New staff announcement

Today is a news day at Foley & Foley and we wanted to share with you recent staff changes at our office.  Regrettably, JoAnn McCarthy is no longer with us.  Her husband accepted a corporate relocation this summer to Florida, and she will be joining him there shortly.  We appreciate and thank her for her years of service and hard work.  We wish her well!

On a good note, we were fortunate to have Lisa Stoneburner, Assistant to the Financial Planners, join our team.  She has many years of customer service, and is available for all your questions and calls.  She can be reached at 614-431-4310 x104 or Lisa.stoneburner@raymondjames.com.  We hope you take a minute to welcome her to our office and introduce yourself at your next appointment.  

Lisa is the front line for customer service at Foley & Foley.  A keen eye to every detail, she supports the firm’s Financial Advisors with the preparation of forms, and handling of client transactions and requests.  If you have a question regarding a transaction, Lisa will ensure that your experience is positive, professional and timely handled.

Prior to joining us, Lisa had over 25 years in corporate banking and held various positions within the corporate trust and credit card divisions at several major banking institutions.  She holds a degree in Business from Bowling Green State University.

When not in the office, Lisa is a sports enthusiast with strong allegiances to the Buckeyes and the UNC Tarheels.  She enjoys reading, traveling and spending time with her family and friends.  Lisa resides in Blacklick with her son, Zach, a pharmacy major at the University of Findlay.  

It is our continued pleasure and honor to serve your family to help you reach your goals.  Thank you for your trust in us.

Foley and Foley Wealth Strategies

Do You Have a Coach in Your Life?

I have competed athletically my whole life, so I was confident that coaching kids would be a simple endeavor.  Wrong.  I quickly learned there is much more to being a coach than a player.  There is no shortage of what I have learned about myself and my players.  Now after specifically coaching my daughter’s team for 4 years I truly love it. 

Why I Love Coaching

First, I get to spend time with my daughter and get to know her friends!  Coaches played important roles in my life and I love that I can build into their lives today and for the future.  My legacy in their lives is happening now and also later.

Second, it forced me to learn and get better.  I didn’t know how to coach well, so I had to get some formal training from US Soccer.  Now coaching kids makes a lot more sense and I continue to learn more each training session and match.

Third, coaching is direct and honest, which I enjoy.  Even a tough conversation is focused to be helpful.  My players trust me in that I have their best interests at heart.  And I trust that they will listen.   

Lastly, the focus is on longer term.  The ability to win a game today at the expense of correct strategy and skills is not worth it.   My goal is to develop each player to reach their potential, be the best they can be.

The Sports Analogy

This discussion made me realize it really does compare well to my career.  Financial planning and advising correctly are just like coaching.  Both require passion, education, planning, direct conversations, trust and a long-term outlook.

It is a blessing to work with the families that I choose to advise or “coach”.  They trust me as their go to guy.  I get to know their families, hear their story- successes and failures, share in their dreams and discuss the possibilities that are ahead, God willing.  I am passionate about this.

Education along with real life experience provides something powerful.  Competence in what I know, the capabilities of my team and myself and sometimes more importantly, the limits of my expertise… and knowing the need to bring in the correct fellow “coach”, be it a CPA, Estate attorney, Charitable/trust advisor, etc.

Questions to ask yourself

Is your advisor passionate in their career, to learn about your life and see you succeed?

Are your advisors educated, experienced and practical in their approaches?  Are they continuing to learn?

Does your advisor speak the language you understand and is willing to have that direct, honest conversation you may need (…not just what you want to hear)?

Do you have a long-term financial plan to help you be the best you can be and reach your goals?

To Your Financial Life Plan,

Luke Fields, CFP®

Any opinions are those of Luke Fields and not necessarily those of Raymond James.  Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, Certified Financial Planner™ and CFP® in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.

Open House THANK YOU!

…for making our holiday Open House so enjoyable!

The staff and patients at Grace Clinic sincerely

Appreciate your generous donations.

The smiles and expressions of gratitude

from the patients were heartwarming.

Many families were better prepared for the frigid cold

because you gave.

Foley & Foley Wealth Strategies

A Uniquely Family Run Business for 35 years

In 1981, Foley and Foley was established when insurance specialist Mark Foley and his investment savvy son, Kevin Foley joined forces to serve clients.

This month, the firm celebrates 35 years serving clients!

Today, Foley & Foley Wealth Strategies is thriving thanks to the continued dedication and success of Kevin Foley and his family of partners, Luke Fields and John Foley.  Kevin shares that “we’ve worked to maintain the exceptional standards established early in the company.”  Click here to read more about ‘Our Story’.

The firm credits success to their clients trust and satisfaction.  By building a financial plan unique to each client, Foley & Foley Wealth Strategies conveys that real wealth comes from planning and living your best life, and being able to pass on the blessings.

Since 1981, Kevin Foley, ChFC®, CLU®, has specialized in helping clients accumulate, manage and preserve wealth and been recognized as an outstanding financial advisor, achieving membership in the Raymond James Leaders Council. 

Luke Fields is a CERTIFIED FINANCIAL PLANNER™ Professional with a thorough understanding of the details required when constructing strategies for clients.  John Foley, RJFS Investment Consultant, specializes in consulting with clients to determine which investments will help them accomplish their unique goals.

In recent years, Foley & Foley Wealth Strategies has modernized our firm processes, created a new logo/website www.foleywealthstrategies.com, enhanced the investment selection process to be discretion managed in-house and implemented the most current financial planning software adding significantly to their investment and financial planning strategies. These changes convey a readiness, vibrancy and current understanding of today’s challenging markets. 

Foley & Foley Wealth Strategies THANKS YOU!    We pledge to you our continued best service – you deserve it!

Kevin Foley ChFC®, CLU®, Founding Partner
Luke Fields CFP®, Firm Partner
John Foley, Firm Partner, Investment Consultant, RJFS

The Vote Against...Elections and your Portfolio

Elections have a way of revealing the true state of American politics.  I think many have known it was in a sad, poor state but we didn’t have a concrete point in time to say, yep this is really bad.  Until now.   Currently, we find ourselves asking, “are these the best candidates we can offer?”

It is the first election when more than 50% of voters are voting “against the other candidate” rather than for the one they will actually “pull the lever” (Pew Research).

How Elections Impact the Stock Market

In looking at history here is what we know.

Volatility in the stock market always increases heading into and exiting a presidential election.  We know that the stock market hates uncertainty, and uncertainty is exactly what you get in a polarizing election that has very different candidate policies.  Volatility is normal in the stock market but is heightened when emotions, worry and policy concerns influence trading.  While it is normal to be concerned, it is not wise to make drastic changes to your financial plan.

12 months after an Election the markets are usually not impacted.  There is an old saying that “the market always climbs a wall of worry”.  Although there are no guarantees longer term, it is impressive looking at this chart of the many various worries and concerns that the market has climbed.

The market likes political “grid-lock”, and it is likely to be so after this election.
“Grid-lock” between the Executive and Legislative offices- Congress/House provides some certainty on likely policies and helps prevent dramatic policy swings.  Large policy shifts or swings would occur without grid-lock, actually causing more uncertainty in that current political cycle and then also in the following election cycle as the Pendulum historically looks to sweep to the opposite side of the spectrum.

Business and citizen spending has the greatest impact on the economy. 
In the United States, 82.4% of GDP comes from sources other than the government.  The president doesn’t have to be popular or have a high approval rating for a healthy stock market.  Historically, the market has performed well when approval is in the 35-50% range.

Making a move to Cash is “Timing the Market”.  Study after study has shown that trying to time the market is a futile exercise and missing just a few of the best days in the market can dramatically impact your long term returns.  Refer to the chart above where the market climbs a wall of worry and this one below.

A long term financial plan is your best bet.
Whether it is worry over an election causing increased market swings or clear goals you want to accomplish financially… either way it is best to stick to your financial plan.  Focus on the things you can control inside of your plan such as your goals you have set for yourself, your personal spending, how much you regularly save and the risk you are comfortable with in your portfolio.

To the Freedom to Vote For…or Against,

Luke Fields, CFP®

Any opinions are those of Luke Fields and not necessarily those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. 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 information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Past performance may not be indicative of future results. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected. There is no guarantee that any statements, opinions or forecasts provided herein will prove to be correct.

How Do You Improve Your Credit Score?

Previously, we discussed how to build credit when you have no credit history.  This discussion,  is all about how to improve your credit score. 

What’s my Score?  How do I improve it?

First, it is important to understand how your credit score is calculated.  A FICO (Fair Isaac Corp) score is a number on a range from 300 to 850, with a higher number indicating lower risk to potential lenders.   Realize though that each lender and their underwriters will view your history different from one another.  You can obtain a free credit report and score by visiting AnnualCreditReport.com. 

Second, your FICO score is composed of 5 major components and here are some thoughts on how to improve your number.  Increasing your credit score will provide you the best terms and lowest interest rates for when you buy a home, car or seek a personal loan.

Payment History 35%  Maybe you have missed a payment in the past or been late.  Make sure you pay past due debts first, followed by paying current owed.  A collections situation, even if paid off, will stay on your history for 7 years.  Moving ahead, pay all of your bills on time.  Possibly consider setting up payment reminders or automatic payment options.

Amounts Owed 30%   Pay off and reduce debts you owe.  This is huge for life and financial success well above your FICO score.   It is also good to realize that the total amount of available credit currently offered to you- if high, can be a negative on your score even if you are not using it.  And if you are carrying a balance and have a high utilization % rate, that will ding your score as well.  While reducing debt will help improve your score, the bigger payoff is improving your financial situation and the lasting reward of freedom from debt.

Length of Credit History 15%  It takes time to build and show a consistent, responsible use of credit.  Don’t cancel credit cards with long history.   As well, look for errors on your credit report.  Fixing an error will lead to an improved score. 

Types of Credit Used 10%  A mix of credit cards being paid each month and loans (installments) can show responsible handling of debt.

New Credit Opened 10%  Apply for new credit as needed and don’t overdo it.  In this thought, also don’t apply for several new cards within a short time frame.

Ask for help.  Openly talk with your creditors.  They want to be paid back, so they will work with you.  Seek wise council- ask someone who has had good credit for many years for advice and/or seek professional guidance as needed.  Develop a plan of action and be persistent working towards your goal.  Debt can be a useful tool but it has to be understood how it works and used correctly.

To Improved Credit Scores,

Luke Fields, CFP®

Financial Planning is NOT...

Financial Planning is NOT...

I met with a great couple the other day.  As we chatted, I asked if they had a financial plan- “ah yes, we think we do….” was their answer, so that means no.  We discussed some additional items and it became even more clear that their investments, insurance and current advisor were not coordinated and planned out well. I see this again and again with many prospective clients regardless of their age and their net worth.  It is a common problem and it frustrates me.  This is not their fault and I don’t blame them one bit.  After all, how are they to know? It is one thing if a person knows that they have “some investments” that a stock broker, registered representative or insurance agent placed them into (or worse yet, sold them).  Their expectations are correct that it is simply an investment relationship. However, it’s another thing if people believe they are getting more service, like a “financial plan”.  In reality they are majorly under-served while likely overpaying and worst yet headed down a dangerous path.  Let me explain.

Financial planning is NOT a 1x event.   A financial plan is a living, breathing plan that updates with the twists of life and the many different stages you encounter.  It is an ongoing process.  It is online and readily available to review.

Financial planning is NOT a product, investment or stock that you buy.  These should be seen as the potential vehicles for your unique situation (if appropriate) to make your plan work correctly, not the miracle cure (since the “last thing we tried didn’t work”).

Financial planning is NOT a vague ideal or attitude such as, “save as much as you can and we will figure out what you can do down the road.”  Sadly, I have heard of other so called “advisors” saying things like that.  Here is the truth… financial planning is rooted in your goals and what is truly important to you!

Financial planning is NOT a huge stack of papers that lists of 15 things to immediately do (mostly on your own).  Good planning is accomplished in a modular method, one manageable step (or two) at a time.  This is realistic.

Financial planning is NOT a quick or easy strategy.  It takes expert advice, patience and good habits over time to reach success.  You need a qualified and competent advisor to help you realize your goals.

Remember a good and useful financial plan starts with what you value.  What you value should naturally direct your goals.  And your goals then dictate what investment, insurance, tax, estate methods we use to help you achieve success in your plan.

To your Financial Plan,

Luke Fields, CFP®

Any opinions are those of Luke Fields and not necessarily those of RJFS or Raymond James.  Expressions of opinion area as of this date and are subject to change without notice.

Sketches are courtesy of BehaviorGap

9 Ways to Protect Yourself Online

“Dear Sir,
I write to you today about a large sum of money.  I am a prince who needs help moving my money out of my country.  If you provide me your bank account……...”

9 Ways to Protect Yourself

1.  Never, ever use the same password twice.    Create unique, strong passwords for every site you use.  Passwords should consist of UPPERCASE, lowercase, your favorite #, $, %, ! and various numbers.  If you need to, use a password manager app to keep and safely store all of your passwords.  And change them regularly.

 2.  Don’t ever click a link or download anything from an unknown source.    Once you click, you could have just opened the “front door” to your device.
 

3.  Search and check your email “Sent” file of messages.    If your account has been hacked, you will see so here.  Search your sent box using “#” or “account” to help find any fraudulent messages.  As well you can delete any information you don’t want easily accessible for a hacker.  If hacked (spoofed) read this.  

4.  Never provide personal information to someone who contacts you first via phone, text or email.   This contact may seem innocent but don’t trust unless you have confirmed it is legitimate.  Call them back on a number you know is the actual organization’s number.  Two common examples; “Microsoft” calling to help fix a “virus” they have found on your computer and know that the IRS doesn’t call people, they usually bill you first.

 5.  Use your credit card not  your debit card.   I know the many good reasons to use a debit card, such as you only spend what you have in your bank account.  However, if your debit card is compromised, bank account meet thief; thief meet bank account…all your money will be gone.  Credit cards provide fraud monitoring for irregular card activity and will cover theft expenses.

6.  Check your credit card transactions closely and review you credit reports regularly.    How else will you quickly catch a new account opened under your name?   Use AnnualCreditReport.com to request your credit report.  Also you may want to consider investment in identity theft protection.

 7.  Limit your social media sharing.   Perusing a person’s social sites can reveal a lot, such as a pet’s name, an anniversary, birthdate or say your mother’s maiden name, etc.  If on vacation, maybe post that great beach picture after you return.  Posting while on family vacation provides an open invite for cat burglary activities at your home.

8.  Stop using public WiFi.  Or at least limit it to non-personal information searches.  Enough said.

 9.  Use a password on your phone.  And make sure your phone locks after a few minutes of inactivity.  If phone is lost or stolen, this will keep your information safe.  Plus if you have little ones, passwords help.

Foley and Foley Wealth Strategies seeks to educate and assist our clients in all areas related to their wealth and finances.  If you have a good tip on this topic, please share with us at luke.fields@raymondjames.com.  

Be safe and secure,

Luke Fields, CFP®

Things that Frighten Me... as an Advisor

Things that Frighten Me… as an Advisor

I hate snakes.  My wife hates spiders.  We make a great team.  I can save her and she can torture me.  Beth is extremely scared of spiders, even small ones.  She has a unique set of screams corresponding to the spider size that I have learned to decipher over almost 15 years of marriage.  A few weeks ago, Beth caught a snake in the woods behind our house and called me at work to tell me we had a new “family pet”.  Let me be clear, that “pet”, upon my arrival home from work, was quickly released back to the wild (by her).

Over the years, readers of Stewardship Cents have learned that I love the Fall season and also occasionally giving others a little scare around Halloween time.  Somehow my kids now, all throughout the year, regularly try to scare each other and their parents.  Who taught them that?!  There are a few things that scare me besides my 7 year old jumping out of his closet.

What Frightens me as a Financial Planner and Should Frighten You as Well

Not enough Life Insurance or none at all

This is a basic planning strategy but often lacking for most families.  Life insurance is affordable for most people and provides protection for your loved ones.  For many families, having $1 Million dollars of death benefit still isn't enough.  Really!  I can explain why.

Unsure where the Money Went

Whether you make $35,000 a year or $35 Million, everyone has to have a budget.  You have to know where your money went (expenses) and why the money was spent on that item(s).  This information enables you to be a good steward of the resources you have and allows you to live within your means.

Lack of a Good Financial Plan

So, where are you going financially?  A simple question, but often unknown by most families... that is SCARY.  Is the direction you are headed where you want to go and will you be happily or sadly surprised when you arrive?  Ask yourself these questions; what do you truly value and what is important to you today and what will be important to you tomorrow?  This is why a financial plan is necessary for everyone.

Avoiding Stocks

The media has done a good job of making people scared of stocks due to the volatility seen in recent years.  However, the truth is...volatility is a normal part of the market and other major investment categories like metals (gold/silver), bonds and currencies- can often be even more volatile than stocks.  Stocks over longer time-frames of 7+ years typically provide good returns and help maintain your purchasing power.  In my opinion, everyone, even retirees, need a healthy portion invested in a diversified portfolio of solid, large company stocks.  Good financial planning helps highlight this need over a lifetime.

An Estate Plan that only consists of Dying someday

If your only plans for your estate is that you will die, well it may be a little short-sighted.  Who do you want to inherit your money and assets?  Do you have specific wishes for your loved ones and charitable organizations to follow?  Have you ever heard of probate court?  You want to avoid it.

No Personal Disability Policy

Disability is more common than most people think, especially short term issues.  Often employers provide some coverage, typically 60% of salary but it is almost always never enough.  Sixty percent sounds decent but after taxes it is a far cry from your family's regular income.  You need a supplemental policy to fill this gap of lost income.

Expectation that Social Security will be your Retirement

Social Security is currently solvent and a major portion of most retirees' income.  However, 15 or 20 years from now social security will likely look rather different for new enrollees.  You can't count on it to be there and it will not provide a comfortable retirement.  You have to save for yourself and whatever benefit you may receive from Social Security can be the "icing on the cake."

Here is the Truth

The truth is that each of these frightening scenarios can easily be resolved through discussion and proper planning.  I understand that it can be hard to address these topics; sometimes it is hard to find time, gain agreement from your spouse, admit that these issues exist or simply it can be difficult to determine who you can trust.  It is my joy to assist clients and new people I meet with these issues and many more planning strategies.  With over 35 years in the business, our firm is well-positioned to assist you or someone you know. 

So don't be frightened any longer, let's face these fears together.  No snakes though.

Luke Fields, CFP®

READ more Stewardship Cents here... 

Any opinions are those of Luke Fields and not necessarily those of RJFS or Raymond James. 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. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Past performance may not be indicative of future results.

Have you had “THE TALK” with your parents?

Have you had "THE TALK" with your parents?  Nope, not the birds and the bees... I am not about to help you with that talk.  Our daughter is asking enough questions on that.  I am talking about the discussion regarding your parents' finances.  Both of these talks can be awkward for many.  Well, if you haven't yet had the money talk, you are not alone.  The majority of adult children have little to no idea of their parent's true financial situation.  Like the sex talk, parents' sharing their financial situation with their adult children is often a conversation avoided.

Why is that?

Here are some common reasons why parents don't talk with their adult children about money...
Do any of these apply to your family?

1.) "We have never talked about money"
When kids are young it is thought to be a good idea to avoid discussing money so the child doesn't worry and feels secure.  While good intentioned, it doesn't help that child become financially wise themselves and never discussing money can make very important future discussions awkward to approach for both parent and kid alike.

2.) "It's none of their business"
This mentality sometimes comes from embarrassment of past mistakes, the idea that I don't want my kids to worry about me now (similar to when kids were young) or the parent simply feels it is a private matter, essentially that "it is none of their business."  Parents may have given off an image of wealth or success and are reluctant to share the reality that things are not as good as they look.   And for some parents, if wealthy, they may feel their kids may try to take advantage of them.

3.) "I don't want to talk about my death"
Mortality is not a fun discussion for the parent or the child.  Obviously, it can stir many emotions- but like taxes, death is certain.  Everyone has specific desires and requests in regards to their estate, whatever the size and more importantly, their legacy.  Often discussing money is just the initial conversation that leads to great discussions on deeper family matters.  How does a parent want to be remembered?  Are their specific belongings that they want to go to a particular child or family member?  Is there a church or charity that they want to gift money to?  Even discussions on how a funeral service should be constructed.  The list goes on and on.

4.) "I am afraid it will change their motivation"
This seems like a reasonable excuse but the truth is, by the time a parent is in their retirement years and their kids are correspondingly in their late 30s or 40s+... if that child is not already motivated in their career and to provide for their family, little is likely going to change in their attitude if they find out the parents are going to leave them a "pile of money."  They will continue to be motivated.  In fact, if a parent shares that things aren't great for them and share the things the wish they would have done differently... financially smart kids will probably get wiser and those children that are not motivated may actually get stirred to improve their own situation (especially knowing not to expect a large inheritance).

Breaking the Ice

If you find yourself in this situation as a parent who hasn't talked to your adult children or as the child trying to consider how to bridge this discussion, here are some tips.  The idea is to just get the conversation started.  It typically continues once the ice is broken.

Bring the topic up from your own perspective.

Start with your personal situation as the bridge.  Being vulnerable is always a good way to encourage others to open up.  "Dad (or Mom) recently I (we) have been making some plans on our estate (will/trust) and it made me curious about your desired plans?"

Ask for whom to reach out to.

Often the most honest and straightforward approach works best.  Simply ask, "Mom, Dad who should I call if something happens to you suddenly" or "where are your documents that I should know about?" Let your parent know you want to be ready to help if they need somebody to step in for them to pay bills or talk to their doctor.  This is where a power or attorney (POA) is a critical legal document.

Use a possession known to the whole family as a concern.

This can be a tricky option but effective in opening the door to conversations because everyone will know it needs to be addressed.  "I am worried that it's not clear what you want us to do with dad's autograph collection (the vacation home, mom's jewelry, etc) if something were to happen to you.  I want to make sure that your wishes are fulfilled and there is no possible confusion among my siblings as to what to do."   Pick an item that is important to them to discuss or a decision that is important such as funeral arrangements, burial, etc.

Use your financial advisor as the impetus for the discussion.

Financial planning is my passion and I am more than willing to be the "scapegoat" to help a family discuss such important matters.  "Our advisor suggested we find out how we can assist you with your plans.  He wants us to know your expectations and be prepared to help you."   It is common that children are named as a trustee or executor of an estate.  Sometimes they don't even know it until a parent passes or is incapacitated and needs them to step in to assist.  Talk about shock and being unprepared to help at a tough time, while dealing with the stress and emotions of a death or illness of a parent.

The REALITY like it or not

The reality is whether you are comfortable talking about money or not, money is an important part of everyone's life.  Yes, for some parents their financial situation can be a taboo topic and a personal matter.  But it cannot be ignored!  If it is disregarded, it will likely cause larger and more complex problems later in life and especially upon a parent's death.  Most parents when made aware of possible issues would rather not leave a mess for their kids to figure out.  Talking sooner than later will open up communication, help children know how to assist their parents, get parents desired plans in place legally and set their children's expectations.

We regularly encourage and assist our clients in starting the conversation about family finances.  This is what comprehensive financial planning involves.  The advisor you use should be thinking in these terms to be truly effective for your family's financial life plan.  If you need some additional ideas or help, please feel free to reach out to me.

Luke Fields, CFP®

Who Will Get Your Money?

It is important to save and plan ahead.  We all probably agree on that.  When it is all said and done, “you can’t take it with you.”  So who will get your money someday?

Lucky Dog

In recent years there have been stories of wealthy individuals leaving significant money, even fortunes to pets.  That may not be your idea of how you want to leave a legacy, but these individuals planned well to make their desires happen.  One of the more famous stories is of Leona Helmsely, a successful businesswoman who left $12 million to her dog, Trouble.  There is also a story of a German countess, Karlotta Liebenstein, who in 1992 left $80 million to her German shepherd Gunther III and allowed in her legal documents for the money to pass to her dog’s offspring.  With good investing by the managers, Gunther IV is now enjoying an estate of $372 million.  Wow. 

When you pass, your money should go to those you intend to inherit your estate, whether family, friends, charitable organizations or even a pet, if you wish.  Proactive planning is required to ensure your wishes are accurately fulfilled.

6 Common Beneficiary Mistakes to Avoid

1.)    Not Naming a Beneficiary or Listing your Estate.   If no beneficiary is listed, it goes to probate.  If you list your Estate, it goes to probate.  This is completely avoidable. These mistakes would prevent your spouse or kids from being able to use what is called a “Stretch” IRA, where the beneficiary can spread payments over their lifetime; which typically reduces taxes paid and can increase the potential growth of the assets.  It is almost always best to avoid Probate.  Many courts will take a year or longer to finalize the estate, attorney fees will mount and there will be a delay in the beneficiaries receiving the assets.

It is almost always best to avoid Probate

2.)    Not Listing a Contingent Beneficiary.   What happens if you are killed in a car accident with your spouse, who typically is the Primary Beneficiary?  Hello Probate Court again.   You need to have Contingent or what I call “next in line” beneficiaries listed; typically these are your children (possibly grandchildren or a charitable organization if you don’t have children).

3.)    Failing to Keep Forms Up-To-Date.   Unfortunately, there are cases where ex-spouses have inherited accounts because beneficiary forms were not updated.  As well, possibly other previous named beneficiaries have passed away or a relationship has significantly changed.  If you are re-married you will want to decide how to handle your assets if you were to pass away.  Your new spouse will need to sign a consent form if your assets are intended to go to your children directly.  Additionally, you may need to setup a Trust if you desire for your new spouse to be supported by your assets if they survive you, and then have the money transferred to your own kids.  We have seen cases where the money goes to the surviving spouses (2nd marriage) own children, not the intended biological children of the 1st spouse to pass.  It can get ugly.  I can refer you to great Estate Planning attorneys for these needs.

         Beneficiary forms override your will   

4.)    Failing to List Beneficiaries On ALL Your Accounts.   Does your 401k or 403b at work have listed beneficiaries, and have they been updated?  Your IRAs, Roth IRAs, joint investment brokerage account(s), insurance and even your bank accounts should have beneficiaries listed.  This will avoid Probate and give your beneficiaries quicker access to the assets.  A Transfer on Death (TOD) can be used for joint investment accounts and a Payable of Death (POD) is used for bank accounts.  Too often we see new clients and prospects come into our firm with beneficiaries listed incorrectly on their accounts.

5.)    Naming a Minor as Beneficiary.   It is questionable if many adults are even responsible enough to handle suddenly inheriting significant amounts of money… so how about your teenager?  Although it is good to have your kids named as contingent beneficiaries it can cause problems.  Financial control is often a concern- some beneficiaries will always raise concerns and/or there are often very specific wishes that someone will want carried out upon their death.  This again is an example of where speaking to an attorney is wise and using a Trust can assist in this situation.

1.)    Forgetting to Choose a Guardian.  You’ve named the beneficiary and determined what financial control you wish to put in place and even designated who is the Trustee of the assets.  But did you name a caretaker of your minor children (or the grandchildren you care for)?   This is vital.  Would you rather the court appoint a guardian for your kids or you choose..?  I think we know the answer to that one.

So, WHO Will Get Your Money?

These mistakes are simple to avoid and it is obvious why you should take action.  However, too often I find that people put off these critical and basic estate planning steps.  It is also common for people to forget to update and adjust beneficiaries as life changes.  This is even true for many people who are working with “financial advisors” out there.  Estate planning is a critical process that our firm incorporates into our client services.  If you are unsure of whom your beneficiaries are or would like to discuss some ideas, please reach out to our office.

To Your Financial Planning Success,

Luke Fields, CFP®

luke.fields@raymondjames
877.854.0936

Any opinions are those of Luke Fields and not necessarily those of RJFS or Raymond James.  Expressions of opinion are as of this date and are subject to change without notice.

How to Think When the Market gets a little Crazy

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How to Think When the Market gets a little Crazy

If you know me, you know I love to ski.  The problem is I live in Ohio.  There is plenty of snow this year but not many mountains in Ohio, although one "resort" has a run called "Mt. Mansfield," all 300 vertical feet of it.  My fondest memories growing up are of family ski trips; taking on challenging steep terrain with my brothers, being in spectacular mountains and the unforgettable tumbles my one brother became famous for executing.  We would call them "yard sales," possibly you can figure out why.  Think where all your junk gets thrown when you sell it.... The best part of our ski trips was the relationship cultivated between traveling together, skiing together, hanging out in the hot tub, eating dinner, you get the idea.  We did all of it together. So now with my own little ones in training (minus our 3 year old for now), the investment starts now to someday reach the goal of our own family ski trips.

Your Plan is King

You may be wondering "what does skiing have to do with the Market?"  In order to reach my goal of family ski trips, I have determined it takes consistent, regular investment (time, money, planning) in their learning, patience, coaching, a long time perspective, and sticking to the plan.  The same is true for investing and always keeping perspective of your goals.

You have to focus on your financial plan.

The advisors at my firm and I often hear questions on what to do when the markets make headlines or when the pundits start beating their drums.  The first question is: Do you have a financial plan?  If no, the second question is: Then why not..?  You should consider getting a financial plan.  It is the road map to your future, providing consistent direction and strategy.  If you have a financial plan, has it changed since the last market headline?  Probably not, so re-focus on what your plan is.  And turn off the TV, the pundits don't add any value.

Let Your Plan Keep You Focused

Determine your Goals and align them thru a strategic Financial Plan.  This is in regards to your investments, insurance, college, taxes, legacy planning, you get the idea.  It encompasses all areas.  Remember the following:

Keep a long Time Horizon.  My kids will not learn to ski on their first time out and your goals will not be reached overnight.  For example, retirement takes years to attain with most people retiring in their late 60's.  There are many different stages to successfully reaching a goal, seek to understand where you should be now.

Have Patience.  Enough said?  Maybe not.  This is different than your time horizon.  Do you fall down a lot when first learning to ski?  It is realizing that it is not always easy to reach goals and unexpected things may challenge you.  Your expectations may need to be adjusted depending on what happens in life and economic conditions you can't control like inflation/interest rates.  There are no short cuts that work consistently.  You can't repeatedly time or predict the markets so please don't try.

Determine what the "Right" Risk is for You.  This is a highly individualized answer.  Some people no matter how much skiing experience will ever be comfortable with a Double Black Diamond run.  When thinking about your finances, Do you continually worry? If so, you may need to adjust your risk to a level you are more comfortable with.  The stress you are causing yourself will not only decrease your enjoyment of life now but could possibly lead to health issues that may prevent you from enjoying your retirement goals to the fullest later.

Make Regular Investments.  Few people can do something one time and be done.  One time down the mountain or one investment contribution doesn't cut it.  "Dollar Cost Averaging," or in other words, systematically and consistently investing money (think every pay check or every month) is a time-tested long term strategy used to help build wealth.

Seek Wise Counsel.  I am a good skier but I know I am not the best to teach my kids, so I hire a professional ski instructor.  Find a qualified and professional advisor or make sure your current "advisor" is the right one for you.  A trusted advisor should always align themselves to your goals and what is in your best interests.  If you don't know how to examine this, email me (luke.fields@raymondjames.com) and I will share the questions you should explore.

To Your Financial Success and Good Skiing,

Luke Fields, CFP®

Dollar-cost averaging cannot guarantee a profit or protect against a loss, and you should consider your financial ability to continue purchases through periods of low price levels. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Any opinions are those of Luke Fields and not necessarily those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice.

About Stewardship Cents Stewardship Cents exists to Educate, Entertain and Enhance the financial wisdom of all who read it.  Everyone needs to be wise with what has been entrusted to them and common sense can help us be good stewards of all that we have.  Stewardship is a belief of responsible overseeing and protecting of important resources. Luke Fields is Vice President of Foley & Foley Wealth Strategies, An Independent Firm, that has been based in Worthington, Ohio since 1981.  A graduate from The Max M. Fisher College of Business at The Ohio State University, Luke is a CERTIFIED FINANCIAL PLANNER™, holding his Series 7, 66 and Ohio Life, Health and Variable Annuity Insurance licenses.  He resides in Columbus, OH with his high school sweetheart, Beth and their three children.  Luke is an active member of his church, serving in leadership and finances. Follow additional insights and connect on LinkedIn, Facebook, his blog or Twitter. You can always reach him with comments or questions at: luke.fields@raymondjames.com. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC

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