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Wise Words from the Women who Founded The Center

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30 years ago, Marilyn Gunther and Estelle Wade, along with a select group of financial planning professionals, joined together to establish the Center for Financial Planning.  Back then financial planning was still an emerging profession. Marilyn Gunther and Estelle Wade were trailblazers who became influencers in a new, primarily male-dominated profession.  They took leadership roles in professional organizations with a commitment to strengthen the standards of financial planning practitioners and enhance the public’s understanding of the financial planning process.

Unwavering commitment to The Center values and a comprehensive financial planning foundation that were envisioned by Marilyn and Estelle in 1985 are still firmly anchored in our business today. In fact, if you visit our Founders’ conference room, you’ll find yourself surrounded by wise words from these two women:

“The art of financial planning is listening to clients with your eyes, your ears and your heart.” –Marilyn Gunther

 “From the beginning we have strived to treat every client with respect and honesty while helping them meet their short-term and long-term financial goals.” –Estelle Wade

While Marilyn and Estelle have retired, they continue to serve as role models for women at The Center.  Today, their leadership torch has been passed on to three female partners Laurie Renchik, CFP®, Sandy Adams, CFP® and Melissa Joy, CFP®.  This March, in honor of Women’s History Month, we give a special word of thanks to Marilyn and Estelle. They created our workplace, they changed our profession, and they lead the way.

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.

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First Quarter Investment Pulse

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Contributed by: Angela Palacios, CFP® Angela Palacios

We hit the ground running this year with a flurry of meetings with top notch investment managers.  In January Angela Palacios attended the ETF.com conference where international investing was a hot topic.  Angela shares some interesting insights along with notable quotes from some of our top money managers.

Ryan Barksdale of Vanguard: Due Diligence process

Melissa and Angela sat down with Ryan to discuss how Vanguard structures their investment committee in making key decisions as well as how they evaluate a company they are looking to bring on as a partner in making investment decisions.  Ryan discussed with us their manager oversight and selection process.  The keys in their investment selection process include low cost, top talent and patience.

Giorgio Caputo a portfolio manager and analyst at First Eagle

On the global front, First Eagle’s Giorgio Caputo noted that international valuations seem to be becoming more attractive relative to the US.   And with global confidence at multi-year lows and depressed earnings, if anything goes right things would start to look attractive. US quality positions have been reaching their cash targets and they’ve been replaced with overseas holding. Caputo noted that their investors pay a tax by holding cash, high quality bonds, and golds in order to get lower risk as measured by volatility in the portfolios.

It was noteworthy that Caputo was meeting with us on January 23rd, which was the day that Mario Draghi announced new quantitative easing initiatives in Europe. Caputo mentioned that the trend has been to buy on rumor and sell on fact. This seemed to be repeated with the announcements.

Discussion turned to the global fears on deflation. Caputo noted the perplexing conundrum that worldwide labor pools are shrinking as populations age, but wage growth isn’t increasing with a tighter labor pool. He blamed this on a deflation pulse which is coming from the automation of equipment. Whereas a new factory 30 years ago might have employed 1,000 workers, today a similar factory might only employ 10 or 20 people with machines taking care of the rest.

Notable Quotes from some of our top managers shareholder letters

From Steven Romick President of FPA notes it has been rough weather for some time for deep-value investors.  However, rather than letting the market’s and its price fluctuations drive them, they remain patient, picking companies that are easy to earn a return on for the price they are paying.  They have to often sit in cash and wait for these opportunities as they are now, at least partially.

“Our money is invested alongside yours so we’re willing to look stupid for a time rather than act stupidly”

Rob Arnott Chairman and CEO of Research Affiliates notes that diversification in a bull market is always painful. 

History and common sense suggest some serious caution going forward, given a potentially toxic brew of historically high valuation levels, peak earnings, an economic expansion that’s about to enter its seventh year, the markets’ evident addiction to monetary stimulus as the primary fuel for further rallies, and the stark divergence between U.S. stocks and pretty much everything else.

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 asinvestment updates at The Center.

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 Angela Palacios 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. International investing involves special risks, including currency fluctuations, differing financial accounting standards, and possible political and economic volatility. Raymond James is not affiliated with and does not endorse the opinions or services of Ryan Barksdale, Giogio Caputo, Steven Romick, Rob Arnott, or the companies they represent.

Slightly Off-Center: What is the worst advice you have ever been given?

Contributed by: Center for Financial Planning, Inc. The Center

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.

Anything about how to raise my child from those who have never had children –Angela Palacios

Pluck your own eyebrows –Jennifer Hackmann

To go into field or take a job that you don’t truly enjoy just for the paycheck – life is too short to not enjoy what you do every day – I’m very fortunate to wake up and know I’m in the profession I’m meant to be in –Nick Defenthaler

It’s not personal – just business. Hogwash - everything is personal. –Tim Wyman

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Health Care Planning and Wealth Planning Go Hand-In-Hand

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Contributed by: Sandra Adams, CFP® Sandy Adams

If you’re approaching or in retirement, the importance of wealth planning is well known. Working with a professional advisor to plan retirement cash flow, manage investments, review taxes, estate planning and insurance on a regular basis is core to financial success. What might not be so obvious is that managing your health care is another key component to long-term financial success.

According to 2014 statistics reported by Fidelity®, a couple age 65 can expect to spend over $220k on health care during their lifetimes (a chronic illness can add significantly to this cost). The better your health, the lower these costs might be, which can significantly reduce the risks to your financial bottom line.

Working with a financial planner and a full wealth care team (including your CPA and estate planning attorney) is important to manage your wealth. But, what can you do to manage your health when the health care system is changing on a daily basis?

See Your Physician Regularly -- Get regular check-ups, keep up with recommended testing. As you get older, consider having a full geriatric assessment to set a baseline for your physical, cognitive and psychological health. Catching any abnormalities early provides options for treatments and cures.

Exercise Often and Eat Right -- Regular exercise and a healthy diet have been shown to improve physical and cognitive health, reducing costs for doctor visits, medications, and other expenses.

Consider hiring a Health Care Concierge service – A Health Care Concierge is partner in managing your health, similar to the way a financial planner helps you manage your wealth.  Services include health and nutrition coaching, coordination of care (finding you the right doctors, making appointments, storing your medical records and having them reviewed by concierge physicians), and advocating on your behalf for appropriate care and billing. Total Life Concierge in Troy, Michigan, is a local and emerging partner in this field -- check them out at www.myowntlc.com.

Managing your wealth and your health in tandem gives you the best chance of financial success. Talk to your financial advisor today about who you can add to your professional team to make you successful in all aspects of your life.

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.

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.

Meet our Newest Team Member: Jim Smiertka

Contributed by: Center for Financial Planning, Inc. The Center

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.

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

Contributed by: Center for Financial Planning, Inc. The Center

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

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

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Contributed by: Timothy Wyman, CFP®, JD Tim Wyman

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.

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.

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Tis the Season: Tax Season

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Contributed by: Matt Trujillo, CFP® Matt Trujillo

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.

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