Experts & Economists Share Insights at ETF.com Conference

Bitcoin, robo-advisors, overvalued equities and more … all were hot topics at January’s ETF.com Conference. For the second year in a row, we sent our portfolio manager Angela Palacios. She reports back on her biggest insights.

After 2014’s ETF.com Conference, I had high expectations. They were quickly exceeded.  With over 1,800 attendees, it was one of the world’s largest conferences focusing on exchange-traded funds and the agenda was jam-packed. Keynote speakers included JJeffrey Gundlach of DoubleLine Capital and RRob Arnott of Research Affiliates, two money managers we know well here at The Center. We have utilized Gundlach and Arnott for many years for our clients.  

In addition to the all-star speaking lineup, I had the chance to hear from a “Robo-advisor” … a topic of debate around our office, which we featured in our recent blog. I also heard from experts in Bitcoin as well as Mark Yusko who talked about endowment models and the way they manage money.

Here are the 3 questions everyone seemed to be talking about:

1. Is deflation on the horizon?  I expected conflicting viewpoints, but there was some agreement. The majority of the experts think it is coming.
2. Where is oil headed? Most say it will stay low and drift higher, only very slowly.  Gundlach made an interesting point that $100 per barrel of oil may not be where oil should be. Natural gas has been and stayed low for so long, he suggested oil could now be coming in line with where it should be.
3. Are U.S. equities overvalued?  There were too many differing viewpoints here to count but everyone was talking about it!

In between listening to the experts and economists, I also enjoyed a sprinkling of some lighter material.  Terry Bradshaw gave his thoughts on life in general (including his unusual infatuation with Tom Brady) and James Carville and Karl Rove faced off in a political showdown. Both were excellent additions to the lineup this year.

Angela Palacios, CFP®is the Portfolio Manager at Center for Financial Planning, Inc. Angela specializes in Investment and Macro economic research. She is a frequent contributor to Money Centered as well as investment updates at The Center.

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This material is being provided for information purposes only and is not a complete description, nor is it a recommendation to buy or sell any investment. Any opinions are those of Center for Financial Planning, Inc. and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Unless otherwise noted, individuals mentioned are not affiliated with Raymond James. 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.

Reinventing Michigan Retirement

 At a conference tailored to Michigan residents age 50 and up, Sandy Adams, CFP® and Laurie Renchik, CFP® volunteered their professional retirement planning expertise. Sandy and Laurie were part of the team of volunteers at the Reinventing MI Retirement conference hosted by the Michigan Department of Insurance and Financial Services.

The event was held at the Michigan State University Management Education Center in Troy. It was one of nine conferences put on across the state to help Michigan residents learn more about how to potentially achieve financial security in your later years.

Sandy and Laurie provided attendees with one-on-one financial check-ups.  Governor Rick Snyder made an appearance and delivered a message about living well and aging well. The Reinventing MI Retirement initiative is funded by contributions and grants from the Michigan Securities Investor Education and Training Fund.

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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 web sites or their respective sponsors. Raymond James is not responsible for the content of any web site or the collection or use of information regarding any web site’s users and/or members. C14-038753

Eldercare: Roadmap for Aging Parents encourages Team Approach

From financial strain to the emotional effects, there are many layers to the issues a family faces as a parent ages. At a recent Center-sponsored event, Eldercare: A Roadmap for Aging Parents, our expert on eldercare issues Sandra D. Adams, CFP® teamed up with Peter Lichtenberg, Director for Wayne State University’s Institute Of Gerontology program and Becky Eizen of Feinberg Consulting.

Eldercare Topics of Conflict

When it comes to the most common “topics of conflict” between aging parents and their caregiving adult children, Lichtenberg recommends developing new and more positive communication strategies. One such strategy includes:

1. Learning your older adult’s story

2. Expressing your views and feelings to them

3. Problem-solving together

When a parent and adult child take a team approach with open lines of communication, the important decisions that come with eldercare can be much easier to make.

Caregivers Finding Balance

Caregivers often get lost in the mix and finding time to take care of your own needs can be difficult. There are emotional, physical, and financial effects of being a caregiver and Becky Eizen says you need to know when it’s time to ask for help. That includes knowing how to ask for help, finding the right resources, considering your options, and putting together the right team. It’s important to look at short- and long-term needs and identify different housing options, such as living at home vs. assisted living facilities. Eizen says one question that can be overlooked is: Do you qualify for VA benefits?

Eldercare Resources for You

The Center has a list of resources that available from both speakers.  If you would like more information, call or email Gerri at Gerri.Harmer@Centerfinplan.com. We have a wealth of information on the subject and would love to share it with you. Contact Sandy if you want to know how we can help you build your eldercare team.

Any opinions are those of Sandy Adams and not necessarily those of RJFS or Raymond James. The opinions and services of Peter Lichtenberg, Becky Eizen, WSU Institute of Gerontology, and Feinberg Consulting are independent of Raymond James. C14-018035

Center sends team to Raymond James National Conference

If you think conference = boring, then you’re missing out on the way the Center for Financial Planning team does a conference. From our office of 18, we took 15 team members to the National Raymond James Conference in Washington, DC from May 19^th through the 22^nd. Someone had to stay behind and answer the phones! Aside from some intensely fun team bonding activities, the conference offered an eclectic mix of sessions with one overarching focus – making a difference in our clients’ financial lives.

From investment and market trends to client service refreshers, everyone on the team learned something new to bring back to the office.  We also heard about some exciting updates that are in the works from Raymond James (including electronic signatures!) and we are looking forward to their introduction in the near future.  We also used this opportunity to learn from and share with other top financial planning firms.  Bettering ourselves, our team, and our processes are never ending goals for The Center. 

It was great to spend some time outside of the office and we came back reinvigorated and ready to implement what we learned.  We also want to thank our clients for being so patient and supportive while our skeleton crew worked so hard in the office that week!

Sandy Adams attends Sudden Money Workshop

 

Each Center client is unique, but some face similar life transitions. Dealing with the loss of a spouse, major health challenges, job changes, wealth transfers or sudden money windfalls … all can put you in the position of making important decisions about your financial plan. To help our clients through these transitions, some of our team members are going through a special training course called Sudden Money(R).

Center partner Sandy Adams, CFP(R) recently made a whirlwind trip to Miami to attend the Sudden Money(R) Institute's mid-year coaching workshop. She joined more than a dozen financial planners and founder Susan Bradley, CFP(R). "I have worked with several clients that have experienced unexpected transitions in their lives -- like the death of a spouse or a major illness.  This training is invaluable in assisting clients during these times of transition because it is providing me with tools and strategies to help them navigate the obstacles they face."

The workshop was a first step in the two-year quest to become a Certified Financial Transitionist(TM).  Sandy joins Center partner Melissa Joy in pursuit of this designation. Continuous education and personal growth are core Center values and these educational opportunities not only help us deepen our skills, but further assist our clients.

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Investment Conference Highlights Exchange Traded Funds & Key Market Trends

 Recently I was lucky enough to escape an extremely cold Michigan and head to Hollywood Beach, Florida for Inside ETFs.  While fun in the sun was top of mind, it was last on the agenda.  The conference was well attended by more than 1,500 advisors and industry professionals and helped me expand my understanding of Exchange Traded Funds (ETFs) and where they best fit in portfolios.

ETF University

The first day was appropriately themed ETF University.  Experts started from the most basic level of understanding explaining what ETFs are and why investors utilize them.  They went on to explain how to trade these investments as their liquidity throughout the trading day is their most unique characteristic.  This is also, clearly, the most confusing and aspect of an exchange traded fund versus any other investment.  Much of my time during and after the conference has been spent furthering my understanding of this topic.

3 Key Market Trends and Research

Besides muddling through EFT University, I had the chance to attend sessions focused on current events in the economy and markets around the world. Here are some key trends:

Emerging Markets in Crisis: Negative sentiment, fear and pessimism in emerging markets is reaching a crescendo, presenting potentially excellent buying opportunities. 

Secular Bull Market in U.S. Equities: Well-known economists Liz Ann Sonders and Jeremy Siegel argued we are in the midst of a new secular bull market that began in 2009.  While they expect corrections over the coming years, overall they feel the long-term trend will continue to be positive.

The Bond Bear:  While the outlook for bonds are bleak, with the rising interest rate environment perceived to be just on the horizon, they are still one of the best hedges to an equity portfolio.  Bonds continue to be one of the only negatively correlated asset classes to stocks.  In other words, when stocks fall bonds rise and vice versa.  This is very important to reducing overall volatility of a portfolio and should not be abandoned, even now.

These key themes resonated with me as our investment committee at The Center has been discussing and actively incorporating changes to reflect these concerns in clients’ portfolios over the past few years.

While I am a fan of the old adage, “If it ain’t broke don’t fix it,” this should never apply to your investment portfolio.  It is very important to continually monitor the investment and financial planning landscape because it constantly changes.  Exchange Traded Funds are likely here to stay and their benefits to some investor’s portfolios are undeniable.

Angela Palacios, CFP®is the Portfolio Manager at Center for Financial Planning, Inc. Angela specializes in Investment and Macro economic research. She is a frequent contributor to Money Centered as well asinvestment updates at The Center.

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Financial Life Planning Gets Beneath the Raw Numbers

 I recently traveled to Beverly, MA to attend the Kinder Institute’s 5-day Life Planning training.  The Kinder Institute is internationally recognized and founder George Kinder is a thought leader in the Life Planning movement. The 5-day advanced training was well structured and the experiential teaching format was powerful. I walked away with a deeper understanding of how to promote a stronger relationship between financial resources, personal values and aspirational goals.

One example that comes to mind is that money matters are often thought about in terms of numbers:

1. I make $X
2. I’d like to save $X for retirement
3. Our debt is $X
4. I own a home worth $X
5. My investments are worth $X

These concerns represent the raw data, facts and resources that make up your financial life.  To get beneath the numbers takes some additional exploration. Spending time up front to figure out what's most important to you creates a bridge between financial numbers and the life you strive to live.  A personal vision statement is an inspirational document that goes hand in hand with your financial plan. 

At The Center, we are fortunate to have many long-term relationships with clients. My experience at the Kinder Institute was an exceptional opportunity to learn new skills to better serve our clients and the financial planning process that is core to The Center.

Laurie Renchik, CFP®, MBA is a Partner at Center for Financial Planning, Inc. In addition to working with women who are in the midst of a transition (career change, receiving an inheritance, losing a life partner, divorce or remarriage), Laurie works with clients who are planning for retirement. Laurie was named to the 2013 Five Star Wealth Managers list in Detroit Hour magazine, is a member of the Leadership Oakland Alumni Association and in addition to her frequent contributions to Money Centered, she manages and is a frequent contributor to Center Connections at The Center.

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Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.

George Kinder and the Kinder Institute are independent of Raymond James. C14-000816

Center Hosts Medicare Workshops

 

In preparation for Medicare Open Enrollment – October 15 through December 7, 2013 – we’ve been busy at The Center for Financial Planning. Over the last month, The Center assisted over 50 clients through Medicare-focused workshops.

Annually reviewing your Medicare plans is extremely important, as providers are changing their plan formularies and account structures each year. “Many individuals can save hundreds of dollars annually by making sure they are in the right Medicare plans,” explained Sandy Adams, CFP®, lead financial planner at The Center. “Making the right Medicare choices can have a significant impact on the success of your overall financial plan in retirement.”

Who is affected by Open Enrollment?

• Seniors approaching age 65
• Seniors currently on Medicare
• Seniors in company retirement health plans
• Caregivers and children of seniors on Medicare

Open Medicare open enrollment allows for changes to:

• Medicare Part D Prescription Drug plans
• Medicare Advantage
• Medigap Plans

The workshops highlighted changes in the Medicare plan offerings, changes to Medicare due to the Affordable Care Act, and the tools available for individuals to review and analyze their own plans to make the best choices for their individual circumstances.

Contact your financial planner at The Center for additional guidance and information regarding your Medicare planning.   

Helping those that help others

 In October the Center will be furthering our vision to help those who help others.  Our financial planners will be spending time with the employees at Community Housing Network in Troy, Michigan.  This is one way we give back to some of the great folks in the area that spend their time helping others make our community a better place to live for all. We will be answering the employees’ personal financial questions pro bono and help them get their financial “houses” in order so that they can be focused on helping those in need.

The Community Housing Network is a passionate advocate, devoted to providing homes for people in need. They give people access to resources to create sustainable communities. This is achieved with proven strategies of homelessness prevention, housing assistance and development, community education and referral, advocacy, and additional services.

Center Investment Committee Members Attend Premier Conference

 

Matt Chope, CFP® and Investment Research Associate Jaclyn Jackson recently traveled to Chicago for the 2013 Morningstar Investment Conference.   This conference is one of the investment industry’s most respected events. Jaclyn called it a wonderful way to gain insight from the diverse perspectives of industry experts.

Matt and Jaclyn spent two days attending educational sessions, keynote presentations and dinner meetings all focused on trending financial topics, investment strategies and perspectives on the economy. According to Matt, who has attended many Morningstar conferences in his career, “Many of the attendees seemed to be finally ready to get over the economic turmoil of the last cycle.”

There were ample opportunities to network with financial advisors, financial analysts, mutual fund managers, and industry experts including managers with 30-plus years of experience.  Matt said many of the panelists and speakers indicated that it was one of the hardest times in their careers to allocate capital because all the bargains were gone.  Despite those challenges, Jaclyn found practical advice that could apply to every investor. She said, “Focus on what you can control.  You can’t control market volatility or the Fed, but you can diligently stick with your financial plan.”