Imprinting

Whether you realize it or not, you are imprinting.  What is imprinting?

I was speaking with our puppy’s dog trainer a while back and he said this: “Imprinting is really impactful.  It is the memory, trust and familiarity your dog will have of you… forever.”  At the surface, it made sense in terms of wanting our new family member, “Ollie” to listen to us, trust us, know our voices, remember our scent and be okay with us touching his paws (a big benefit for future nail-clipping :). 

In my last writing, I talked about Legacy and the importance of realizing that its impact is happening now, today… not later, “down the road” when you die.  I instantly made the connection.  There is much more to how a Legacy gets created.  It is not just “leaving” a legacy, it is “imprinting” a legacy.

It is Not Just for Dogs

Every day we imprint ourselves on those around us; a spouse, children, friends and co-workers.  Wow.   Memories of me are being imprinted on those around me, possibly forever.  Have you ever heard the often used expression “more is caught than taught”?  Imprinting can be verbal but often it is what we don’t say; our actions both good and not so good.  I know my kids learn a lot by watching how I handle money, talk with others and how I spend my time.  In what I say and do, I want to teach them not only good financial habits but a deep love for God, respect of others and foster a heart of service.

Be Intentional

Imprinting your Legacy goes beyond the important financial habits and decisions we all face.  It includes all of life’s possible behaviors and emotions.   So as your legacy is being created now, your imprinting on others needs to be intentional.  Develop a purposeful plan to imprint and leave the legacy you desire.  This is part of the goal discussion when we create a financial life plan for clients.

Imprinting a Legacy,

Luke Fields, CFP®

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

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.

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.

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

Join Our Mailing List

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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

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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Two Things You Can be Certain of...

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Two Things You Can be Certain of...

Death and Taxes.  Yes, these are such fun topics to discuss.  No sarcasm here....

Good old Ben Franklin said it like this "but in the world nothing can be said to be certain except death and taxes."  Focus on the word "Certain."  It doesn't leave much room for exceptions; unless you happen to be Jesus or decide to criminally evade taxes (but we all know that's a BAD idea).

We just survived another eventful tax time and I recently faced the realities of death while standing at a graveside burial.  Both are certain to occur and both require thoughtful planning.  These are the realities all must plan for.

You can be Certain in your planning

Taxes and Death (estate planning) are not simple issues to address.  Taxes can invoke some to worry, stress and write large checks.  When considering death, it touches all of our humanly "levels" from the emotional, spiritual and of course the eventual physical end.

These events are certain to occur, but you can also be certain on how they play out. It should be your goal to be a good steward of your resources and have your wishes fulfilled. Tax planning should be efficient, aiding your accumulation of assets and withdrawal strategy.  Planning is especially imperative if you own a business, own valuable properties, have major life events occur (marriage, divorce, birth of children/grandchildren, inheritances, death, etc), own stock options or have an anticipated large taxable transaction approaching.  Estate Planning and evaluating your legacy wishes involves answering critical questions, such as: Who do you want to receive your estate?  How should they best receive it?  And when should it smoothly transact?  Your tax situation and the recipient's tax situation comes into play, the ages of your beneficiaries, possible special needs of your beneficiaries, desired requests to guide unwise heirs or protect from the "all too eager" inheritors.

Complete your Plans and Regularly Update

Although not licensed to perform your taxes or write your will and trust, I do help steer you along the way in regards to taxes and your estate plan so they compliment and fulfill your financial plan.  Then once we have your wishes determined, I work alongside your trusted CPA or Attorney (often recommending a qualified referral if you need one) to place your legacy plans into action.  Remember your financial plan encompasses numerous different areas and is the road map to implement your goals. 

Be Certain of that!

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. Raymond James does not offer tax or legal services and 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 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

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Why you Need an Emergency Fund... November 2012 Stewardship Cents

Click here to subscribe to Stewardship Cents Newsletter Thanksgiving Reflections Thanksgiving and traditions go hand in hand.  A large meal, football and times of reflection are the most common.  And then there are the traditions we have long endured, like my father's annual reading at the dinner table.  A folded article or newspaper clipping always finds its way out of his shirt pocket with an eager audience awaiting...(just a little sarcasm). Years ago Readers Digest dominated this annual reading but now it comes from a variety of sources, thanks to the Internet and forwarded emails.  We have covered most all Thanksgiving topics including pumpkin types, why Ohio's corn is special, of course the pilgrims and a few variations on the English-speaking Indian Squanto.  Whatever the story, it always directs our discussion to the real reason for our family tradition, which ends with each family member and guest having a chance to reflect and share what they are truly thankful for. I hope your Thanksgiving was a time of reflection of the year gone by, shared with family, football, and stuffing ourselves with more than we should attempt.  The traditions we share, whether by our choice or required by the family create memories we will cherish forever. The financial planning tie-in... a good tradition We have talked in recent newsletters about budgeting and life insurance.  Another critical principal of planning is to have an Emergency fund.  Some call this a rainy day fund, slush fund or just savings.  It's a good tradition to make sure you have resources set aside. "It is wise and good stewardship to save today for what you might need tomorrow or later down the road." The pilgrims learned this principle very quickly and that fellow Squanto I mentioned earlier, helped them prepare and learn how to survive in lean times. Bankrate.com recently reported that 28% of Americans have no emergency savings and among those that do have money set aside, 50% had less than 3 months of expenses. So what are the "emergencies" I am talking about?  They range from job loss, an extended period of lower or no income for a small-business owner or commission sales person, illness, natural disasters, and even smaller, yet important issues to resolve such as car repairs or a broken washer. How Much do you Need? 6 months is the minimum amount you need.  Now realize that this is not half (6 months) of your full annual salary.  It is calculated on your living expenses- necessities such as housing, utilities, basic bills and basic food.  In a tight money time, you will not be eating out or shopping.  If you have lost your job, you won't be paying income taxes or making a 401k contribution.  6 months is even more necessary if your family is dependent on only one income. Where do you keep it? Your emergency fund should be someplace easy to access and liquid.  Banks are safe, but are not helpful with their 0.1% savings rates; good luck beating inflation.  A CD is not generally recommended for this type of money because it is not liquid and you will pay a fee if you need it prior to maturity. A strategy I use with many of my clients is to have them keep at their bank what is comfortable for their cash flow and to be able to easily pay their monthly bills.  The remaining amount of their calculated emergency fund is then placed in a Joint investment account to be invested in lower risk but much better yielding rates than the bank can provide.  A portion is kept in cash, majority in short term bonds, some in moderate term bonds and then, in some cases, when the 6 month need is fully met we may invest in dividend stocks.  This approach creates buckets of risk ranging from cash to stocks. "The haves and the have-nots can often be traced back to the did and the did-nots."                                      -D.O. Flynn How do you start? Today is the day. A detailed budget will uncover waste and opportunities to put towards your emergency fund. Start a direct deposit from each paycheck. Earmark a portion of each bonus or larger check you may receive. Here is a calculator to help you know what to shoot for: Click here To your financial freedom, 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. High-yield (below investment grade) bonds are not suitable for all investors. When appropriate, these bonds should only comprise a modest portion of your portfolio. There is an inverse relationship between interest rate movements and bond prices. Generally, when interest rates rise, bond prices fall and when interest rates fall, bond prices generally rise. Investing involves risk and you may lose your principal. Dividends are not guaranteed and must be authorized by the company's board of directors. Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Keep in mind that there is no assurance that any strategy will ultimately be successful or profitable nor protect against a loss. Any opinions are those of Luke Fields and not necessarily those of RJFS or Raymond James. 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 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. 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Now This IS a Scary Story (Why you need insurance)

Now This IS a Scary Story By Stewardship Cents Newsletter, click here to subscribe.

First a funny story

Our family's favorite time of year is the fall, enjoying the crisp air, apple picking, kid's sporting events and the beautiful foliage.  We also like Halloween.  When else can you dress up completely ridiculous and not have to explain a thing?  I am always amazed how many neighbors you meet on trick or treat night.  I am a big kid at heart and enjoy a good scare.  For several years in a row I would scare my neighbor across the street with my Sasquatch mask.  One year was epic.  She had decided to stay inside her house because she learned from my prior 3 years' antics.  Her mistake was she decided to sit at her kitchen table with her back to their sliding glass door, unlocked.  With her husband's full permission, I quietly opened their door and perched my mask just over her left shoulder, waiting for her to turn her head just enough.... The scream was heard down the street even with doors closed!

Ok here is the real story

It's the scary story of an unprepared family, with a widow facing the recent death of a spouse, leaving a mortgage, debt and dependents to care for.  We are not guaranteed tomorrow.  Sickness or tragedy can sadly strike in the blink of an eye.  When a financial mess is left behind, the normal period of grief and stress from the passing of a loved one can be greatly compounded spanning a prolonged duration.

Life Insurance is a basic and essential principle of financial planning.

No one likes to discuss death, I get that.  However, it's important to be prepared for the uncertain.  Maybe you say "I'm single and don't have any children, so I don't need life insurance."  Think again.  Just a small relatively inexpensive policy of $25,000 is a blessing to help your family with funeral expenses.  It is true that some people reach a point in their lives that insurance is too expensive given their age or a particular health related issue.  Others may have done a great job accumulating assets and living debt free that they then can self-insure through their savings.  Unfortunately, the truth is many people if they even have insurance, are severely underinsured.  Insurance can be affordable especially when you consider the risk for your spouse and kids of not having it.

Insurance can provide an income stream for your spouse, money to pay off the mortgage/other debts, funding for your children's college education and even a financial legacy to pass on.

What to look for...

Buy Term. Typically (except for unique situations), term life insurance could be your best option.  It provides the most coverage at affordable level premiums and it can be re-shopped at any time for better rates.  Term also helps free up cash you could have spent elsewhere, such as investing.

Choose the proper coverage.  The proper amount of coverage on you and your spouse's life should be calculated based on your needs not simply a multiple of your current salary or on an employer's group plan.  It is flexible, but has to be selected appropriately.

Choose the right provider.  Life Insurance is offered everywhere from automobile clubs to alumni associations.  However, choose a qualified professional who will consider your unique situation and full financial goals.

Keep your coverage updated.  With new babies, a new mortgage, job change or retirement insurance plans need to be revised.

For more informaton on choosing insurance click here

Any opinions are those of Luke A Fields, CFP® 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

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