Tax Time Fraud Alert from the IRS

Rich or poor, old or young, criminals still want to steal from you.  Financial fraud and identity theft is a huge concern to most of us, particularly cyber fraud.  IRS Commissioner John Koskinen released a statement in late January warning citizens about tax time scammers.  PLEASE PAY ATTENTION TO THIS WARNING.

Over the Internet

The Scam: Internet scammers come out in droves around tax time, trying to trick you as a taxpayer. They may try to get you to send them your address, Social Security number, credit card number, bank account number or any other valuable piece of information that can help them steal your identity or your assets.  These tax scammers sent out so-called "phishing" emails that appear to be from the IRS and claim that the recipient either owes money or is due a refund.  The IRS will never send you an e-mail about a bill or refund and request your private information. 

What to Do: If you get an unsolicited email that seems to be from the IRS or a related agency, such as the Electronic Federal Tax Payment System (EFTPS), don't reply, don't open any attachments and don't click on any links.  Opening the attachments can allow scammers to steal your personal information or infect your computer.  Instead, report the e-mail to the IRS by sending it to phishing@irs.gov.  According to the IRS, they do not contact taxpayers electronically - whether by text, email or other social media - to request personal or financial information.

By Phone

The Scam: One of the all-time top tax scams is done by phone. These scammers call taxpayers and make claims about a refund or tax due and try to get taxpayers to provide private information.

What to Do: Do not provide private information over the phone – to anyone, including those who might claim to be calling from the IRS. If you receive a phone call or electronic communication from any source claiming to be the IRS or an associated agency, do not respond by providing confidential information.

Providing the wrong information to the wrong people can result in identity theft, monetary theft and years of headaches for you. Report any such communication to the IRS or contact your tax preparer or financial advisor for guidance. 

Sandra Adams, CFP®is a Partner and Financial Planner at Center for Financial Planning, Inc. Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In 2012-2014 Sandy has been 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.

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. A15-003424

Slightly Off-Center: TV show you never miss?

There’s a lot you know about our team at The Center … but we’ve dug up answers to some questions you might have never thought to ask.

The Biggest Loser and Game of Thrones –Angela Palacios

This season of The Voice –Jaclyn Jackson

Criminal Minds –Jennifer Hackmann

Parenthood –Jennie Bauder

Parks & Rec –Kali Hassinger

The Good Wife, Downton Abbey, The Blacklist –Laurie Renchik

Homeland –Matt Trujillo

Outlander, Game of Thrones, Mad Men –Melissa Joy

This surprises me too, but it’s “The Walking Dead” –Nancy Sechrist

I’m a huge fan of Showtime – Homeland, Ray Donovan, old episodes of Dexter, etc. – And as I mentioned earlier, those mind numbing reality shows that I’m a sucker for! –Nick Defenthaler

Detroit Tigers or Michigan State games (football and basketball) Go Spartans! –Sandy Adams

I don’t watch TV programs very much.  My wife Jen and I do periodically get obsessed and watch shows like House of Cards, The Good Wife, and Homeland via Netflix in a very short amount of time. –Tim Wyman

Getting Financially Fit in 2015

My wife and I are very different (don’t worry, it’s a good thing!), especially when it comes to our careers.  She is a Surgical Technologist at a large local hospital and is the surgeon’s “right hand man” in the operating room.  As much as I love financial planning, I must admit that she has way cooler stories than me when she gets home!  Health care amazes me.  The types of procedures that are available now are incredible and, in my opinion, those in the medical field are heroes. 

In the locker room at my wife’s hospital, it’s common for the ladies to have magnets of pictures of their family, friends or quotes that might get them through a long, hard, stressful day.  Recently she came home and told me, “You’ll love this one!” I asked what she was referring to and she proceeded to tell me that one of her co-workers had a magnet on her locker that read:

Take care of your financial health

Me, being the nerd that I am, said, “No way, that’s awesome!”  The more I thought about that quote, the more it resonated with me.  We always think about taking care of our health, especially this time of year after we’ve made our (hopefully do-able and realistic) new year’s resolutions.  The gym is busier and fruits and veggies are scarce at the grocery store as people try to make a change. Physical health could mean literally thousands of different things for each individual -- from quitting smoking to eating better, working out to sleeping more.

The same goes for financial health.  There is no “one size fits all”.  True financial planning is a PROCESS not a product, just like improving your physical health.  So, with a fresh start to a new year, I encourage each of you to evaluate your life to see if you are “taking care of your financial health.” As you do this, remember:

Set realistic goals that are achievable (just like you should be doing for your physical health)

Work toward your goals, but don’t expect perfection

Over time, creating good habits and taking the time to review your finances will hopefully lead to a happier you.  From everyone at The Center, we wish you and your family a very happy and healthy new year!   

Nick Defenthaler, CFP® is a CERTIFIED FINANCIAL PLANNER™ at Center for Financial Planning, Inc. Nick is a member of The Center’s financial planning department and also works closely with Center clients. In addition, Nick is a frequent contributor to the firm’s Money Centered and Center Connections blogs.

Any opinions are those of Center for Financial Planning, Inc. and not necessarily those of RJFS or Raymond James. C15-002022

The Center Supports Gleaners’ Vine and Dine Fundraiser

2014 marks the third year Center for Financial Planning has helped sponsor the Birmingham Bloomfield Chamber’s Vine and Dine event to benefit Gleaners Community Food Bank.  Vine and Dine allows guests to experience music, wine, and food from some of the best artists, caterers, and restaurants in metropolitan Detroit.This year’s event was held at the Cranbrook Institute of Science where guests were treated to a special “behind the scenes” tour of the museum as well as see National Geographic’s touring exhibition, Women of Vision.

As a part of The Center’s 2020 Vision, we are deeply committed to community service and aim for our combined sweat equity and financial contributions to create $100,000 of community support each year.  The Vine and Dine event is one on the ways we are building up to our 2020 Vision goal.  This year, The Center team has also volunteered with Gleaners to donate and assemble food packages because we are moved by their commitment to fight against hunger in southeastern Michigan.  Gleaners has successfully collaborated with the Feeding America network, member agencies, and program partners to deliver millions of pounds of food to the people who need it most.  

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.

Part 1: A Year of Lessons on Money Matters for Your Children & Grandchildren

I’m starting this series written for parents and grandparents because I have been hearing from them for over 2 decades about how much more difficult the world may be for their children financially. This is the 1st of 12 blogs offering lessons you can share with your children and grandchildren. I’ll be focused on money matters and general principles about building financial security over a lifetime.  What I hear the most is that clients just want their family’s future generations to be financially secure. Today that means bracing them for a world where there aren’t pensions and where social security will have changed to stay solvent. These are lessons many of our children are just not taught in school.

Lesson #1: It all starts with investing in you

Investing in yourself may seem simple, but it’s not easy to implement for everyone.  How do you invest in you as an 18 year old? Start by investing your time in an education. Investing a reasonable amount of your time and money into a college education will most likely provide the most financial security in a person’s life, not to mention fulfillment.  

Only about 30 percent of Americans have obtained an undergraduate degree or higher according to the U.S. Census Bureau. At the same time an estimated 90% of Center clients’ children and grandchildren obtain an undergraduate degree.  The ability to open opportunities and maintain a steady paycheck is fundamental for financial security. 

The Value of Paid vs. Unpaid Internships

Everyone needs to be able to open the employment door.  To open those doors faster, consider doing a paid internship.  This takes planning at the start of college because many students only have 4 years to line up an internship and some opportunities can be competitive, but as the graph below shows, they can really pay off:

Also acquire an education that is commensurate with your expected pay. Don’t overdo it and go hundreds of thousands of dollars into debt for a job with a salary that will leave you paying off your college loans for 10-20 years.  Figure out how to do it inexpensively.  There are many online tools, including this one from The Chronicle of Higher education that lets you compare earnings, monthly student loan payments, and graduation rates.

Lifetime Earnings Impact of a Degree

There is a lot of research showing that the increase in lifetime earnings, on average, exceeds the cost of an education for people who earn a college degree.  The U.S. Census Bureau reports that a bachelor’s could provide up to $1 million more income over a lifetime than a high school diploma. If you invest $100,000 in college and you make $1,000,000 more over your lifetime, your return on investment is 10 fold or 1,000%.  Over a 30-year period, this is an annual return of more than 10% per year.  Click here to see a list of ROI rankings for various universities.

If you’re a parent or grandparent, start the conversation early. Build college in as a given and develop a way for to pay for it (even if only partially). Setting the expectation that college is ahead lays a foundation for financial security in the future.

Matthew E. Chope, CFP ® is a Partner and Financial Planner at Center for Financial Planning, Inc. Matt has been quoted in various investment professional newspapers and magazines. He is active in the community and his profession and helps local corporations and nonprofits in the areas of strategic planning and money and business management decisions. In 2012 and 2013, Matt was named to the Five Star Wealth Managers list in Detroit Hour magazine.

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 author’s opinions are subject to change without notice. Information contained in this report was received from sources believed to be reliable, but accuracy is not guaranteed. Past performance is not indicative of future results. Investing always involves risk and you may incur a profit or a loss. No investment strategy can guarantee success. 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. C15-001739

Don’t Let 2015 Goals Become Afterthoughts

New beginnings offer the chance to hit the reset button.  Whether it’s setting personal goals spurred on by the beginning of a New Year or adjusting your financial course to focus on retirement, hitting the reset button is an opportunity to think about your intentions and put a finer point on your action plan.

One challenge that comes into play when setting goals, either personal or financial, is the potential to get distracted along the way.  Day-to-day stuff gets in the way and goals can easily become afterthoughts. How can you avoid falling into the gap trap that exists between expressing a goal (Point A) and crossing the finish line (Point B)? 

Here are three tips to get you started.

1. Commitment is essential.  Commitments have an emotional component attached to our personal values.  If something is truly meaningful, you will automatically do what is necessary to get there, whether you set a goal or not.  I am committed to saving appropriately today, so that when I reach retirement I won’t worry about running out of money.

2. Put more focus on the journey rather than the destination.  Goals focused solely on the destination can be met without enjoyment or personal growth along the way.  To retire at age 65 the savings number I need to hit is 15% per year.  Commitments, on the other hand, allow you to chart a course and keep the ultimate arrival point in clear view.   I am committed to understanding how my rate of savings affects my lifestyle in retirement.

3. Don’t get lost in the details of the planning. Getting caught up in the details is a good way to procrastinate.  Action is a must to move good intentions toward progress.

Throughout our lifetime, there are natural breaks in the journey that offer a chance to hit the reset button.  With your goals in hand and motivation clear, the future is shaped.  What will you commit to in 2015?

Laurie Renchik, CFP®, MBA is a Partner and 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.

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 goals listed are for illustrative purposes only. Individual cases will vary. Any opinions are those of Center for Financial Planning, Inc. and not necessarily those of RJFS or Raymond James. C15-000603

Team Building Whirls to a New Level

We are team players here at The Center!  And when we play, we play to win!  Recently, the Health and Wellness Committee sponsored a little excursion to the local Whirlyball venue in Novi.  If you’ve never heard of Whirlyball, you’re not alone.  It is a combination of Basketball, Lacrosse, and bumper cars, which is basically a recipe for fun!  The office broke up into 2 teams:

Game 1: “Friendly” Forgotten

The evening started out as a friendly match of 4-on-4, but it quickly escalated into an intense showdown.  After the first game went into sudden-death overtime, all loyalties tied to the office were put aside for Whirlyball team allegiance.  Angie “Arms” Palacios, who seemed to catch everything within 10 feet of her car, made an amazing last minute play to score the game winning point for Yellow. 

Game 2: Getting Aggressive

In the second game, Nick Defenthaler, who was indisputably the MVP of the evening, outscored everyone and brought Red to an early lead.  Although the Yellow Team came back to tie the game, their achievement was called into question due to an egregiously aggressive play by Matt Trujillo.  Tim Wyman was in position and ready to score, when Matt Trujillo slashed him across the face with his scoop.  Tim literally bled for his team that night.  Regrettably, time constraints didn’t allow for overtime. 

After the game, Matt T. felt sort of bad. To make amends, he is putting together a Center team for the Whirlyball league.  This way, we don’t have to play against one another in the future.  In a clear attempt to get back in Tim’s good graces, Matt is currently throwing around the team name “Wyman’s Warriors.”  The office is open to suggestions, though, so please pass any ideas our way!   

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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.

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A Message for Marilyn Gunther

Described as a steel hand in a velvet glove, Center for Financial Planning founding partner Marilyn Gunther, CFP® has officially transitioned into the retired life. But the mark she left on The Center is almost tangible. In this tribute video, team members call Marilyn professional, committed, passionate and inspirational. And Marilyn’s daughters Lisa and Karen Gunther share their perspective on growing up with a woman who was establishing what would become a nationally recognized business in a very male-dominated field.

Marilyn set an example for The Center team that we are dedicated to upholding. Her success, her impact on the financial planning community, and her trail blazing attitude continue to inspire us daily. We miss seeing Marilyn in the office, and we hear the same from her clients, but the principles she established will follow us into the future.

Slightly Off-Center: What do you do for fun?

 There’s a lot you know about our team at The Center … but we’ve dug up answers to some questions you might have never thought to ask.

Golf, exercise, read, relax at home – Angela Palacios

Play tennis, hike, sing in choral groups, volunteer –Dan Boyce

I like rollercoasters, so I try to get to visit theme parks when I get the chance –Jaclyn Jackson

Garden, read, any sporting event out there –Jennifer Hackmann

Get outside and walk/ride bike with friends (spring, summer and fall) –Laurie Renchik

I travel to beautiful places and hike to mountain tops, forested areas and valleys that are difficult to get to by transportation. –Matt Chope

I still play soccer year-round –Melissa Joy

Simple things are fun to me – working out, spending time with my wife and our dog, playing hockey, golf, having a beer with friends –Nick Defenthaler

Watch sports and stay active doing anything (walk, run, bike, etc.) –Sandy Adams

Play with my dogs – they are so silly! –Melissa Parkins