Meet our Newest Team Member: Jim Smiertka

Contributed by: Center for Financial Planning, Inc.

When asked for his favorite financial planning quotes, our newest team member Jim Smiertka gave us these:

                         "Most people don't plan to fail; they fail to plan."

                         "How you live tomorrow, depends on how you invest today."

At the office, Jim is working as a Client Service Associate/Support Advisor. He’s learning his new CSA duties & working with our financial planning team, while also studying for the CFP exam, with the goal of becoming an Associate Financial Planner. Outside the office, you might find him enjoying Mexican food or working it off by playing soccer or basketball.

We’re a pretty tight-knit team at The Center, so of course, we wanted to know all about Jim. Here are a few of our favorite answers:

What led you to the financial planning field?

I actually started college with a general business / computer applications focus, but my first major was actually Occupational Therapy. After nearly completing the degree, I had a change of heart. I transitioned to the business college at Western Michigan Univ. and Personal Financial Planning was the major I was drawn to.

What made you take a job with The Center?

The Center was offering a job that matched my preferences perfectly, and out of all the places I interviewed at, it stood out the most due to the new office design and all of the staff that I came in contact with. I knew The Center was at the top of my list. :)

Do you have a personal philosophy on saving?

It is very important to start saving early in your working life. You can save less if you start earlier! The effect of compounding interest cannot be understated.

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Slightly Off-Center: Best advice anyone has given you?

Contributed by: Center for Financial Planning, Inc.

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.

In between an action and my reaction lies a small moment of time.  In that moment, we have the capacity to choose our reaction.  It is in that space to choose that our ultimate freedom resides. –Dan Boyce

Everything is figure-out-able ~ Marie Forleo –Gerri Harmer

Trust your gut –Jaclyn Jackson

Treat others as you would like to be treated –Jennifer Hackmann

If you don’t have anything nice to say, don’t say anything at all –Jennie Bauder

Be open to change –Laurie Renchik

Nothing can take the place of persistence –Melissa Joy

Treat others right, work hard, love selflessly, have faith in God and everything else in life will fall into place –Nick Defenthaler

Be the best you that you can be. –Sandy Adams

Be yourself because everyone else is taken –Melissa Parkins

Boomerang Drain: Can an Adult Child Derail your own Financial Goals?

Contributed by: Timothy Wyman, CFP®, JD

You’ve raised your children, launched them out into the world, and cut the purse strings, right? For many of us, the answer is no. Financially caring for those that left the nest but not the wallet is a sensitive subject, but a real one when it comes to planning for your own retirement. The National Center for Policy Analysis reports that more than half of parents of 18 to 39 year olds are providing some support:

59% of baby boomer parents financially support their adult children, often paying living expenses, medical bills and student loans.

For most of us, there is a relatively set amount of money/cash flow to work with.  If we spend more on financial support for adult children, this leaves less for other areas such as travel and/or saving. This is not making a judgment if such support is right or wrong. It is just math. 

Tactics for Setting Goals and Boundaries

If you find yourself wanting to provide financial support, consider setting both goals and boundaries.  Ask yourself these questions:

1. What expenses are you willing to contribute?

2. How long do you want to contribute? 

3. What are the expectations of your child?

In the past, I have worked with clients that have decided to provide financial support to their “boomerang” child.  They were glad that they were in the financial position to do so and acknowledged that some of their own plans were being put on hold because of their choice.  The parents set a 2-year window for their child, a son in this case, and laid out their expectations. It looked something like this:

• They decided they were willing to pay for their adult child’s rent and car for 3 months at 100%

• The next three months they covered 50% of the rent

•  After that, the child was fully responsible for the payment

 The plan worked out well for all of them and now mom and dad are back to enjoying the empty nest years.

More Retirement Goal Drains

Boomerang drain is just one of the pitfalls or obstacles to avoid if you want your empty nest years feel like being, “In college, only with money.” Many of us simply don’t make the time to plan what we want your empty nest years to be (here are my tips on that). Another obstacle can be debt, which doesn’t have to be a four-letter word.  Managing the use of credit is an important component to building and maintaining wealth and having flexible cash flow to accommodate travel or ramping up your savings for retirement. For more strategies on managing debt, click here.

When it comes to reaching retirement goals, I’m a where there’s a will, there’s a way kind of person. Is the glass half full or half empty? I prefer it filled to the rim with a napkin underneath to catch any potential drips. We all face challenges in retirement planning. The important part is overcoming those challenges by filling that glass to overflowing … and I’ve seen many clients do it over the years. If you are an empty nester facing any of these potential drains on your goals, talk to your financial planner. 

Timothy Wyman, CFP®, JD is the Managing Partner and Financial Planner at Center for Financial Planning, Inc. and is a frequent contributor to national media including appearances on Good Morning America Weekend Edition and WDIV Channel 4 News and published articles including Forbes and The Wall Street Journal. A leader in his profession, Tim served on the National Board of Directors for the 28,000 member Financial Planning Association™ (FPA®), trained and mentored hundreds of CFP® practitioners and is a frequent speaker to organizations and businesses on various financial planning topics.

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This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Timothy Wyman, CFP® and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete.

Tis the Season: Tax Season

Contributed by: Matt Trujillo, CFP®

It’s that time of year again!  The time to file your state and federal tax returns. Please remember to send us a copy of the return as soon as it’s available, or make sure we have your written authorization to allow your tax preparer to forward us a copy on your behalf. Having access to timely and updated tax information is critical for giving good advice as well as making long term investment decisions. If you should have any questions please contact our Associate Financial Planner, Matt Trujillo,CFP® at Matt.Trujillo@centerfinplan.com

Matthew Trujillo, CFP®, is a Certified Financial Planner™ at Center for Financial Planning, Inc. Matt currently assists Center planners and clients, and is a contributor to Money Centered.

5 Ways to Locate Lost Assets

Contributed by: Sandra Adams, CFP®

Working for a firm that has been serving clients for 30 years, it is not surprising that we are often in the position of helping to settle estates, either for existing clients or their relatives. Aside from assets that are known, an important step in the process is to search for assets that might not have been documented, or assets that the deceased was unaware of. Here, I share some very useful resources that can be used to search out missing life insurance policies, unclaimed assets, or money due:

USA.GOV - the site provides links to various resources to search out unclaimed assets by state, lost pensions, unclaimed tax refunds, settlements for closed banks and credit unions, money due from mortgage transactions, savings bonds and more.

Michigan Money Quest - The Michigan Department of Treasury's site for unclaimed property.

NAUPA/MissingMoney.com - The National Association of Unclaimed Property Administrators.

NAIC - The National Association of Insurance Commissioners orphaned life insurance policy search.

MIB Solutions - Lost life insurance policy locator service.

If you are the executor of an estate or think you might be the beneficiary of a lost insurance policy or asset left by a loved one, consider searching these sites.

To ensure that you don't leave any "lost" assets for your heirs, search these sites during your lifetime and do your best to document all of your assets, income sources, and advisors using our Personal Record Keeping document.  And make sure your financial planner is aware of your full financial picture so that he or she can quarterback the estate settlement process when the time comes.

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.

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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.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Sandy Adams, CFP® and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete.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. You should discuss any legal matters with the appropriate professional.

Slightly Off-Center: Craziest thing you have ever done?

Contributed by: Center for Financial Planning, Inc.

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.

Sold everything and moved to Germany for 3 years –Angela Palacios

Never thought I would get a tattoo –Jennifer Hackmann

Maybe not craziest – but crazy/fun:   Drove to Jackson, WY from MI with the convertible top down the entire way.  It got scorching hot in the Badlands. –Laurie Renchik

White water rafting –Nancy Sechrist

Skydiving!  I went a few years back with my wife and some friends for my birthday – hands down the coolest experience of my life that I will probably never do again…once was enough for me! –Nick Defenthaler

Zip lining in Mexico – not so crazy, but it was for me! –Sandy Adams

Jumped off a cliff in Jamaica – it was about a 30 foot jump (and the water below was so crystal clear it was hard to believe it was deep enough!) –Melissa Parkins

FPA of Michigan -- Passing the Torch

Contributed by: Sandra Adams, CFP®

The Center's long and distinguished history of service to the Financial Planning Association (FPA) continues, as Sandy Adams, CFP® passes the torch to Center team members Tim Wyman, CFP® and Nick Defenthaler, CFP®. Sandy recently left the FPA of Michigan Board of Directors after 7 years of service, including 2 years as board president and 2 years as board chair. Tim has served previous terms of the FPA Michigan board, as well as a term on the FPA National board. Nick is joining as a first-time board member.

Each of our founding partners has served in the leadership of our professional organization -- giving back to our profession is an important goal of The Center and honors our firm value of Professionalism and Competence. Our involvement with the FPA is an honor and tradition that we hope to keep alive for years to come.

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.

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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.

Experts & Economists Share Insights at ETF.com Conference

Bitcoin, robo-advisors, overvalued equities and more … all were hot topics at January’s ETF.com Conference. For the second year in a row, we sent our portfolio manager Angela Palacios. She reports back on her biggest insights.

After 2014’s ETF.com Conference, I had high expectations. They were quickly exceeded.  With over 1,800 attendees, it was one of the world’s largest conferences focusing on exchange-traded funds and the agenda was jam-packed. Keynote speakers included JJeffrey Gundlach of DoubleLine Capital and RRob Arnott of Research Affiliates, two money managers we know well here at The Center. We have utilized Gundlach and Arnott for many years for our clients.  

In addition to the all-star speaking lineup, I had the chance to hear from a “Robo-advisor” … a topic of debate around our office, which we featured in our recent blog. I also heard from experts in Bitcoin as well as Mark Yusko who talked about endowment models and the way they manage money.

Here are the 3 questions everyone seemed to be talking about:

1. Is deflation on the horizon?  I expected conflicting viewpoints, but there was some agreement. The majority of the experts think it is coming.
2. Where is oil headed? Most say it will stay low and drift higher, only very slowly.  Gundlach made an interesting point that $100 per barrel of oil may not be where oil should be. Natural gas has been and stayed low for so long, he suggested oil could now be coming in line with where it should be.
3. Are U.S. equities overvalued?  There were too many differing viewpoints here to count but everyone was talking about it!

In between listening to the experts and economists, I also enjoyed a sprinkling of some lighter material.  Terry Bradshaw gave his thoughts on life in general (including his unusual infatuation with Tom Brady) and James Carville and Karl Rove faced off in a political showdown. Both were excellent additions to the lineup this year.

Angela Palacios, CFP®is the Portfolio Manager at Center for Financial Planning, Inc. Angela specializes in Investment and Macro economic research. She is a frequent contributor to Money Centered as well as investment updates at The Center.

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This material is being provided for information purposes only and is not a complete description, nor is it a recommendation to buy or sell any investment. Any opinions are those of Center for Financial Planning, Inc. and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Unless otherwise noted, individuals mentioned are not affiliated with Raymond James. 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.

What to Consider Before You Buy a Second Home

Contributed by: Timothy Wyman, CFP®, JD

Well it’s that time of year again.  No not the cold and flu season – well actually it’s that time too.  Rather, I am talking about the time of year where my wife and I go up north for a few days and after a fantastic 24 hours have the conversation.  You know, should we buy our own vacation home/condo rather than mooch off our friends (hey they are good friends)? It’s a question that many of my Empty and Soon-to-be-Empty Nester clients ask.

First Steps to a Second Home

Our friends, we will call them John & Michelle to protect their identity, decided a few years ago to purchase a condo in God’s Country (that’s northern Michigan….not way up North).   So far the purchase has worked out well and I think they did a few things right.  They actually bought the condo with another family as they knew neither of them would use the condo fully on their own.  They spelled out their “parenting” time or who had first right of refusal for each Holiday.  And last but not least, they formed a Limited Liability Company (LLC) to own the property in order to shield other personal assets from potential liability. All in all, the purchase has been wonderful for us…..er I mean them.

Consider the “Carrying” Costs

For a short period of time a second home or vacation home sounds like a wonderful idea to us (wine is involved in many instances).  However, after a few minutes we decide that it is not for us.  Although interest rates are low, making the cost more manageable, we have some other financial priorities at this time.  Also, many folks do not fully consider, or fully appreciate, the “carrying” costs of owning a second home.  The real or total cost of owning a second home is much more than principal & interest payments.  Additional costs can include:

• Property taxes

• Association dues

• Utilities

• Insurance

• Repairs & maintenance (necessary year round, whether or not you’re there)

Additionally, simply furnishing and updating two homes is no cheap undertaking. For now, we are content renting for the couple of times that we make it up north. 

3 Factors in Buying a Second Home

That said, I wouldn’t be surprised if we decide to make a second home purchase in the future – for lifestyle purposes rather than investment.  And if we do, we’ll make the following a part of our decision-making process:

• Use: Do we expect to use it more than just a couple of weeks? If so then buying may make sense.

• Location: What area makes sense now and in the future? Are we willing to drive X hours?

• Price: What price point will still allow us to fund retirement savings? What are the ongoing expenses?

Adding a second home can have wonderful lifestyle benefits.  Many a family has built cherished memories thanks to the family cottage.  Make sure you weigh the full cost of owning a second home with the desired lifestyle benefits.

Timothy Wyman, CFP®, JD is the Managing Partner and Financial Planner at Center for Financial Planning, Inc. and is a frequent contributor to national media including appearances on Good Morning America Weekend Edition and WDIV Channel 4 News and published articles including Forbes and The Wall Street Journal. A leader in his profession, Tim served on the National Board of Directors for the 28,000 member Financial Planning Association™ (FPA®), trained and mentored hundreds of CFP® practitioners and is a frequent speaker to organizations and businesses on various financial planning topics.

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This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Center for Financial Planning, Inc. and not necessarily those of Raymond James.