN control, give us a call! We are always happy to help.

Josh Bitel, CFP® is a CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® He conducts financial planning analysis for clients and has a special interest in retirement income analysis.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Josh Bitel, CFP® and not necessarily those of Raymond James.

Tips to Help You Achieve Your Financial Goals

Contributed by: Kelsey Arvai, MBA

We hope your 2022 is off to a great start! As we all know, the New Year is an opportune time to reset and reevaluate your goals. With this in mind, we have come up with some simple yet effective strategies to position yourself for a prosperous year ahead.

Automate Savings and Debt Reduction

Establishing and maintaining a positive cash flow is a top-tier priority for your financial health. Automation is key to being efficient and effective while working toward your financial goals. Prioritizing your savings contribution through automation helps hedge against the temptation to spend the funds elsewhere. Additionally, utilizing automatic payments for your credit card could help your credit score if the time the payment happens is before your due date. After establishing an emergency fund through your automated savings, you might consider directing excess cash to your retirement and health savings plans.

Max Out Your 401(k) and Health Savings Account (HSA)

The beginning of the year is a great time to review your 401(k) and HSA contributions. In doing so, you can ensure that you are maximizing your benefits and taking advantage of increased deferral limits for 2022. 401(k), 403(b), and most 457 plan contribution limits have been bumped up to $20,500 for elective employee deferral.

HSA contribution limits have also been increased to a maximum of $3,650 for individuals and $7,300 for family coverage. It is estimated that couples retiring today will face $200,000-$300,000 of out-of-pocket medical expenses over the course of their retirement years. HSA balances can build and grow over time, and these accounts can be used to offset healthcare costs in retirement.

Plan for Charitable Giving

The beginning of the year is also a great time to determine your charitable goals and budget for the year ahead. We have written extensively on how to best pick a charity, so if you are unsure of which causes or organizations you would like to support, these blogs may be helpful!

How to Pick a Charity…During a Pandemic Part 1: Important Documents

How to Pick a Charity…During a Pandemic Part 2: Commitment to the Mission

How to Pick a Charity…During a Pandemic Part 3: Resources

Invest in Your Emotional and Physical Well-Being

As you take stock of your financial health this year, carving out time for your physical health is equally paramount. There is a connection between health and wealth, and each should be reviewed by a professional, at least annually.

Reach Out to Your Financial Advisor 

Working with your advisor on an ongoing basis can provide you support to keep you on track while you are determining and working towards financial goals. If you ever have any questions, please reach out to us. We are always happy to help!

Kelsey Arvai, MBA is an Associate Financial Planner at Center for Financial Planning, Inc.® She facilitates back office functions for clients.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Kelsey Arvai, MBA and not necessarily those of Raymond James.

The Center Feels Honored to be Considered One of the Healthiest in the State

Contributed by: Gerri Harmer

The room was buzzing all night. We felt blessed to be invited to the Governor’s Fitness Award Gala and very humbled by our fellow nominees. We were excited to attend as one of the three nominees in the Healthy Workplace – small business category.

Al Kaline and Senator Stabenow were honored for the Vern Seefeldt Lifetime Achievement and the John Dingell Outstanding Public Official. They did not compare to a 20-year-old boy who pitches with one hand, a female army pilot who is making it her mission to help veterans coming home, and a 102-year-old veteran who challenged Lila Lazarus and Lt. Governor Brian Pauley to a pushup challenge onstage and won.

There were many amazing and courageous stories of overcoming obstacles, accomplishing great feats and positively influencing others. Race directors, communities and people coming together for the purpose of living healthier lives. We learned Michigan is ranked 35th in the health and wellness arena. We can do better. Those honored are leading the way to get us moving again.  We left ready to put on our tennies and bring everyone with us. We hope you’ll join the movement.

Read more about the winners and their inspiring stories here.

Gerri Harmer is a Client Service Manager at Center for Financial Planning, Inc.®

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Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members. Raymond James is not affiliated with the Governor's Fitness Award Gala.

Branding Your New Year

Contributed by: Kimberly Wyman

*Originally posted December 30, 2015

A New Year is traditionally a time to set resolutions you hope to accomplish over the coming year. At The Center, we encourage you to Live YOUR Plan™ every day, but what a better time of the year to reinforce and embrace all that you wish to be, do and have.

Identifying the lifestyle that best suits you is similar to crafting a personal brand and crafting a personal brand can be greatly supported by setting goals a.k.a. setting New Year’s resolutions.

A personal brand is about:

• Realizing you already have a personal brand – everyone does. Your existing personal brand is someone’s gut feeling about you and your existing perception of yourself. Does your brand say what you want it to say?

• Acknowledging where you currently are. What is your gut feeling about yourself? What do others say?

• Recognizing where you want to be. How do you want to be perceived, by yourself and by others?

• Bridging the gap between the two points. This is your personal brand journey and an excellent lead-in to your desired lifestyle.

5 Ways to Brand Your New Year

1. What are you passionate about? Most of us know what gets us up in the morning. If you don’t, consider spending time exploring this. If you truly aren’t passionate about anything, how about if you pick something and stick with it for 3 months? By eliminating things that you’re not passionate about, it just may lead you to what you are passionate about. Knowing this passion will help you set a resolution that is sure to make you proud of yourself.

2. Where do your strengths lie? Sometimes we’re good at things that don’t interest us. But, understanding what we’re good at can help us leverage what we truly want by taking some of the extra legwork out of the equation.

3. What do you want to learn about? Are there a million things that come to mind? Just pick one to focus on. If you have nothing that comes to mind, then just pick something and stick with learning all about it for a designated period of time. Eventually, you’ll discover things you truly want to learn about via process of elimination.

4. Where do you want to explore? Your neighborhood? You community? Your state? Your country? The world? Pick a place. Read about it, learn about it, visit…even if only virtually. This world is pretty big and pretty small at the same time. Take time to learn about another tiny corner besides that in which you live.

5. Be consistent. As with any type of branding – personal or professional – branding relies on consistency. Be faithful. Be reliable. Be steadfast. 

Having a clear vision of your desired lifestyle can help you make very good decisions about which paths you follow and which you choose to decline. Having a clear vision of your desired lifestyle will also make planning for your everyday and your future easier. Make life count. Live YOUR Plan™ and Happy New Year!

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Any opinions are those of Kimberly Wyman and not necessarily those of Raymond James.

High Deductible Health Plans and HSAs

Contributed by: Matthew E. Chope, CFP®

I am a big fan of High Deductible Health Care Plans. As individual and group premiums rise, employers are pushing their employees to take more responsibility for their health and healthcare costs, and offering High Deductible plans is one way they are doing this.  You can have a High Deductible plan as an individual or in a group plan.

There are some basics about these health care plans that you need to understand.  Basically, high deductible plans are not allowed to offer any co-pay benefits – like paying $10 for a generic prescription or $35 for a doctor visit. Thus, they usually work well for healthy people, although more and more, they work even if you know you’re going to hit your out of pocket maximum for the year because of their lower premiums. 

If you have a High Deductible Health Care Plan, you can take advantage of a HSA (Health Savings Acccount) which is typically opened at a bank or credit union. If you have an HSA plan, you are allowed to make pre-tax contributions to that account.  The maximum contribution will be $6900 in 2018 for a family and $3450 for an individual. If you are 55 or older, you can add another $1000 to those figures. If you get your insurance through your employer, you may find that your employer offers the HSA account for you and even makes a contribution to it during the year. In which case, you would count this money as part of your contribution limit.

You might be thinking, what’s so great about this if my insurance covers almost nothing unless I hit my deductible and/or out of pocket maximum? (They are often, but not always, the same amount.)

The High Deductible Health Care Plan is a wonderful planning tool for several reasons

1. First, they operate the way insurance is supposed to operate: a smaller cost for an unlikely (but potentially catastrophic) event... think fire insurance on your home.  Going to the doctor or filling a prescription are not unlikely events at all, so really, when a plan offers copays for things like doctor appointments and prescription medication, that’s not really insurance, that is a discount plan. Consider it as though you are paying for the discount in the premium.

2. Second, HSAs offer a great tax break: the money is contributed with pre-tax dollars, the account grows tax-free… and best of all… none of it is taxed coming out.  (as long as you use them for qualified medical expenses.) Yes, there are rules about what is a qualified medical expense but in a nutshell most legitimate expenses for healthcare are okay.  You can’t use them for: the actual premium cost of the insurance, supplements, massage, or elective surgery (this is usually the case but there are exceptions). The HSA is the only vehicle where the money isn’t taxed going in or coming out, if you follow the fairly simple rules.*

3. Third, HSA dollars can be used on things that insurance doesn’t typically cover, such as alternative care with a chiropractor or acupuncturist for example.  You can also use HSA money to pay for things like the dentist or eye doctor. (See IRS Pub. 502 for a list of qualified medical expenses.)

Some people also use the HSA as another savings vehicle.  They max out their contribution each year, but instead of spending the money on medical costs, they pay for their costs with regular old post-tax dollars.  They still get the tax deduction, because the deduction is based on the contribution, not on the spending.  Then in retirement they’ve got an account they can use for health care costs.

Taking the Strategy One More Step

If you have a large expense pre-retirement and you pay for it with post-tax dollars (i.e you just write a check), you can reimburse yourself for the cost years later.  That means you can make a tax free withdrawal in retirement for a pre-retirement healthcare expense.  This could make sense for a large ticket item, like a hospital bill.   Having a tax-free account such as an HSA could really help you be strategic with retirement income. (Consult with your CPA, and save those receipts for this strategy!)

The High Deductible Health Care plan/HSA Strategy isn’t for everyone, but to figure out if it makes sense for you, it’s best to speak with someone who can analyze your individual situation and advise you.  Brokers’ services are free to you, as they are compensated by the insurance carrier you choose.  You can also contact us for help with deciding if this strategy makes sense for you.

* May be subject to State or local taxes.

Matthew E. Chope, CFP ® is a Partner and Financial Planner at Center for Financial Planning, Inc.® Matt has been quoted in various investment professional newspapers and magazines. He is active in the community and his profession and helps local corporations and nonprofits in the areas of strategic planning and money and business management decisions.

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This information does not purport to be a complete description of High Deductible Insurance Policies or Health Savings Accounts, it has been obtained from sources deemed reliable but its accuracy and completeness cannot be guaranteed. Opinions expressed are those of Matthew Chope and are not necessarily those of Raymond James. Investing involves risk, investors may incur a profit or loss regardless of the strategy or strategies employed. Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person's situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

The Center is taking on a 21 Day Challenge

Contributed by: Gerri Harmer

Not all of us have the same goals in health and wellness. So when it comes to putting together a work place program, we try to keep everyone in mind. It’s been said to permanently change a habit, you need to do it for 21 days. So starting on January 19th, The Center staff committed to making at least one new healthy habit for 21 days. Each person’s individual goal had to be a bit of a stretch but ultimately doable, with some effort! If we miss a day, we start again. We found quite a few were similar, a few very unique and some had more than one.

Our goals were gathered and posted in the kitchen. 

• Drink 64 oz. of water a day

• At least 15 minutes of exercise /workout at least 3x per week

• Listen to relaxing music in the car on the way in

• No bread products

• No snacking between work and dinner

• No stress eating

• No candy/reducing sugar

• Take vitamins

• Pack a lunch

• Eat less than 1,000 calories for lunch

• Meditate 5 minutes a day

• Make someone laugh

Maybe you can identify with one of these, or maybe they’ll inspire you to come up with your own challenge. We are having so much fun keeping each other on track or calling each other out; we’d love for you to join in, too. What habit do you want to work on for 21 days?

Gerri Harmer is a Client Service Manager at Center for Financial Planning, Inc.

Exercising (and Saving Money) Without Realizing It

Contributed by: Gerri Harmer

Exercise without realizing it? Really?  Really! I know it sounds too good to be true but let’s think about this whole exercise thing in a new way.  We can have fun and save money while getting a good workout!

Spending 20-30 minutes a day on aerobic activity does not mean you have to be sweating to the oldies in front of the TV or forking over your hard-earned money to a personal trainer.  While exercise videos and personal trainers are fabulous and very effective, they might not be your favorite things to do, which means you probably are not very motivated to jump in and may find excuses to put it off.

Why not opt for a less stressed, enjoyable exercise option once in a while? Take a 30-minute bike ride through your favorite neighborhood. Increase your heart rate, take in nature, say “hi” to the neighbors, and let the wind blow through your hair. Better yet, put a basket on the front and bike to the store for that bread you needed to pick up.  Or, load your bike on the back of the car, park and ride your bike through your favorite metro park or sightsee in a new town.  It’s the best way to see the city, stopping whenever you like to get a better look without holding up traffic while getting access to areas you couldn’t get to with a vehicle.  You are now stress free, you have endorphins flowing, and you didn’t spend a dime.

How about having a hula hoop contest or playing catch with your kids or grandkids? Water balloons? Bowling?  I’ve never been as sore as the day after I’ve gone bowling -- it kicks my tail! Taking a new dance or martial class are fantastic ways to move and learn something interesting. You get toned and your friends are amazed with your new skills.  It feels like cheating because it’s so much fun and it didn’t cost any more than your normal recreational activity. 

More ways to save AND get a workout?  

1. Go for a hike. Meet up with friends or fly solo for a respite. Clean out those mental cobwebs.

2. Try gardening. Make your yard the envy of the neighborhood or grow an organic garden.

3. Join a recreation league. Make some new friends by joining a softball, soccer, horseshoes, or bocce ball team.

4. Play a game with your kids or grandkids.  A good game of capture the flag, tag or kickball gets the adrenaline going while spending time with your family. 

5. Play an interactive video game.  They have tons of games that get you running, jumping, dancing, chopping, and shuffling. Your kids and/or grandkids will think you are so cool.

6. Try new things.  Ever heard of LARPing (live action role playing) or Geocaching?

You get the idea. What are you going to do first?

Gerri Harmer is a Client Service Manager at Center for Financial Planning, Inc.

6 Ways to Get Healthy AND Spend Less

Contributed by: Gerri Harmer

If you could choose one of these items in retirement, which would you pick?

1. A vacation home

2. Shiny red convertible

3. Good health

A younger version of yourself would have probably gone for option 1 or 2. But many of us find when we get to retirement, our priorities change.  Without good health, all the other choices are irrelevant if you can’t enjoy them. Many of us dream of living a very active lifestyle when we retire with some money in our pockets.  Wouldn’t it be amazing if we could have all the options? Wouldn’t it be even more amazing if it only took adapting just a few new habits to improve our long-term health?

Here are 6 ways to lean into better health while spending less:

1.     Start giving up that bad habit.  Most things that are bad for your health are bad for your wallet.  Smoking, junk food, fast food and pop can all be eliminated, adding money to your bottom line.

2.     Go outside.  Breathe the air and get fit by walking, gardening or bike riding.  Better yet, head to the park to toss a Frisbee, join in on a sport, or hit a trail. No need to pay fees for gym memberships during the summer.

3.     Buy local or grow your own.  Farmers markets usually have a great variety of organic fruits and vegetables.  You support your community and pay a fraction of the grocery store prices.  Better yet, start your own garden and save even more.

4.     Sleep 15 minutes more.  Give your body a little more time to repair itself.  Go to bed early or prep for your morning the night before so you can sleep an extra 15 minutes. 

5.     Drink water.  Experts recommend drinking 8 glasses a day. Before you allow yourself even a drop of anything else, drink a glass of water first. You’ll be surprised how much energy you gain while flushing all the bad stuff. Water is one of the least expensive beverage options especially when it comes from your filtered fridge instead of a bottle.

6.     Sit with nature.  Reset your stress levels by simply listening to the birds, taking in the scenery or feeling the breeze on your face.  It costs nothing and gives you peace and calm.

It might be difficult to change radically overnight, but leaning toward better habits may lead to a smoother, more permanent change in your health. And it doesn’t hurt that you’ll be saving money along the way!

Gerri Harmer is a Client Service Manager at Center for Financial Planning, Inc.

Save the Date: May 4, 2014 Cystinosis Fun Run/Walk

 On May 4^th we will hold the 8^th Annual Cystinosis Fun Run/Walk in honor of Kacy Wyman. In the past we have had over 400 walkers and runners support the event and Kacy. We understand that there are many worthy causes and feel very fortunate that so many have chosen to support Kacy’s cause in the past – and appreciate you considering a financial contribution for our May 4^th event.  All proceeds benefit Cystinosis Research Network. CRN is an all-volunteer, non-profit 501(c)(3) organization. The CRN Federal Tax ID# is 04-3323789.

Thanks to 37 pills a day, eye drops 8-10 times per day and 7 liters of water Kacy’s condition is stable – but we need a cure. Community supporters raised near $30,000 for the Cystinosis Research Network last year. These funds help with continued research projects to improve the quality of life for those dealing with Cystinosis and other rare diseases, and ultimately a cure! Your financial support is making a difference in Kacy’s life and all of the children enduring this rare disease called Cystinosis (Sis-ta-know-sis). Your support drives research and gives us hope that a cure will be found during Kacy’s lifetime. Thank you again for considering.

Checks should be made payable to:
Cystinosis Research Network

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Center Wins Governor’s Healthy Workplace Award

 Financial health isn’t the only health our Center team focuses on every day.  One of our core values is living a balanced life which means keeping all areas of our lives healthy and balanced.  Part of that balance includes dipping into some physical activity and good nutrition.  We find it keeps our energy up, our minds focused and our creativity flowing allowing us to better serve our clients, our family, each other and our community.  That’s why we are so excited to announce winning the Healthy Workplace Award in the small business category presented by the Michigan Fitness Foundation and the Governor’s Council on Physical Fitness, Health and Sports. 

You may see some of our posts from time to time talking about what we’re doing in the health and wellness area.  Don’t be surprised if you see us on the ball (balanced ball that is) at our computer or eating a healthy snack.  We share in the Governor’s passion for promote fitness and health. So next time you stop in to see us at The Center, feel free to share some of the things you’re doing to lead a healthier, more balanced life. We’re always looking for great new ideas!

To see other companies on the list, click here.

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