Deepening Financial Planning Knowledge: FPA Residency

Contributed by: Kali Hassinger, CFP®

Financial Planning is more than just analyzing data and crunching numbers – it’s also about trust, communication, and (most importantly) relationships. While studying for the CERTIFIED FINANCIAL PLANNER™ certification, all candidates are, perhaps obviously, required to focus on the technical (and necessary) knowledge to be a worthy financial planner. Upon finishing the coursework and passing the test, however, the relationship facet of a financial planning practice is left somewhat overlooked.  In hopes of filling this gap, the Financial Planning Association (FPA) offers a “Residency” program for new financial planners who are looking to hone in on their interpersonal skills. I was lucky enough to be one of the attendees at this workshop in Denver, Colorado last month. 

The FPA Residency program provides a space to refocus on the subtle skill of building relationships based on trust, authenticity, and mutual respect. Although I would have argued that you either innately possess these abilities or you don’t, this course ultimately changed my mind.  Every skill in life can be practiced and improved upon, and communication is no different. The Residency focused on specific strategies such as how to ask the most effective questions and minimize miscommunication. It also focused on the more delicate skill of how to better notice and acknowledge emotions in others. 

Financial Planning is a deeply personal matter for all of our clients. We are discussing your life’s work, your dreams, and your family. In many cases, the financial aspects of these matters aren’t discussed with anyone else, so it’s normal for clients to have a certain level of anxiety when engaging a financial planner or preparing for a meeting. Although numbers and strategies will always be a main focus, above all, we strive to provide clients with a relationship that provides them with confidence. By recognizing, understanding, and dealing with the emotions that are often incited by finances, we can better serve our clients in all aspects of financial planning. Without question, I personally benefited from the FPA Residency program. I hope to use this benefit, however, to foster effective and valued financial planning relationships in the future.  

Kali Hassinger, CFP® is an Associate Financial Planner at Center for Financial Planning, Inc.®

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Raymond James is not affiliated with the Financial Planning Association. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Alexander Hamilton—the Man, the Musical, the Financial Founding Father

Contributed by: Benjamin Wright

As the 70th Tony Awards approach this Sunday, the rap-infused musical, Hamilton, has grabbed a record-breaking 16 nominations and seems to be all anyone can talk about. The musical premiered on Broadway in August of 2015, yet tickets are still extremely expensive, fetching no less than $700 per seat. Alexander Hamilton is portrayed by writer and composer Lin-Manuel Miranda, a 36 year-old Puerto Rican native. Miranda has recently spoken out, and sometimes even rapped, about the economic and debt crisis Puerto Rico is currently experiencing. During Miranda’s recent trip to the White House, he jokingly offered Hamilton tickets to Congress if that would help solve Puerto Rico’s problems. The parallels are uncanny as Miranda’s most famous and increasingly most popular work, Hamilton, dives into the life of Founding Father Alexander Hamilton and his role in the early American financial system, including our nation’s very first debt crisis.

Born in the Caribbean, Hamilton had to grow up quickly not having a father and losing his mother when he was thirteen. When Hamilton was seventeen, a hurricane devastated his town and he immigrated to New York seeking economic opportunity. After Hamilton served under George Washington in the Revolutionary War, he practiced law and founded the Bank of New York. The young United States found itself experiencing economic hardships and was in a heap of debt after borrowing from other countries, its own colonies, and even private colonists in order to support the revolutionary war effort. The government under the Articles of Confederation lacked sufficient tax authority over the states which only grew the national debt. Dissatisfied with the inefficiencies of the federal government, Hamilton wrote 51 of the 85 Federalist Papers which were a collection of essays promoting the ratification of the new U.S. Constitution. Under the newly approved Constitution, George Washington appointed Alexander Hamilton as the first Secretary of the Treasury.

In this role, Hamilton engineered a compromise with political opponents, Thomas Jefferson and James Madison, that would overhaul and centralize the debt market through the federal government. Hamilton’s plan was a major success and by demonstrating America’s willingness to pay off their debts, the U.S. became attractive to more foreign investors. Hamilton then proposed and helped create a national bank and paper currency. Additionally, Hamilton believed that the U.S. dependence on imports and exports limited the American economy. He supported high tariffs, government subsidies, and government-financed transportation improvements which were designed to protect American manufacturing. Most strikingly, it was an economic vision that had no place for slavery. Hamilton’s economic outlook contradicted Adam Smith’s “invisible hand,” laissez-faire, approach. Mixtures of these ideas have helped shape the modern capitalist economy the U.S. flourishes under today.

The popularity of the musical Hamilton is partly due to its groundbreaking format of rap/hip-hop with an almost all minority principle cast, but also in part due to the reentering and popularizing of Alexander Hamilton’s important role in history and in the development of our modern financial system. Though we generally learn the Founding Fathers’ roles in the creation of our country in school, Hamilton has effectively brought Hamilton to the center of our attention, making his contribution to our modern day economics impossible not to notice. So whether you’re watching the Tony Awards on Sunday, listening to coworkers and friends rave about the music, or using cash to make a purchase, it’s all thanks to Alexander Hamilton. 

Audience Gets Involved at DCWS “Set The Tempo”

Contributed by: Center for Financial Planning, Inc.

The Center proudly sponsored Set The Tempo, a two-part Detroit Chamber Winds & Strings (DCWS) concert performed at Kirk in the Hills Presbyterian Church in Bloomfield Hills, MI.  Our commitment to the DCWS is longstanding and we proudly support the performances this talented group brings to audiences.  Involving the audience directly in the artistic process was a prominent theme for this innovative musical performance.

The first half of the concert featured works of three composers who are participating in a competition with composers across the country.  The three were selected from forty applicants in our region who were given 14 days to write a five minute piece for a prescribed instrumentation, which in this case included clarinet, violin and piano.  The audience was directly involved as we all had a collective vote in the competitive process.

The concert’s second half featured a performance by DCWS musicians of Wagner’s Siegfried Idyll.  DCWS Artistic Advisor, H. Robert Reynolds, led an interactive rehearsal of the work, with audience members again participating in the artistic decision making.

Set The Tempo was a different experience than a typical chamber music concert.  It required an adventuresome, intellectually curious audience and from what we observed was enjoyed by all.

Our thanks to Maury Okun, Executive Director of Detroit Chamber Winds and Strings and the musicians for providing a wonderful Sunday afternoon of musical discovery and enjoyment.

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Raymond James is not affiliated with DCWS.

Technology Supports an Aging Population

Contributed by: Sandra Adams, CFP®

I was recently given the opportunity to visit one of the nation’s top research university’s that has a research institute dedicated to  aging – quite a treat for a geek like me interested in the study of gerontology!  The trip attracted my attention to current studies that focus on topics such as how technology can impact the lives of older adults, and how different generations interpret and understand financial concepts and financial advice – both interesting concepts to our work with clients here at the The Center.

My favorite take-a-way from my trip was a new awareness of the new technology service resources that are now available. So many of my conversations with clients center around the independence and the desire to remain in their family owned homes for as long as possible.  What I learned on my recent trip was how new technology and sharing economic services can make it possible for older adults to fulfill their wants and needs, and potentially make it possible for them to remain active and independent for far longer than they ever thought possible. 

How can you or an older adult in your life make this work in your favor?

• Start by becoming aware of new technology and the sharing service economy.  What am I talking about here?  Services like Uber for transportation, Pillboxie for medication reminders, Heartwise and Care Beacon for health monitoring and assistance, Washio for laundry services, Blue Apron for easy meal preparation, Task Rabbit for locating help with tasks around the house, and so many more.

• Begin to think about your long life planning and what options and preferences you have in mind for your housing, care, etc.

• Work with your financial planner and other professionals to put real plans in place to make sure your preferences can come true, and to make sure that you have access to all of the best and, if it makes sense, most technologically advanced, resources available to assist you.

Technology isn’t just for your kids and grandkids!  The tools and services now available can be used to make the aging process a more convenient, active and independent one for the ages – if we allow ourselves to explore it!

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 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. Raymond James is not affiliated with and does not endorse the services of the above mentioned companies in this material.

The Center Gives Back to our Community

Contributed by: Clare Lilek

The end of the year is a busy time as we prepare for holidays, family time, and New Year resolutions. Here at The Center, we decided not to get caught up in the rush of the end of the year and instead carve out time to give back to the community around us and those less fortunate. One of the ways we’re doing this is through our charitable giving. Each month during the fourth quarter our team members have chosen a different cause to support monetarily. In October we donated to the Susan G. Komen Foundation, for November we supported Prostate Cancer Research, and for the month of December, we are donating money to Toys for Tots.

Not only do our team members give their money, but they give their time as well. On November 23rd we volunteered at Focus: Hope, packaging food in their warehouse that was delivered to homebound seniors. And on December 2nd we are volunteering at an organization in Detroit called Arts & Scraps. (UPDATE: The Center Team volunteered December 2nd as planned. Arts & Scraps measures success through smiles. We helped foster 3,000-4,000 future smiles! THAT’S A LOT OF CHILD HAPPINESS!)  The organization’s goal is to take recycled industrial materials and create art packages to give to students and communities to encourage learning through art. 

Though our individual team members have a range of diverse interests, we unite in our desire to give back to the community around us. During these group volunteer days, we have the chance to learn about different organizations around the Detroit area while participating in a Center value of philanthropy.

At The Center, we also like to donate specific items to charities. Most recently staff members donated hundreds of books to RX For Reading Detroit to help combat the "book desert" in the city. John Mio brought the book drive and organization to our attention and in conjunction with our donations collected over 700 books for the organization!

This power of collective has been seen daily in the office since we partnered with Toys for Tots. Our clients, team members, friends, and family have donated toys to our ever-growing collection. We have already filled one box to the brim and are looking to fill another with new, unused, and unwrapped toys. If you would like to donate toys, feel free to either stop by or send them directly to our office in Southfield by December 16th!

This time of year is filled with love and joy spread by family time in conjunction with so many beloved holidays. The Center is thankful for our good fortune and for the hard work of our dedicated team. We are even more grateful that these kindhearted people contribute to the community in positive and meaningful ways, both individually and collectively. The Center is happy to be part of this communal giving and we’re dedicated to continuing this good will and spirit into the New Year.

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

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Raymond James is not affiliated with any of the charities mentioned. 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 Value of Knowing Where You’re Going

Contributed by: Timothy Wyman, CFP®, JD

Recently one of the most quotable fellas of our time, Yogi Berra, passed away. It is impressive how much meaning can be captured in a short sentence like, “You can observe a lot by just watching” or “It ain’t over till it’s over.” One of my favorite quotes is from Roy E. Disney, brother of Walt Disney who is credited as saying, “When your values are clear to you, making decisions becomes easier.” If you have been to our web site and visited my profile, you have seen a play on the quote that I use:

"When your vision is clear, your decisions are easy."

 I know, you’re thinking: Sir, I knew Roy E. Disney and you are no Roy E. Disney.  However, whenever faced with a challenging issue, whether it is personal or business related, I find it helpful and even therapeutic to go back to vision or values as Roy suggests.

The Center developed a set of values years ago to help us make decisions and we not only talk about them but strive to live them each day. Recently during an All Staff meeting we reviewed and discussed our values, what they meant to us, and how we could embrace them even more.

Our values are more than words; they serve to guide us in our everyday actions. Everything that we do is about our clients and our team with values leading the way. Our Center values include:

• Congruence between Words & Deeds

• Compassionate and Effective Leadership

• Passion for Excellence

• Strong Work Ethic

• Professionalism & Competence

• Balanced Life

• Commitment to the Financial Planning Process

• Continuous Learning and Personal Growth

At our meeting recently we dug into the meaning behind a few of these values:

Compassionate & Effective Leadership

We are compassionate leaders to our clients, to our communities, and to our families.  Leadership isn’t bestowed by position or title – one can exhibit compassionate and effective leadership regardless of role or “boss” title.

Passion for Excellence

One team member shared, “It is all encompassing.”  A passion for excellence means you act with integrity, continuously learn, have strong work ethic, etc.

We also talked about giving future space to consider other values such as Service to Others/Servant Leadership and Intellectual Curiosity.

Without a strong set of values and vision of what’s important in your life – you might just live out one of Yogi’s classic observations:

“If you don't know where you are going, you'll end up someplace else.”

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.

Exercising (and Saving Money) Without Realizing It

Contributed by: Gerri Harmer

Exercise without realizing it? Really?  Really! I know it sounds too good to be true but let’s think about this whole exercise thing in a new way.  We can have fun and save money while getting a good workout!

Spending 20-30 minutes a day on aerobic activity does not mean you have to be sweating to the oldies in front of the TV or forking over your hard-earned money to a personal trainer.  While exercise videos and personal trainers are fabulous and very effective, they might not be your favorite things to do, which means you probably are not very motivated to jump in and may find excuses to put it off.

Why not opt for a less stressed, enjoyable exercise option once in a while? Take a 30-minute bike ride through your favorite neighborhood. Increase your heart rate, take in nature, say “hi” to the neighbors, and let the wind blow through your hair. Better yet, put a basket on the front and bike to the store for that bread you needed to pick up.  Or, load your bike on the back of the car, park and ride your bike through your favorite metro park or sightsee in a new town.  It’s the best way to see the city, stopping whenever you like to get a better look without holding up traffic while getting access to areas you couldn’t get to with a vehicle.  You are now stress free, you have endorphins flowing, and you didn’t spend a dime.

How about having a hula hoop contest or playing catch with your kids or grandkids? Water balloons? Bowling?  I’ve never been as sore as the day after I’ve gone bowling -- it kicks my tail! Taking a new dance or martial class are fantastic ways to move and learn something interesting. You get toned and your friends are amazed with your new skills.  It feels like cheating because it’s so much fun and it didn’t cost any more than your normal recreational activity. 

More ways to save AND get a workout?  

1. Go for a hike. Meet up with friends or fly solo for a respite. Clean out those mental cobwebs.

2. Try gardening. Make your yard the envy of the neighborhood or grow an organic garden.

3. Join a recreation league. Make some new friends by joining a softball, soccer, horseshoes, or bocce ball team.

4. Play a game with your kids or grandkids.  A good game of capture the flag, tag or kickball gets the adrenaline going while spending time with your family. 

5. Play an interactive video game.  They have tons of games that get you running, jumping, dancing, chopping, and shuffling. Your kids and/or grandkids will think you are so cool.

6. Try new things.  Ever heard of LARPing (live action role playing) or Geocaching?

You get the idea. What are you going to do first?

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

The Center Helps Send Southfield Students Back to School

Co-Contributed by: Jaclyn Jackson and Kali Hassinger

On August 15th, Center team members, Kali Hassinger and Jaclyn Jackson, joined the Southfield community for a day of volunteering and fun at the Southfield Public Schools Back to School Summer Bash.  The event provided free school supplies, books, and pertinent information to families gearing up for the 2015-16 school year.  Featuring rides, ice cream, music, farm animals, and festival food, the picnic-style event proved to be great day for the Southfield community. 

“As we were organizing supplies to give away, you could see a long line forming. One of the volunteers even joked that it looked like a line for a Justin Bieber concert. You could tell parents and students were excited about the event,” Jaclyn said.   

The event reflects responsiveness to recent demographic changes of the school district. Today, sixty-five percent of enrolled students qualify for free or reduced lunch.

“It was such a positive event. It feels great to know that a student, who may not have the ability to buy those supplies otherwise, is starting the year prepared,” Kali explained. 

In addition to volunteering, The Center was an event sponsor.  Sponsorship and volunteer efforts are part of The Center’s vision for community partnering, which aims to contribute $100,000 in sweat equity, commitment, and financial contributions by 2020.  In just 3 hours, the Summer Bash distributed enough school supplies to fill a large school bus.  With continuing support from community sponsors, they hope to keep the annual event going.

 The Center wishes every student a successful and enjoyable 2015-16 school year!

Jaclyn Jackson is a Research Associate at Center for Financial Planning, Inc.

Kali Hassinger is a Registered Client Service Associate at Center for Financial Planning, Inc.

Part 8 – A Year of Lessons on Money Matters for your Children and Grandchildren

Contributed by: Matthew E. Chope, CFP®

What motivates you? You might get out of bed in the morning and go to work because you want shelter, nutrition and safety. You might do it because you love your job and can’t wait to get to the office. Understanding what incentivizes you can help you accomplish what is most important and help you prioritize to do the hardest things first.  These are important – yet sometimes overlooked – lessons to share with your children, whether they are tackling tough assignments in school or facing obstacles at the beginning of their career.

Rewards = Results

Try figuring out how to motivate yourself to get results suggests Charlie Munger, Vice Chairman of Warren Buffett’s Berkshire Hathaway Corporation. He calls it the “reward and punishment super response tendency” in his book On Success.  Great employers have managed this for their key employees; but you can do this for yourself.  When you achieve the results you want, reward yourself.

Early in my career, at age 25 I needed to make calls to people I did not know and ask them to considering doing financial planning with me.  This was a difficult task, but I knew it was necessary to build a business.  At the time I enjoyed coffee so it became my reward. If I made my calls each day and achieved the results I needed to succeed, the next morning I treated myself to a coffee.  At the end of the week, if I meet my weekly goal, I bought myself a Twix candy bar to enjoy. Your personal rewards may be different, but they should be motivating. And expect them to evolve over time. Maybe that Twix becomes a vacation if you reach your quarterly goal or new car if you meet your annual goal.

Setting Your Priorities

If you have 5 projects or jobs and one is going to be the most difficult (but also the most important), where do you begin? I suggest if you are having a difficult time in a certain aspect of your business, begin by tackling a portion of the problem first.  Then go to something that’s easier and come back to the subject that is troubling before ending your day. Back to me at age 25, I didn’t like making calls to people I didn’t know but needed to make 20 a day.  I found if I started by doing the difficult part – I wasn’t looking at that list all day. 

If you can determine what motivates you to accomplish your daily tasks, you can reach your work goals. As a bonus, linking incentives to challenging tasks and prioritizing your time can also lead to personal growth and accomplishment.

Matthew E. Chope, CFP ® is a Partner and Financial Planner at Center for Financial Planning, Inc. Matt has been quoted in various investment professional newspapers and magazines. He is active in the community and his profession and helps local corporations and nonprofits in the areas of strategic planning and money and business management decisions. In 2012 and 2013, Matt was named to the Five Star Wealth Managers list in Detroit Hour magazine.

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Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.

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 Matthew Chope, CFP® and not necessarily those of Raymond James.

6 Ways to Get Healthy AND Spend Less

Contributed by: Gerri Harmer

If you could choose one of these items in retirement, which would you pick?

1. A vacation home

2. Shiny red convertible

3. Good health

A younger version of yourself would have probably gone for option 1 or 2. But many of us find when we get to retirement, our priorities change.  Without good health, all the other choices are irrelevant if you can’t enjoy them. Many of us dream of living a very active lifestyle when we retire with some money in our pockets.  Wouldn’t it be amazing if we could have all the options? Wouldn’t it be even more amazing if it only took adapting just a few new habits to improve our long-term health?

Here are 6 ways to lean into better health while spending less:

1.     Start giving up that bad habit.  Most things that are bad for your health are bad for your wallet.  Smoking, junk food, fast food and pop can all be eliminated, adding money to your bottom line.

2.     Go outside.  Breathe the air and get fit by walking, gardening or bike riding.  Better yet, head to the park to toss a Frisbee, join in on a sport, or hit a trail. No need to pay fees for gym memberships during the summer.

3.     Buy local or grow your own.  Farmers markets usually have a great variety of organic fruits and vegetables.  You support your community and pay a fraction of the grocery store prices.  Better yet, start your own garden and save even more.

4.     Sleep 15 minutes more.  Give your body a little more time to repair itself.  Go to bed early or prep for your morning the night before so you can sleep an extra 15 minutes. 

5.     Drink water.  Experts recommend drinking 8 glasses a day. Before you allow yourself even a drop of anything else, drink a glass of water first. You’ll be surprised how much energy you gain while flushing all the bad stuff. Water is one of the least expensive beverage options especially when it comes from your filtered fridge instead of a bottle.

6.     Sit with nature.  Reset your stress levels by simply listening to the birds, taking in the scenery or feeling the breeze on your face.  It costs nothing and gives you peace and calm.

It might be difficult to change radically overnight, but leaning toward better habits may lead to a smoother, more permanent change in your health. And it doesn’t hurt that you’ll be saving money along the way!

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