Financial Resolutions

 It’s that time of year again and you’ve likely made one or more New Year’s Resolutions.  If you’re like a majority of Americans, you made a resolution to achieve at least one of the following goals in 2013:

• Lose weight
• Get in better physical condition (exercise more)
• Get organized
• Get in better financial shape

A recent survey by Fidelity Investments, found that of those who made financial resolutions, over 50% set a goal of saving more money. 

Whether saving is for a short-term goal (like buying a new car) or a long-term goal (like saving for retirement), how do you avoid being one of the over 35% of Americans who have broken their resolution by the end of January?*

Try these ideas:

1. Write down the savings goals you’d like to accomplish by 12/31/2013.
2. Break your bigger goals into actionable and specific quarterly goals; assess your progress every 90 days.
3. Be accountable to a third party.  Your financial planner is the perfect person to work with to establish your annual goals and develop actionable steps to achieve those goals.  Schedule a quarterly check-in to report your progress.

Like any goal (or resolution) you make in life, putting it in writing and keeping yourself accountable is the best way to achieve success.  Make 2013 the year you keep your financial resolutions!  See my next blog for ideas on specific actionable goals for the year.

Sandra Adams, CFP® is a Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012 and 2013, Sandy was named to the Five Star Wealth Managers list in Detroit Hour magazine. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

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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.

*New York Times, January 2012

Yep, There's An App For That

 Raymond James Launches Investor Access for Mobile Phones

This winter, Raymond James has made Investor Access, their client account access system available on mobile devices. You can see your account summaries and portfolio values via a secure and convenient application available through the Apple, Google, or the Windows Marketplace.

To get your app, search for Raymond James Investor Access in your App Store, or visit the Raymond James Mobile Access web page.

Visioning Your Future Retirement: How to Write Your Own Story

 A recent Wall Street Journal headline caught my eye and got the wheels turning in my head.  It read, “The Let’s Sell Our House and See the World Retirement.”  This article outlines an interesting variation to the more traditional retirement theme of choosing a static location to call home for retirement.  It’s an unconventional take on retirement that required some careful planning and some carefree exploration. As the globe-trotting couple says in the article, “When all else fails, walking and gawking are free everywhere.”

The retirees featured in the piece sold their permanent residence and live in furnished apartments and houses around the world.  They call themselves senior gypsies that put down roots – at least for a month or two.  The simplified version of their story is that they are both happier in life while “on the road.”  Health is good and the desire to see the world in bigger bites than 2-3 weeks at a time is their primary motivation. 

The message I find compelling is that traditional financial planning principals provided the fundamental backdrop for the decision-making but the individual creativity of the retirees provided the unique detail.  This means that a myriad of possibilities exist for all retirees contemplating future retirement. We can start with financial planning as a home base and then craft a unique retirement that provides value and worth regardless of individual preferences. 

Here are three tried and true tips to consider when visioning your future retirement picture:

1. Engage in honest conversations about what is important in retirement.  This simple exercise has a way of opening doors to future possibilities. 
2. Own the reality check.  Crunching the numbers provides context and insight to what can be possible in retirement.  In the article, selling the home was a key to realizing the desired lifestyle in retirement.
3. Develop a solid spending strategy.  This step is instrumental in keeping any budget in line.  Adjustments are an ongoing part of any budget and lend to the health of the overall plan. 

Technological advances connect the world in amazing ways and the reality is that times are changing. Many baby boomers and younger cohorts are writing their own retirement story, even if it means creating a new set of rules about how to spend retirement.

In the spirit of a new adventure, I started to make a mental list of the pros and cons to this hybrid approach and wondered how an idea like this might float with my husband! 

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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.

Excellence is Not Perfection

 Passion for Excellence: a Center Value that guides us in our daily actions. 

No one is perfect, but we can all strive for excellence. Setting the bar high and striving for continual improvement is a function of excellence.

Perfection is to have no flaw. Excellence is to recognize our mistakes and learn from them. Furthermore, excellence is to implement systems to automate repetitive tasks and eliminate waste.

Perfection is to do no harm. Excellence is to be compassionate when mistakes inevitably happen. When mistakes happen it’s best to listen. Let clients realize we are truly hearing them - be sympathetic about the error. Acknowledge that we understand how this affected them and that we are striving to build ways so this will not happen again.

Perfection is pure and rigid. Excellence can have a core set of "rules" but also be unique and flexible.

NO! – can be a threatening word; try to be careful when using “no." Consider this, “Let me see what our options are."

Perfection can be intolerant and exact. Excellence was best said by Gandhi: “Intolerance is usually all that I can not tolerate, so I guess I still have some work to do.”  Be open to differences; some clients are older and slower than others

Perfection is static and closed. Excellence is open to possibilities but accountable to detail. We generally find comfort in our similarities but growth in our differences.

Perfection is rude. Excellence is about attitude, a strong discipline to continual improvement, a focus on goals with open communication.  I will ask you to consider embracing work discussion with a level of constructive criticism when necessary this next year. Especially when developing systems and processes for the entire organization to use. Tighter specifications to details are necessary when building synergies for an organization like ours.

Our work for clients is hardly ever completed. Perfection is completion, while excellence is usually found in the pursuit.

I'm proud that our firm has always pursued excellence.

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Checkout our current blog posts HERE. See you there!

Fiscal Cliff Limbo

It’s December 21st as I write this which is the artificial deadline we circled for a fiscal cliff resolution in 2012. By the time that you read this we may have a resolution, but as of this writing we do not. Last night the House of Representatives abruptly adjourned without voting on Speaker of the House John Boehner’s “Plan B”.

No insider expected Plan B to be the ultimate resolution of the fiscal cliff debate. It was a bargaining chip for Speaker Boehner to show united resolve from House GOP during negotiations with President Obama. With that resolve now shattered, eyes turn toward an increased role of Senate Leaders: Republican Mitch McConnell and Democrat Harry Reid.

Without action between now and year-end, a bundle of tax increases and spending cuts will become effective January 1. It is important to keep in mind that this bundle of changes accumulates over a full calendar year to equal the billions of dollars that have been estimated to reduce the economy. While it looks like a compromise will be difficult in the next few days, any action in 2013 could be retroactive to the end of 2012, especially on the income tax front.

Greg Valliere, Chief Political Strategist at Potomac Research, has noted this week that we are now in a worst case scenario. This doesn’t mean the full “cliff” will necessarily be realized, but Washington may look to the markets for a “crisis” prior to acting. As of yesterday’s close, the US stock market as measured by the S&P 500 is trading above Election Day values. A pullback is not out of the question but recognize the fickle nature of political negotiations which make it very difficult to time peaks and valleys.

During this time, as always, we manage your portfolios with a steady hand recognizing that there are ebbs and flows in investing. You have stated goals for your investments related to your life needs. Our enduring purpose is to help you to achieve those goals through our investment and financial planning decisions. If you have any questions as we continue to navigate these choppy fiscal waters, please feel free to contact us.

On behalf of everyone at The Center,

Melissa Joy, CFP®

Partner, Director of Investments

Required Disclosure: 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, are not a complete summary or statement of all available data necessary for making an investment decision, and do not constitute a recommendation. 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 opinions are those of Melissa Joy and not necessarily those of RJFS or Raymond James. The S&P 500is an unmanaged index of 500 widely held stocks that’s generally considered representative of the U.S. stock market.

Matt Chope Shares Values at Youth Diversity Symposium

 On November 9, 2012 Matt offered his thoughts on what it means to leave a Legacy of Value.  Through discussion and a hands-on exercise students explored their true life values.   Matt helped them look inside themselves to determine who they are and where they stand today.  A value Matt takes to heart and practices throughout both his personal and professional lives.

This year’s symposium, "Millennials Creating a Legacy", focused on global issues that the millennial generation face and the legacy that they hope to leave behind for future generations.

The Youth Diversity Symposium is an annual event developed by the Southfield Community Foundation and is being helped in partnership with the Council of Michigan Foundation in 2012.  The event offers a diverse base of youth from the metro Detroit area an opportunity to interact with each other and engage in learning activities centered on social issues and philanthropy. 

Marilynn Levin Shares a Proud Grandparent Story

 “I just had to share this story of my grandson Malcolm…… (Marilynn Levin)  This happened the weekend of No. 24^th in Philadelphia.  Lots to be learned from this kid - And I know this too:  I'm just in awe of the kid and terribly, terribly proud of him.”  The following story is told by my son David.

Reference Notes:  Malcolm turned 10 in August,  PS139 is his elementary school in Brooklyn, NY 

Malcolm is officially the highest-rated player in P.S. 139 history.

If you want the short form of this story, know this. This was a big goal of Malcolm's and we all feel really great about it.  If you want the, long (and possibly insufferable) version, keep reading.  Either way is truly ok.  You've been warned.

When Malcolm set this goal, it seemed impossible. Coming into the fall it started to seem inevitable.  But then, Malcolm's rating actually started to sink, and his confidence was shaken.

At the low point, Malcolm decided he only wanted to play much higher rated competition. Part of this was tactical, if you lose to a higher rated player then your rating doesn't fall much.  But part of Malcolm's decision was that he felt he would perform better if he took on a bigger challenge.  Having a hard time with a big goal?  Take on a tougher challenge.  Ok.  His call. And one backed up by Mr. West his chess coach. But I had my doubts.

So Malcolm entered the Under 1800 section at the National Chess Congress this weekend.  His official ranking for the purposes of the tournament was 1400.  He was far and away the lowest rated person in the section.  (He would have been in the middle of the pack at best in the Under 1600 section.)

Malcolm lost his first two games and took the losses hard. I felt bad for him, gave him lots of hugs, and worried that we were in for a very long weekend. In the very next match, Malcolm went out and took down the number 2 seed! He gave away a knight in exchange for two pawns and then exploited the absence of those two pawns to methodically grind out a win over the course of the next sixty to ninety minutes.  People kept coming around the board to watch. A small crowd of admirers gathered. Malcolm's opponent hunched over the board, breathing heavily, grunting occasionally and gamely maneuvered, trying to save the position. The pressure mounted.  He and Malcolm were locked in a tight, tight grip like two sumo wrestlers.  Each move countered by the other. Then it was Malcolm's turn and he did...nothing.Well not exactly nothing. But instead of attacking his opponent, he stepped back. And all of a sudden, Malcolm's opponent had nothing to hold on to. I was stunned with how calm Malcolm was and how flexible the maneuver was.

The game lasted a couple more moves, but it was all but over. And then it was all over. The lowest rated player in the section (who had no business in the section) had beaten a player (rated 1789) who fell just under the top ceiling for the section. Malcolm went on to another draw and in his final match he stunned a much higher rated player with a move that looked like it gave away a piece but actually won the game. I happened to visit Malcolm's board at the decisive moment.  He made the move and his opponent stared down at the pieces: 1 minute, 2 minutes, 3 minutes passed.  Then he hung his head, turned off the clock and said, "you win." Then he looked at me and said: "He is very, very good."

Malcolm and I sat down and analyzed the game. It's up there with the most spectacular things I've ever seen on a chess board.  In some tournaments, they have a prize for what's called a "Chess Brilliancy." I have no doubt this would qualify. Well, I know this: It is a strange feeling to be so surpassed at something by your ten year old. And I know this too: I'm just in awe of the kid and terribly, terribly proud of him.

Love,
David

File & Suspend: The Best Kept Social Security Secret?

 The other day, one of our associates was on the phone with the Social Security Administration (SSA). When asked about the “File & Suspend” strategy, the SSA staffer said he hadn’t heard about it “yet”. Not exactly encouraging since “File & Suspend” has been around since about 2000. More than a decade later, this highly effective social security retirement benefit strategy is still considered new and obviously causing confusion.

To recap, this strategy is designed to help a married couple maximize their combined social security retirement benefits.  One of the spouses, the higher earner, will “file & suspend” at full retirement age which allows the lower earner (or one with no earnings record) to begin receiving spousal benefits.  Additionally, the higher wage earner will receive delayed retirement credits from full retirement age until the age of 70, which can have a significant impact in maximizing the couple’s combined benefits. (See Julie Hall’s October 31, 2012 blog post One Social Security Strategy Too Many Married Couples Miss).

Once a couple decides to implement this strategy

It's time to deal with the Social Security Administration. 

We have not had a client file and suspend using the SSA’s online process.  While this may be possible, because of the importance on getting this correct and the apparent confusion involved, we suggest visiting the SSA in person if possible.  Obviously this requires more of a time commitment on your behalf, but may ensure that the application gets processed correctly. Additionally, both couples can attend together to take care of both their applications. A client recently shared their experience and stated that they were glad that they went in person. The visit took an hour and a half with their cooperative SSA staffer (even though this was the staffers first time completing a “file & suspend” request). 

What needs to be communicated to the Social Security Administration at your meeting? 

It is important to note that there is nothing on the application that asks if you want to suspend your benefits to earn delayed retirement credits, thus the general confusion even for SSA staffers. It is important to put a statement in the “remarks” section of the application stating, "I want to voluntary suspend all benefits in order to earn delayed retirement credits”. This is critical because voluntary suspension can only be requested if benefits have not yet been paid for the month. 

What might the conversation actually sound like?  Let’s use Bob and Mary Smith as an example: 

Bob: “I have reached full retirement age.  I would like to file for social security and suspend my benefits immediately so that I do not receive any payments and earn delayed retirement credits.”

Mary: “Once my husband Bob files and suspends his benefits, I would like to file for my spousal benefits, please,” (while using “please” may or may not help, I trust you agree that is a good thing). 

Last, but certainly not least, ask to get a photocopy of the application for your own records. 

Please use us a resource for all of your social security retirement needs.  Social security retirement benefits can play an important role in your overall retirement success and we’d enjoy helping you maximize your benefits.

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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, is not a complete summary or statement of all available data necessary for making an investment decision, and does not constitute a recommendation.  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 opinions are those of Center for Financial Planning, Inc., and not necessarily those of RJFS or Raymond James.  The strategy mentioned may not be suitable for all investors.  Please consult the appropriate professional regarding your individual situation.

Kacy Wyman & Justin Bieber: Make-A-Wish 2012

 To suggest that Thanksgiving 2012 was a special time would be a gross understatement.  Rather than stuffing ourselves with turkey and watching the Detroit Lions somehow lose another game (I digress), my family packed up to travel to Montreal to celebrate a Make-A-Wish event granted to my daughter Kacy.  Many of you have read before about the special 10 year old that I get to live with and be inspired by each day.  For those that don’t, Kacy was born with a rare genetic disease called Cystinosis (Sis-Ta-Know-Sis).  [You can read more about Cystinosis at the end….there are too many other exciting parts to this story to get detracted by the details of the disease – and besides that’s how Kacy chooses to live each day.]

On Thanksgiving morning we (Kacy, my wife Jen, son Matt home from The University of Kansas and son Jack) were picked up by a stretch limousine for our trip to the airport.  It was early, but the excitement of what was to come took away most of the sleepiness.  Now you know that a trip to the airport isn’t always without hiccups or delays….but after a short weather delay we were off to Montreal for 5 days.  Our trip would be capped off by meeting and seeing JUSTIN BIEBER in concert.  In case you are not into current pop music, think Elvis Presley, Michael Jackson, or perhaps Madonna during your youth.  Yep – he is that big – the current king of pop and the love of many young girls (and some older ones based on the reactions during the concert).

Our family spent the initial days visiting Montreal’s sites like the Bio Dome, IMAX theatre, and many fine restaurants (we even visited some not so fine ones).  We walked the city for miles – laughed a lot – got some exercise in – even got our share of sleep.  Kacy would have been fine staying in the hotel pool every waking hour – it’s one of her favorite things to do.

The Big Day

Monday was the BIG day – the day to meet JUSTIN.  Needless to say, Kacy was excited from the moment she woke up.  She began planning her day – her hair – nails - the outfit (you can’t wear just anything you know) and planning what she might say when she met JUSTIN.

Our directions were to be in the hotel lobby at 3:45PM sharp….Kacy was ready by 1PM….and at 3:30 we made our first steps to the evening’s event.  Once again we were greeted by a very friendly limousine driver who escorted us to the limo for the short drive.  Because we were early (their dad is a planner) the driver paraded us around town for a bit to give us a Hollywood experience.  While they may not admit it, Matt (18) and Jack (17) especially liked the attention.

As we approached the Bell Center, the location of the concert, crowds had already gathered and they wondered could it be JUSTIN in the limousine?  My son Matt, who has a slight resemblance to JUSTIN (if he shaved and was 5 inches shorter), decided to have some fun with the crowd.  Wearing his hat pulled down and cracking the window just enough for the mob of young girls to catch a glimpse he started waving.  At one point a group of girls began screaming as they raced to catch the limo.  I am not sure what would have happened if they had caught us!

As we found the entrance and got out of the limo we began to feel the “hugeness” of the JUSTIN phenomenon.  Girls started taking pictures of Matt until they finally realized he was much too tall to be JUSTIN – but we had fun with it anyway!

The Biebs

After standing in line to get our tickets at Will Call, we were escorted (really whisked) to the front of the line to go in the special door.  We were greeted by Justin’s manager Kenny.  For those that have seen the JUSTIN BIEBER movie – you would recognize him.  Kenny was a very unassuming and friendly man who treated us like his guests.  From there we were lead through the back hallways of the stadium…..past masses of people just hoping to catch a glimpse of JUSTIN.  As we walked by the crowds, I knew people were wondering, “Who are they? Are they famous? Why do they get to go back there?”  On our trip back stage we witnessed the massive amounts of equipment that the Bieber tour travels with - it was truly astonishing – who coordinates all of that? (sorry you are getting the story through a middle aged man’s perspective not Kacy’s)

Our back stage travels ended in a make shift greeting room – this is the place that Kacy would meet JUSTIN – can you feel the excitement!?  As you might imagine, you don’t get to walk in and see the star right away, some waiting is to be expected.  We just didn’t know if it would be 10 minutes or one hour before JUSTIN came in.

As Kacy waited, somewhat patiently, for JUSTIN to arrive she periodically tip toed to the room entrance to see if he was in sight.  At one point she sat down and said, “I just know my face is going to be as red as a heart.” Kacy was definitely excited…..and nervous. Then, the waiting was over; JUSTIN BIEBER arrived into our room!

The Moment

JUSTIN arrived carrying his young brother in his arms. I thought Kacy might have seen a ghost, her face was so white – not the red she was thinking (that did come later though).  JUSTIN immediately sat down between her and one other girl receiving a Make-A-Wish event (Berkeley from London, Ontario).  Justin asked their names – what they liked to do – and gave out some hugs.  The next 10-15 minutes (I think – time kind of stood still) were filled with exchanging gifts and lots of picture taking.  Kacy, wearing an “I Love Justin” t-shirt had another shirt made for JUSTIN that said I Love Kacy (I bet he hasn’t taken it off yet!).  Ok – he wasn’t really interested in putting the shirt on – he has an image to uphold – I get it.  JUSTIN’s team provided the girls with gift bags of their own containing a shirt, photos and other Bieb items – needless to say they were a big hit.

The girls snuck in a few more hugs and then it was time for the star to get ready for his concert. The VIP treatment continued as Kenny escorted us back stage and we entered the front of the stadium – row 6 to be exact. We settled into our seats and quickly put in ear plugs – we being the parents – Kacy and Berkley figured they could go to the stage for an even better view and no way were they going to drown out any of the noise … er I mean music.  As an aside – I never imagined just how loud 40,000 screaming girls could be – let’s say for some of us the ear plugs were necessary.  As you might expect, the concert was a huge hit and Kacy never sat down once.  Watching her smile during the concert was worth any potential permanent hearing loss!

The Memories

Our entire family cannot express our thanks enough to the Make-A-Wish Foundation and their dedicated volunteers.  From their first visit to ask Kacy what she might want for her Wish, to taking care of every detail to ensure a spectacular experience, they were true angels. 

We have been back home for almost a week now and the residual smile from the JUSTIN experience is still plastered on Kacy’s face.  A Wish cannot cure Cystinosis or any other disease – but it certainly impacted Kacy as well as all of us that continue to be inspired by her.

About Cystinosis
Cystinosis is a rare disease that is typically diagnosed prior to age 2. Cystinosis is a genetic metabolic disease that causes an amino acid, cystine, to accumulate in various organs of the body. Cystine crystals accumulate in the kidneys, eyes, liver, muscles, pancreas, brain, and white blood cells. Without specific treatment, children with cystinosis develop end stage kidney failure at approximately age nine. Cystinosis also causes complications in other organs of the body. The complications include muscle wasting, difficulty swallowing, diabetes, and hypothyroidism. It is estimated that at least 2,000 individuals worldwide have cystinosis, though exact numbers are difficult to obtain because the disease is often undiagnosed and/ or misdiagnosed.

For more information visit www.KacyWyman.com or www.cystinosis.org

About Make-A-Wish Michigan

Make-A-Wish Michigan grants the wishes of children with life-threatening medical conditions to enrich the human experience with hope, strength and joy.

Since 1984, Make-A-Wish Michigan has granted wishes to more than 7,000 special children in Michigan. Of each dollar spent, 80 cents goes directly to granting wishes for children with life-threatening medical conditions. Funding comes from individual contributors, special events, corporate donations and sponsorships, foundation grants, workplace giving programs and planned gifts. These wishes would not be realized without the dedication and support of the volunteers, donors, and staff, as well as exceptional leadership from the Board of Directors. For more information visit www.wishmich.org