The Center - Just like a Fine Wine

Contributed by: Timothy Wyman, CFP®, JD

Recently my wife Jen and I spent a few days in California Wine Country, and specifically Sonoma. While the weather was a bit wet, at least the wine was too! We had a chance to visit several wineries engaging in both tasting and learning of the rich and proud traditions of each winery. At its core, wine making is pretty straightforward: they plant grapes, they grow grapes, and then they make those grapes into wine. But boy can they share a story!

One winery visit in particular stood out. The guide at the Gundlach & Bundschu Winery shared their longstanding tradition of their family owned winery and their focus on “making small lots of ultra premium wines from a distinctive and historic property.” As I listened to the rich history, I couldn’t help but think of The Center – now celebrating over 30 years of service. The Center is very much a family in terms of how we treat both our team and our clients. Our collective goal is to serve a select clientele providing ultra-premium financial advice.

As Jen and I continued to visit several wineries I was struck how it wasn’t just about “making those grapes into wine.” Each and every one had a unique story to share – sharing how they felt they were indeed different from the soil or grapes in the rest of region and even right next door. Jen and I heard of tales of family, strong work ethic, and careful attention to the land and processes used to harvest their grapes. Each winery seemed to articulate how they were unique.

So what makes The Center a financial winery of sorts? After all, like wineries, there are hundreds and even thousands of folks providing what may generically be called financial planning. Like the great wines that reflect the complexity and character of great vineyards, The Center has cultivated a rich vineyard of sorts to harvest distinctive and helpful financial solutions. Moreover, just like the fine wineries, the combination or totality of the process is a differentiator.

For over 30 years we have been helping families, like you, to “Live Your Plan™.” First and foremost, our work together is all about You, Your Plan, and Your Goals. Our firm was created by founders looking to provide financial planning advice in a better, more holistic way in order to give clients a greater chance at educating their children and at planning a successful retirement. Secondly, The Center offers a multigenerational approach in terms of both serving our clients’ families and our team of 20 professionals. Lastly, The Center focuses on a Team Approach to provide world-class solutions and strategies to clients rather than relying only on individual talent. The sum of the parts is certainly greater than the individual pieces. Providing our clients a full team of skilled service oriented professionals has been a cornerstone for many years.

The Center strives each day to produce the finest financial planning advice to you, our clients, so that you may enjoy the fruits of the harvest. Carpe Vinum!

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.

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Any opinion are those of Time Wyman, CFP®, JD, and not necessarily those of Raymond James.

E-Signature: Fast, Easy, and Accurate

Contributed by: Melissa Parkins, CFP®

Raymond James has recently partnered with DocuSign, so we are now able to send most documents to you for an electronic signature. No more printing, signing, and scanning forms back to us – it can now all be done online! The only requirements are an email address and a text-enabled phone to receive an authentication code needed to access the forms for electronic signature.

Here are the steps to use this new feature:

• You will receive an email from us alerting you that a document is awaiting your signature. Click View Documents to begin.

• In the browser window that opens, verify that the phone number shown for you is correct (if not, contact us), then click Send SMS to send a text message to the phone number listed with your access code.

• Enter your access code, in your email, and click Confirm Code.

• You will be asked to review the disclosure and select the checkbox saying you agree to use electronic signature. Click Continue.

• Click Start to begin the signing process. You won’t be able to add, delete, or modify anything. If you do discover missing or inaccurate information, contact us.

• When you click the first Sign or Initial tag in the document, you will be asked to adopt your signature. Choose whether you want to use a preformatted style or draw your signature in, then click Adopt and Sign to save your signature and return to the document.

• After you are done reviewing the document, click Finish.

For a more visual guide, please visit the E-signature Resources page: http://raymondjames.com/esignature/

We hope you are as anxious to use this new feature as we are. Next time you have to sign a Raymond James document, ask us to send it to you for your E-signature so you can try it out for yourself! 

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

March Madness: How the Tournament Reflects your Investments

Contributed by: Nicholas Boguth

I usually don’t think about investments when March Madness rolls around, however this year the correlation is hard to get out of my mind. The past year in the markets has mimicked the past year of NCAA men’s basketball. The markets have been volatile since mid-2015 because of China’s shaky economy and the pending rate hike here in the U.S. In August, we watched the S&P 500 drop almost 200 points and investors wondered, “What is going on?!?!” At the same time, the men’s basketball rankings have been more volatile than they ever have been historically. North Carolina owned the #1 ranking title in the preseason, and then was quickly edged out by Kentucky, who got pushed out by Michigan State, then Kansas, then Oklahoma, then Villanova, and finally back to Kansas leaving basketball fans thinking, “What is going on?!?!”

Now it’s March, which means it’s time to fill out your bracket. There are a total of 63 games that will be played to determine the champion. Correctly predicting the outcome of all 63 of those games is about as likely as getting struck by lightning 5 times this year. Warren Buffet, who in the past has offered $1 billion to anyone who filled out a perfect bracket, must have gotten bored with that challenge and instead is offering $1 million every year for life to any of his employees that correctly guess every game in the first 2 rounds correctly (still extremely unlikely). So, what will your strategy be when filling out your bracket?

There is no guaranteed way to make money when investing, just like there is no guaranteed way to pick the final four teams of the tournament correctly. Sure, you can pick the four #1 seeds and hope that they make it to the final four, just like you can look back and pick the 4 investments or securities that performed the best last year and hope that they outperform again this year, but as we all know from the infamous investing disclaimer, “past performance is no guarantee of future results.” In fact, only picking the #1 seeds in the bracket has left you with the correct final four just ONE time in the entire tournament’s history.

So, odds are that you are not going to pick every winner of the tournament. As investors, there is also a slim chance that you pick every one of your investments correctly and every one of them increases year after year. This is why diversification is key—Jaclyn Jackson recently explained this concept in more detail (which can be found here).That is where talking to a NCAA bracket specialist or an investment professional can help. The correct diversification can ultimately help you reach your end goal, no matter who the #1 seed is.

Nicholas Boguth is an Investment Research Associate at Center for Financial Planning, Inc.

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Any opinions are those of Nick Boguth and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected. 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. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

Women’s History Month: The Inspiration of Sylvia Lawry

Contributed by: Laurie Renchik, CFP®, MBA

Whether you’ve just started your career or you’re a seasoned professional, establishing yourself as a leader at work can boost your ability to achieve success in the short term and advance your career over the long term. An important part of being an effective leader is inspiring those around you. In honor of National Women’s History Month, I want to take the time to highlight the accomplishment and inspirational leadership of Sylvia Lawry.

Sylvia Lawry is the woman who single-handedly launched an international war on Multiple Sclerosis. In search for a successful therapy for her brother Sylvia put an ad in The New York Times. The year was 1945 and she received more than 50 replies from people who were themselves seeking a cure. This was her first step in the fight for a world without MS. She won over famous scientists to her cause and shortly after her initial ad, in 1947, she had founded the National MS society.

My interest in Sylvia Lawry’s story goes deeper than supporting National Women’s History during the month of March. It’s personal as I have family members, friends, and clients who are affected by MS.  Today, 70 years later I am supporting Sylvia’s vision to find a cure for MS by participating in the 2016 MS Leadership Class. Leadership class members commit to increasing their knowledge about MS, to raising public awareness, and to raising funds for ongoing research.

My interest also has professional roots. At The Center, we are a team that meets you where you are, understands where you want to go and through collaboration with you, we develop and execute a strategy focused on your financial well-being through every stage of life. While retirement planning is a common cornerstone of a majority of financial plans, it is not uncommon for clients to make contingency plans for health related issues or craft philanthropic strategies to ensure their charitable dollars create the desired impact.

National Women’s History month presents an opportunity to be intentional about reflecting on the past successes of women throughout history. It hits home here at The Center too as our 30+ year history reflects the inspired leadership of many women through the years. When you wonder what you can do because you are one person, think about Sylvia Lawry.

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 is a member of the Leadership Oakland Alumni Association and is a frequent contributor to Money Centered.

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Raymond James is not affiliated with Sylvia Lawry or The National MS Society.

Challenge Detroit – An Update Half Way Through

Contributed by: Clare Lilek

Let me paint a picture for you: imagine you’re a 32 year old single mother, whose husband recently left her, with a 17 year old son who’s dropped out of high and a 14 year old daughter who’s already disinterested in school, with only $10 in your pocket and no job. This was the card I received when I participated in a poverty simulation with Challenge Detroit. Throughout the entire day, I was physically nervous. The overwhelming anxiety and never ending list of “must do now or you’ll lose your home” tasks had broken down my normally chatty personality till all that remained was a shell of who I really am. Let me clarify that the poverty simulation was only one hour long. One hour of role-playing made me stress to the point of losing myself. I know that you’re probably judging me right now, but the whole point of the simulation was to create a deeper understanding and install a greater empathy in all of the fellows - and mission accomplished! As fellows we participate in challenges that center around underserved, and a lot of the time, impoverished populations, and empathy is the key to designing solutions that are sustainable, practical, and implementable. To be completely honest, this was just an average Friday for me.

The whole reason for my presence at The Center is because of Challenge Detroit. For those of you who need a quick refresher, Challenge Detroit is a yearlong fellowship that aims to attract and retain young professionals and innovative thinkers to the city of Detroit in order to aid in the revitalization through intellectual giving. This intellectual giving manifests itself in what we refer to as “challenges.” Each Friday I am not physically at The Center, but working with my fellow fellows on these challenges; we partner with other non-profits with the intention of focusing on a broad topic. We help these organizations by providing man and brain power to their mission for five weeks at a time. This usually results in innovative strategies for the organization to implement over time that will incrementally impact Detroit in a positive manner and help that non-profit’s overall mission.

I am halfway through my fellowship—time sure flies—and we’ve completed three challenges already. Below is a brief overview of the work that we have done up to this point.

Challenge #1: Working with Mayor Duggan’s office and the City of Detroit

As fellows, we had an amazing opportunity to partner with the Mayor of Detroit and facilitate the development of the first small business directory for the city. It’s called Dream It, Do It, Detroit and the directory is available online and in a book format. In the online directory you can look for different restaurants, businesses, and enterprises located in the seven different districts of the city. Take some time and check out all that Detroit and its entrepreneurs have to offer, I guarantee you will learn something new!

Challenge #2: Working with Detroit Public Schools

We split off into six groups and partnered with six different schools to focus on how to improve parental engagement and empowerment. It was and remains a poignant challenge in light of the current struggle with DPS. It was a good lesson in empathy and reminded us all the importance of putting children and their education as a first priority, without forgetting to educate and support the “whole student,” which includes their parents.

Challenge # 3: Working with Goodwill Industries and the Coalition on Temporary Shelter (COTS)

The fellows spilt up into two groups to partner with our two different nonprofits on workforce development. I had the pleasure of working with COTS to create an engagement strategy for potential and existing corporate partners. COTS needs partners to help make their Passport to Self Sufficiency TM framework advantageous for their participants in order to foster poverty resistant families. The Goodwill and COTS teams both created innovative strategies and campaigns for the organizations to use to improve and maximize their current efforts as it pertains to workforce development in underserved populations.

At the end of the day, The Center is making a huge impact in Detroit and the metro area by participating in Challenge Detroit. They have made it possible for me and the rest of the fellows to do the work we get to do every week. Over time, The Center’s impact will grow and the community around us will be better for their support. I am grateful that one of The Center’s missions is to partner with the community and create positive change. That is why I’m here and, in part, why Challenge Detroit is able to have the impact it has around Detroit and the metro area. 

Clare Lilek is a Challenge Detroit Fellow / Client Service Associate at Center for Financial Planning, Inc.

Diversity in Financial Services and The Center – What Does it Mean to You?

Contributed by: Sandra Adams, CFP®

February is Black History Month and we, at The Center, have been celebrating by sharing some of our favorite quotes from famous African American leaders. However, we thought it was also the perfect time to address the topic of diversity and the role it plays in our industry. Throughout our 30 years, we have paid special attention to the topic of diversity and what it means to our teams, committees, and ultimately to you – our clients.

Where do we stand on the topic of diversity in our industry? 

Interest in personal financial advice has never been greater and as more Americans assume responsibility for managing their financial futures, there is increasing demand for financial advice. According to recent research conducted by CFP® Board, 40 percent of Americans now work with financial advisors, compared to 28 percent in 2010.  The rising need for financial advice presents an opportunity for the financial planning profession to diversify its workforce to better match the population we serve. For example:

• African Americans represent only 8.1 percent of financial advisors, yet comprise more than 13 percent of the U.S. population. 

• Hispanics represent only 7.1 percent of financial advisors, yet comprise more than 17 percent of the U.S. population.

• Only 23 percent of CFP® professionals are women, even as women control more than a third of wealth in the U.S.  

Why do we think it is important to have people with diverse backgrounds and experience working in teams at The Center on behalf of our clients? 

Working in a committee or team structure is not something that comes natural to us as human beings. Working with a diverse group of people in a committee can be even more difficult, but is of utmost importance when making investment or financial decisions. However, a diverse committee is less likely to have a blind spot, will have a broader set of experiences to draw from and offers checks and balances. We believe building a committee of diverse individuals is one of the first and most important steps to successful outcomes.

At The Center we have recognized this importance when deciding who should sit on the investment committee. These members drive the decisions and diversity helps avoid groupthink. Groupthink happens when group pressures lead to a deterioration of mental efficiency, reality testing, and moral judgement. It’s rewarding to see change coming and equally as rewarding to be part of it.

The Center has also seen the value of diversity as it has developed other teams within the firm to work on behalf of clients, like the financial planning department, or the weekly meeting of the financial planners. Each of these diverse groups is made up of people coming from different backgrounds, possibly having slightly different educations, and various certifications or specialties. Because of this, we have the opportunity to bring different insights and perspectives to client cases that wouldn’t exist if we all came from the same background and had the same frame of thought – what an advantage for our clients!!

As you celebrate Black History Month along with us at The Center, know that diversity is important to how we do things and how we serve you each and every day.

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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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.

The Center is taking on a 21 Day Challenge

Contributed by: Gerri Harmer

Not all of us have the same goals in health and wellness. So when it comes to putting together a work place program, we try to keep everyone in mind. It’s been said to permanently change a habit, you need to do it for 21 days. So starting on January 19th, The Center staff committed to making at least one new healthy habit for 21 days. Each person’s individual goal had to be a bit of a stretch but ultimately doable, with some effort! If we miss a day, we start again. We found quite a few were similar, a few very unique and some had more than one.

Our goals were gathered and posted in the kitchen. 

• Drink 64 oz. of water a day

• At least 15 minutes of exercise /workout at least 3x per week

• Listen to relaxing music in the car on the way in

• No bread products

• No snacking between work and dinner

• No stress eating

• No candy/reducing sugar

• Take vitamins

• Pack a lunch

• Eat less than 1,000 calories for lunch

• Meditate 5 minutes a day

• Make someone laugh

Maybe you can identify with one of these, or maybe they’ll inspire you to come up with your own challenge. We are having so much fun keeping each other on track or calling each other out; we’d love for you to join in, too. What habit do you want to work on for 21 days?

Gerri Harmer is a Client Service Manager at Center for Financial Planning, Inc.

Are You a Peyton or a Cam Investor?

Contributed by: Sandra Adams, CFP®

As we approach Super Bowl Sunday, considered the greatest American sports day, the farthest thing from our minds might be our investments. And given the volatility of markets thus far in 2016, that might be a welcome break!  However, the quarterbacks in Super Bowl 50 provide us the opportunity to observe two very different personalities in sports that we can relate to our investment personalities.  Which quarterback are you more like?

 Peyton Investors:

• Value consistency of performance over the long term.  Peyton Manning has been a quarterback in the NFL since 1998 and will be playing in his 4th Super Bowl on Sunday at the age of 39 and 320 days (the oldest quarterback to play in the Super Bowl).  He is a five-time league MVP and is one of the NFL’s ELITE quarterbacks.  He is the epitome of performing at a high level over the long term.

• Desire to use experience and wisdom built over time to make low risk decisions, even in times of high stress.  Peyton has experience in the playoffs – while it is his 4th trip to the Super Bowl – he has done so under 4 different coaches.  He has worked with different players, different coaches and in different situations over a lot of years, giving him the ability to handle himself and his team in almost any situation. 

• Aim for balance and an even keel.  Just like when investment markets are stressful, the Big Game can get stressful, but Peyton seems to always have a cool head and not overreact based on emotion.

Cam Investor:

• Get a rush from a new and exciting investment opportunity.  Cam Newton was drafted into the NFL in 2011 by the Carolina Panthers, so is still very new to the league.  His youth, size and athleticism make him a clear standout amongst current NFL quarterbacks.  In addition, he has a clear affinity for excitement and taking risks – dazzling the crowd with exciting plays and athletic feats not seen before. 

• Desire change on a more often basis.  Cam changes up his play selection on a more often basis; surprising the defense is his goal.  For an investor, this translates into someone who change his portfolio to the newest investment idea on a regular basis.

• Wish to celebrate successes.  Of course I had to go there…we’ve all seen Cam celebrate…it’s his thing. Whether it’s the chest pumping or the “Dabbin” – Cam likes to celebrate his successes.  The only problem with too much gusto – what happens when the success ends?

So, as we approach Super Bowl Sunday and you sit down to enjoy the big game, keep an eye on Peyton and Cam and see if you can identify with either of them – as a quarterback or as an investor.  And no matter which team wins, know that we at The Center were watching and cheering along with you. And don’t think of us as the Cam or the Peyton – we’re the coach with the eye on the ball and the experience to help you call the plays.

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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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 and not necessarily those of Raymond James. Investing involves risk and investors may incur a profit or a loss regardless of strategy selected. Holding investments for the long term does not insure a profitable outcome.

Another One Passes the Test!

Contributed by: Center for Financial Planning, Inc.

Kali Hassinger, now CFP®, passed the test and is officially a CERTIFIED FINANCIAL PLANNER PROFESSIONAL™. After starting in the Client Services department for her first few years here and committing to her role fully, Kali decided to dive deeper into the world of financial planning. She spent the year diligently studying and has now entered the ranks of the planners. The Center is extremely proud of her accomplishments and we are thrilled to add the coveted CFP® to her title.

We asked Kali a few questions to better get a sense of her experience with the exam:

Where were you when you heard the good news? The test gives you feedback automatically now, so I was at the test center!  I called my mom first because I think she was actually more nervous than I was. Got to love moms!

How did you celebrate your accomplishment? I took the test right before Thanksgiving, so I used that long weekend as a chance to relax and have fun (without the guilt of knowing I should be studying).

What part of the test did you feel most confident in? I felt most confident in the Retirement Planning category.  A lot of the tested items are things that we talk about every day at work!

What was your favorite study aid?  I followed the study calendar provided during my review class exactly as recommended, and it worked to my benefit!

Kali will continue working as a Client Service Associate to our lead planners as she begins to take on more associate financial planner duties. Next time you’re in the office, feel free to say “Hi!” to the newest CFP® at CFP!

A Webinar in Review: Cyber Security and How to Keep Your Information Safe

Contributed by: Clare Lilek

As more and more of our personal information makes its way onto the web or into our devices, cyber security is a growing concern. Did you know that there are 12 victims of cybercrime per second?! That’s over 1 million victims per day, and 378 million per year! The numbers are staggering and the threat is all too real. That’s why Nick Defenthaler, CFP®, hosted a webinar on cyber security with guest presenter Andy Zopler to help us combat these prevalent fears. Andy Zopler, Chief IT Security Officer with Raymond James, has been doing IT work for over three decades and has been focusing on the financial services for the past 15 years. Over an hour’s time, he explained the growing epidemic of cyber fraud and not only told us how Raymond James combats such attacks, but also gave the attendees tips for practicing cyber safety in their daily lives.

Let’s set the scene: we are currently living the second technology revolution (the first being the industrial revolution). The advancements and growing pervasiveness throughout society has made technology extremely influential in how we live our lives. The technology explosion has changed the way we interact with and conduct our finances, and how criminals can access our personal, financial information. Andy Zopler addressed these concerns by first identifying the threat actors.

Knowing who the threat actors, or bad guys, are is crucial to understanding our own fear and the reality of what type of attacks are most likely to be perpetrated. Andy talked about how external factors such as criminals, spies, and hacktivists are what make up most of our concerns. Of course there are also insider and partner threat actors as well; but of the five mentioned, criminal threat actors are the most common concern. Criminal threat actors want your money, which makes them scary, but also, quite predictable. Raymond James screens about 1.5 million spam and fraudulent emails every day that are sent to their financial advisors across the United States.

The sheer amount of attempts can be worrisome, but Andy explained how Raymond James defends the company and its financial advisors (including The Center) every day. The strategy includes:

• Protect – using creative solutions to stop attacks from happening.

• Detect – assume that all protections will fail, so remain vigilant for fraud.

• Develop – invest in the training employees to cultivate the highest talent.

• Partner – Raymond James only partners with trusted and well vetted third party vendors.

This is all done at the Raymond James Cyber Threat Center, which is a key component to the cyber security strategy. Andy then explained to all attendees the different layers of defensive measures Raymond James uses to protect financial information.

Finally, Andy gave concrete actions and best practices that all of us can use individually to keep our sensitive and private information safe and out of the hands of criminals. Those tips include:

• Secure your computers (with Antivirus, firewalls, and software updates).

• Restrict your browsing behavior.

• Strongly encrypt the files on your PC.

• Change your passwords frequently and don’t share passwords among sites. When saving passwords, it’s best to use an application on your phone or put it on a piece of paper – don’t save it as a word file on your computer! Also, when possible, opt for “two factor authorization.”

• Use multiple personal emails.

• Use a separate computer for online banking.

• Insist on having verbal/phone confirmation for “high risk” transactions.

• Back up your data! On a hard drive or in a secure cloud.

Raymond James and everyone here at The Center work diligently to protect your financial information and to stop fraud and cybercrime from affecting clients. We encourage you to watch the video and rethink your own personal practices. Don’t be one of the victims of cybercrime, instead invest in your cyber security just as you invest in your future.

Clare Lilek is a Challenge Detroit Fellow / Client Service Associate at Center for Financial Planning, Inc.

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This material is being provided for information purposes only. Any opinions are those of Clare Lilek and not necessarily those of Raymond James.