Choose a Tax Planner

Choose Your Tax Professional Wisely

STEWARDSHIP CENTS NEWSLETTER

It never fails; April 15th rolls around each year and its time to settle up with Uncle Sam.  I appreciate the following advice.  It really applies to me… I like ice cream and I have three kids.

I regularly advise clients to choose their “Tax Person” carefully.  You should find someone that fits your needs, is experienced in handling your tax situation and is proactive.  For this month’s newsletter, I asked Nathaniel Busch, CPA with BlankenBecler Advisors to contribute his thoughts.  Enjoy a cartoon first- this is why you need a professional.

 Choosing a Tax Planner versus a Tax Preparer

“As tax time approaches, also comes the decision to choose an accounting professional.  It’s important to ask yourself “what type of professional can best fit my needs?”

In the tax accounting industry, there is a clear distinction between a tax preparer and a tax planner.

A tax preparer is a fact finder; one who is presented with information as to what has already happened in a particular year.  They are tasked with arriving at an already determinable answer. ­ The client has lost any and all control of the outcome and are at the fate of their tax preparer arriving at the answer before the deadline.

Conversely, a tax planner does not react to a year that has already surpassed a client.  Rather, the tax planner is proactive and is an instrumental tool in helping their clients forecast an impending tax liability.  By meeting with their clients on an interim basis, a planner can provide the client with a beginning projection of tax liability with several options on how to change their outcome and maintain the effective tax rate their household will pay to the government.  This approach gives control to the client as to what their outcome will be, when signing their 1040 in April.

Actual tax preparation for the tax planner is easy – much of the leg work has been completed several months prior, with the likely result already made known to the client.

For many taxpayers, inaction and a failure to plan have already forced their hand – their need is only for a tax preparer, coupled with the uncertainty of what they may owe in the next few months.
As April 15th nears, ask yourself – do I need a preparer or a planner?”

Nathaniel D. Busch, CPA
BlankenBecler Advisors, Inc.
614-475-7560

Feel free to reach out to me to suggest a qualified tax planner, like Nate to meet your appropriate tax needs.

To Your Financial Success,

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.

You should discuss any tax or legal matters with the appropriate professional.  The tax advise and/or services of Nathaniel D. Busch and BlankenBelcer Advisors, Inc. are independent of RJFS.

Goals Are Essential to Your Success

STEWARDSHIP CENTS NEWSLETTER

How Do You Set Your Goals?

I suggest you think of the following acronym (courtesy of Rick Warren) to help you determine your goals, plan to achieve them and implement your success.  You need F.A.I.T.H.

Focused: It’s specific, something you can measure.

Attainable: It’s possible and reasonable.  An unrealistic goal will lack support from others and end poorly.

Individual: It’s personal. It impacts you, your family, those who mean the most to you.  It is your goal to own.

Trackable: It has a specific deadline.  There is a timeframe from point A to point B.

Heartfelt: It’s something you are passionate about.  It has to be driven by your desire to achieve success.

"If you aim at nothing, you'll hit it every time."   - Zig Ziglar

Value of Goal Based Planning

Whether your goals are personal, health or finance related, you need to have a solid plan of action.  I am a firm believer in Goal Based Planning.  It is unfortunate that many advisors out there miss this crucial principle.  They often will invest your money, sell you an insurance product or give you advice without considering an overall financial plan.  These actions can dramatically impact your chances of long-term success.

You have to start with dreaming, discussing and determining your goals…what really matters to you (and your spouse) and is truly worthwhile.  Then you can build out the steps and details required to develop a financial life plan.  Having a plan is only the beginning.  It then takes action, support and discipline under the guidance of your professional financial advisor to help you keep the “train on the tracks” and make adjustments over time with the twists and turns that life throws your way.

Let’s start today.  If you would like to speak about developing a financial life plan, refine your current one or seek a second opinion of what you have been doing, please reach out to me at luke.fields@raymondjames.com or 614-431-4310.

To achieving your goals,

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.

Did You Know You NEED This?

STEWARDSHIP CENTS NEWSLETTER

Did You Know You NEED This?

The start of school is usually a harsh wake up call, at least for my family.  Leaving my house for work a few days before the first day was to begin, I thought to myself… “it is time for a routine again”.   It seems the flexibility that summer break offers is a “double edged sword.”  Although being out of school is a nice break from the normal school-week-grind for kids (and parents too… no packed lunches or crazy schedules), it also offers little to no structure… or routine.  If you are a grandparent reading this, you remember this, right?

Now don’t get me wrong, it is wonderful to not have a schedule some days or for a short period of time, but after a while it can become disruptive.  My kids wouldn’t admit it but they were ready for school.  They just didn’t know it.

Why We ALL Need Routines

Most adults also don’t realize the need for a routine or process in their lives.  Routines are good across the spectrum of our daily lives from eating, working, exercising to what time we go to bed.  There are numerous physical health, mental well-being and productivity reasons for any routine we take on.  Some routines are rather thoughtless; think brushing your teeth.  You can do it half asleep reasonably well.   Other routines are specific processes that allow us to focus on important subjects.  For example, driving a car has a certain process to drive safely and grocery shopping has a certain process to buy everything you need.  Processes that come from routines allow us to think deeply and focus on important tasks.  Do you have a process for your finances?  Having a routine for your financial plan is vital.

What Is Your Routine?

Do you have a process for a financial plan; saving the correct amount of money in the right places, monitoring your progress to reach your goals and making necessary adjustments to your plans?

Specific processes we use at our firm (our routines) allow us to help you establish life goals, create an actual life financial plan, determine an appropriate investment approach and then regularly monitor results.  The routines we utilize help us provide you direction, prevent us from forgetting important planning items, allow us to focus on the big picture of you and your goals, helps reduce the emotional response when markets get volatile and provide an overall discipline to stick with the plan.  Our processes even keep us on track to regularly meet face to face with clients.  Does your advisor do all these things?  Are you walking thru life without a professional and qualified financial advisor?

Let us know how we can help you with your financial life plan.

Luke Fields, CFP®

luke.fields@raymondjames.com
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.

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.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC

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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

Summer Vacation Plans. There may be more to your checklist. Estate Planning

Planning Your Summer Vacation

Ah summer time. School is out, schedules tend to be a little more relaxed and there are many fun family things to do.  One of our annual traditions, like most families is our summer beach trip.

Your Estate Plan

My practice is focused around each client's detailed and personal financial plan.  This is a comprehensive look at your goals, insurance coverage, tax situation, college needs, investments and your estate plan.  Each one of these areas has to work together and make sense for your family.  This is very true of your estate plan.

To share more on this topic in reference to summer vacation, I asked Gary Vinson, an Estate Planning Attorney to share some quick thoughts around the importance of estate planning.

Summer is here and vacation planning is in full swing.  In fact, vacation season seems to prompt more inquiries for first time consultations than any other time of the year.  As we move down our checklist to include the swimming trunks and sunblock there is not likely a "to-do" for updating the Estate Plan or for preparing for our untimely demise.  But, inevitably, this thought creeps into our mind and we think what if....

What if my spouse and I pass away at the same time?  What if our Executor is on the same plane as we are on?  What if our Guardian moved to Montana since the last time we updated our Will?  However unlikely these what ifs are to actually occur, the underlying fear should not be too quickly dismissed only to re-emerge at the first sign of turbulence on your flight.

Finding time to review your Estate Plan and Financial Plan before a vacation can provide you with the reassurance that your affairs are in order.  Whether a consultation reaffirms that your plan covers the what ifs or whether it reveals a gap in your plan, reviewing your plan with a professional can provide confidence it is right for you.  Then you can enjoy the trip that you worked so hard to go on in the first place.

Feel free to reach out to Gary or me if you have questions.  Here is his contact information:

Law Offices of Gary Vinson II, Inc.

Telephone: 614.478.0777 Mailing Address: 7385 North State Route 3, Box #13

Westerville, Ohio 43082

Have a great summer break,

Luke Fields, CFP®

Raymond James is not affiliated with and does not endorse the opinions or services of The Law Office of Gary Vinson II, Inc.

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

Family Traditions

Your Family is Our Family

Family and traditions are at the forefront of mind for many of us during this time of year.  We all likely have special traditions we enjoy celebrating with those we care about.  We have much to be thankful for.  Here is a recent fun night at the Fields' household.

Our Family Service Policy

Some of our clients know this family tradition I am about to share....  Some may need to be reminded and those of you who do not utilize our services as clients are about to learn something about us.  The team at Foley and Foley Wealth Strategies has a "Family Service Policy" tradition.  This means for our clients, we waive our account minimums and offer our services to their entire family, regardless of their asset level.  Your Family is Our Family.

As you might know, Foley and Foley was established in 1981 by current financial advisor Kevin Foley and his father, Mark Foley (retired in the late 80's).  As a family business, family has always been emphasized and therefore planned around.  Since the 80's, it has been rewarding to implement our plans and expertise for three generations; Kevin and his dad's original clients, their children near retirement and now their kids (and grandkids) are beginning their careers and starting families.

Your Family's Success Is Important to Us 

A common situation we assist with is advising our client's children and grandchildren in whatever life stage they find themselves.  Our policy also applies to client's siblings nearing retirement who would like professional advice with their retirement strategy.  Another scenario that is on the rise is helping clients with their aging parent's estate planning.  We are happy to guide you and your loved ones through each of these above examples, among other unique challenges you may face.

If you would like to talk more about how we can provide our family service policy to your family, please let me know.

To your family's 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

Buyer Beware... of the financial Salesman

Buyer Beware

I relish in opportunities to be a "big kid."  Halloween time is the perfect example of just that.  When else can you put on your favorite costume, use a whole can of hair spray to spike your colored hair like a rock star or don a Chewbacca mask?  My kids love seeing their dad act unlike his usual self....  It's the perfect time to pretend to be someone (or something) else.  You don't always know who is under that costume.  You know I had to include a picture of Chewbacca....

Beware... of the Financial Salesman

Costumes are also worn in the professional world of finance.  Have you ever been sold something to later wonder what did you just buy?  One of my favorite warnings for people is about "the financial salesman" (or saleswoman).  Beware, they can be scary.  Often they look, act and even say the same things as an advisor but there are some major differences.  Unlike a trusted financial advisor who should always seek your interests first, a salesman is usually controlled by a large corporation or investment firm that may encourage them to sell certain products by linking the sales of these products with compensation.  Thus many consider what benefits them first, before the client.  Many so-called "advisors" have worked this way their entire career, finding it difficult to change.  Today, at some firms similar training still continues of their employees, even if it is more discreet.  If a product is bought with them, a large commission is deposited to them and then there may be little ongoing incentive to advise that client.

Unfortunately Common

It is common to meet new people seeking an honest 2nd opinion after they have already bought a product.  Many of them were sold a product by a salesman which they really didn't understand and many find that the product was not really appropriate for them.  When this occurs, typically I find the products sold to them are annuities and/or various life insurance policies.  Don't get me wrong, not all of these products are bad and they definitely have their appropriate uses.  Annuities can be a good option for certain people, but it deeply depends on the guarantees offered as well as other benefits, risks, and the overall suitability of the product for the client.  Historically, there have been some good products in the past but I haven't really found many compelling benefit concepts since 2008.  However, if I found a good guarantee offer I would consider it for a portion of a client's financial plan.  Some newer products have very complex intra-workings for the average person to understand.  "If you can't sell them, confuse them" -into buying comes to mind.  Many annuities have very high annual expenses, limited investment options to choose from and they can carry significant surrender charges if you want to surrender early.  Here exposes a huge difference between the advisor and the salesman.  These types of products can often pay big commissions and this may lead a salesman to sell a product to many individuals for whom it may not be appropriate.  While a trustworthy advisor considers the big picture and provides all reasonable options with the pros and cons of each, followed by a recommendation for what is best for the client's goals.

A compelling and fair way for clients to work with a financial advisor is with a trusted advisor who is both independent and offers a fee based arrangement.*  This is so whatever investment or product is used, the advisor is not compensated by a commission on the sale of a product, but rather with a fee that is charged based upon a percentage of assets managed and also importantly is not required to sell proprietary products since they are independent.

Be In the Know

• Always make sure you ask and understand how an individual is being compensated (this holds true in any industry for that matter).

• If a product  does seem appealing, always make sure you understand what you are being asked to buy and why you need it in your overall financial plan.

• Make sure you know who may or may not influence an advisor's recommendations.

• Ask for help in the form of a 2nd opinion before you buy and even after.  Currently some insurance companies are offering contract updates to allow them to avoid paying certain benefits.

• Consider working with an independent, fee based advisor.

Luke Fields, CFP®

*Advisory fees are in addition to the internal expenses charged by mutual funds and other investment securities. To the extent that clients intend to hold these securities, the internal expenses should be included when evaluating the costs of a fee-based account. Clients should periodically re-evaluate whether the use of an asset-based fee continues to be appropriate in servicing their needs. A list of additional considerations, as well as the fee schedule, is available in the firm's Form ADV Part 2A as well as the client agreement. Any opinions are those of Luke Fields and not necessarily those of RJFS or Raymond James. Investments mentioned may not be suitable for all investors. Guarantees are based upon the claims-paying ability of the issuing insurance company.

 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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The Surprises of Life

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The Surprises of Life

I love a good surprise.  Bad surprises not so much… so let’s focus on the good ones.  It’s nice to have something unexpected and enjoyable surprise us.  Like you, I think of a few examples in my life: “popping the question” to my girlfriend now over 13 years ago (AND the surprise that she actually said YES!  …simply amazing), hosting a huge surprise party for my wife (and she had no idea), or being told my first child was on the way!  Ok, these are the big surprises in life, but I also enjoy receiving and sharing the smaller ones too.

A 401(k) Surprise

I recently had the chance to surprise a client during his portfolio review.  He is nearing his planned retirement date and shared that he was not thrilled with the lack of investment options and marginal/poor performance of his retirement plan options.  Unfortunately, this is a common problem with the vast majority of company 401(k) and 403(b)s.  In discussing his company’s 401(k) plan, I shared that since he was over 59 ½ he had the ability (while still working) to rollover the majority of his 401(k) assets to a self-directed IRA.  It is called an “In-Service Distribution” and is a NON-taxable event when done correctly.  He was thrilled to have the opportunity to diversify his investments, select from most any investment choice (mutual funds, stocks, ETFs, Individual bonds) and have professional guidance in the process.  I further explained that he would continue to receive his company’s 401(k) match and be allowed to continue to defer his annual maximum contribution.  With a smile all he said was, “let’s get it done.”

In addition to rolling over your 401(k) to an IRA, there are other options. Here is a brief look at all your options. For additional information and what is suitable for your particular situation, please consult us.

1. - Leave money in your former employer's plan, if permitted

Pro: May like the investments offered in the plan and may not have a fee for leaving it in the plan. Not a taxable event.

2. Roll over the assets to your new employer's plan, if one is available and it is permitted.

Pro: Keeping it all together and larger sum of money working for you, not a taxable event

Con: Not all employer plans accept rollovers.

3. Rollover to an IRA

Pro: Likely more investment options, not a taxable event, consolidating accounts and locations

Con: usually fee involved, potential termination fees

4. Cash out the account

Con: A taxable event, loss of investing potential. Costly for young individuals under 59 ½; there is a penalty of 10% in addition to income taxes.

Be sure to consider all of your available options and the applicable fees and features of each option before moving your retirement assets.

A few other possibilities

The opportunity for an in-service distribution also applies to most 403(b)’s, 457’s and some pensions.

Another plan of action is to use an in-service distribution to direct a portion into your Roth IRA.  Although this would be a taxable event, it would allow you to place money in a Roth IRA to obtain tax free growth and tax free withdrawals during retirement, among several other benefits.

As well, if you happen to have after-tax contributions in your company’s retirement plan, if the plan allows, you may be able to convert those contributions to a Roth IRA.

Many high wage earners, based on their single tax filing ($112-127k in 2013) or married filing joint ($178-188k) are prevented from contributing to a Roth IRA.  Regardless of your age or income level you may be able to contribute to a Roth account inside of your 401(k); check to see if you company’s retirement plan offers a ROTH 401(k) option.

If you would like a “checkup” of your current situation or for me to investigate if your plan allows the above options, please don’t hesitate to contact me.

To the surprises both big and small in life,

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 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

Roth 401(k) plans are long-term retirement savings vehicles. Contributions to a Roth 401(k) are never tax deductible, but if certain conditions are met, distributions will be completely income tax free. Unlike Roth IRAs, Roth 401(k) participants are subject to required minimum distributions at age 72 (70 ½ if you reach 70 ½ before January 1, 2020).

Unless certain criteria are met, Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted. Additionally, each converted amount may be subject to its own five-year holding period. Converting a traditional IRA into a Roth IRA has tax implications. Investors should consult a tax advisor before deciding to do a conversion.

It's THAT Time of Year. Why you should use a 529 Plan.

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It's THAT Time of Year...

Back to school time, I had a school bus sighting this morning.  Sorry kids.  Typically parents smile, kids of all ages groan.  I remember getting those butterflies in the deepest pit of my stomach- wondering how my teacher would be, will I remember my multiplication facts, when lunch was and most importantly who would be on recess with me?  It always worked out and I developed a life-long love for learning.  I am grateful to all the teachers and my parents for this.

I hope it has been a great summer break for your family.

We all agree education is invaluable and college prepares most of us for a career.  I think we also all agree that education is not cheap and is continuing to rise.  The typical increase year over year for tuition, room and board is 5 to 8%.  The average tuition, room and board is $18,400; this breaks down at $13,600 for in state public and $36,300 for private institutions (For those of you who want numbers here are my rough calculations: using the lower end of the average Inflation at 5% and current average cost $18,400; in 18 years the cost will be $44,281.  Here is why you should save.  Hypothetically, saving $200 a month from birth to 18, earning 7% returns will provide $86,647).  I hesitate to put numbers in here, for I do not want to daunt you, but it is the reality.  I hope college inflation costs come way down and accounts earn well above 7%.

The Necessity

College planning needs to be a part of every family's financial plan. The average family will likely fund school using a combination of 529 savings, student loans, cash on hand and thru student employment. Whether for your children or grandchildren there are ways to prepare now- it is never too late to start. Typically the best way to save money for college is thru the use of 529 college savings plans.

Why a 529 plan?

Tax Advantages There are several benefits.

• Tax-deferred growth.
• Tax-free withdrawals for qualified higher education expenses.
•  Many states offer a tax deduction annually, per a beneficiary.

Gifting and Estate Tax Advantages A Valuable tool in Estate Planning

• Accelerating gifting allowed; an individual can contribute up to $70,000 ($140,000 per couple) per beneficiary in a single year without gift tax consequences provided that donor does not gift any more to that beneficiary over the next 5 years.
• Assets are removed from the account owner's estate (If using the five year accelerated gifting, then a prorated amount reverts back to the estate if the account owner dies within five calendar years).

Control and Flexibility Most people don't know these points.

• The account owner has control of the account and contributions.
• There is No income restriction to establish an account.
• Assets if unused can be transferred from one beneficiary child to another child/family member.
• The account owner, which is typically a parent, is considered the owner of the account for financial aid purposes which is more favorable than the asset being considered the child's.  When owned by grandparents none of the assets are included.
• If the beneficiary earns a scholarship, the account owner may withdraw an amount equal to the amount of the scholarship without penalty.  If a beneficiary becomes disabled or dies, the entire account may be withdrawn without penalty (In all cases, the earnings withdrawn will be taxable at the recipient's tax rate and there is no      penalty).
• The money may be used at any eligible educational institution in the U.S. and many schools abroad qualify as well.

To read more about 529 College Plans, Click Here.

How I can help

Educational planning is another vital piece in a family's financial planning strategy.  It has to be balanced with your retirement savings (so you don't ignore appropriately saving for your own retirement- otherwise, the kids will be taking care of you), your current tuition needs if you children are in private K-12 and systematic so you grow into the habit of saving now.  It can be a huge blessing to your children or grandchildren, while also providing some great tax and estate benefits.

I routinely perform education needs analysis for clients and those introduced to me.

Let me know how I can help.

Now back to the books kids.

 Sign up HERE to receive Stewardship Cents Newsletter Non-qualified withdrawals or withdrawals in excess of qualified expenses may be subject to an early withdrawal penalty of 10% in addition to a tax withholding. Investors should carefully consider the investment objectives, risks, charges and expenses associated with 529 plans before investing. This and other information about 529 plans is available in the issuer's official statement and should be read carefully before investing. Favorable state tax treatment for investing in Section 529 college savings plans may be limited to investments made in plans offered by your home state. Investors should consult a tax advisor about any state tax consequences of an investment in a 529 plan.

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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The Blessing of Resources

The Blessing of Resources

When I started dating my wife in high school, I became known by her family as the "garbage disposal."  Endearing isn't it?!  Let me explain.  In my family, I was the youngest of three very active boys and although we always had enough food... dinner often became a territorial "grab and growl" event.  Now for my wife's family; she was the oldest of four siblings.  Her sister and two little brothers ate like birds and I LOVED it.  I didn't have to even ask "are you going to finish that," the plates all slid down to my spot.  So I became the "garbage disposal," not because I am a glutinous pig but because first, I am always doing something athletic so my metabolism stirs my hunger (a little less now days I must admit) and second I have a principle that I can't stand to waste food.  Now with three children of my own, it continues.  Food has to be really "kid sabotaged" for even me to pitch it.  Food is just one example of a resource we enjoy.

Resources

What do you think of when I say the word "resource?"  Maybe money, investments, a business, property or natural resources (oil, lumber, water) come to mind.  All true, but there are many other resources that go beyond the traditional "assets" that I want to challenge you to ponder.

Most of us are blessed with family, friends, jobs, and a community of people that care and love us.  These are resources.  As we celebrated our nation's independence this month, contemplate the resources we have as US citizens; they go far beyond our financial assets.  We are a land of opportunity and freedom.  Sure there are plenty of things that need improved, fixed and fought to be preserved in our country but overall among nations we are blessed.

How about the resources you have been blessed with by our creator? - Your skills, talents, personality, and time.  I believe (as you probably know by reading my newsletters) that we are accountable and responsible for what has been entrusted to each of us.  You've heard before "to whom much is given, much is required."  So what does that mean?

It means Stewardship.

It's really all about Stewardship

Stewardship is the responsible overseeing and protecting of important resources.  This includes of course, the money in your wallet- whether you have $5 or $5 Million, but it goes beyond your finances.  Consider how you provide for your most valuable and important resource? - Likely this is your family.  We strive to nurture, protect, educate and model for them virtuous values.

One of my overall objectives in my career as a financial advisor is to help you determine what Stewardship means for your family.  It is a unique solution for each of us and so important to strive towards.  Identifying what this means significantly enhances my expertise in helping you develop a financial plan that is accurate and true to your goals- both financially and personally.  Then I can appropriately manage your assets and help you protect your family.  They cannot be separated.

Consider me not just a financial planner but a financial LIFE planner.

Let me know how I can be of service.

Luke

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. Investing involves risk and you may incur a profit or loss regardless of strategy selected.

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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