India in a Week

When the Center for Financial Planning’s Jaclyn Jackson isn’t at work or pitching in to help the local community, she’s jetting to the far-off corners of the world. On a recent weeklong trip to India, she experienced the culture, the adventure, and saw world-renowned landmarks firsthand. What started as a visit with her best friend, a Fulbright scholar teaching English in New Delhi, turned into the journey of a lifetime. Here’s Jaclyn’s story:

Day 1:  I’m not in Kansas (Michigan) Anymore

After a long fifteen-hour flight, I finally arrived at the newly built Indira Gandhi International Airport, named after India’s first female prime minister.  Excited to stretch my legs and get some fresh air, I quickly made my way outside.  I was pleasantly surprised by the warm, night temperature, a comfortable 70◦F.  I met up with my friend; we hailed a cab and made our way to her home.  As the cab driver (I playfully dubbed him the Mario Andretti of India) raced down the highway weaving in and out of traffic, frequently honking his horn, and giving wind to the basic rules like driving in your lane, I quickly realized I was not in Michigan anymore. I was definitely in India and I’d just had my first encounter with the congested, fast-paced (and at some points what seemed to be death-defying) traffic that is characteristic of New Delhi.  My friend and I settled into her home, ate a late dinner of Pizza Hut (yes, Pizza Hut –they’re everywhere) and geared up for shopping the next day.

Day 2: The Art of Haggling

I visited two of New Delhi’s popular markets, the Lajpat Nagar Market and Dilli Haat.  My friend and I started off at Lajpat Nagar, a traditional Indian market.  We were greeted by several vendors, all vying for our attention. Admittedly, I was taken by the hustle and bustle of the crowd as well as the vendors’ aggressive sales tactics; this was Detroit’s Eastern Market times one hundred. It was like I was in a movie: beaded jewelry, ornate sarees, and pashmina scarves decorated the set; the sound of merchant’s recruiting customers and broadcasting sales created the soundtrack; and shopping for deals sparked plenty of “action”. After buying a few items at Lajpat Nagar, we headed off to the more tourist-friendly market, Dilli Haat.  There, tourists can purchase unique, one of a kind handcrafted souvenirs from Delhi’s artisan community. Haggling is king at Indian markets and I got my first taste of haggling at Dilli Haat. The merchant offered me an inflated price, “1500 rupees”; I offered a counter, “1000 rupees”.  He quoted a slightly lower price “1200 rupees”, my friend encouraged me to stand firm. He tried again.  I didn’t budge, “1000 rupees”.  Finally, he folded and accepted my counter offer.  Even though I work with investments on a regular basis at the Center, I truly understood the meaning of “market value” haggling in India.

Day 3:  A Walk in the Park

After our busy day at the markets, my friend decided to take me to the Hauz Khas Complex (English translation: Royal Tank).  It is one of the places she goes to relax.  Although ruins of Firuz Shah’s tomb, an Islamic seminary, a mosque, a “water tank” (reservoir), and pavilions create the complex, it functions more like a park for modern South Delhi residents.  HauZ Khas reflects Islam’s influence on India’s culture.  Behind Hinduism, Islam is the most popular religion in India.  The art community surrounds the complex with galleries, posh restaurants, vintage art, jewelry, and clothing stores.   My friend and I enjoyed a meal on the patio of a cosmopolitan restaurant, Amore.  Full of young adults with smartphones in hand, the restaurant crowd could have been superimposed into any restaurant in Collegetown, USA.

Days 3 and 4:  The Great Wonders of the World

A trip to India is not a trip to India without a visit to the Taj Mahal in the city of Agra.  Accordingly, my friend and I set way towards Agra, located about four hours south of New Delhi.  It was love at first sight:  the Taj Mahal is more gorgeous than I’d imagined.  But my reaction was no surprise.  After all, it is known as “the monument of love”. The Taj Mahal is a tomb built by Mughal emperor, Shah Jahan, for his wife who died in child  birth.   However, it was surprising to discover the Taj Mahal was not all white marble.  It is decorated with lotus flowers and calligraphy made with precious stone (like jade, jasper, and crystal) inlay.  Our tour guide even revealed some of the optical illusions one would only notice spot-on in person.  The impressive monument took just over twenty years to build.  It is accompanied by a mosque, guesthouse (“jawa”) and guest quarters that could accommodate over two hundred visitors. The Taj Mahal is a definite crowd pleaser; visiting it was one of highlights of my trip.

Day 5:  A Day of Remembrance

Mahatma Gandhi is probably the most well-known person from India; he is a world icon.  His philosophy of non-violent protest has helped liberate people all over the world. Not to mention, he is the originator of my favorite quote, “Be the change you wish to see in the world”. Accordingly, I jumped at the chance to visit his national memorial and museum. I gathered tons of information from the museum about how Gandhi led the salt tax protest, how he advocated for women’s rights, and how the charkha became a symbol of Indian independence from the British.  After discovering more about Gandhi’s contributions, it only seemed right to have an eternal flame memorialize his legacy.  As I stood there at Rajghat, the name of Gandhi’s memorial, watching his eternal flame burn, I was reminded that one person’s actions can help millions. I thought about the type of legacy I’d like to create and the impact I’d like to make on the world. 

Day 6:  More Alike than Different

My last day in India was amazingly fun!  I happened to be in town for one of India’s most celebrated holidays, Holi.  Also known as the Festival of Colors, Holi is associated with Hindu mythology but largely celebrates the arrival of spring.  People celebrate by throwing colored water and powder at each other (hence the name, Festival of Colors).  Essentially, Holi is a nation-wide water fight!  My friend’s apartment was conveniently located across the street from the park where her community celebrated.  I crossed the street and entered the park clean as a whistle, but I was instantly attacked by neighbors armed with colored powder and water guns.  And just like that, I was ready for war.  Grabbing two handfuls of colorful powder, I started my counterattack.  After about an hour of throwing powder and spraying water, most of us began interchanging rounds of musical chairs with dancing and eating.   Among others, I enjoyed snacking on pakora, spicy vegetable fritters traditionally served with chutney.  As I sat down for lunch under the eighty-degree sun with a plate of traditional Indian foods, I couldn’t help but remember the annual block picnics I’d celebrated during childhood.  The water fights, the music, the food, the friendly neighbors, the sense of community all reminded me of home.  Even though I’d spent the entire week experiencing new things and learning new customs, in that moment, I couldn’t help but think we are all more alike than we are different.

Day 7:  There’s no Place like Home

The week blew by and before I knew it, I was back on a plane heading stateside.  However, as I walked through the airport noticing people dressed in University of Michigan attire (Go Blue!), I had to admit, there’s no place like home. Still, I brought many memories of India home with me … zooming through busy traffic in rickshaws, haggling at the markets, viewing world wonders, remembering world leaders, celebrating spring festivals, and learning that despite the distance, there is so much that connects us. 

College Students and Debt

Recently I read an article about the level of debt college students have at the time they graduate.  No, I am not talking about student loans. Those are overwhelming enough.  I am talking about credit card debt.  One study found that the average college student has 4 to 6 credit cards.  The combined balances on those cards averaged between $3,000-7,000. Can you imagine beginning a new career with that much financial burden? It is a formula for disaster.

I remember, in what seems like the not-so-distant past, our 17-year-old college freshmen whispering through the phone that no one on her floor had a clue of how to balance a checkbook and they were bouncing checks all over the place. Today, you’d replace “balancing a checkbook” with “responsibly handling a credit card” but in either case, it is a reminder that when students enter the halls of higher education, they do not have instant financial savvy. But it can be learned. Wise parents give their student some financial responsibility while they are still under their wing. Before leaving the parental home:

  • Try designating bills they have to pay with their own earned money or an allowance.
  • Talk to them about the use of credit and more importantly the consequences of misuses of credit and what it can mean when trying to purchase a car or qualify for a mortgage.
  • Start with a loaded credit card, they are a great way for students to experiment. Its easy to see how quickly pizza and incidentals can add up over time. When the card is empty, it can be a long month.
  • Let them make small mistakes under your guidance and let them work their way out.

Last but not least, tell your student you are going to have joint statements for whatever time period you deem necessary to give them help. Discuss money situations---that is what adults do.

Keep in mind you taught them to skate, you taught them to ride a bike and to drive a car.  Managing money should get the same attention.

Health & Wellness Update

Move over Souper Thursdays . . . . here come Thursday Treats!  With warm weather on tap for spring it’s time for a change to something a bit lighter and cooler.  Souper Thursdays will get set aside until next year when cooler temperatures return.  Thursday Treats are all about keeping it healthy with fruit smoothies and yogurt sundaes to start us out.  The Center will continue to follow our tradition of making donations to our favorite charities for the price of a treat.  We have recently added the Epilepsy Foundation of Michigan to our list of beloved charities.

It’s also time for the Tuesday Tennies program to return.  When the sun is shining and the temperatures balmy many staff members enjoy a healthy 30 minute walk along our beautiful walkways on Tuesdays here at The Center.  It is common to see more and more neighboring offices joining in on the fun and exercise. 

Many Center staffers are gearing up for big plans this year.   We have some setting their sights on competing in their first Triathlon.   Others have made lifestyle changes geared to better health.  Some are becoming avid daily walkers; others have signed up for Zumba or Spinning classes for the first time.  It’s not uncommon to hear chatter about the office of who is going to be running in the next road race this weekend.  It seems almost everyone is doing something even if it’s just playing with the kids in the backyard.

Here is our quickest & most enjoyed smoothie recipe:

Approx. 1 ½ c of frozen fruit of choice

¼ c Vanilla Yogurt

Milk

Making a smoothie is as easy as placing 1 ½ cups of frozen fruit into a blender.  Add the vanilla yogurt and pour milk over the top until it comes to the top of the fruit and yogurt.  Blend.  You can adjust proportions according to your taste preferences!

Don’t forget to put your best foot forward for a healthy springtime season!

Active Investment Management

What do you believe?  We spend a lot of time discussing what we believe from an investment perspective; constantly challenging our assumptions all with the goal of constructing the most efficient portfolios to fund our clients’ most important financial goals. One of our firm’s core investment beliefs is that “Active management with skilled managers can beat passive indexes in full market cycles.” 

It is our contention that there are investment managers out there that CAN outperform the indexes AND that we have the capability to search them out. No small feat to be sure – but our firm’s 27 year history is helpful.  There are plenty of studies on both sides of the aisle in the active vs. passive debate. There are advantages and disadvantages to each style. Not surprisingly, the findings are usually consistent with how the author manages money. Proponents of a passive style often focus on the efficiency of markets and investment costs.  As you might expect, active managers (i.e., consultant) have higher costs over passive index investments.  Investment expenses are one of many criteria to consider when allocating capital between active and passive investments.  Most importantly, we focus on returns after all fees and expenses. 

We had a conversation amongst our investment committee recently – our question:  “Does a belief in active management imply that there is no place for a passive investment in any category under any circumstance?” I don’t think so.  As an active management proponent I can think of at least two circumstances where a passive investment might be appropriate.  

  • If we believe (based on research I would hope) that there is an asset class that is difficult for a manager to outperform.

OR

  • If we cannot find a manager that we have a high conviction in to outperform the index. 

If one of the two criteria is met then a passive choice might be appropriate. In the end, investment strategies and vehicles are merely a means to an end. The active vs. passive debate is sure to continue.  We believe that in most environments there are active managers available that provide value after all fees and expenses.


Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation.  Any opinions are those of Center for Financial Planning, Inc., and not necessarily those of RJFS or Raymond James. Expressions or opinion are as of this date and are subject to change without notice.  Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment.  Investing involves risk and you may incur a profit or loss regardless or strategy selected.

Invest Like a Woman

Face it, there are some things men tend to be better at and some things come easier to women.  Let’s take investing for example.  Studies have shown, time and again, that women make much better investors over the long-term than men*.    Two factors are at play here: risk and emotion

Investment decisions are often driven by emotion more so than anything else for individuals (and professionals too!)  And, sorry guys, but as I’m sure you are aware we women have written the book on emotional swings.  As such, we are more in tune with our emotions as we have to control these swings often.  Yes, I know it seems impossible that we are controlling our emotions but believe me, you’d hate to see us when these emotions run unchecked. 

Women tend to take fewer risks than men in many aspects of life.  Just look at my major injury history versus my husbands (not that I’m keeping score)

And that is only in the 16 years since I’ve known him! 

While taking less risk normally means less return, it does not always work out that way.

By using and managing our emotions instead of repressing them, like men stereotypically tend to, women may make better investment decisions. Because most women have fine-tuned (I’m not claiming perfected) our impulse control, we're more likely to resist overreacting which could lead to trading too much on the latest CNBC report, whether that be selling during market panics or jumping on the bandwagon too far into a rally.

I’d love to see these studies continuously revisited by the academics to see if this data holds true especially if we experience a much longer run to this bull market.  But for now it might be a good idea to get in touch with your feminine side!


*Inside the Investor’s Brain (Wiley Trading, 2007)

Boys will be boys: Gender, overconfidence, and common stock investing, by Brad M. Barber and Terrance Odean, The Quarterly Journal of Economics, February 2001.

The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Any opinions are those of Angela Palacios and not necessarily those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. Past performance is no guarantee of future results.

Retirement “Goals”

If you’re a college sports fanatic like I am, this is one of the best times of the year.  March Madness (a.k.a. the NCAA Men’s Basketball Tournament) has been in full swing over the last couple of weeks – 72 of the nation’s top teams competing for the ultimate title of National Champions.

Watching game after game during the tournament and tracking the winners on the bracket I keep by my side, I can’t help but see a parallel here between the strategies these teams are using to reach their ultimate goal and the strategies we need to use to reach one of our ultimate goals…retirement.  That’s right, I’m saying the road to your retirement is like the road to the Final Four.  Stay with me as I draw a couple of parallels:

  • It All Starts with a Plan
    • Basketball.  Once the tournament brackets are in place, each team puts together their best strategy.  This includes putting together their strongest line-ups, putting in hours of preparation, and forming game plans to maximize their strengths and minimize the opposing team’s best assets.    
    • Retirement.  Once we choose a retirement goal (age we want to retire, income we will need in retirement, etc.), we work with our financial planner to put together our best strategy.  We work hard to maximize tools (income, savings vehicles, investment strategies) while minimizing the risks (rising interest rates, market volatility, changing tax laws, etc.).
  • Make Adjustments
    • Basketball.    The NCAA tournament is known for its upsets – the smaller or lower seeded teams that find a way to beat the bigger, top rated teams (like Lehigh beating Duke!).  If an upset occurs, teams may not be prepared for the team they will be forced to play.   Injuries and other unexpected obstacles quickly occur, forcing teams to quickly adapt their strategies to get their next win.
    • Retirement.  Life happens … sometimes causing our best-laid plans to go off course.  A family member gets sick and we have to take time off to care for them.  We lose a job, experience a pay freeze, or have major changes to the pension plan we had been counting on.  When these unexpected events occur, we need to work with our planner to make the required adjustments to keep us on course, whether it is to work longer, save more, or adjust our retirement income expectations.

The NCAA National Basketball Championship is a team effort…and so is your retirement.  Work with your planner to ensure that you have your best plan in place to reach your retirement goals.


Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation.  Any opinions are those of Center for Financial Planning, Inc., and not necessarily those of RJFS or Raymond James.

The Anxious Investor

Ripple effects from the global financial crisis and recession of 2008 are etched in our memory.  In a previous post, A Fear-Driven Investor, we discussed the tendencies investors display when decisions are driven by fear or greed.  When fearful investors can let go of what scares them about the market, the course evens. It’s not unlike letting go of fears in other areas of life. 

When I think of the fear-driven investor, I think about what happens to confidence and decision making when we feel worried and anxious. Have you ever tried doing anything when you are worried and anxious?  I think about the first time I went kayaking on Lake Huron with my sister. 

My sister was more expert than I.  I imagined a big, smooth pond and a sleek little kayak but I really had no idea what I was doing especially when the storm clouds blew in.  My idea of kayaking was to relax more and stay physically fit; however I was a bit fearful and anxious about tipping over when the waves got bigger!  

What happens to anxious kayakers?  I quickly found out! When your body is loose, you can move the boat and make adjustments.  When you get anxious and stiff, the boat becomes tippy and unstable. Once I understood how one decision affected another, I began to relax and I started doing much better.  

If you are driven by news rather than an investment plan, you may end up tipping your portfolio like I tipped my canoe. 

Want to avoid getting “wet”? Here are 3 tips for investors to help reduce anxiety and promote a smoother ride:

  • Set realistic expectations - Trying to refine the future to a point where you will never be surprised creates a headwind that is hard to overcome.
  • Understand the effect your financial decisions have on other financial issues - Focus on your own behavior, not the market’s behavior. 
  • Re-evaluate your investment plan periodicallySmall and consistent course corrections are just as important as the plan.

I still kayak on occasion, and I’m always reminding myself to stay relaxed and in the flow. It’s something I remind myself on a regular basis when planning investments as well. It’s much easier to keep your boat afloat when you loosen up, especially when the investment waters get choppy.


Any opinions are those of Center for Financial Planning, Inc., and not necessarily those of RJFS or Raymond James.  Investing involves risk, including risk of loss.

Healthcare Forecast Breakfast

The Center’s health and wellness initiatives were recently recognized at a Healthcare Forecast Breakfast sponsored by the Birmingham Bloomfield Chamber of Commerce.

Center Operations Manager Gregg Bloomfield was one of three panelists leading the healthcare and wellness discussion.  Panel members provided insights on how health care reform and wellness and employee benefit programs are shaping business today. 

After the event, Gregg commented, “Small businesses have particular challenges and opportunities in the area of employee healthcare.   I was pleased to share with this audience the inspiring results of our in-house health and wellness program. 

The Center team leadership has worked very effectively with our community partners -- American Heart Association and Blue Care Network – to improve overall wellness at our workplace.”

Center team members and friends in attendance included:  Sandy Adams, Gerri Harmer, Marilynn Levin, Laurie Renchik, Kimberly Wyman and Troy Wyman.

2012 Cystinosis Fun Run/Walk

On May 6th we will hold the 6th Annual Cystinosis Fun Run/Walk in honor of our daughter, Kacy Wyman.  In the past we have had over 300 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 6th 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. 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.

With Love & Gratitude,
Tim & Jen Wyman

Checks should be made payable and sent to:
Cystinosis Research Network
c/o Center for Financial Planning, Inc.
40 Oak Hollow Street, Suite 125
Southfield, MI 48033