An Ode to the 10th and Final Fun Run for CRN

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

Have you ever had a moment that was so meaningful it’s etched in your mind like it was yesterday? Perhaps it was a special birthday as a kid – your first bike – first kiss – your wedding day – the birth of your child or even the loss of a loved one.

For me one of those moments was roughly 10 years ago sitting in a dimly lit hospital room. My daughter Kacy, 3 years old at the time, had just gone through hundreds of tests and finally her pediatrician – no, her medical angel Dr. Sonja Earles—just finished putting the medical puzzle together, diagnosing Kacy with Cystinosis.

The doctor on call came into the room and sat with my wife Jen and me. He looked us in the eyes and while I am sure he gave us the medical info, what I recall was him saying was that our family was in for a great challenge and that Kacy’s care was not going to be easy but a long tough road. Then he paused for what seemed to be an eternity and then said, “I’ve observed Kacy and how you both care for her and I know that you can do this.”

He said, “You can do this,” and I believed him.

As I looked over at Kacy with IV’s in both arms, hardly taking up ¼ of the bed I saw the toughest little person I know—I believed him. As I looked at Jen and saw an even tougher, committed and loyal person; if it meant getting up multiple times in the night to give meds or change bedding, I knew she could do it—I believed him.

As I thought about our family, Kacy’s brothers Matt & Jack, her grandparents, her aunts and uncles and the support they would give Kacy and us – I knew we could handle it because we were not alone—I believed him.

When I thought about our friends and community, all that we thank for emotional and financial support; for the meals, the love, the prayers, and the support when we needed help—I believed him.

Ten years ago when three young men – Jacob Ruby, Zack Neff, and Jarred Brately—selflessly gave us the gift of the Fun Run, I really knew we could do this.

Thank you for all who participated in presence, spirit, or financial support in the 10th and final Fun Run for Cystinosis Research this past May 1st. While we don’t have a cure for Cystinosis just yet; the funds that were raised over the last ten years have made a significant difference for all of the children living each day with this disease. The Cystinosis Research Network, an all-volunteer organization, continues to fund research and gives us hope that a cure will be found during Kacy’s lifetime.

So many people have played an important role in our lives over the last ten years. What does the next ten years look like? I don’t know; no one really does. But I will close with a quote that embodies Kacy and the three young men who started the Fun Run, this quote acts as a guide for how we all might choose to live the next ten years:

“May your dreams be bigger than your fears and your actions louder than your words.”

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

The Most Hated Bull Market

Contributed by: Angela Palacios, CFP® Angela Palacios

Investors seem to be skeptical of the second longest bull market run since World War II. For a refresher, a bull market is when share prices consistenly rise. Below, we see a comparison of the longest bull markets since World War II. The green line is our current bull market run. We have now surpassed the duration of the run in the early 1950’s but aren’t even close to the longest run that occurred through the 1990’s. 

The past 18 months have brought a fair share of hiccups in the market exhausting bullish sentiment, which is the percent of investors who have a bullish outlook for the coming six months. The S&P 500 has rallied strongly since the lows reached in February erasing negative returns for the year as of the writing of this piece. The following graph illustrates market sentiment among investors. The red line represents the S&P 500 while the blue line represents the percent of investors who are bullish (expecting upward price movement in the market). What’s unusual is that despite the recent rally investors remain skeptical and this usually isn’t the case. When markets rally this strongly bullish sentiment usually rises.

Market peaks don’t usually happen when bullish sentiment is this low.

Bull markets don’t simply die of old age.

Regardless of whether this market is loved or hated, the Center’s investment team  continues to monitor the markets and the economy closely for signs of recession while remaining committed to a diversified investment strategy.

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 The Center blog.

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 we do not guarantee that the foregoing material is accurate or complete. Investing involves risk and investors may incur a profit or a loss.

The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Past performance does not guarantee future results.

Diversification does not ensure a profit or guarantee against a loss. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.

Nick Defenthaler, CFP®, Featured in PBS Documentary

Contributed by: Nick Defenthaler, CFP® Nick Defenthaler

Last July, I had the pleasure of participating in a documentary focused on retirement planning, titled “When I’m 65,” produced by Detroit PBS. After months of shooting and editing, the final product was finally aired in mid-April – click here to check it out! PBS decided they wanted to shoot several scenes at The Center’s office because of our unique look and the fun and vibrant energy our atmosphere portrays; something we welcomed with open arms (if you haven’t had a chance to see our amazing office, click here to take a virtual tour). The film crew showed up early that morning and I must admit, it was a tad intimidating! As financial planners, we’re used to meeting with clients, building relationships, and helping you make smart decisions with your money. Needless to say, filming for several hours with bright lights and a very expensive camera in your face was a new experience that forced me to step outside my comfort zone. The crew, however, made life much easier and was absolutely fantastic – they were extremely patient and we worked as a team to produce some pretty cool content. They even filmed some shots of fellow employees acting as “extras” in different scenes that also appear in the documentary. 

The opportunity to participate in this documentary arose when PBS approached the Financial Planning Association (FPA) of Michigan to see if there were any members who would be interested in helping out with filming. (I have been a board member with the FPA of Michigan since late 2014 and currently lead the local chapter’s “NexGen” committee—a specific group within FPA of Michigan dedicated to financial planners under the age of 37 who are committed to progressing in their careers and moving financial planning in the right direction.) Being that I fall into the Millennial generation category, it was fitting for me to take the lead on discussing the issues fellow Gen Y’ers are facing and outline some simple things people in this age group should be considering in order to lay a solid financial foundation for the future. 

Here are a few simple items I suggested:

  • Invest in yourself – Human Capital is your largest asset!

  • Start saving early – put away at least 5% of your salary in a retirement account at your first job out of college (typically enough to get you the full company match if one is offered).

  • Increase this savings rate 1% each and every year until you reach at least 20% - I call this my "One Per Year" Savings Strategy.

  • Keep investing simple! Consider investing in investments you can understand.

  • Purchase Life Insurance while you’re young and healthy – consider term insurance as a cost effective option.

Overall, the experience with PBS was something I truly enjoyed and will never forget. It was amazing for me to see firsthand how much filming and time goes into producing such a short amount of actual footage. Needless to say, I have a different level of respect for those who make a living in front of a camera! It was an honor to participate and to have our office so visible in the documentary and online videos that were produced, big thanks once again to PBS and for the opportunity to be a part of such a great message!

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.

Raymond James is not affiliated with and does not endorse the opinions or services of Detroit PBS, WI65.org, or the FPA of Michigan. 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 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. Investments mentioned may not be suitable for all investors. Investing involves risk and investors may incur a profit or a loss.

Takeaways from Nashville

Contributed by: Jennie Bauder Jennie Bauder

Music City, USA (aka Nashville, TN) hosted the Raymond James National Conference during the last week of April. We have made it a point the last few year to get as many Center team members to this conference as possible, and this year was no exception -- all but one Center team member made the trip for at least a portion of the event to take part in the unique learning, networking and team building opportunities. We find it to be a great use of resources for everyone to brush up on new technology, get new ideas and sharpen our skills to continue to do the best job we can to serve our clients.

There were so many great sessions and takeaways from our time at the RJ National Conference that it would take pages to write them all down. 

Here is a summary of our top takeaways from this year’s conference:

  • We were proud to be represented by Melissa Joy, CFP®, who served on a panel of top advisors speaking on how to maintain clients during market ups and downs. The panel turned into a high level discussion for best practices and was a great experience to see one of our own planners leading the discussion.
  • We learned about new technology called Client Onboarding – a process that will help to simplify processes, streamline documentation, and improve the experience we provide our clients. We are very excited to implement this technology to better serve all of you!
  • Many of our team attended sessions on leadership and teambuilding. Such sessions were focused on helping us work more efficiently, get more out of our work days, etc., all in an effort to serve our internal and external clients (and ourselves) better.
  • We heard from Sally Hogshead, author of Fascinate, who spoke on the power of fascination. Sally emphasized focused on finding your fascination factor and that being different is better than being better. Being back in the office, we’ve all taken part in fascination quizzes and workshops and have begun to implement our personal  advantages that emphasize what makes us unique.

The conference was a lot of long days and a lot of intense learning, but we did take some time for some fun and bonding as well. Each night, for those who didn’t have other obligations, it was an opportunity to gather together, to meet new people or hang out with one another, and see some of the sites around the Nashville area. 

Overall, the conference was filled with opportunities to expand our connections and networks, to learn not only about technology to better serve our clients but also about ourselves, and most importantly, an opportunity to connect with our fellow Center employees and enjoy each other’s company outside of the office. We’re grateful to be able to participate in the Raymond James National Conference each year and, I speak for the staff as a whole when I say, we’re refueled and ready to continue to serve our clients in the best manner possible.

Jennie Bauder is the Client Service Manager at Center for Financial Planning, Inc.

Raymond James is not affiliated with and does not endorse the opinions or services of Sally Hogshead.

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Political Parties and their Impact on Your Portfolio

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Contributed by: Jaclyn Jackson Jaclyn Jackson

Primary season could be worrisome for some investors as they try to figure out who will become our next president, how that person’s political ideologies will influence stock markets, and ultimately how that may impact their investment portfolio performance. I’ve explored the most common myth about political parties and its effect on the US stock market - the result is pleasantly surprising. 

Myth:  Big government ideologies held by Democrats make them worse for the stock markets while small government and small business driven ideologies make Republicans best for the stock markets. 

Bust:  Whether a Democrat or Republican is elected, historical data indicates that it has no statistically significant bearing on US equity markets. Illustrated below, both parties have experienced a similar amount of presidential terms with positive equity returns based on the Dow Jones Industrial Average from 1900-2012. 

Sources: Bloomberg, Oppenheimer Funds. As of 12/31/14.

Sources: Bloomberg, Oppenheimer Funds. As of 12/31/14.

 

Even though Democrats edge out Republicans by return percentage, there really isn’t much difference once you adjust for the normal variation in stock market returns. The results are reassuring; markets aren’t largely swayed by the president’s political party. 

Tips for Politic-Proofing Your Portfolio

While political parties don’t necessarily dictate market performance, they do generate policy plays that influence the economy. Divergent policy priorities around issues like individual taxes, the environment, healthcare, financial regulation, Fed policy, etc. could affect specific market sectors (i.e. healthcare, energy, utilities, and financials). 

Yet, investors can be confident in deploying two key strategies to help armor their portfolios against sector specific market fluctuations: diversification and long term investing. Diversification works to improve portfolio risk return characteristics by spreading investment exposure across different asset classes. In other words, it can assist in buffering your portfolio from concentrated portfolio swings to help achieve better risk-adjusted returns. Likewise, long term investing generally guards against short term sector movements by providing those who stick to their investment strategy less volatile returns over time. When you have a well suited, diversified long term investment strategy, you don’t have to fall into the trap of investing based on the political climate.

For more information of the benefits of diversified investing, click here.

Jaclyn Jackson is an Investment Research Associate at Center for Financial Planning, Inc. and an Investment Representative with Raymond James Financial Services.

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 Jaclyn Jackson 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. The Dow Jones Industrial Average (DJIA), commonly known as “The Dow” is an index representing 30 stock of companies maintained and reviewed by the editors of the Wall Street Journal. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Investing involves risk and investors may incur a profit or a loss regardless of strategy selected. Diversification does not ensure a profit or guarantee against a loss. Holding investments for the long term does not insure a profitable outcome.

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How is Retirement Planning Relevant to me?

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Contributed by: Matt Trujillo, CFP® Matt Trujillo

Lately I have been meeting with younger clients, and have been hearing a recurring theme: “Retirement is 20-30 years away and I don’t know that I care too much about how the numbers look at this time.” The first time I heard this, I was a little taken aback…I had always assumed that one of our core jobs was to make sure people were on a good track for retirement.

However, the more I thought about it, this line of thinking isn’t that out of the box. Consider how much the world around us has changed over the last 20-30 years. It is reasonable to think that another 20-30 years from today the world could change dramatically again?

Hearing these clients voice concerns about planning for an event so far into the future, I decided to take a different approach. I decided to focus clients’ attention, instead, on the next five to ten years and what they want their net worth statements to say then. For instance, if you have a negative net worth due to student loan debt, saving for retirement might seem out of the question; but if you come up with a goal to have a specific positive net worth amount ten years from today, it helps refocus your financial plan to something more tangible and meaningful for you and your family. This type of thinking can be very powerful and motivating for clients. The clients I have engaged in this exercise have told me that they get the sense they are working towards something tangible and each year they come in they can really see the benefits of working with a planner.

So if you are under the age of 45, and retirement seems like a lifetime away, consider putting a different spin on the old fashion retirement goal. Approach the problem a little differently. I think you will find that planning in five to ten year chunks can be more manageable and very motivating.

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.

Opinions expressed are those of Matthew Trujillo and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice.

Millennials Matter: An Intro

Contributed by: Melissa Parkins, CFP® Melissa Parkins

The generation known as Millennials is made up of those born between 1980 and 2000, currently putting us between the ages of 16 and 36. I happen to sit dead middle of this range, making me a true Millennial, I guess! We are savvy, independent, and a little skeptical. I’ve even heard we are overconfident and self-entitled (I may or may not find that hard to believe!). Some of you may be surprised to also hear that research suggests we are way more conservative than you might think.

The Millennial generation is the biggest in US history thus far, even bigger than the Baby Boomers. There are currently over 92 million Millennials, says Goldman Sachs Investment Research. According to The Brookings Institution, by 2025, Millennials will make up 75% of the workforce and will account for 46% of the nation’s income. This means that we are going to have huge impact – so watch out! Growing up with technology has armed us with information and the ability to research, communicate, and compare before making decisions. With our fluent use of social media, we have the ability to capture a large audience for whatever it is that we are trying to communicate. We have grown up in a time of rapid change, giving us a set of priorities and expectations very different from previous generations.

Millennials should not be overlooked. We are currently or soon will be entering the prime of our careers. We want to build credit and savings. We want to travel, buy nice houses, and have nice things. Sure, we may have a ton of student loan debt, but these are things that we as financial planners can help with now, and start lifelong relationships embarking on the journey to financial achievement together.

So how do new millennial investors fit into the “traditional” financial planning relationship? We have different interests, needs, goals, and ideas. That is why The Center has started a new Wealth Builder program geared specifically towards servicing these new financial planning clients! With my new blog series, I hope to engage my fellow Millennials with topics that are important to us – student loans, saving for weddings or children’s educations, purchasing homes, starting new jobs, budgeting, building safety nets… whatever it may be. We may not fit the traditional financial planning client mold at this point in time, but we will soon, and for the time being, we have different needs to be serviced. We have the desire to be financially successful and we are oriented toward the future, so I have no doubt that these goals will be achieved. So shoot me an email, a LinkedIn message, or a Tweet and let me know what you would like to hear about. In the meantime, stay tuned for my next blog!

Melissa Parkins, CFP® is an Associate Financial Planner at Center for Financial Planning, Inc.

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.

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Care Agreements Document for Families

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Contributed by: Sandra Adams, CFP® Sandy Adams

Last month I wrote about using a Care Agreements Document between couples as a way to communicate preferences for future care, in order to help alleviate future stress for the caregiver spouse and to make certain the ill spouse’s wishes for care and for the future quality of life of their caregiver spouse were able to be communicated and honored. The Care Agreements Document can also be used for entire families to plan for the care of a loved one (or loved ones) – usually older adult parents. Let me explain how the agreement might be used in this context.

 In the case of families, I find that anxiety and tension arises when (1) They are unclear of their parent’s wishes for their care or (2) there is conflict amongst siblings regarding division of caregiving duties and/or disagreement about the care in general.  A Family Care Agreements, especially if drafted with the parents involved in advance of a care need, would clear up both of these major sources of tension. As with the Care Agreements for Couples, the Care Agreements Document for Families is a wonderful way to begin a family conversation about future care for older adult parents; it helps to provide the older adults the opportunity to express their future desires for care and to clear up any misconceptions about their wishes. It allows adult children to hear—from the mouths of their parents—how they wish their children to be involved in their care, how they wish to be cared for and by whom, and where they wish to be cared for (as long as finances support these wishes). As siblings divide the future caregiving duties, keeping in mind those that make most sense based on location, availability and talents, they can keep in mind their parents words, wishes, and resources.  

The Care Agreements for Families can also serve as a way to provide protection to the individuals serving in caregiving roles; for example, if future stressful situations during a parent’s care may cause their position to become unpopular. The family will be able to reference the agreement to recall that the agreement to act and serve the parents as caregivers in a particular manner was agreed upon – it can help protect feelings and calm emotions in times of heightened tensions. 

Again, I propose that when we are writing all of our other estate planning documents—our Wills, Patient Advocates, and Durable Power of Attorney Documents—that we consider writing a Care Agreements Document with our older adult parents and siblings.

What would this agreement include?

  • If our older adult parents get ill and need to be cared for, how do they wish to be cared for?

  • How do they want us, as adult children, to be involved in the caregiving?

  • Do they want us to provide care or would they prefer to have professional caregivers (if they can afford to have them)?

  • Where do they wish to have care provided (home, assisted living, etc.)?

Having a Care Agreements Document amongst family members in advance of an illness does a couple of things:

  1. It helps family members/adult children make clearer decisions in times of stress if/when the time comes.

  2. It also helps take away any feelings of guilt or resentment because agreements about the plan have been made in advance; helping to preserve relationships.

A Care Agreements Document, whether for Couples or Families, is something that should be added to your future planning toolkit as you plan ahead for the future aging – for you and for your loved ones. If you have questions about how to get started, feel free to reach out to me to find out how!

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 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.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Sandy Adams and not necessarily those of Raymond James. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

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Center Stories: Sandy Adams CFP®

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Contributed by: Sandra Adams, CFP® Sandy Adams

Here at Center for Financial Planning, we like to make personal connections…with each other, with our clients, and with all of the individuals that we come into contact with.  In our work as financial planners, we need to get to know our clients on an individual basis – to get to know their personal situations and goals – in order to design a personal financial plan for them.  I know a lot about my clients on a personal level, but you might not know quite as much about me. Rather than just writing a bio and having you attempt to get to know me in words on paper, I am hoping my bio video will help you connect with me on a more personal level – help you get to know more about me, my work as a planner, and how I work with clients.  Check out my video here:   

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 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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