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Second Quarter Investment Pulse

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Contributed by: Angela Palacios, CFP® Angela Palacios

We’ve been busy meeting with investment managers this past quarter.  It’s always great to dig into the latest research and get a fresh perspective and some new ideas.  Angela Palacios shares some of the most notable take-aways from our second quarter meetings:

Scott Davis, Portfolio Manager Columbia Dividend Income

It is always a pleasure to receive a visit from Scott.  We have had the privilege to meet with him several times over the past years and each time we seem to glean interesting information.  He was pleased and flattered to be recently named by Morningstar as one of their “Ultimate Stock pickers.”  We discussed several top of mind topics, starting with the potential upcoming interest rate increase by the Federal Reserve.  Scott told us he wished they would just get it over with and do the first one soon.  He stated that markets move so quickly these days you want to be positioned for this happening well in advance.

Scott is also growing increasingly concerned over companies that are issuing debt at low rates today to buy back stock.  The concern isn’t necessarily for now, but in the future when they become dependent on this debt and need to refinance that debt at much higher rates.  Some companies could be in a lot of trouble at that point.

Heidi Richardson, Head of Investment Strategy for US iShares

Heidi was also talking about a rate hike, among other things.  She gave her list of things to know and do.

5 things to know:

  1. Federal reserve should hike rates soon but she expects rates to remain low

  2. Central Bank divergences (while US and England are raising interest rates, Japan, Canada and Europe are lowering rates)

  3. She expects stocks to be a bumpy ride (low volatility of the past 5 years is over)

  4. US economy is only inching upward slowly (they expect GDP growth of 2.5% this year)

  5. Inflation is still very low and Europe will see deflation

5 things to do:

  1. Prefer stocks over bonds (although bonds are still an important part of diversification)

  2. Look overseas for investment opportunities

  3. Watch your step in bonds (be choosy as many look fully to overvalued and liquidity may be sketchy)

  4. Resist the urge to exit (fear of a bubble leads many to sit on the sidelines and wait to invest, but over time they expect the market to move higher)

  5. Seek growth in a low growth world (low rates on cash continue to hurt those holding it)

Jeff Saut, Chief Investment Strategist and Managing Director of Equity Research for Raymond James

Jeff presented at the Raymond James conference in April and gave us his stages of a secular bull market (which he believes we are in now): 

  1. Aftershock and rebuilding: this is the realization that you survived a bear market. Rebuilding is a sea change where stocks no longer react to negative news.

  2. Guarded optimism: bear markets redistribute stocks to the rightful owners (this is the stage he thinks we are in).

  3. Enthusiasm: fun stage of the bull market where generally everything you touch makes a profit.

  4. Exuberance: feelings grow as nothing can go wrong, he feels we have a long way to go before we get to this stage.

  5. Unreality: advanced stage of exuberance, frantic and chaotic, volumes pick up and there is a lot of turnover.

  6. Cold Water and disillusionment: bursting of the bubble.

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.

Raymond James is not affiliated with and does not endorse the opinions or services of Scott Davis, Heidi Richardson or the companies they represent. 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 reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Investing involves risk and investors may incur a profit or a loss regardless of strategy selected. Investments mentioned may not be suitable for all investors. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Past performance is not a guarantee of future results.

Raymond James is not affiliated with and does not endorse the opinions or services of Scott Davis, Heidi Richardson or the companies they represent.  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 reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete.  Investing involves risk and investors may incur a profit or a loss regardless of strategy selected. Investments mentioned may not be suitable for all investors.  Prior to making an investment decision, please consult with your financial advisor about your individual situation. Past performance is  not a guarantee of future results.

How to Check Your Credit Report and What to Do if You See Something Unusual

Contributed by: Melissa Parkins Melissa Parkins

Back in April of this year, my husband and I finally decided we had waited long enough to refinance our mortgage. We contacted our lender, and he sent us a proposal that would allow us to drop our interest rate 0.625%. We were very pleased and agreed to move forward right away. Much to our dismay, our lender called the next day to inform us that our credit score had significantly dropped (100 points in 12 months!) and he wouldn't be able to get us approved for a rate any better than what we have now. He sent us our credit report that he had pulled, and we found a fraudulent claim showing a past due account balance on a PayPal credit card – which we do not have! He advised us to contact the credit reporting company that was showing this fraudulent claim. When we did, we found out that it was opened using my husband's name and social security number, but someone else's address living in New York! Neither of us has even been to New York! If you find yourself in my shoes, here’s what to do:

Tips for checking your credit report

1.    Visit annualcreditreport.com to request your free credit report from your choice of 3 different agencies: Equifax, Experian, and TransUnion. Utilize all three. You are entitled to a free report from each of the three companies every 12 months.

2.    Set a reminder to pull your report with each agency annually. Stagger each of the 3 reminders, so you can check your full report once every 4 months to keep a closer eye on it.

3.    Review all information, including the basics like addresses, phones numbers, employers, etc. looking for any errors or discrepancies.

4.    Make sure you recognize all accounts, loans, credit cards, etc. on your report.

Fixing or disputing errors

First, contact the credit reporting companies directly and let them know what information you believe is not correct. You may be asked to provide supporting documentation as to why you are disputing the claim as fraud. In some instances (like ours) it may be hard if not impossible to do. What documentation do we have to show we never opened a PayPal credit card?!

Second, contact the fraud/security department at the company that provided the fraudulent information to the credit reporting company. We had to get in touch with PayPal. They will send their dispute paperwork that you will need to submit with any supporting documentation. Make sure you provide them in writing that the account was opened or charged without your knowledge, explain why you are disputing the information, and that you are requesting it be removed or corrected. Keep a paper trail for yourself as well.

Another question to verify is if the debt has been sold to a collections agency or not. If it has, make sure they will be notifying the collections agency that the debit is being disputed. And brace yourself! It could be a 90-day review process (or more!) before anything gets resolved. Set a reminder to follow up if you have not heard anything within the given timeframe. Once you have received a confirmation letter that the fraudulent claim has been discharged, make sure they have also closed the account in your name.

About 60 days after we submitted our dispute paperwork to PayPal, we received a much welcomed letter in the mail saying our request was granted and the fraudulent debt would be removed from our credit report! After having to learn the hard way, we will be monitoring our credit reports unfailingly every 4 months. Hopefully regularly monitoring of your credit report will save you from the time and frustration it took us to fix the error on our credit report!

Melissa Parkins is a Registered Client Service Associate at Center for Financial Planning, Inc. Melissa is a contributor to the firm’s blogs.

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 Melissa Parkins 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. Raymond James is not affiliated with and does not endorse the opinions or services of Equifax, Experian, or Transunion. You should discuss any legal matters with the appropriate professional.

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.

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Using Women’s Leadership as an Investing Concept

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Contributed by: Angela Palacios, CFP® Angela Palacios

Did you know 3 of the 6 partners at The Center are women? We know the value of gender diversity in the ownership and leadership of our firm, which is why we invited Kathleen McQuiggan of Pax funds to join us for a roundtable discussion. We wanted to give clients and friends of The Center the chance to discuss the importance of having women in executive roles, their impact on businesses, and the opportunities they provide for investing. Kathleen is the Senior Vice President of Global Women’s Strategies and Managing Director of Pax Ellevate Mgt. LLC. 

Top 3 roundtable takeaways

  1. Women’s leadership can and should be understood as an investment concept.  Many studies have shown that women bring a unique perspective to senior and executive management roles within firms.  According to Kathleen, this “secret ingredient” adds profitability, better risk preparedness, more collaboration and more innovation to companies. 
  2. There is an emerging consensus that the status and role of women may be an excellent clue to a company’s growth potential.  Despite this, there continues to be a large wage gap between women and equivalent men in the workforce and very little gender diversity among senior management and corporate boards.
  3. There are many barriers to female participation in management and the boardroom.  One of the most easily understood barriers is time out of the workforce.

Women spend an average of 12.6 of their working years out of the workforce to care for children or parents whereas a man only spends 10 months outside the workforce!

This pulling in two directions between work and family responsibilities likely has a lot to do with the disparities that still exist.  As I read Lean In by Sheryl Sandberg, COO of Facebook, I’m discovering there are also barriers within ourselves to prevent women from climbing the corporate ladder. 

Whatever the reasons, the time for change is now.  Having discussions like our roundtable and sharing ideas is part of the solution.  Another potential solution developed by Pax is using your investments to express your viewpoint with your dollars.  If you would like to learn more please contact your financial planner!

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.

Raymond James is not affiliated with and does not endorse the opinions or services of Kathleen McQuiggan or Pax funds. 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, 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. Investing involves risk and investors may incur a profit or a loss regardless of strategy selected. Past performance is not a guarantee of future results.

Trying to Time the Market and Missing Out

Contributed by: Angela Palacios, CFP® Angela Palacios

As market volatility rears its ugly head this summer, this is a good reminder about trying to time the market.  Investor concern has been ramping up recently over concerns from Greece and China.  Investors are wondering if they should sit on the sidelines and wait out these potential crises.  As you consider your strategy, take a look at this chart for some historic reference on missing out on the market’s best days for returns:

Market timing is extremely difficult.  Decisions have to be made perfectly on both the buy and sell side to be profitable and most don’t even come close to perfection.  The impact of lower long term returns by missing out on the 10 best days in the S&P 500 is eye opening.  Over the past 20 years, it meant giving up nearly 4% points in long term annualized returns.  What is even more astounding, and a very important reminder, is 6 of the 10 best days occurred within 2 weeks of the 10 worst days.  The worst days are usually the days investors want to sell out.  If you do sell, can you possibly have the courage to get back in in time not to miss these 10 best days?  If you get distracted by vacation, busy at work or with kids and are not paying attention for even a few days, percentage points could slip away very easily.  That makes it difficult to reach your long term goals.  While it may feel good to sell and sit in cash “for a while”, when faced with volatility, remember what it could cost!

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, 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. Past performance is not a guarantee of future results. Investing involves risk and investors may incur a profit or a loss regardless of strategy selected. Raymond James is not affiliated with and does not endorse the opinions or services of J.P. Morgan Asset Management.

Financial Aid Expert Gives Her Best College Savings Advice

Contributed by: Nick Defenthaler, CFP® Nick Defenthaler

The Michigan Education Trust (MET) pre-paid tuition and Michigan Education Savings Plan (MESP) 529 plan are both great ways to save for college. (If you’re just learning about 529 plans, check out this blog on 529 basics and this blog on using 529s as tax credit strategies.) One question we often hear from parents and grandparents, however, is how these education accounts can affect a child’s financial aid eligibility.  As I’m sure many of you are aware, financial aid, FAFSA, student loans, etc. can be pretty darn confusing.  For that reason, our firm has partnered with Carrie Gilchrist of Oakland University to help us navigate these types of questions from the perspective of an expert in the financial aid arena.  Carrie is OU’s Senior Financial Aid Outreach Advisor and has helped thousands of parents and students with financial aid, including scholarships, grants, and student loans.  She’s going to be sharing her expertise to help our clients and others with college planning.  That’s why I asked Carrie to give her take on what to keep in mind when utilizing the MET (pre-paid tuition) or MESP (529 plan) when saving for college. Here’s what she had to say:

Oakland University’s Carrie Gilchrist:

Saving for college is always a good idea, and regardless of how much has been saved, college students should ALWAYS file the Free Application for Federal Student Aid (FAFSA).  Every school has a threshold at which students are eligible for need-based aid, so even if a student is ineligible for Federal need-based aid, the student could still be eligible for need-based aid from other sources by filing the FAFSA.  The FAFSA can be filed online at www.fafsa.gov, every year, as soon after January 1 as possible, starting in the student’s senior year of high school.  When filing the FAFSA, it may be necessary for students and parents to provide asset information, although not everyone is required to do so.  If the student and/or parent is required to report asset information, one of the asset questions will require information about investments.

If the student completing the FAFSA is considered “independent” by the Department of Education, he or she does not need to report parent information on the FAFSA.  In that case, educational savings plans owned by the student (and/or the student’s spouse) are reported on the FAFSA in response to the investment question of the assets section. 

If a student is considered “dependent” by the Department of Education and must include parent information on the FAFSA, the educational savings plan owned by the parents or by the student, will be included in the parents’ response to the investment question of the assets section. 

In both cases, the entirety of the information provided on the FAFSA is used to calculate the Estimated Family Contribution (EFC), which represents how much the Department of Education estimates the student and/or their family can contribute to the student’s educational expenses.  The EFC is used by the college or university to determine the type of financial aid the student is eligible to receive.

A major benefit of a college savings plan is it does NOT count against the student in their financial aid award package (different than FASFA).  The financial aid award package will list the maximum amount of scholarships, grants, work-study, and loans the student is eligible to receive, but a college savings plan is never considered a financial aid award in their award package, regardless of having to report it on the FAFSA. 

As you can see, applying for federal aid, scholarships, student loans, etc. can make your head spin.  It is certainly a confusing topic you want to take very seriously and get advice from an expert, like Carrie, if you’re unsure of anything or have questions.  Although a college savings plan can impact certain aspects of your student loans, it certainly does not discount the importance and monumental positive impact it can have on a child’s education plan.  If you’d like to learn more about college savings please don’t hesitate to contact us.  Keep your eyes and ears open for upcoming blogs, webinars and in-person seminars we will be hosting with Carrie so she can continue to share her expertise on this extremely important topic!

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 blogs.

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 Nick Defenthaler, CFP® and Carrie Gilchrist 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. Raymond James is not affiliated with and does not endorse the opinions or services of Carrie Gilchrist or Oakland University. As with other investments, there are generally fees and expenses associated with participation in a 529 plan. There is also a risk that these plans may lose money or not perform well enough to cover college costs as anticipated. Most states offer their own 529 programs, which may provide advantages and benefits exclusively for their residents. The tax implications can vary significantly from state to state. You should discuss any tax or legal matters with the appropriate professional.

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 Center Teams Up With Challenge Detroit

Contributed by: Melissa Joy, CFP® Melissa Joy

We are pleased to announce that The Center is participating in the fourth year of Challenge Detroit. Challenge Detroit is a nonprofit organization dedicated to bringing tomorrow's leaders to Detroit for a year.

Challenge Detroit is a leadership and professional development program. Each year approximately 30 talented college graduates work for a Challenge Detroit Company and work with other fellows to serve Detroit-based nonprofits. As a company participant, we will be hiring a Challenge Detroit fellow for the next year. Fellows were selected from a group of hundreds of applicants with final interviews in May.

I had the opportunity to meet Challenge Detroit’s executive director, Deirdre Greene-Groves earlier this year. The work Challenge Detroit is doing is inspirational. We’ve wanted to give back to Detroit and our community and this seemed like the perfect fit.

For more of an introduction to Challenge Detroit, here is a video about the mission of the program. We’re excited to introduce you to our fellow soon. Stay tuned!

Raymond James is not affiliated with and does not endorse the opinions or services of Challenge Detroit.

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How Millennials Approach Financial Planning

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Contributed by: Nick Defenthaler, CFP® Nick Defenthaler

Last month, I visited Dallas, Texas for a unique “conference” – the Financial Planning Association (FPA) NexGen Gathering.  FPA NexGen is exclusive to those who are under the age of 37 and active in the financial planning profession.  As a board member for the FPA of Michigan, I learned about the NexGen group several months ago and was intrigued and very excited that there was a dedicated group connecting and sharing information among younger planners.   

Millennials Don’t Want “Conferences”

From the very moment I arrived, I could feel the positive energy.  As the “gathering” began (apparently calling it a “conference” was too stuffy for us Millennials), everyone gave a brief introduction, said where they had come from and one thing they hoped to come away with by the end of the weekend.  Even with a group of 108, you could truly feel the passion each person had for helping others with money.  For the next hour or so, we developed and voted on several lists of discussion topics that would be the focus of breakout sessions the following day.  No speakers.  No single voice preaching their view on a particular topic.  These were CONVERSATIONS between professionals with an open, casual, yet extremely respectful format. 

Starting Conversations & Building Relationships

The following day there were 6 breakout sessions, each with 4 topics to choose from to attend the round table discussions.  It was so difficult to just pick one because so many great ideas came out of the previous day’s brainstorming session. I came away with several great ideas to immediately put into practice both professionally and personally, which in my opinion, is what attending “conferences” and participating in professional development opportunities is all about.  I’ve also found that the relationships you develop while away from home at events such as the NexGen Gathering with like-minded peers does nothing but help you progress and become a better planner and professional.  It’s amazing what you can learn from others if you keep your mind open and challenge the way you normally think. 

Overall, the NexGen gathering was a great experience and I truly enjoyed spending time with the current and future leaders in the financial planning profession. I can tell you, they truly love what they do each and every day – helping others live great lives.  I look forward to attending the Gathering again next year and coming away with a new sense of energy like I have this 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 blogs.

Any opinions are those of Nick Defenthaler, CFP® and not necessarily those of RJFS or Raymond James. Raymond James is not affiliated with and does not endorse the opinions or services of the Financial Planning Association (FPA). 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.

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“My Social Security” Online Account Access

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Contributed by: James Smiertka James Smiertka

Did you know you can now take advantage of the My Social Security benefits site? When you visit, you simply sign up for an account. It is a free service, and as of May 29, 2015 more than 19 million accounts have been opened.

The Benefits

If you are currently receiving benefits and/or have Medicare, you are able to:

  • Get your benefit verification letter if you need proof of income, Medicare coverage, retirement status, disability, or age
  • Check your benefit & payment information and view your earnings record
  • Change your address and/or phone number
  • Start direct deposit of your benefit or change your direct deposit info
  • Get a replacement Medicare card
  • Get a replacement SSA-1099 or SSA-1042S for taxes

If you do not currently receive benefits, you are able to:

  • Review your Social Security Statement including estimates of your future retirement, disability, and survivor benefits
  • Review your earnings once annually to verify the amounts are correct
  • Review the estimated amounts of social security and Medicare taxes you have paid
  • Receive a benefit verification letter if you need proof that you have never received Social security, Supplemental Security Income (SSI) or Medicare

How to Create an Account

Below is a screenshot of what you can expect to see when you visit the website:

When you select “Create an Account” you will be re-directed to the following page:

Since you are a new user, click on the blue  “Create An Account” and enter your personal information:

On the following page you will confirm some information that is provided, such as your mortgage company, auto loan company, license plate, and current vehicle, etc. The confirmation of this information is used to verify your identity.

Next you will create your username & password as well as choose your password security questions:

Now you are ready to sign in to your My Social Security account. Below you’ll see an example of the information you can access when you sign in (included are the Overview & Estimated Benefits pages):

Keeping Your Information Secure

It is always important to keep your information safe and secure. Here are some important things to keep in mind:

  • Emails about “My Social Security” and other government agencies always come from a “.gov” email address. Use extreme caution if the email you received is not from a “.gov” sender.
  • Links, logos, & pictures will always direct you to an official Social Security website
  • DO NOT respond or click any links when dealing with a phishing scam email message
  •  Look for poor grammar, wording, phrasing, and/or spelling in all email correspondence
  •  Look for outlandish claims that could not possibly be true
    • If a “foreign prince” emails your from overseas offering to share his gold bullion reserves in exchange for you wiring him a few hundred dollars now for safe border passage between war-torn countries, it’s probably not a legit email
    •  If an email includes the name of a business and/or contact information, such as telephone number or website link, you can attempt to verify the legitimacy via a search engine like Google
  • Speak to friends and family members if you are questioning the validity of a strange email
  • DO NOT respond with any of your personal information if you believe the email may be a scam

I hope this information will be useful for signing up and realizing the benefits of a “My Social Security” account, as well as keeping your information safe. If you have any further questions, you can utilize the www.ssa.gov website or contact your local Social Security office directly.

James Smiertka is a Client Service Associate at Center for Financial Planning, Inc.

The information has been obtained from sources considered to be reliable, but we do 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.

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Why Financial Planners are a lot like Personal Trainers

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Contributed by: Matt Trujillo, CFP® Matt Trujillo

I recently had the opportunity to work with a personal trainer at my local gym. My wife was kind enough to purchase some sessions for me, and it was her gentle way of letting me know I’ve added on a few pounds! When I sat down with the trainer at my initial session I couldn’t help but notice the similarities between what I do for a living and what personal trainers do.

Personal Trainer's line of questioning: (I’m paraphrasing)

Trainer: What were you hoping to accomplish over the next 8 weeks?

Me: I would like to develop some good habits so I can get back on a systematic workout routine.

Trainer: Ok, I can certainly help with that…anything else on your mind?

Me: Yes I would like to lose 10 pounds.

Trainer: That’s definitely doable, but you’re going to have to push yourself in the gym as well as practice disciplined eating habits outside of the gym. Losing weight is a science and your body is a machine.  Most people lack the mental discipline and have a hard time reaching their goals because of their behavior.

When I left the gym I couldn’t help but think about his comments the whole drive home. At The Center, our entire focus is on goals-based financial planning.

Our initial line of questioning with our clients is very similar to a personal trainer:

We Ask: How can we help you? What were you hoping to accomplish? What matters most to you with regards to your finance and money?

We Get Answers Like: I want to retire at 65. I want to be financially independent by 60. I want to leave a financial legacy.  I want to make sure my family is taken care of if something were to happen to me. I need help with my investment decisions.

These are just a few of the most common answers. Our mission is to provide world class service in helping our clients achieve their goals.  We do this by practicing a disciplined investment approach and by looking at all facets of a client’s financial life. 

If you haven’t taken the time to establish specific financial goals then I strongly encourage you to do so. Financial planners can help you identify and define those goals, just like your personal trainer can help you build and define your muscles.

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.

Any opinions are those of Matthew Trujillo, CFP® and not necessarily those of Raymond James. Investing involves risk and investors may incur a profit or a loss.

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Women & Investing: How to get more Engaged with Finances

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How does a busy, multi-tasking woman make sure the important financial stuff does not get missed? A statistic in a 2015 Fidelity Investments study recently caught my attention.  According to the study:

83% of women would like to become more engaged with their finances within the next year. 

Working with women over the last 20 years has taught me that the first step is usually the most difficult.  Once the decision is made to pull a financial plan together, the pieces start to fall nicely into place. But getting over that initial hurdle of getting started can seem daunting.

Here is some practical advice to get you started:

  • Give your personal financial life the attention that is needed. If you feel like life is whizzing by, take time to step back and ask, “Am I on the right track?”

  • Start creating a mental picture of your goals. You probably have at least a vague picture in your head of what you want in the future.  The beauty of the financial planning process is that it makes conversations happen especially with the help of a financial planner who serves as a thinking partner.

  • Pull a team together.  Your financial planner, tax preparer and attorney can help you keep your arms around the different aspects of your financial plan. They’ll also help you make important course corrections when necessary and chart the progress as you go.

Practical advice to keep you on track:

  • Continue to ask questions. Financial planning means asking, “Where do I want to be in 3 years?, 10 years?, 20 years?” This may change as you go along.

  • Stick to your plan.  Good financial habits are a foundation you can build on for a lifetime.

  • Stay focused on your priorities. A good plan will help you remind yourself what is most important in your life and decide how your financial resources can help you get there. 

The future is not the finish line; it is just the beginning if you have the resources to lead the life you want.  Is there a better reason to become more engaged with your finances and put your plan together? 

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.

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 Laurie Renchik 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. Investing involves risk and investors may incur a profit or a loss regardless of strategy selected.

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