Our Favorites of the Year 2016

When I was in my early 20s, I remember being told by someone older… “you know, the older you get, the faster time goes by”.  I admit thinking they were a little crazy, however I now fully agree with them since many years have passed.  This year has been like “light-speed”.

Optimism is typically amplified as we celebrate Christmas and the holidays and we look to turn the calendar into a New Year.  This year is no different; 2017 seems to be about change.  

The year 2016 was a year of swings and surprises no less.  2016 had a poor investment start and outlook with the markets down nearly 11% by mid-Feb, only to swing up sharply to be even by mid-March (S&P 500), a month later.  This dramatic move in the market not surprisingly coincided with oil’s rebound from its February low.  Afterwards the markets positive momentum continued.  Then there was June’s “Brexit” vote in the U.K. which was a surprise to the pundits and pollsters alike.

And of course the U.S. Presidential election was the biggest surprise of the year; the pollsters, the “wall street insiders” and even Vegas all got it wrong. 

The expected change with a new administration concerns some and excites others.  The market has shown its excitement based on Trump’s focus on two main campaign components;

1) a large infrastructure spending program estimated at $1 Trillion, which all agree is expensive but much needed for our country’s ailing bridges, roads and logistics (both Clinton and Trump proposed)

2) the likelihood of tax reform consisting of possible IRS simplification, personal tax bracket reductions and the most heralded- corporate tax cuts from 35% to 15%.

We won’t try to predict the market or events to come in 2017, since no one really knows but we can say it will be another year of change (as every year is). 

It is essential to realize though, that change requires an intentional, planned out approach to your family’s goals, financial plan and resulting investment strategy.  Foley and Foley Wealth Strategies delivers just this with an adaptive and clear approach through the uncertainty any year can bring.  Reach out and let us assist your family.

In case you missed a blog post this year, here is a list of our favorite posts for our firm in 2016.

Financial Planning is Not 

Values=Goals.  Do yours align?

Are you a Control Freak?  Focus on what matters. 

Volatility in the Market, what is that?  It is not a bad word.

The Problem with Legacy.  Why it starts today and not when you die. 

Imprinting (on others)  

Staying Safe Online (9 ways) 

And Finally... We are still celebrating 35 years of serving our clients!!   

To a well-planned 2017!

Luke Fields, CFP®

The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market.  Inclusion of these indexes is for illustrative purposes only.  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.  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.

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.

The Problem with Legacy

I am annoyed.  Often I hear people discuss their legacy as the money and assets they will someday pass on.  Yes, that is a legacy as defined.  But is that all a legacy is?

Okay, bear with me…I have to pull out the dictionary on this one.  Merriam-Webster states that a Legacy “is a gift by will especially of money or other personal property”.   So at “first blush” people are using it correctly but isn’t there much more than money to a legacy?  In my opinion, heck yes!  Absolutely.

I had a recent estate planning discussion with a couple.   As we chatted and began to draw up some ideas, repeatedly their comments went back to how much life changing money would be left to their children.  Along with some other gifts to church, mission work and charities, the plan was typical and completely reasonable.  What struck me was that the focus was entirely on the money as their legacy.  This is not the couples fault but the error of the larger “finance community” and our culture for this interpretation.  I am annoyed that we often think legacy only begins at death when the money is passed on.

There is much more to Legacy than money

If we go back to the dictionary, the other definition of legacy is;

While money can certainly help our children and others, I think we often miss the big picture, which entails a much more important discussion.  This other kind of legacy is a healthy, soul searching discussion based on what you value and how you really want to be remembered.  Personally, I would like to be remembered for much more than the father, uncle or friend that left money behind.  Again I will admit, money is helpful and a blessing…but it is temporary, can be lost and sometimes not really helpful to others in the end.  However, the memories, wisdom and time with my wife, kids, friends and clients are the deep and lasting legacy I hope will encourage for years beyond my life.  I want to be a good steward of my legacy now.  Do you?  

And that is the interesting part.

Most legacies are overly focused on “after I am gone”….  While that is true, it is only half of the discussion.  The legacy I desire starts now; to impact and imprint itself on others today, tomorrow and then continue as a legacy after me.  I challenge myself first in this and my clients as well to think and plan this way.

So let’s change the focus of the conversation to say that legacy is both the money to pass on responsibly AND the lasting impact you have on your loved ones that happens today, tomorrow and for generations to come.

To the Stewardship of Your Legacy,

Luke Fields, CFP®

Values = Goals

Do Yours Match Up?

Discovering how your Values should shape your Goals

What are the most important things in your life?
What motivates you?
What or whom do you care about most?

Important questions.  Questions for you alone to answer.  I will not dare tell you what your answers should be.  

Why are your Values so important?

Values are what matters most to you.  Values shape your everyday decisions, impacting your short term and long term goals.  

Need an exercise to help determine Values?

Values and goals directly impact your financial life.

1.   Values shape your Goals (both short and long term).

2.   Goals allow you to develop a Financial Life Plan.

3.   A Financial Life Plan Directs How to invest, Whom to insure and Where to give your assets and wealth.

I would love to hear your thoughts on this and what you really value and your goals.  Please send your comments to me at luke.fields@raymondjames.com or comment on LinkedIn or Twitter. 

-Luke Fields, CFP®

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.

Accidents Happen

Accidents Happen.

And it’s impossible to prepare for all of life’s unfortunate detours, but we still try.

At Foley & Foley Wealth Strategies, we don’t like to dwell on bad situations but it’s also our job to help you prepare for the unexpected.

The nice weather has us thinking about the upcoming travel season, more people on the highways, road trips, etc.  The last thing anyone considers is the possibility of a car accident, which could be inconvenient to say the least, devastating at its worst.

The Ohio BMV, Department of Public Safety, has made it simple for you to prepare for such an incident.   Simply register your ‘Next of Kin / Emergency Contact Information at http://www.bmv.ohio.gov/dl-other-next-kin.aspx  or complete the form and mail it to the address indicated. 

By registering your information, you can be assured that your family will be notified immediately if you are ever in a car accident.

It’s not fun to think about, and hopefully won’t happen.   But getting the help and assistance you need from family can add life-saving time to a potentially serious situation.

Be safe,

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®

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®

Alphabet Soup of Advisors

Alphabet Soup of Advisors

My favorite time of year is definitely fall, enjoying the cooler weather and fall activities.  Fall makes me think of hearty bowls of chili and soup.  Do you remember using alphabet soup to spell your name or possibly specific words for your siblings to read...?  Hey, I only spelled them, I didn't actually say them.

What Does THAT Spell?

In my profession as a Financial Planner, many questions come my way to clarify what I do and how I serve my clients.  Mix those questions with the numerous designations available in the related industries to financial planning (investments, insurance, banking, etc) and you get well... alphabet soup.  Basically, a lot of letters after people's names with not much explanation.

There is estimated to be over 100 financial designations (Investopedia, 2014).  The range of experience, education and rigor needed to attain a particular designation greatly varies.  Obtaining credentials sometimes requires a simple weekend read and a few vetted designations involve a year or more of intense study and exams.  My designation, the CERTIFIED FINANCIAL PLANNER™ requires a minimum of three years full time experience, passing 6 exams including a comprehensive 10 hour, 2 day final. Then to maintain my mark, I must complete 30 hours of continuing education every two years.  For a list explaining the numerous credentials out there, read more here.

"If you can't convince them, confuse them."

- President Harry S. Truman

It is Scary, it Really is.

Halloween often brings some tricks and scares that are harmless fun.  However, the lack of designation explanation and the "tricks" (we will call them) that many "advisors" employ are scary.  We are talking about your financial plan, reaching your goals and growing your investments- your life savings!  You need to clarify who you are working with and what they will do for your family.

Here is what you should know and ask of your current advisor or if you are in the process of interviewing for one:

How do you charge for your services?

It's called Full Disclosure.  You need to ask, "how do you get paid?"  Typically, you are better served as a client being billed by management fees versus commissions.  This helps remove the conflict of interest involved with selling ("cha-ching" $...commission) and buying (again $... commission).

Who is your boss?

You want an independent advisor; one who is not employed by the big investment bank or insurance company in the name.  The reason is simple- you want unbiased advice from an advisor, who can choose what is best for their clients, not be told to do what is best for the employer.  The last thing you want is an employer telling your advisor to "sell or buy" such and such for you, their client.

Who will be the custodian of my assets?

Heard of Bernie Madoff?  You want a safe third party holding your IRA, Roth IRA and/or investment accounts.  It usually is not wise to allow an advisor to take direct reporting and handling control of your assets.

What licenses and credentials do you have and what did it require to obtain them?

"Clients' interests always come first."  This is the motto I live by and am required to uphold as a CERTIFIED FINANCIAL PLANNER™.  As well, you want to make sure your advisor is appropriately licensed and professionally educated, not just self-taught.

What services does your firm provide?

Have you ever heard, "Sure, I'm a Financial Planner." Financial Planning means making a plan and guiding you along it.  Many "advisors" say they are a financial planner but this unfortunately doesn't hold water with most of them.  They simply want to just hold your investments.  Yes, investment management is critically important, but it is only as good as your financial plan and utilizing the best options available to then reach your specific goals.

Another example, do you want your CPA diving into the world of investments and financial planning?  Unless they have specific education, the time and most importantly the trained staff, the areas of tax accounting and financial planning are usually best left separate.

Now a question for you...  Ask yourself, "Do I really like this person?"

The advisor you hire must be someone you like (along with respect and trust).  You will spend a good deal of time with them over the years and they will be instrumental in your success.  They likely could become one of the most important people in your life and family's legacy- helping you dream, set goals and make plans to reach those goals.

For more on what questions to ask, follow this link.

Please reach out to me if you have questions about your current "advisor" or are seeking to hire a professional to assist your family.

To your financial success,

Luke Fields, CFP®

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 onLinkedIn,Facebook, hisblogorTwitter. You can always reach him with comments or questions at:luke.fields@raymondjames.com.

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6 Numbers You Need to Know About Social Security

6 Numbers You Need to Know About Social Security

Good 'ole Social Security... a frequent topic of discussion, confusion and much misinformation among Americans of all ages.  Social Security is a program that has greatly changed from its original intent, is difficult to understand, has caused a great deal of political controversy over the years and is considered an "endangered species" by many.

Whether you are about to elect your own benefits, assisting your parents on their choices or are a younger professional wondering about the future of Social Security, read on.

You Decided What...?

Often I have people tell me about a decision they just made and then ask "what do you think?"  This is probably not a major issue if your decision was say... buying a new shirt or a pair of shoes (for you ladies out there).  However, when it involves a decision that will affect your life (and family's life) forever...like electing your pension payout or social security- it is REALLY important.  After the fact, whatever my opinion may be, it is irrelevant and you may not be able to reverse the decision you just made.

Social Security literally has thousands of possible claiming strategies and each option can greatly impact the amount of money you ultimately will collect from the program over your life.  Let's talk before you elect your Social Security benefit.

Here are some important numbers you need to know and understand.

66

This is considered Full Retirement Age (FRA) for those born between 1943 and 1954.  FRA gradually climbs to 66 and 11 months old for those born between 1955 and 1959.  Birthdays 1960 and later, it is 67 at this time.  FRA is the age you can claim your normal Social Security benefits.

25%

The earliest you can claim and receive your benefits is when you turn 62.  Be Cautioned... electing to receive your benefit early results in a 25% reduction of your benefits and often is irreversible after 12 months.  Taking benefits early at 62 should be rare.  Now I agree there are some situations in which it may make sense to claim benefits early (poor health and of course, the true need to meet living expenses), but they are few.  Also working after 62 while claiming early can possibly further reduce your benefits received in that year.

$1,294

In 2014, the average retired worker will receive $1,294 a month in benefits.  The 2014 maximum monthly benefit for someone at the Full Retirement Age (FRA) is $2,642.  This is based on 35 years of earning history (years of working don't need to be consecutive).   Find your estimate here.

$0

Will Social Security go broke?  This I can't say with certainty.  Heck, if I could... well that's another story.

I share with my clients that Social Security will likely continue to exist, but it will look rather different in the future.  Those that are older and currently receiving benefits are more secure to receive expected benefits; those that are younger (born after 1970) cannot likely count on the program to help them much.   Many baby-boomers have unfortunately relied too heavily on social security to help fund their ability to retire.

Younger folks need to take care of their retirement themselves by SAVING with the expectation that Social Security may not be much of an assistance in funding their retirement; and if it does provide a retirement benefit- it will just be "icing on the cake".

½

Rather than electing to receive your own working history benefit amount, you can opt for what is called a "spousal benefit."  Taking 50% worth of your spouse's benefit amount may be larger.

Divorced?  Just like regular spousal benefit, you can elect to receive 50% of your ex's benefit (whether ex is living or deceased), as long as you were married 10+ years, you are 62 years or older and are single.  Your Ex will not know (since filing does not involve them, only the Social Security Admin) and it doesn't affect his or her benefit.

32%

Once you hit Full Retirement Age, you may choose to delay taking your benefit.  This can equal a big increase in your check.  Each year you wait your benefit will grow by 8% until age 70, thus the four years from age 66 to 70 provides you a 32% increase in benefits.  Possibly well worth the wait, if it fits your financial plan.

Use Professional Advice

It is estimated that many Social Security recipients don't maximize their available benefits.  This is "money left on the table."

As a trusted advisor, I regularly help clients determine the most suitable course of action not only in regards to Social Security-claiming options, but also in how those choices dovetail into their overall financial plan.  You have to consider your likely longevity, coordinate your spouse's potential benefits, minimize taxes and maximize filing strategies (like "file and suspend") as you develop a retirement income plan that should comfortably last for decades.

To your happy Social Security benefit claiming,

Luke Fields, CFP®

Any opinions are those of Luke Fields and not necessarily those of RJFS or Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. You should discuss any tax or legal matters with the appropriate professional.

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 aCERTIFIED 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 onLinkedIn,Facebook, hisblogorTwitter. 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

Join Our Mailing List

Who Taught You About Money?

Who Taught You About Money?

My grandfather was a great man.  He taught me many things such as work ethic, the importance of family, taking pride in my work and financial responsibility.  His work ethic was tremendous.  He retired after 30 years with Ohio Bell on a typical Friday and on Monday morning, started his new full time career as a stock broker.  Although he meant well in his money savings, he didn't always strike a healthy balance.  There are numerous family stories of his "unhealthy" frugality.  My favorites involve him at age 75 roofing his house and at 77 black-topping his long driveway.  His roofing project gathered the attention and aide of the younger men in the family.  The driveway he had completed by himself before we even knew he did it.

My point in sharing about my grandfather is that he taught me invaluable lessons through his words and actions.  I am very grateful.  As parents and grandparents, we are responsible to teach wisely through our behavior and discussions with our kids and grandkids.  A recent survey (by Capital One) revealed that only 20% of High School students reported regularly discussing financial topics with their parents.  A whopping 34% said they have NEVER talked about money with their parents....34%!  The average credit score High School students reported as a "good score" was 500.  Oops (If you don't know, 500 is a bad score, good starts at 700 and excellent at 750+).  Our kids need our help and it is never too late to start or change a behavior.

Some children will ask about finances on their own, however most will not.

Here are some ideas and resources to use for a variety of ages.

Teaching our kids to save is a must.  The key is to find what works for your family.  Maybe it is a glass jar or a container with their favorite cartoon character.  It is then important to discuss choices with their money-- Here is what my family uses to encourage a choice after money is earned.

Choices:  1.) Share (church)  2.) Save3.) Spend Then at some point the "piggy-bank" turns into a wallet/purse.  Mint.com is a great free app to track and review spending habits.   Or try AllowanceManager.com to track allowance.

The Value of a Dollar.  There are different views on this.  Key is to teach work ethic, responsibility and that nothing is free.  Some say allowance should be earned, some say it should just be given.  In our family, our kids have set things they must do (chores).  Once those are completed for the whole week- they get a pay day.  They have the opportunity to do extra chores or be thoughtful helping around the house to even earn extra money (a bonus).

Teach in the Moment.   For example, at the grocery store as I swipe my credit card, I ask Kaitlyn, my nine year old, "Am I paying cash for our food?"  The first time I asked this she was confused but since then, we have had many discussions why I am using credit- as a convenience and ONLY because I have the actual dollars in the bank to pay off my bill each month.  Or try this- when that cool new car commercial comes on... pause the TV (right when all the fine print pops up).  Ask them "Would you rather pay for the car and own it or pay for the car for 3 years and then give it back to the dealership?"  I am not saying a lease is always a bad idea, but it is a money choice that has to made and understood.

Get a Job.  The responsibility and duties of a job are extremely valuable.  Think back to your first job- what did you learn?  I bet similar learnings will be for your child.

Open a bank account.   The simple balancing of a check book or using a debit card can be a big learning experience along with talking to a banker about their money.  It is an important process to learn.

Seek out financial learning.  Personal financial courses are sometimes offered in Middle School and typically in High School for your child.  As well, ask your financial planner to meet with you and your child to share some ideas/tips.  Any advisor worth something will love to do this to help educate and as a service to you as their client.

Start a Roth IRA.  With a job, even if it is mowing lawns in the neighborhood- there is earned income, which is eligible for a Roth IRA contribution.  Picking a suitable investment to watch encourages healthy retirement saving habits.  Starting at age 15 and contributing a one-time $5,000 investment (with no additional investments) for 50 years, averaging 7% return will yield about $147,000 tax free at age 65.

Some Resources to check out, I mean it...

Money AS You Grow  This site shares guidelines and talking points for specific age ranges with activities to complete from money basics, avoiding identity theft, credit cards to college loans.

Warren Buffett has created a great resource to teach kids about money using short animated episodes and a variety of other tools and family activities.

Teaching kids about money is not an easy task, but it is so necessary.  Find what works for your child and family.  Grandparents, come alongside your kids in teaching this to your grandkids; just like my grandfather.  Fight to be consistent in allowance, chores, discussing topics and share from your money experiences- both the good and the bad.  It will likely stretch you to also improve your current financial behavior.

To Your Child's and Grandchild's Financial Success,

Luke A. Fields, CFP®

All examples are hypothetical illustrations and are not intended to reflect the actual performance of any particular security. Future performance cannot be guaranteed and investment yields will fluctuate with market conditions.  Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Luke Fields and not necessarily those of Raymond James.  The companies and their opinions are not affiliated with Raymond James.  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. 

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

Join Our Mailing List

Do you have a Gap? ...in your insurance coverage

Do you have a Gap?

My question has nothing to do with your teeth, I am not a dentist.  It actually is about the coverage gaps in your insurance...which may be just about as equally exciting to you as a root canal.  Like it or not insurance of all types are required for a well-balanced financial plan of protection: home, auto, life, disability, business, dental...you get the point.

Insurance can cover a wide variety of activities and professions.  For example, Germany who just won the 2014 World Cup, has an insurable estimated value as a soccer team of over $1.01 Billion (Lloyds of London).       

Common Gaps 

Jokes aside, insurance is the foundation of your financial plan and protecting your family.  It serves as protection for your income, wealth, business continuity and estate plans.

Here are some important gaps to consider closing:

No life insurance beyond your basic group coverage.

Basic life plans offered thru work are usually 1x or 2x your salary.  You probably need close to 8-10x your salary in life insurance.

Not enough protection on your earnings.

If you are disabled and unable to work, your finances could suffer quickly.  Group Long Term Disability offerings thru work are usually only 50-60% of your salary and that benefit is then taxed, leaving you with a large income gap.

Not updating your Homeowners regularly.

Enjoying the recent home renovation or addition?  Your actual home replacement cost if damaged just increased.

No coverage on your valuables.  You can easily add jewelry, collectibles, furs, artwork and others as what are called "inland marine endorsements." This will provide the right amount of coverage whether destroyed, misplaced (lost) or stolen.

No Umbrella policy.

This is personal catastrophic liability coverage that protects you above and beyond your basic home and auto policies.  It is relatively cheap ($150 to $200/year) to add to your current policies.

No proper plans in place at your business.

Is there enough money for your business to cover overhead expenses if something happens to you?  What if your business partner passes or becomes disabled?  Drafting sensible business continuity insurance is a necessary protection for your business' value, your employees and your estate.

Addressing insurance gaps is an essential part of any good, comprehensive financial plan.  They need to be identified, reviewed and updated regularly.  Contact your property and casualty agent for the home and auto items (I am sure they will thank me for these thoughts...).  I will be able to assist with the rest.

As always, I am here for any questions.

To Your Financial Planning,

Luke A. Fields, CFP®

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

Diversification is like making Cheesecake.

Use the Right Ingredients and Follow the Recipe

I unknowingly started a tradition 4 years ago.  It all began with making a cheesecake for Mother's Day for my wife, mother and mother-in-law.  Since I do not consider myself talented in the kitchen, it was a complete stab in the dark to attempt this...very much outside my comfort zone.  The cheesecake ended up being a big success and now it is a tradition.  What I discovered was that, by following some good advice from my wife and following a specific recipe precisely, the results were considered the "best cheesecake ever eaten."

Diversification is like making Cheesecake.

You have to have the right ingredients, mixed together properly with the right timing to get an excellent cheesecake.  This is also essential in the diversification of your investments.  Diversification is equated to the proverbial"don't put all your eggs in one basket."  While this is true to building a well-diversified portfolio, there is much more to it.  Let me explain some key principles.

"Diversity reduces adversity."

-Burton Malkiel, Princeton Professor and Economist

Don't Put All Your Eggs in One Basket.  Diversification seeks to spread the risk out into various investments (that have low correlation), thus reducing the volatility of a portfolio.  Think of diversification like the shock absorbers on a car, smoothing out the bumpy (volatile) ride of financial market roads.

Get the Right Asset Mix.  Variety is obviously important but the % allocation is important.  Factors based on your personal risk tolerance, goals and time horizon help direct this.  This is where your financial plan is essential.

Don't Over Do It.

  Yes, you can have too much of a potentially good thing (like cheesecake)- it is called "over-diversification."  This is a common problem.  Spreading yourself too thin will likely mute your return.  The focus should be on a variety of assets that are good quality, not the quantity.

Diversify Within Each Category.  Your stocks should include the proper allocation of US stocks and International Stocks between large, mid and small sized companies.  There are literally dozens of categories of bonds between Government, Corporates, Foreign, High Yield, Etc. Consider Real Estate, Commodities, Alternatives and Cash as other important diversifiers.

https://www.raymondjames.com/legal-disclosuresbetween Government, Corporates, Foreign, High Yield, etc.   Consider Real Estate, Commodities, Alternatives and Cash as other important diversifiers.

Evaluate Other Allocations.

  Do you have a large portion invested in your company's stock?  This is likely a risk because you are over diversified between your gainful employment and your investments being tied so closely together.  How about real estate?  If you own rentals and properties you likely don't need real estate investments in your portfolio.

Timing is Key.  Have patience and give it the correct amount of time.  Diversification works over long economic cycles.  Also attempting to time the market can't be consistently achieved, despite what some people say.  Dollar Cost Averaging (regularly placing money on a monthly basis) can also be an effective method for investing your portfolio.

Diversification is a delicate balance of the right investments and the right time-frame.  Utilize certified professional advice in making diversification work inside of your financial plan.

Enjoy some cheesecake too!  Mine is not for sale- I only make it once a year and it goes quickly.

All the best in your planning,

Luke Fields, CFP®

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 and does not constitute a recommendation. 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. Diversification and asset allocation does not assure a profit or protect against a loss. Investing involves risk, you may lose you principal. 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.

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 aCERTIFIED 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 onLinkedIn,Facebook, hisblogorTwitter.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

Why a big tax refund may not be as great as you think.

Why a big tax refund may not be as great as you think. Are you awaiting for or have you already received a big tax refund?  Most people who withhold taxes thru W-2 wage payments receive money back from the IRS.  I recently heard someone say with pride "I made out good... the government is paying me $x,xxx."  Well, sorry to tell you this but you didn't make out so well.  A tax refund is simply your money that you overpaid- being returned to you.  When you overpay your taxes you essentially just provided the government with an interest-free loan thru the course of the year. That is so generous of you.

Your goal should be to withhold as close as possible what you will end up owing.  Some people liken their refund to a "forced savings" plan, which can be understandable if living paycheck to paycheck.  For perspective though, a $3,000 refund equates to $250 or so that you can have in your pocket each month to use.  This is why it is advisable to adjust your W-4 withholding each year after tax filing.  The W-4 is a simple form you can use to provide to your HR/payroll department at work.

I realize that it is difficult to nail this number each year due to unexpected tax events that happen- children are born/leave the house, inheritances, bonuses, large deductions, etc.  Your CPA can help suggest your withholding or your can estimate using a calculator.

Self Employed and Don't use a W-4 Withholding

If you are self-employed don't forget that you need to pay estimated quarterly tax payments (due on the 15th of April, June, September and January) in order to avoid penalties.  These are to be 90% of your current year or 100% shown on your prior year's tax return filed, whichever is smaller.  

You have a refund, so what should you consider now?

• Adjust your W-4 withholdings for the current tax year, as discussed above.

• Pay offyour credit card, student loans or other high interest rate debt.

• Build up your Emergency Fund.  Rainy days will happen.

• Earmark your returnfor a "sinking fund," (a known expense) such as a car purchase or upcoming taxes.

• Invest it.  Too many reasons why this is a good idea to list in this post, call me.

• Okay-the last suggestion, which is rather common (and I have been guilty of in the past): use for a vacation!

 All the best,

Luke A Fields, CFP®

Any opinions are those of Luke Fields and not necessarily those of RJFS or Raymond James.  You should discuss tax or legal matters with the appropriate professional.

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

Spring Clean your Finances

Spring Clean your Finances

Similar to many of you, I grew up with the annual tradition of "Spring Cleaning."  Every teenager's idea of a great day.  Open the windows, clean the crevices, throw out the junk, and organize the closet.  Now that I'm grown up (that is debatable in some circles) and own a home, the funny thing is the same habit is still with me and I actually like it now.  Things sure change.

The old cliché of Spring Cleaning originated in China as people cleaned their homes around the start of the lunar New Year.  Spring was also a common time of year to clean per Jewish customs as Passover approached in April.  Whatever the reason, it is not a bad idea to get things cleaned up and prepared for warmer weather.  As you clean out the garage, "de-clutter" the house, throw away those old "Cosby" sweaters and organize the basement don't forget to apply the same care to your finances.

"Have nothing in your house that you do not know to be useful, or believe to be beautiful." 

-William Morris

How to Spring Clean your Finances

1.)  Clean up your Investment Portfolio.  Year end is a great time for review in regards to taxable events and Spring is a wonderful time to make sure your investment accounts are healthy.  Consider cleaning out (sell) the "dogs" in the portfolio, re-balance overweight or underweight categories.  You don't want too many eggs in one basket or not enough diversification in other baskets.  Make sure your portfolio is in-line with your current risk tolerance.  Another common situation; are you keeping too much cash in the bank (likely at low interest rates) that you are not planning on needing anytime soon?

2.)   Organize the Files.  File cabinets are notorious as dumping grounds.  You know that important piece of information is in there... you are just not sure where.  Files also include your electronic files.  As you wrap up tax time, consider scanning prior tax years on a secure hard drive.  Previous advice was to shred after 7 years but a digital copy may be handy if the IRS ever comes knocking.  Consider shredding other unneeded documents (make sure to use a cross cutting model).  Remember to organize and clean out your wallet while you are at it.

3.)   Review your Security Measures.  I bet you keep your house locked and use an alarm when asleep or on vacation.  The same security should be true for your computer, your personal identity, file cabinets and a fire proof box or safe.  Consider investing in a good self-updating anti-virus software, identity protection services, and a safe (possibly even bolted down to the floor) in a discrete location.  And please don't forget to update and change the numerous passwords you use.

4.)    Purge and Update your Family Budget.  I hope you have established a budget, if not get on it!  Check your line items to see if they are still accurate- spending more or less in a category?  Have a new expense or an old one to remove?  Know where your money is and where it is going at all times!

Happy Cleaning- both your home and financial house.

Luke Fields, CFP®

Re-balancing a non-retirement account could be a taxable event that may increase your tax liability. Diversification does not ensure a profit or guarantee against a loss. 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.

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 Join Our Mailing List

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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How to Keep it Going... your New Year's Resolution

How to Keep it Going...

Chances are you've made a New Year's resolution... or at least considered it.  Most of us do make one (over 130 million Americans do) whether we announce it to someone or not.  We all have something on our list to improve or change.  The usual suspects range from fitness or weight loss, working less, to spending more time with family and oh yeah, don't forget those financial resolutions.  This edition is not to tell you what your resolutions should be (although I can help if you need me to...) but to provide some helpful tips on how to keep them going.  Setting resolutions is one thing, keeping them is the trick.  By January's end studies suggest over 40% of people who set a resolution on December 31st have already ditched them or are about to. Maybe you should set one now?  It's never a bad time to improve something in your life.

7 Tips for Success with your New Year's Resolution

1.  Be SMART.  First and foremost make sure your resolution is Specific, Measurable, Attainable, Relevant and Time-specific.  You should stretch yourself but maybe a reevaluation is in order.

2.  Use the Buddy System.  Find someone who shares the same resolution and double team the goal working together.  This is spouse if it is a budget or a buddy for working out.  This provides agreed upon accountability.  As well, avoid those people who are negative or bring you down in reaching your goal.  At the least, tell someone who will be supportive.

3.  Write it and Post it.  Spell it out clearly and post it somewhere you will see it every day, preferable at the time you need to remember to keep your resolution.  There is something powerful about seeing your own handwriting!  Post it on the fridge for diets, mirror for self-confidence improvement, your phone reminding you to daily read more or a card in your wallet by your credit card.

4.  Eating an Elephant, One Bite at a Time.  Short term goals are easier to achieve as you work towards the big goal.  This will motivate you and provide accountability to make progress.

5.  You Gotta Celebrate.  Reward yourself for achieving little milestones and goals.  Do something nice for yourself.  Using your judgment, an occasional "cheat day" can help, as long as it doesn't throw you completely off the wagon.

6.  Stick to It.  Research shows that it takes 21 days for a new activity to become a habit and six months to become a part of your personality.  I often tell my kids, "Nothing worthwhile comes easily."

7.  You are Human.  You will face temptation to overeat, overspend, oversleep, not stand up for yourself, sit on the couch, whatever your resolution is... and you may likely succumb to it.  It is just a hiccup and not the end of the world or the end of your resolution.  Refocus on why your resolution is important to you and worth the effort.  You can do it.

Have a Blessed 2014!

To Your Success,

Luke A Fields, CFP®  

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

So Easy a 3 Year Old Can Use

So Easy a 3 Year Old Can Use

A recent visit to a toy store prompted a memory from 2 years ago.  It was a big mistake my wife and I made then but is funny now.  It was late November and the grandparents, uncles and aunts were asking us what our kids would like for Christmas.  Since there were numerous small items, an employee at 'Toys R Us' suggested we let our kids scan the items they wanted creating a "wish list."  These are the same scan guns that couples use when registering for their wedding or upon expecting their first child.  What a great idea, a way to create an organized online list for all the loving relatives... Not so much!  Once they learned how to scan a barcode, it was all over. 

    

Amazingly, the reasonable items on the original list grew into a much larger list in both number of items and total potential cost.  I heard my two older kids, 6 and 3 at the time say "I want this," "I want that," and "Will Ho-Ho bring me this?"  It took a few hours for the excitement and thirst for toys to wear off.  We spent the next week explaining that just because it was "scanned" didn't mean that it would arrive via UPS from their uncle in California or under the tree from Santa.

I wish you and your loved ones a truly blessed Christmas and Holiday season!

Time To Reflect

It's the natural time of year to reflect on the year gone by and hope for the year to come.  People often take inventory and gain perspective on where they currently stand personally and as well as financially.  Ever hear of a New Year's Resolution?  Are you happy where you are financially in regards to understanding your investments, protecting your family, being on track to reach your goals and overall confidence with your financial plan?  Possibly, you don't have comfort with these or even have a current financial plan?  Please do your family a favor; seek out a qualified and trusted financial advisor to help you gain control, even if it is not me (I MEAN that)!  These items are too important not to address.If you would like me to assist, let me know and we can get something on the calendar for January 2014.  Your future planning starts now.

All the best to the close of your 2013 and the start of your 2014!

Luke A. Fields, CFP®

luke.fields@raymondjames.com 614-431-4310

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