Timothy W. Wyman, CFP®, JD Quoted in the Detroit Free Press

 Exotic certificates of deposit could mean large losses for savers

By Susan Tompor, Detroit Free Press, June 24 2012

As much as savers wish and hope, higher interest rates are not in the cards soon.  So I want to warn seniors and others about some unusual CDs that are being marketed that make me do a double-take. 

Ever hear of a market-linked CD or equity-linked certificate of deposit?

The pitch is that these types of CDs could earn rates of 4% or 5% or 9% or higher.  The return is linked to the future performance of something – such as stocks or commodities or even currencies. 

The FDIC put out a long list of questions that consumers should ask before they agree to a market-linked CD or an indexed or structured CD.  The U.S. Securities and Exchange Commission also has an alert on structured products, as well as market-linked CDs.

Any product that shows up on the SEC’s website as an ‘Investor Bulletin’ raises concern or reason to pause, suggested Timothy W. Wyman, a Certified Financial Planner at the Center for Financial Planning* in Southfield.** While the product can work for some consumers, he said, the upside is usually limited because of expenses. 

Click here for the entire article

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. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendations. Any opinions are those of Timothy Wyman, CFP®, JD and not necessarily those of RJFS or Raymond James.  

*Center for Financial Planning, Inc. is an independent firm.
** Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC 

,

Center Walks and Donates for Epilepsy

,

Fun was had by all at the annual Epilepsy Foundation of Michigan Summer Stroll at the Detroit Zoo on Saturday, June 9th.  Face painting, breakfast goodies, and prizes all while personally raising over $450 with the entire Summer Stroll raising over $120,000 towards the research on epilepsy.

As many of you know, my family participates in the Epilepsy Foundation Summer Stroll every year to help raise money for the Epilepsy Foundation of Michigan.  My family collects donations each year in honor of my dad, Bill Hallock, who continues to thrive since his 2008 brain surgery which removed all of the diseased tissue in his brain causing his Epileptic seizures.  Dad continues to enjoy the freedom of driving a car, playing golf whenever he feels like it and making the best of his new found freedom – even donating his time to “Meals on Wheels” and the “Kiwanis Club” in Ann Arbor.

The Epilepsy Foundation of Michigan estimates that between 100,000 to 200,000 people in Michigan have epilepsy. Anyone can develop epilepsy at any time. In about 70% of cases, there is no known cause. Of the remaining 30%, the following are most frequent: Head Trauma, Brain Tumor or Stroke, Lead Poisoning, Infections, & Maternal Injury. To find out more please visit them online at www.epilepsymichigan.org or call (800) 377-6226.

A personal thank you to family, co-workers and friends for the continued support for a cause close to my family’s heart.  

Jen Hackmann

,

Donor Advised Fund – A Way to Manage Your Charitable Giving

,

 It is better to give than to receive.

Whether it is giving of your time, talents or financial resources, there is a lot to be gained by simply being generous. As a professional financial advisor, one of my many great pleasures is helping clients plan and then efficiently give to causes near and dear to them.  Recently, I helped long-time clients do just that.  After conducting a Financial Independence analysis that provided confidence that they were in a position to provide financial assistance to others, they decided to earmark a significant amount for charitable giving.  However, like many, these clients were not sure which charity to give support … just yet.

Enter the DONOR ADVISED FUND. Donor Advised Funds have been around for a while – but I am still surprised at how little they are used. Many firms and organizations offer them – Southeast MI Community Foundation, Fidelity, Raymond James, etc. There are many situations where a donor advised fund might make sense.

Hopefully you are aware of the advantages of gifting appreciated securities, which allow you to avoid capital gains taxation (note that I said avoid and not evade).  When you gift appreciated securities to a charity or donor advised fund held for longer than 12 months, you are able to deduct the fair market value of the securities and avoid capital gains. I like to say that there are three parties to a charitable donation; you, the charity, and your silent partner the IRS.  We want you and the charity to benefit the most.

A donor advised fund allows you to lock in the gain by transferring the shares to the donor advised fund. Next, you get an immediate income tax deduction. And then, you can decide on the specific charity or charities to benefit at a later date. For more information visit the web site www.myfamilyfoundation.org. If you would like additional assistance – give us a call – we’d like nothing more than to help you with your charitable giving.

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 Center for Financial Planning, Inc., and not necessarily those of RJFS or Raymond James.

,

Elections and the Markets: Better returns on the horizon?

,

 In 2012, we either re-elect a Democrat or newly elect a Republican—history shows either can be a sweet spot for stocks. Stocks have averaged 14.5% historically in election years a Democrat is re-elected and 18.8% when a Republican is newly elected.

Source: Global Financial Data, Inc. S&P total return as of 12/31/10

When looking at the above returns, it may be hard to believe that we could end up with those kinds of returns by the end of the year … especially with the strong pullback we have seen recently.  In light of this recent pullback in the markets, both domestically and internationally, it is important to revisit a chart we have shared before.  It serves as an important reminder of the volatility experienced each year and the returns that investors end up having the potential to earn despite these pullbacks.

Of course you have no control over the market’s ups and downs or who gets elected, aside from your vote, to serve as the President of the United States, but you can be better prepared to weather these volatile cycles if you focus on factors you can control like staying fully invested.

The S&P 500 is an unmanaged index of 500 widely held stocks that are generally considered representative of the U.S. stock market.  Inclusion of this index is for illustrative purposes only.  Keep in mind that individuals cannot invest directly in any index, and individual investor’s results will vary.  Past performance does not guarantee future results.  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.  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.

,

Nine Represent Center at Raymond James Conference

,

The Center proudly led two separate Top Advisor Sessions at the recent Raymond James National Conference.  Matt Chope and Tim Wyman (pictured left) led a discussion about growing your business.  Dan Boyce and Melissa Joy presented "Finding, Developing, & Implementing Junior Partners."  Over 100 peers attended each session.  

With the destination of Orlando, Florida, nine team members flew south to attend the National Conference May 21st through the 25th.  The four-day event welcomed over 3,400 participants from across the nation.  The conference fosters both professional and personal development through a variety of learning sessions which are presented by both peer advisors and specialized industry experts.  

A powerful benefit of attending conferences like this is the opportunity to hear ideas from others.  Center team members get to know people over the years and learn what new ideas and innovations are working for peers.

One area of growth highlighted at this year’s national conference was technology. Raymond James and the Center for Financial Planning are making major investments in cutting edge technology that will work to the advantage of both the advising teams and Center clients.

Members of our Center team in attendance included:  Sandy Adams, Dan Boyce, Matt Chope, Marilyn Gunther, Jen Hackmann, Melissa Joy, Laurie Renchik, Tim Wyman and Troy Wyman.

,

3 Center Planners Recognized by Hour Detroit Magazine

,

Center team members Sandra Adams CFP®, Matthew Chope CFP® and Timothy Wyman CFP®, JD received recognition by Five Star Professional in the June 2012 issue of Hour Detroit magazine.  They were named to the 2012 Five Star Wealth Managers list, a select group of wealth managers in the Detroit area.  Congratulations – Sandy, Matt, and Tim.

Announcing 2012’s Summer Intern: Kyle Branda

At the Center, we value developing the next generation of financial service professionals. In fact, in 2007, the Center launched its Summer Internship Program to help those interested in joining the field gain first-hand experience.  Interns work with our investment and financial planning departments to complete performance reporting and research projects.  They also participate in unique education, training, and staff shadowing opportunities.   

Accordingly, we have kicked off our 2012 Summer Internship Program with this year’s intern, Kyle Branda. Kyle is a senior at Michigan State University hailing from Brooklyn, MI.  He is an economics major and a member of the Michigan State Student Economics Association.  His career goals are to obtain a Masters in Finance and to become either a financial advisor or financial analyst.   

When asked about the internship, Kyle says, “This internship will help me reach these goals by giving me the skills necessary to create a good financial plan. It will also give me a better understanding of what goes into making investment decisions.  This internship will help me determine which career path I intend to choose by presenting me with both aspects of what an advisor does and what an analyst does.”

,

June 2012 Investment Update

,

The year opened with a quarter of exceptional returns for markets such as the S&P 500. This rising tide was quickly curtailed in April and May. The ongoing European troubles have reached a new crescendo. Withering employment and housing numbers in the US added fuel to the fire in May.

The situation in Europe is complicated and includes both real economic challenges and unresolved political questions. The combination has led to a slow-moving crisis without the sign of an end. The primary issues we're watching today:

  • Greece Unraveling. We do not know of any credible experts who think that Greece is solvent today. The insolvency is a foregone conclusion but related political upheaval has escalated the crisis. We now look to June 17 elections to determine remaining support for continued membership in the EU. A so-called "Grexit" would be unprecedented and would bring even more challenges to Greek recovery.
  • Contagion in Spain & Italy. While Greeks have been wreaking havoc on their banks by hoarding Euros, Spain and Italy seem to be experiencing their own quiet bank run. Unemployment rates are very high in Spain and Italy and borrowing costs continue to rise for the governments. Earlier in the year, the ECB fiscal relief program infused money into banks, but did little to fix their exposure to bad sovereign debt along with other bad loans. Finding a way to secure investor sentiment in these economies remains critical.
  • Slowing Growth. The odds of a European recession are high and growing. Meanwhile, signs of slowing growth are cropping up in places like China and here in the US.
  • End of US Stimulus. "Operation Twist" is scheduled to wind down this spring and summer. We have long seen 2013 as challenging regardless of the presidential victor because of agreed-upon fiscal cuts plus tax breaks which are scheduled to expire. Add to that the need to rehash the debt ceiling discussion, and we know the US Government and Economy will be in headlines that rival Europe in the coming months. With US interest rates at record lows (going back to WWII), a new Fed program to buy even more treasuries would seem to offer very little in the form of help for investors.

What actions should investors take? We can share some strategies that we’re using with our clients from a financial planning and wealth management perspective.

  • Work with a professional who is looking forward with today’s situation in mind. The challenges listed above have been on our minds and on the minds of our portfolio managers regardless of market returns. We discuss these issues on a daily and weekly basis within the firm as well as with money managers and peers. For many managers, a European outcome may be a "United States of Europe" approach with more centralized EU power. This, they say, will not happen without considerable effort and time.
  • Look at your risk orientation. In 2011, we considered significant changes to positions for our clients in anticipation of sustained volatility (which we saw last summer and seems to be popping up again). From our point of view we may continue to see more uncertainty this summer and through the presidential election cycle in November. We have been underweight dedicated international positions and our managers have tilted portfolios toward Asia and away from Europe. We have incorporated alternative strategies which have historically had a less direct relationship to the whims of stocks and bonds. This is not a blanket prescription but our point of view. You should know your own posture in terms of investment mix.
  • Stick with your plan. Because of the changes last year, we continue to be comfortable with portfolio positions today and do not anticipate a significant overhaul to portfolios. That said, our focus on monitoring investment mix in light of current scenarios is as vigilant as ever. If you have started a plan, you need too much change or doubt may result in a drag on your portfolio’s returns.
  • Rebalance when appropriate. If markets continue to decline, we may rebalance portfolios into the assets that have declined. This is by design and meant to position investments through a forward-looking lens rather than the natural human tendency of focusing on the rear-view mirror. Ultimately, we believe that volatility will lead to buying opportunities.
  • Talk to someone when you have concerns. Working with a CERTIFIED FINANCIAL PLANNER™ is a partnership. A financial planner can help uncover your concerns and find answers for your fears! Most importantly, when your financial situation is changing, make sure to update your overall financial plan and analyze your investment mix based upon the new information.

As the summer gets going, you should be able to enjoy barbecues with family and friends rather than worry about the ups and downs of stocks and bonds. Ultimately, you are investing so that you can achieve your financial goals. If you ever have questions about investing or comprehensive financial planning, don’t hesitate to contact us.

Sincerely,

Melissa Joy, CFP®
Partner, Director of Investments
Investment Advisor Representative, RJFS

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 Melissa Joy 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 may not be indicative of future results. Please note that international investing involves special risks, including currency fluctuations, different financial accounting standards, and possible political and economic volatility. Alternative investments are available only to those who meet specific suitability requirements, including minimum net worth tests. There are special risks involved with alternative investments, including investment strategies, and different regulatory and reporting requirements. There is an inverse relationship between interest rate movements and bond prices. Generally, when interest rates rise, bond prices fall and when interest rates Investing involves risk and you may incur a profit or loss regardless of strategy selected.

Live YOUR Plan™

Newsletter Signup