Got Savings Bonds?

 Ahhh….savings bonds.  Throughout the years, savings bonds have been popular gifts. Grandma and grandpa have given their grandchildren savings bonds for birthdays to encourage saving for the future.  They were easily available savings vehicles that you could purchase at your local bank or, in some instances, through payroll deduction.  The paper certificates are those you might stumble across in a stack of old papers or locked away in your safety deposit box. 

What do you do if you find that you have savings bond certificates?

• Check the dates.  All savings bonds have a maturity date; a date at which they stop accruing interest (i.e. Series EE bonds accrue interest for 30 years).  You can use any number of online savings bond calculators to find out if your bonds have matured.
• Transition to Electronic Bonds.  The U.S. Treasury recently stopped issuing paper bonds to save costs.  If you own paper bonds that are still accruing interest, consider establishing a Treasury Direct account to convert your paper bonds to electronic bonds.  This helps eliminate the risk of loss or damage to the physical bond certificates.  If/when your bonds have matured, you can cash them in and have the proceeds deposited to your bank through Treasury Direct.
• Check the registration on the bonds.  Savings bonds seem to be easily forgotten.  It is not uncommon for a client to find a bond in the name a deceased relative, in a former/maiden name, or in custodial registration for a child who is now a well-established adult.  Updating the registration on active savings bonds now can prevent headaches later.  Registration changes can be handled through Treasury Direct.
• Last but not least, document that you own savings bonds.  List these holdings with your financial planner and on your Personal Record Keeping Document to ensure that these assets are not forgotten if something happens to you.

While savings bonds are not as en vogue today as they were in past decades, they can still be valuable assets.  It is worth taking the time to bring the old bonds into the current century with Treasury Direct.

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.

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

Center Celebration of Service

 Many of you would recognize her voice, even if you didn’t know Brenda Spencer’s face. She’s been greeting our clients with the warmest of receptions since 2006. Most people don’t know that Brenda was actually a client before becoming a member of our staff.  And she is the person responsible for moving the Center to a paperless office. A genuinely happy lady, she is perfect for the job and that’s one of the reasons The Center recently celebrated her exceptional service.

In her 7 years on the job, managing partner Tim Wyman, CFP®, JD said Brenda made the Center a better place for her colleagues and clients with her positive and caring attitude.  “Brenda understood and modeled that providing great service to both internal and external clients is an opportunity, and happens everywhere at the Center.”

Jennie Bauder, Client Service Manager adds, “It was with mixed emotions that the Center team gathered on a recent afternoon to wish Brenda well as she transitioned into retirement. Over lunch and gifts, we celebrated her contributions and her next phase in life.” For Brenda, that next chapter is sure to include traveling and visiting the casinos (we’re positive because we gave her a casino-themed gift basket, including a gift card to stay at one of her favorites). Brenda may like to try her luck at the casinos, but we’re the ones who really hit the jackpot, as Tim Wyman explains, “We are all better for having Brenda here and wish her well in retirement.”

High Tech with a Human Touch

 Technology seems to change at the speed of light but it always plays an important role in helping us provide world-class service to clients. The Center has a long history of being early adopters of technology. We’ve been using a client relationship management system since 1997; back when very few financial planning firms were doing it.  Done right, technology can increase the value that we provide to our clients. Done not so right, technology can be expensive and frustrating. 

In order to keep abreast of the latest innovations and best practices in our profession, Tim Wyman, CFP® recently attended the Financial Planning Association’s annual practice management event, Business Solutions, which took place just outside Chicago. For 2.5 days Tim was immersed in practice management and technology demonstrations, all focused on how to increase the level of service to clients.

Our Vision 2020, the Center’s roadmap for the future, guides us to successfully use technology wherever we can to enhance the client experience and our team member experience. We also are keenly aware that our investment in technology enhances, but does not replace, the need for the human touch. Instead, we think new tools create more space and time to discuss and plan for what’s most important in our clients’ lives.

Center Celebrates at Slows Bar-B-Q

 Sometimes you have to get a little dirty to get the job done. That’s why our Center team members rolled up their sleeves and dug in. We take our commitment to achieving our Center Vision 2020 very seriously and we are having some delicious fun doing it! Here is a glimpse of our latest team outing and a little over-indulgence at Slows Bar-B-Q in Downtown Detroit. Our Center 2020 vision was top of mind when our newly formed Social Committee organized a team luncheon and awards ceremony to celebrate the many talents and achievements exhibited by our fellow co-workers.  As our Vision 2020 states, “We relish the opportunity and responsibility to create unique, memorable and personal experiences for all whom we serve.” The photos suggest a Mission Accomplished. By taking care of our team members, we hope to build a magnet for attracting new talent and leadership to The Center. And even if some of us got a little of Slows’ Bar-B-Q sauce on our awards, it was worth it.

Happy Centerversary

 

The Center celebrates its 28th year! Founded in 1985, our success and longevity would not be possible without the support from our team members.

Let's take a moment to recognize Jen Hackmann, RP℠ who celebrated her 12th Centerversary at the end of March.  Congratulations!  With a big smile Jen took a minute to put her thoughts into words, "I  feel honored to be part of such a special group of individuals and look forward to the next 12 years!"  

Ladies – Don’t be left out of the Retirement Income Discussion

 We know that statistically women outlive men.  By age 85, there are approximately five women alive for every three men.  By age 95, the ratio of women to men doubles.  (Source: 2010 U.S. Census Bureau).  We also know that income disparities over time can have significant implications on the amount women are able to save for retirement.  Ultimately this means women need to fund a longer retirement with fewer financial resources.  

To help frame the retirement income decisions women have to make when approaching retirement, use the following suggestions as general guidelines:

• Establishing a target age is important because when you retire will affect how much you need to save.  For example, if you retire early at age 55 the number of years you have to save is lessened and the number of years that you will be living off retirement savings is longer.
• Medicare generally doesn’t start until you reach age 65.  Retiring prior to eligibility for Medicare means you may have to look into COBRA or a private individual policy, which can be expensive.
• You can begin receiving your Social Security benefit as early as age 62.  However, your benefit is then reduced 25% to 30% if you do not waiting to collect until full retirement age.
• Working part time during retirement will allow you to rely less on retirement savings in the beginning and you may also have access to affordable health care while waiting for Medicare.
• If you are married, and your spouse is still working too, it may pay to think about staggering retirements to ease the financial transition into retirement.

Creating a retirement income roadmap is a practical suggestion for managing and overcoming the unique challenges women face in retirement.  Don't sit this one out.  Join the discussion and learn along the way if necessary.  A financial professional can help sort through the options to develop a plan that is right for you.   One of my favorite quotes by Henry David Thoreau provides a timeless message for looking to the future; "Go confidently in the direction of your dreams. Live the life you have imagined."

Laurie Renchik, CFP® is a Senior Financial Planner 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.

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.

Curtain Call

 The Center's Team enjoys sharing their knowledge with the press to help stories come to life, share facts and bring important topics to the forefront.  We are also honored when we are recognized by media and publications for our work and service to our profession. Here's what's new:

Observer & Eccentric

Troy Wyman, CFP® was recognized as 2013 Secretary for Birmingham Bloomfield Chamber Executive Board in Hometown Life on January 20, 2013 in an article titled, "Chamber names new officers." 

Investment News

Melissa Joy, CFP® was quoted in Investment News January 13, 2013 in article titled, "Gaffney blazes her own trail" by Jason Kephart.

Investors should consider the investment objectives, risks, charges and expenses of an investment company carefully before investing. The prospectus contains this and other information and should be read carefully before investing. The prospectus is available from your investment professional.

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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. 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 presented are not necessarily those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is an inverse relationship between interest rate movements and bond prices. Generally, when interest rates rise, bond prices fall and when interest rates fall, bond prices generally rise.

What to do in the Last Crucial Months before Retirement

 After years of saving and planning for retirement, you may be relieved and excited about the prospects of making the decision to move forward and retire.  If you are at this point, careful planning in the months leading up to retirement can help you ensure a smooth transition from employment to retirement. But many of us may be missing out on an important step in this process.

I recently read a statistic about women and retirement that surprised me.  Insured Retirement Institute (July 2012) reported that through planning with a financial advisor, women can take steps to increase their optimism and financial outlook for funding their retirement years.  Yet, nearly 53% of Baby Boomer women reported that they have not consulted with a financial advisor.  This is a pressing problem that has the potential to create long term financial and emotional roadblocks for women who are on the cusp of retirement.  The following information to help you gauge retirement preparedness.

Conversations to Have as Retirement Draws Near

These conversations should include a detailed look at the following areas of your financial plan:

• Inventory investments, review employer retirement plan options and analyze Social Security benefits to make sure you can afford to leave the workplace.
• Decide on an initial annual withdrawal amount that you feel you can take from your investments every year without substantial risk of running out of money.
• If you are under age 65 and not eligible for Medicare, determine how you will cover health insurance needs.

Transition From the Work Force Into Retirement

Once you have a clear understanding of your retirement resources, another important part of retirement planning is to focus on the period of transition as you move from the work force into retirement.  Here are some suggestions to help make the transition run as smoothly as possible:

• Reduce or eliminate credit card debt prior to retirement.
• Carefully weigh your options for handling your mortgage.
• Focus on your actual expenses today and think about whether they will stay the same, increase, decrease, or even disappear by the time you retire.

If you find yourself with unanswered questions, I recommend hiring a financial professional to help you understand financial options and opportunities for retirement.   The decisions you make in the final months leading up to retirement can have a considerable impact on your overall retirement plan.  

Laurie Renchik, CFP® is a Senior Financial Planner 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.

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.

Matt Chope, CFP® Attends Raymond James Conference

 It is no surprise that health care costs are growing, but some people fail to consider the rising cost when planning for retirement. That was a key take-away for Matt Chope, CFP® who recently attended the Raymond James winter symposium at the Raymond James home office in St. Petersburg, Florida.  This invitation-only event brought some of the leaders in the industry up-to-date on new tax laws, Medicare and Social Security planning, investment markets and the global economy. Matt said he was exposed to new ideas and came away from the trip with a reminder for his clients to adequately budget today for the health care costs of tomorrow.

Years of Hard Work Produce an MBA for Laurie Renchik

 It took four years of juggling a full-time career and sacrificing a lot of precious free time, but we are proud to announce that our Laurie Renchik, CFP® recently completed postgraduate work to earn a Master of Business Administration degree from Walsh College. Despite the challenge, Laurie tells us, “I enjoyed the journey which was filled with new opportunities for learning.” Walsh College is a private school that was founded in 1922 and is one of Michigan’s largest graduate schools of business.

Her newly minted MBA comes with a specialization in Finance, which is a perfect classroom match for her position at the Center.  Laurie says the MBA program helped, “Expand my analytical abilities beyond the scope of personal financial planning to include business management expertise, ultimately helping me better serve Center clients and our Center 2020 Vision.”

What's up next for Laurie? She says she will take the knowledge she gained and put it to work. We applaud Laurie for her recent accomplishment and the four years of hard work and dedication that made it happen.