Cambridge in the News

Pocono Record - ACA member provides her clients a financial road map for life

In today's Pocono Record article "Erin Baehr runs 'life-integrated,' fee-only financial planning office in Smithfield" Wayne Witkowski spotlights Baehr Family Financial practice, emphasizing how the fee-only model shapes Erin Baehr's approach to working with clients. With offices in both Pennsylvania and New Jersey, Baehr--who is "passionate" about the fiduciary message--points out that she works only for her clients. Baehr once worked for a life insurance company and realized that her advice was incidental to the products she was selling: "I was frustrated by the fact that it wasn't planning; it was sales, and I wanted to work with people on a day-to-day financial basis." This led her to the fee-only model and membership in ACA, the "pioneers" of holistic, life-integrated financial planning. "We are all members of NAPFA, and many are tax professionals as well," Baehr says. "There are about 140 of us nationwide, and we work on a value-based model where we work hard to provide value in excess of the fee."

ACA member Ken Robinson publishes second book

Ken Robinson of Practical Financial Planning in Cleveland, Ohio has recently published Don't Make a Budget: Why It's So Hard to Save Money and What to Do about It. In it Robinson describes an entirely different way to save, teaching you how to save the most that you can without compromising your lifestyle. To read the positive reviews and comments the book has generated and to get information on how to purchase it, click on View to the right.

PR-CANADA.net - Innovative online service provides financial planning guidance

FinancialAdvice4Me, which provides online fee-only financial planning services, has introduced People's Financial Advisor, bringing everyday Americans the type of financial advice many of them thought they couldn't afford--until now. Today's PR-CANADA.net article "Financial Advice Made Easier with People's Financial Advisor" describes how this new service combines online convenience and interactive consultations with advisors, beginning with a free instant financial assessment. Each member of the advisory team is a Certified Financial Planner and experienced in the system used by the Alliance of Cambridge Advisors, which was developed by Bert Whitehead of Cambridge Connection in Franklin, Michigan. Bob Schumann of Cambridge Financial Advisors in Gahanna, Ohio and the Chief Advice Officer at FinancialAdvice4Me says, "People's Financial Advisor is focused on being an objective source for affordable, practical, and top of the line financial advice for ordinary Americans." To learn more, click on View to the right.

WSJ.com - Investors wonder what to do with stray investments after layoffs

Today's The Wallet blog at WSJ.com "What to do With Your Investments If You've Been Laid Off" considers reader Liza's concerns. Typical of many who find themselves unemployed, Liza is wondering what to do with her investments--including her "worthless" company stock--now that she has been laid off from a company she has been with for 15 years. Connie Stone of Stepping Stone Financial in Chagrin Falls, Ohio says that "when it comes to company stock, Liza should sell and claim the loss on her taxes only if the stock is truly worthless and no longer trading; and if she holds the stock in an IRA or 401(k), then she should diversify by exchanging the company stock for other investment options, preferably mutual funds." Liza also wonders about her SERP--a plan that's usually offered as a perk so that employees can save for retirement above the 401(k) limits. "Since it's taxable money," says Stone, "she can't roll it into her 401(k), so it might be smartest to take a distribution and invest it," adding that "for those without cash reserves, a SERP distribution may be a better source of cash than raiding a 401(k)."

InvestmentNews - Social networking is an inexpensive way to market a planning practice

In order to expand their practices and develop relationships with other professionals, planners are linking in, twittering, and facebooking in growing numbers, reports David D. Janowski in this week’s InvestmentNews article “Advisers are harnessing Internet for social networking.” But at the same time they are using these networks to grow their practices, financial professionals need to avoid too much self-promotion, notes Chuck Rylant of C.J. Rylant Wealth Management in Santa Maria, California. “I’m like everyone else when it comes to Twitter and Facebook, and get sick of seeing people who constantly promote themselves,” he says, adding that “when you just sincerely interact with folks and show a real interest, then when you least expect it you’ll hear from them for business.” To read the entire article, click on View to the right.

InvestmentNews - Sales of Build America Bonds are at $10 billion and climbing

In this week’s InvestmentNews article ”New Build America Bonds are the hot muni investment” Jeff Benjamin reports that sales of these federally subsidized taxable municipal bonds could reach $50 billion in the next two years. Part of their appeal is that issuers annually collect a 35% rebate on the interest paid on the bonds from the federal government, allowing the issuers to offer attractive yields. “It’s a pretty good return, but it’s too risky for me,” says Bert Whitehead of Cambridge Connection in Franklin, Michigan who calls them “little more than junk bonds,” adding that “it seems the more municipalities do this, the riskier it gets.” To read the entire article, click on View to the right.

WSJ.com - During these tough times, some may need to consider suspending 401(k) contributions

In today's The Wallet blog at WSJ.com--"Extreme Financing: Cutting Out 401(k) Contributions"--Veronica Dagher considers the once-unthinkable. While conventional wisdom says that no matter how rough the economy gets you should keep contributing to your 401(k), some advisors think that suspending contributions may make sense for some households in the current economic environment. Last year Judy McNary of McNary Financial Planning in Broomfield, Colorado counseled a family of five to temporarily suspend their 401(k) contributions and pay down their debt instead: "There was a first mortgage, a second mortgage, a car loan, a car lease, credit card debt and student loans," she explains. Since the family simply could not make ends meet, had less than $2,000 in liquid assets, and could not borrow from their 401(k), saving for retirement had to go on hold until their liquidity improved. The result? They have paid off much of their debt and have $7,500 in savings; and although they missed out on employer matches during this time, they did not miss out on any gains because of the market's downturn. "That family saw a positive outcome," says McNary, "but ceasing 401(k) contributions is likely not the right move for most families."

WoodburyBulletin.com - Upcoming book discussion is designed to help investors weather these challenging economic times

Today's WoodburyBulletin.com article "Financial advisor to present book discussion" announces that Timothy Brown of Brown Wealth Management in Woodbury, Minnesota will host a series of seminars based on the book Investing in an Uncertain Market for Dummies by Sheryl Garrett. Each of the sessions will focus on debt management, insurance assessment, improving credit scores, and saving for college and retirement; and the tactics described in the book will help participants make good asset allocation decisions in the face of recent market volatility. The next session will take place on April 23 at 1pm at Brown Wealth Management offices. For more information or to sign up for the seminars, click on View to the right.

SmartMoney.com - Buying a home comes with the potential for financial missteps

More first-time home buyers are being lured into the market by a combination of depressed home values, low mortgage rates, and government incentives, reports Lisa Scherzer into today's SmartMoney.com article "10 Mistakes First-Time Home Buyers Make." Of these missteps Erin Baehr of Baehr Family Financial in Shawnee-on-Delaware, Pennsylvania weighs in on three that could fall under a buyer's radar. One is underestimating the costs of owning a home: "Whether it's a rusty pipe or a leaky roof, things go wrong and need to be fixed," she cautions. "Be prepared to set aside a small percentage (1% at most) of the home's purchase price annually for repairs and upkeep." Another error is failing to budget for property taxes: "The likelihood that they'll climb over the course of your time in the house should be factored into any home-buying budget," says Baehr. And doing too much too quickly can get home buyers into trouble, she notes: "Some buyers want to make their home their own right away. They overextend themselves on credit to do so, and assume the improvement will pay for itself by increasing the home's value--but that's not always the case--especially in today's market." Instead, Baehr adds, “buyers need to exhibit patience and make changes over time."

Financial Planning - The current bear market threatens to maul planners now and in the future

For financial professionals, the stock market downturn that began in late 2007 has created a lot of unhappy clients, reports Donald Jay Korn in this month's Financial Planning article "Watch Your Back," and planners may have to do what doctors do to protect themselves against complaints and malpractice suits: Doctors practice defensive medicine; planners may have to practice defensive financial advice. Sheryl Clark of Sunrise Financial in Tucson, Arizona believes that communication is a first line of defense: "I believe the best liability coverage is having a good relationship with my clients," she says. "That means returning calls in a timely manner and trying to fully answer all clients' questions. You want to make sure they feel heard and cared for." Documentation is another good idea. Connie Stone of Stepping Stone Financial in Chagrin Falls, Ohio says that she always documents conversations with clients about long-term-care insurance. "That can avoid lawsuits brought by children or other relatives of clients who decide not to purchase LTC insurance," she says. Richard Salmen of GTrust Financial Partners in Overland, Kansas gets his clients' signatures on documents that spell out courses of action--including investment and real estate decisions--especially when he doesn't agree with them. But for Salmen such problems have been rare, partly because he works with clients throughout their relationship to codify an approach to their financial future: "I prepare a personalized investment policy statement (IPS) for every client," he says. "I won't work with a client without an IPS that the client has signed." To read the entire article, click on View to the right.

Pocono Parent Magazine - How to prepare for the economic uncertainty that will always be with us

The current issue of Pocono Parent Magazine addresses the concerns of readers who worry about a possible job loss in the current economic downturn. "Truth is," says Erin Baehr of Baehr Family Financial in Shawnee-on-Delaware, Pennsylvania, "the only economic certainty we have is that there will always be economic uncertainty, so we need to be prepared for whatever comes our way." In her article "Tough Economic Times" Baehr begins by offering advice for all of us, no matter how secure our jobs seem: Build an emergency fund, and--if a layoff seems imminent--continue to build that fund. "In a world where things seem so out of our control," she says, "working on a goal like this can go a long way toward the peace of mind that comes from doing something to improve the situation." Also, reduce consumer debt, Baehr advises, by paying down credit card balances and cutting unnecessary expenditures. And if the worst happens and you do lose your job, talk to your human resources department so that you understand your options regarding benefits. Whichever of these situations you find yourself in, Baehr notes, a good place to start may be with a member of the Alliance of Cambridge Advisors: "A few hours invested with an objective planner can not only keep you from making expensive mistakes, but can help you sort out your choices while keeping emotion out of the decisions."

Christian Science Monitor - When money is tight, protect your principal

One of the questions submitted to Steve Dinnen's Financial Q&A column in today's Christian Science Monitor comes from D.K. At 66, she wants to know, first, what to do with the money she has from the sale of her house and, second, how to find a financial advisor who will give her sound advice. Dana Levit of Paragon Financial Advisors in Newton, Massachusetts says that she leans toward keeping the money from the house sale safe since D.K. can't afford to lose principal, especially if she's close to retirement. She deposited $45,000 of the proceeds from the sale of her house into a money market account; Levit advises that the remainder--$50,000--be laddered into two CDs--one for six months and the other for a year: "You can roll over the CDs as they come due if you don't need the cash at that point. This way at least $25,000 will be available every six months." As to finding financial advice, Levit suggests searching for a fee-only financial planner at NAPFA.org, the web site of the National Association of Personal Financial Advisors or fpanet.org, the web site of the Financial Planning Association.

InvestmentNews - A conservative bond ladder can be a retirement portfolio’s stable foundation

In this week’s article “Advisers look to safety ‘ladder’” Jeff Benjamin examines the pros and cons of allocating a portion of a retirement portfolio to a ladder of Treasury bonds. Critics of the strategy—which builds a ladder of Treasury bonds that will start maturing upon a client’s first year of retirement—argue that it is simply too conservative; but given the market’s recent sharp decline, proponents of the strategy point to its safety. Bert Whitehead of Cambridge Connection in Franklin, Michigan has been using this strategy—whose low yield can be offset by a more aggressive stock allocation in a retirement portfolio—for 20 years and notes that “yield is secondary to safety in a strategy that is designed to create a guaranteed retirement income stream.” And, he adds, “up and down Wall Street, there are people trying to beat the market, but we’re trying to give market returns and peace of mind.” Sheryl Clark of Sunrise Financial Strategies in Tucson, Arizona endorses the strategy: Even though her clients don’t always like the low yield, she says, “The goal is to end up with 15 years’ worth of bonds equal to the amount of money my clients will need to live on.” To read the entire article, click on View to the right.

National Association of Personal Financial Advisors - ACA member to speak at upcoming NAPFA conference

Kathleen Rehl of Rehl Financial Advisors in Land O'Lakes, Florida will speak at the 2009 NAPFA National Conference which will take place June 3-6 in Washington, D.C. The topic of her Friday morning presentation is "Widows and Financial Planning." To see a description of Rehl's discussion of this important issue, click on View to the right; use the links at the top of the web page to get more details about the entire conference.

InvestmentNews - One firm manages 7 of the 10 most researched mutual funds

According to data compiled by Morningstar, Inc., in the latter half of 2008 when financial markets began their breath-taking slide, financial planners and their clients researched Los Angeles-based American Funds more than any other mutual fund group, reports Mark Bruno in this week's InvestmentNews article "American Funds No. 1 in adviser inquiries." As an over-all fund group, American Funds has demonstrated steady, long-term performance for the past three, five, and ten years, according to Morningstar, putting it in the top 30% of its peer group, and it is this kind of performance that appeals to many financial professionals at this time. Notes Jonathan Heller of KEJ Financial Advisors in Newton, Pennsylvania, "When there are so many variables and unknowns in the markets, having a track record that goes back a number of years at least gives you something to go on." To read the entire article, click on View to the right.

Bottom Line Secrets - Despite their appealing yields, municipal bonds may have become too risky

For today's article "Munis Get Scary" Bottom Line Secrets interviewed Dennis O'Brien of Coastal Financial Advisors in Farmingdale, New Jersey who notes that "the national and global financial crises are going to be deep and protracted--and muni bond issuers around the country are sinking deeply into debt." With at least 46 states facing serious budget shortfalls, O'Brien recommends taking another look at low-risk Treasuries, and to counter their current low yields he advises building a "bond ladder," from short- to long-term, which will mature over a period of years; with this strategy money won't be locked into low yields for a long period of time. Another option, O'Brien says, "is to spread your fixed-income assets among these three low-cost exchange traded funds (ETFs): iShares Barclays 3-7 Treasury Bond (IEI); iShares Barclays TIPS Bond (TIP); and iShares Barclays Aggregate Bond (AGG)."

Kiplinger's Personal Finance - When planning your investment strategy, there's nothing to gain by looking back to 2008

In this month's Portfolio Doctor feature "You Can Do Better Than Break Even" Jeffrey R. Kosnett addresses the concerns of a reader who wants to recoup last year's market losses and then return to the safety of CDs. A year ago, Sandy--who owns her own business and is single--moved $51,000 from a maturing certificate of deposit in her IRA to mutual funds which are now worth $30,000. The idea of waiting to break even and then getting out is not unheard of, but in Sandy's case, it doesn't make sense: If her mutual funds recoup their losses, it means that the markets and the economy are getting healthier, so--other than reducing her holdings when stocks become expensive again--it wouldn't make sense to sell. "The best money managers got this one wrong," says Connie Stone of Stepping Stone Financial in Chagrin Falls, Ohio. "People who are self-employed, single, widowed or divorced," she explains, "are particularly frightened by losses and often react by wrapping both arms around what's left." Instead, Stone "would prefer that Sandy increase her IRA contributions in 2009 or set up an individual 401(k), with an emphasis on stocks." To read the entire column, click on View to the right.

NAPFA Advisor - Mind-mapping can lead to creativity and solution-oriented thinking

Nancy C. Nelson's article in this month's NAPFA Advisor--"Mind-Mapping Your Way to a Better Practice and Better Client Service"--begins with a simple description of mind-mapping. Instead of making a list to address issues, take a sheet of plain white paper and a pencil; write your main issue or idea in a circle in the center of the page; then create branches coming from the circle with everything you can think of that's related to your main idea; create as many branches and sub-branches as you want; add links and arrows to connect related ideas. Ken Robinson of Practical Financial Planning in Cleveland, Ohio uses mind-mapping to brainstorm business management issues. "Just this Monday, I held a business retreat--that's me in a conference room by myself--and used mind-mapping to brainstorm my marketing, current commitments, and more." He sometimes uses paper and pencil; other times he uses FreeMind (a free service). "The more I have to record, the more likely I am to use FreeMind," Robinson explains. To visit the FreeMind site, click on View to the right.

Al Dia - Paying yourself first is an important part of any spending plan

In today's Al Dia--the Dallas/Fort Worth area's Spanish-language newspaper--Juan F. Jaramillo writes of the importance of both monitoring costs and saving in “Establece un plan de gasto"--“Establish a spending plan." Christopher Currin of Pegasus Advisors in Dallas, Texas notes that families who monitor their finances may find that they are spending more than they think on things that are not important to them. "You can change your priorities to reflect what matters most to your family," he says, adding that savings is very important: "I want all my clients to save at least 10% of what they earn. When you pay your bills, be sure to pay yourself first."

NAPFA's Your Money Bus Tour rolls into Tulsa

The Your Money Bus Tour, sponsored by the National Association of Personal Financial Advisors (NAPFA), began last summer and has been traveling from city to city offering free financial advice to help people cope in these increasingly difficult times. Today the Money Bus stopped at the Hardesty Regional Library in Tulsa to help residents address their money concerns. Among the NAPFA volunteers who fielded questions was Kevin Jacobs of Step by Step Tax and Financial Planning in Broken Arrow, Oklahoma. Granting that specific advice varies depending on an individual's situation and age, he has tips that work for everyone: "One of those is to save ten percent of your gross income." Jacobs also suggests "keeping a cash reserve and owning a home with a fixed mortgage." Addressing the specific concerns of retirees and near-retirees who are wondering what to do about their decimated 401(k)s, Jacobs notes that "one of the worst things to do is to sell low. But for someone that's retired, we have to protect what they have, and we have to protect their future." To read more about NAPFA's Your Money Bus Tour and learn when it may be coming to a city near you, click on View to the right.

WSJ.com - Advisors are working to calm investors as the Dow hits a multi-year low

In today's Practice Management column "Investor Anxiety Rises As Market Falls" Kristen McNamara describes how the continuing erosion of stock prices this past week has caused many investors--especially those without a financial plan--to be increasingly fearful. Those who sold stocks last year are wondering when to get back into the markets; those still holding stocks are wondering about reducing their exposure. Either way, the experience is filled with anxiety. Troy Von Haefen of Von Haefen Financial Management in Nashville, Tennessee says that he reminds clients "of the methodology behind their portfolio construction and the importance of adequate cash reserves." Like other advisors, Von Haefen "encourages clients to focus on factors they can control, including spending, saving, and tax-efficient planning."

Boulder Daily Camera - If you think your job is at risk, there are steps you need to take now

In today’s Daily Camera article “Job at risk? Take action” Dave Gardner of Yellowstone Financial in Boulder, Colorado helps those readers who may be facing a job loss to shore up their finances. His advice? Concentrate efforts on accumulating cash, consider refinancing your mortgage, and get a credit card with a permanently low interest rate. “We joke that in the financial planning industry we sell sleep,” says Gardner, adding that “you’ll sleep better at night knowing that you’re living within your means while working. You’ll put away more savings and lower your monthly expenses, steeling you for a period of unemployment.” To learn the details of Gardner’s plan and to read the entire article, click on View to the right.

InvestmentNews - A unique way for advisors to integrate clients' personal and social values into their estate planning documents

In this week's InvestmentNews article "Legacy gifts make a difference" Kathleen Rehl of Rehl Financial Advisors in Land O'Lakes, Florida writes of how she helped clients Robert and Christine approach the task of updating their wills. They both expressed the desire to do more than just leave material goods and money to their heirs but couldn't agree on what they wanted to accomplish. Using a questionnaire to help them write a "personal financial philosophy" and using the movie The Ultimate Gift to help them understand that they could take care of family and make legacy gifts to causes that were important to them, Rehl developed Robert and Christine's estate plan. Their heirs will receive some financial assets outright, along with birthday gift annuities. After the second spouse dies, "money in their designated retirement accounts will pass directly into charitable gift annuities managed by a national non-profit foundation," Rehl explains, adding that "annual income checks will then flow to heirs for their lifetimes, with the remaining principal eventually passing to charitable organizations that Christine and Robert cherish." To read her entire article and learn more about how Rehl implements this process, click on View to the right.

Financial Planning - In this difficult market environment bond ladders are gaining popularity

Planners whose clients need steady and secure retirement income would do well to consider bond laddering, reports Ilana Polyak in this month's Financial Planning article "Climbing to Retirement." Building a bond ladder--populating the rungs with bond issues all along the yield curve--can ensure a predictable income stream and provide the peace of mind that goes with it. Bert Whitehead of Cambridge Connection in Franklin, Michigan begins building his clients' retirement bond ladders when they are in their 40s and 50s, dollar cost averaging into interest rates. He designs the ladders going out 15 years using STRIPS--Treasury separate trading of registered interest and principal securities. "We rebuild the ladder during times of prosperity," says Whitehead. And in troubled markets like we're experiencing now, clients' cash flows are not affected since they come from the ladder. "Cash flow is always cash flow," he notes. To read the entire article and learn how Whitehead implements this strategy, click on View to the right.

InvestmentNews - Even in this difficult market environment, maintaining a diversified portfolio is important

In 2008 domestic equity markets declined more than 35%, making many investors wary of staying in the stock market at all. As a result, advisors are finding diversification a hard sell to clients right now, reports Mark Bruno in this week's InvestmentNews article "A diversification quandary." "It's a tough conversation to have at the moment, as clients are pretty emotional over their losses," notes Jonathan Heller of KEJ Financial Advisors in Newton, Pennsylvania, adding that "it may be the biggest challenge we've faced in communicating with clients." To read the entire article, click on View to the right

Boulder Daily Camera - There are no guarantees, but history indicates that 2009 may bring better news for financial markets

In today's Daily Camera article "Learning from a year to forget" Dave Gardner of Yellowstone Financial in Boulder, Colorado delivers good news to investors who are opening their year-end account statements and seeing their balances down by 40 percent or more for the past year: "Our experience shows us that with investments the darkest hour is often just before the dawn." Noting that the worst bear markets of the last century were the Great Depression market (1929-32) and the Watergate/oil crisis market (1973-74), Gardner goes on to add that "after the Great Depression bear market, stocks averaged returns of 9.4 percent over the next ten years...even better are the 14.8 percent average annual returns in the ten years following the Watergate era." Still shell-shocked from their 2008 statements, most investors may not realize that we could be in the early stages of a market rally with the S&P 500 Index up over 20 percent from its November lows. "It may not be fashionable or easy," says Gardner, "but owning stocks for the long term may be your best resolution for 2009."

Boulder Daily Camera - Avoid falling prey to investment fraud and investment schemes

The publicity surrounding the allegations against New York investment manager Bernard Madoff has caused investors to ask: If many of the victims of Madoff's Ponzi scheme were among the world's financial elite, how can ordinary investors protect themselves? In today's Daily Camera article "How to avoid an investment scam" Dave Gardner of Yellowstone Financial in Boulder, Colorado shares these tips with his readers: First, if it sounds too good to be true, it probably is; second, belonging to the same club, church, or synagogue as an investment advisor is no substitute for doing your homework; finally, use an investment advisor who works with an independent custodian. Emphasizing the importance of this last point, Gardner points out that "an independent custodian provides insurance against fraud and also sends out statements directly to you." Since Madoff's clients received their statements solely from his firm, the results were not subject to an independent audit. "If you are getting all information about holdings, transactions, and returns directly from your advisor and there is no reputable auditor in place, this is cause for concern," says Gardner.

Boulder Daily Camera - Some holiday gift ideas from a financial advisor

Dave Gardner of Yellowstone Financial in Boulder, Colorado has some interesting suggestions for holiday giving and shares them with his readers in today's Daily Camera column "Unorthodox gifts with a good return." The first and perhaps hardest to give is a level term life insurance policy: "If you have family members or others who depend on your income and you don't have a portfolio to support them, you should consider this true gift," says Gardner. It's a truly selfless gift, he explains, "because even if it's used, you will never be able to witness how it changes the lives of its recipients." Those who prefer to take a pass on this idea might want to consider books on financial topics or perhaps a one-time financial review with a planner who can give sound advice on budgeting, investing, tax planning, and saving. His final suggestion? Shares of Ford or General Motors stock. "You can't lose with this one," says Gardner. "Either the recipient will realize a healthy return or will have an enduring memento of American history."

InvestmentNews - In this bear market, portfolio re-balancing is easier for some investors than others

With the stock market down more than 40% since January, financial planners are faced with the task of rebalancing portfolios for shell-shocked clients. In this week's InvestmentNews article "Portfolio re-balancing becomes high-wire act" Jeff Benjamin reports that some planners are finding market conditions too much to bear for clients who now have larger weightings in cash and fixed-income investments in relation to equities but are still reluctant to re-balance, given the market's decline. Other planners find that clients are having no problem "staying the course" by buying equities now and moving their portfolios back to the original target allocation. "Everybody is underweight equities right now, so most of my clients are buying," says Gregory Fenton of Cambridge Cape Cod Advisors in Sandwich, Massachusetts. He expected more resistance when he recommended that clients buy more stocks now: "This is when the strategy proves itself,” Fenton notes, “but I was shocked by the way my clients responded. I thought they would be nervous but most of them said 'no problem, that's what I thought you'd say'." To read more, click on View to the right.

Health.com - Making sure a spouse gets the proper care if you are no longer living

In the current Health.com article "How Do You Ensure the Care of a Chronically Ill Spouse if He Outlives You?" Ilana Polyak describes some steps to consider that can remove the uncertainty about how the surviving spouse will be cared for when a spouse/caregiver dies. Establishing a living trust is one way to ensure that a couple's assets will be used for the surviving spouse's care. And when you set up a living trust, you should name yourself as the trustee and name a successor trustee who will administer the trust if you die or are incapacitated. Notes Constance Stone of Stepping Stone Financial in Chagrin Falls, Ohio, "If you have the trust set up, and you fund the trust, then the successor trustee can step in more easily to help the chronically ill person take care of their affairs." To read more, click on View to the right.

Financial Planning - Move into emerging markets cautiously, planners say

Emerging market funds have plummeted in 2008, leading Donald Jay Korn to title his article in this month's Financial Planning "Submerging Markets" and to ask if it's time to get back in at the current depressed prices. Although some advisors believe that the global economic slowdown--which has hit emerging markets particularly hard--will be with us for some time, others are not so pessimistic. But even those who see the current environment as an opportunity advise modest allocations, including John Scherer of Trinity Financial Planning in Madison, Wisconsin who typically recommends allocating 10% of the equity portion of a client's portfolio to emerging markets. “Recently,” he says, “emerging markets have underperformed; if clients are below their allocation to emerging markets, we'll be adding to their holdings." To read this article, click on View to the right.

InvestmentNews - During these tough times, some planners advise dipping into retirement savings

In this week’s InvestmentNews article “Financial advisers try last resort strategies” Lisa Shidler reports that a growing number of planners are reversing conventional wisdom and are urging clients who have lost—or who are afraid of losing—their jobs to stop contributing to retirement and college savings accounts in order to bolster their emergency funds. In some cases, clients who have been unemployed for some time have been advised to dip into their retirement accounts in order to cover day-to-day expenses. But, cautions Judy McNary of McNary Financial Planning in Broomfield, Colorado, “tapping into retirement savings should be a last resort.” She advises her clients to continue funding their retirement accounts as long as possible: “A layoff should be viewed as a temporary setback, but retirement is a long-term goal.” To read the entire article, click on View to the right.

InvestmentNews - Planners work to fill gaps in the financial plans of autoworkers and those in related industries

Jeff Benjamin's article "Warning lights flash for Michigan advisers" in this week's InvestmentNews calls attention to the related plights of the heads of the American auto industry as they plead for federal help, the workers in (and retirees from) the auto industry, and the financial planners advising these workers and retirees as they scramble to fill retirement income and health care gaps. Michigan is particularly hard hit: The home of the Big Three is experiencing the worst economy in the nation, and Michigan-based planners are experiencing the challenges involved in encouraging clients to look beyond the auto industry for financial security. Bert Whitehead of Cambridge Connection in Franklin, Michigan notes that "some of the people here are so fiercely loyal that it obscures the rationale of owning Ford or GM stock." As for the prospects for a bailout, Whitehead says, "Living in the Detroit area, I'm inclined to favor the bailout, but logically I know it won't fix the problem." To read the entire article and Whitehead's advice to his autoworker clients, click on View to the right.

Boulder Daily Camera - What do President-Elect Obama's tax proposals mean for your pocketbook?

“The journey between proposals in a stump speech and actual law is along one, but we should at least be prepared for what may come,” says Dave Gardner of Yellowstone Financial in Boulder, Colorado who wrote today’s article “How Obama’s tax plan affects you” for the Boulder Daily Camera. Overall, says Gardner, "Obama's proposals would make the tax code significantly more progressive than it is today," with low- and moderate-income earners benefiting while upper-income earners will be paying more. And what about now-famous Joe the Plumber? Under Obama's plan, this single father who earned $40,000 in 2006 will receive a sizeable tax break. "It can't be denied that Obama will raise taxes significantly on high-income earners," says Gardner, "but for the moment taxpayers like Joe can look forward to an IRS check in the mail."

InvestmentNews - Working for a national broker-dealer is attractive to a majority of planners

In this week’s InvestmentNews article “Most advisers prefer working for a national firm” Andrew Coen reports results of a John Hancock Financial Network survey conducted this past spring. Of the 1,016 advisers who responded, 70% indicated that they prefer working for a national company. Along with the access to information technology services that broker-dealers provide, respondents cited a preference for employee benefits such as subsidized health care. But not all financial professionals are sold on broker-dealers: Rebecca Preston of Preston Financial Planning in Providence, Rhode Island is among those who prefer the fee-only environment. “[Advisers who work at national firms] don’t really have to run a business; they just have to sell,” she says, and “that’s what I don’t like to do.” To read the article, click on View to the right.

Financial Planning - Some advisors see opportunities in the aftermath of the collapse in the real estate market

For his article "The Storm Inside" in this month's Financial Planning Donald Jay Korn polled financial planners for their outlook on the real estate market. Although they agreed that there's no hurry to buy property, some do see opportunities in the current environment, including Chris Zehnder of Zehnder Wealth Management in Saint Cloud, Florida who notes, "In some areas, this can be a really good time to be a landlord." Finding a reasonably priced home in an area where renters are willing to pay decent rates may set the stage for positive cash flow. And this is true not just for his clients but for Zehnder himself, who owns several homes in popular areas: "I have no problem in renting them to acceptable tenants at good rates," he says adding, "I recently bought one in central Florida, from a bank. After putting in some money for initial fix-up costs, I've had positive cash flow from the start." To read the entire article, click on View to the right.

Success - Making smart financial moves now can help ensure your financial future

For this month's Success magazine feature "1-On-1: Wealth Matters," financial experts were invited to address readers' money concerns. Dennis O'Brien of Coastal Financial Advisors in Farmingdale, New Jersey responds to a reader who asks how much money he needs to start a small business. First, advises O'Brien, compute your total expenses, add your anticipated salary, and then add a profit margin somewhere between 5 and 20 percent, depending on the type of business and market conditions. “This,” he says, “will give you the total revenue you need to produce on an annual basis to meet your cash flow, provide an income for yourself, and make a profit. You will need enough capital to carry you for about three years, at which point you should start showing a profit. Some businesses may show profits sooner, some later."

CNNMoney.com - Prepare for an empty-nest windfall when your children leave home

In today's article "The biggest raise you'll ever get" at CNNMoney.com Dan Kadlec flashes forward to the day--bittersweet though it may be--when his children have left home and all the expenses of child-rearing are a thing of the past. Among his tips for making the most of this empty-nest windfall is to kick savings into high gear. Ken Robinson of Practical Financial Planning in Cleveland, Ohio notes, "The numbers say we should pay off your debts completely first, but we don't run on numbers. We run on emotion, and seeing your savings grow is incredibly empowering." Another tip is to live a little since life is about balance, not denial, and setting limits is the key: Says Robinson, "I could see spending 10% or even 20% of a monthly windfall."

InvestmentNews - Financial planners advised to get up to speed on the "new media"

In this week's InvestmentNews article "Go forth and blog, advisers urged" Jeff Benjamin reports on a key message delivered at the recent annual conference of the Alliance of Cambridge Advisors in Nashville, Tennessee. In a "Transition to the New Media" training session Benjamin Lewis, president of Perception, Inc., told attendees that independent financial planners are in a position to "own" the personal finance market if they get more comfortable with the Internet and with the technology of blogging, webinars, and podcasts--all linked to a website that is "vibrant and inviting." His message resonated with Jane Young of Pinnacle Financial Concepts in Colorado Springs, Colorado: "The blog is definitely something I want to do," she said, adding "I will be moving forward with my own blog, and I plan to make my website more dynamic." To read the entire article, click on View to the right.

InvestmentNews - Gold gives comfort to some investors as the global economy takes a downturn

Gold has historically been seen as the "go-to" strategy in tough economic times, notes Jeff Benjamin in this week's InvestmentNews article "Amid crisis, clients reach for the gold." Some see gold as a tangible asset that can be held as coins or bullion in the face of economic uncertainty; others see gold as a hedge against inflation. Bert Whitehead of Cambridge Connection in Franklin, Michigan is familiar with both these points of view. "The real extreme gold freaks," he says, "believe money is going to be worthless, and you have to have gold to have something of value." As for those who see gold as an inflation hedge, Whitehead points out that the last time he saw investors running toward gold was when the inflation rate hit 16% in the late 70s: "Normally people turn to gold when there is higher inflation." But, he adds, "Right now, people are looking at it because they're worried about an economic collapse." To read the entire article, click on View to the right.

ABC News - "Good Morning America" financial contributor recommends ACA

On today's "Good Morning America" show viewers were given the chance to ask financial contributor Mellody Hobson about their money concerns. One inquiry came from Naomi who wanted to know how to find a good financial advisor. Said Hobson, "I do think it would be worthwhile for you to consider working with a fee-only financial planner." One of her recommendations was the Alliance of Cambridge Advisors whose network caters to all wealth levels and will help you locate a professional whose expertise will match your needs.

The Jersey Journal - Investors seek reassurance from financial advisors as stock market plunges

In today's Jersey Journal article "Losing Needs Soothing" Paul Koepp reports that local financial advisors have recently had to double as psychiatrists when their clients come to them for reassurance as the stock market drops. "These are terrible, terrible times and people do get panicky in some cases," says Avani Ramnani of Athena Wealth Advisors in Jersey City, New Jersey. For those whose nest egg has cracked and are worried whether their 401(k)s will ever come back, she says, "The only thing I can tell them right now is just to conserve cash."

NBC15.com - In the face of this bear market, stick to your plan

For today's NBC15.com article "Pain on Every Street" WMTV reporter Chris Papst consulted John Scherer of Trinity Financial Planning in Madison, Wisconsin who lately finds himself fielding client calls by asking, "How are you doing?...Keeping your eyes off the market, right?" For those who can't resist watching the market's recent moves, he has some simple advice: Don't make rash decisions, don't panic, and have a plan. "Make sure that you have a thought out plan for the long term. Don't react to short-term market swings," says Scherer adding that "the market fluctuations that we see now are psychological as people panic, and patience is the key to making money in the stock market."

WKOW27 News - Sticking to your financial plan is the best strategy in the face of market uncertainty

As part of the current "Protecting Your Money" series WKOW 27 News reporter Dan Cassuto enlisted the help of John Scherer of Trinity Financial Planning in Madison, Wisconsin to address the concerns of viewers who wonder "What should I do?" in the face of recent market declines. Whether retirement is many years away, just a few years off, or something that's already been entered into, Scherer's advice is the same: It's important to have a plan and follow the plan. Instead of reacting to short-term market moves, says Scherer, “Ignore the daily market buzz.”

Cleveland.com - Financial pros give advice for dealing with a crazy market

Cleveland's The Plain Dealer reporter Alison Grant addresses questions readers have as they watch the stock market--and the value of their investments--fall. For today's post at Cleveland.com "Queasy about the market? Listen to your head, not your stomach" she went to area financial professionals, including Connie Stone of Stepping Stone Financial in Chagrin Falls, Ohio to get the answers. One reader with a lot of credit card debt asks, "...the way the market is, I'm not making any money on my 401(k) contributions. Should I lower my retirement account contributions so I can whittle my credit card debt?" Says Stone, "No, no, no, no, no," explaining that--especially if you're young--this is a real opportunity: "If you continue to make contributions, you're buying in when prices are at rock bottom."

Financial Advisor - Current housing downturn derails some retirement plans

In this month's Financial Advisor article "Retirement on Hold" David J. Drucker describes the dilemma many retirees and pre-retirees face: With stocks and residential real estate declining in value, how can retirement plans be modified and--in the worst cases--salvaged? Chuck Rylant of C. J. Rylant Wealth Management in Santa Maria, California is one advisor who has become familiar with the worst-case scenario: "Our most recent client came to us because all of his net worth was in rental properties in Bakersfield." Hoping to create a fortune, this client had not diversified outside of real estate, notes Ryland, adding that "when property values declined, the client was forced to sell many of these homes because he didn't have enough cash flow to keep up with the mortgages." Fortunately, not all of Rylant's clients find themselves in this situation and remain on course for the long term. To read more, click on View to the right.

Financial Planning - Medicaid planning becoming a prime concern for many families

In this month's Financial Planning article "Pleading Poverty" Donald Jay Korn explores the complexities of qualifying for Medicaid--a federal-state program which steps in to cover nursing home bills only after people have depleted most of their assets. Connie Stone of Stepping Stone Financial knows firsthand how overwhelming qualifying for Medicaid can be: "I recently helped my 86-year-old aunt get approved for Medicaid," she says; "I felt privileged to be able to do so, but it was a tremendous amount of work." To read the entire article and learn more about how Stone not only helped her aunt qualify but also helps her remain eligible for Medicaid, click on View to the right.

NAPFA Advisor - A holiday gift idea for clients that looks toward the upcoming tax season

When Annie McQuilken surveyed financial planners for this month's NAPFA Advisor article "Efficient for the Holidays: Doing Your Client Gift Shopping Early," she found that some NAPFA members who are giving holiday gifts to clients are doing so with an eye toward the upcoming tax season. One popular choice is the book Deduct It, Deduct It by Bert Whitehead of Cambridge Connection in Franklin, Michigan which helps clients assign an appropriate dollar amount to their charitable contributions.

CopsAlive.com - Law enforcement officer's career path brings him to financial planning

In today's CopsAlive.com article "Successful Cop: Chuck Rylant" John Marx describes the journey taken by Chuck Rylant of C. J. Rylant Wealth Management in Santa Maria, California. He began his law enforcement career in Lompoc 1998; from there he went to the detective bureau in Santa Maria where he concentrated on financial and fraud cases and completed a Bachelor's degree. "Through the years," says Rylant, "I got a reputation as the go to guy for finances." This interest, along with frustration with the politics of his job, set the stage for Rylant to focus on what he found most rewarding--giving financial planning advice. "Before this I was giving free advice to cops, in the middle of the night, over the hood of a patrol car," he recalls. After leaving his job to return to school full time, Rylant earned a Master's degree in business administration and found himself at a crossroads: "When I left law enforcement, I was unsure if I was going to return, but I just hadn't gotten it out of my system yet. After graduation, I was quickly hired back at the Santa Maria Police Department, and I returned with an entirely different outlook on life. Now I am having fun as a SWAT team member and running my financial planning firm."

Business Week - Limited health plans are not for everyone

"Is Low-Cost Health Insurance Worth It?'' asks this week's Business Week article by Karyn McCormack; the answer, according to the advisors she interviewed is, "Not always." The popularity of these low premium plans is understandable: Americans are faced with the rising cost of food and gasoline; many homeowners with adjustable rate mortgages are watching their payments climb; and health care is becoming more expensive. But it's important to remember that giving up coverage for expensive care simply transfers the risk from the insurer to the insured: Marc Vorchheimer of Integrated Financial Consulting in Spring Valley, New York reminds readers, "Your goal is to protect against catastrophe." To read the entire article, click on View to the right.

InvestmentNews - Many retirement accounts may be overweight in mortgage bonds and financial stocks

According to a recent Morningstar poll, many financial advisors were surprised to learn that--in spite of the recent mortgage crisis and the turbulence faced by financial services companies--25 of the largest target date funds had between 20% and 30% of their assets in financial stocks and/or mortgage bonds. In this week's InvestmentNews article "Financials, mortgage bonds still abundant in target funds" Lisa Shidler examines the reactions of financial professionals to this type of concentration in retirement portfolios. Although some maintain that the strategy is a solid one, Doug Kinsey of Artifex Financial Group in Dayton, Ohio disagrees and points out that some advisors don't even know the weightings in target date funds: "I didn't realize that they were overweight in financials, and what about the average person who does not spend their days thinking about this?" he asks. "That concerns me. That's why we've shied away from using them." To read the entire article, click on View to the right.

The Christian Science Monitor - An emergency savings account is the best way to avoid a consumer debt spiral

In today's Financial Q&A feature Steve Dinnen answers a question from a recent college graduate: With a new job that pays enough to meet his basic expenses, what should N.N. do with the $2,000 he has managed to save? The financial experts who considered his question agreed that he should tuck that $2,000 into a savings account as an emergency fund. Rob Choiniere of Plans to Prosper in Wexford, Pennsylvania notes that "when--not if--something unexpected happens (e.g., you blow your car's transmission), how will you pay for it? Answer: You'll have to borrow." Pointing out that “the first thing that anyone should do is to accumulate at least 10 percent of their annual income in a savings or money-market account and keep that as a minimum balance," Choiniere adds that "you should add another 20 percent of your annual income to those reserves, but that additional amount can be kept in a money-market account or three-month CDs (two equal purchases separated by one month). Then, if the bottom drops out, you will have three months of income available to recover."

Bankrate.com - Downsizing can be a smart move for retirees

Bankrate.com's Securing Retirement series turns its attention to trimming the fat from your retirement budget in Steve Santiago's article "Ways to downsize during retirement." He presents 6 tips for scaling back without feeling deprived, starting with "Shrink your domicile." Connie Stone of Stepping Stone Financial in Chagrin Falls, Ohio says, "Housing is the biggest area to save money." For some of her clients she suggests smaller homes with less upkeep; for others she recommends shopping for a retirement community with bundled services, such as meals and laundry. Stone tells of a client who recently moved from a condominium to a retirement community apartment: "She absolutely loves it because now she has a smaller home, and she has fixed costs for her meals." To read the other tips on downsizing, along with more of Stone's comments, click on the View link to the right.

Financial Advisor - CFP's revised ethics code takes effect

The Frontline News feature in this month's Financial Advisor notes that the Certified Financial Planner Board of Standards' revised Standards of Professional Conduct takes effect on July 1. For the more than 57,000 CFP certificants, this revision clarifies the fiduciary role of advisors and the responsibility they bear for acting in their clients' best interests. Avani Ramnani of Athena Wealth Advisors in Jersey City, New Jersey believes that these new standards bring the profession's practices into line with the public's ideas of what it should be doing: "There's a gap between what should be happening and what is happening," she notes.

InvestmentNews - Can fun and financial planning go hand-in-hand?

Definitely, says Kathleen Rehl of Rehl Financial Advisors in Land O'Lakes, Florida. Her article "Financial retreats focus on fun" in this week's InvestmentNews describes how Rehl asks clients to "escape into, not out of, financial planning" by inviting them to visit her in Florida: "I believe that there may be a different way to do financial planning, especially with clients who are far away. I can spend concentrated face-to-face time with my clients, as well as provide an opportunity for rest and recuperation." Among her retreat themes: Moving from Success to Significance, Planning for a Re-Fired Life, and Starting Life Over as a Widow. To read her entire article and learn how Rehl hosts these financial retreats, click on the View link to the right.

Cleveland's The Plain Dealer - Handling the tax implications of selling a home

In today's Ask the Expert column in The Plain Dealer reporter Teresa Dixon Murray refers a reader's question to Ken Robinson of Practical Financial Planning in Cleveland, Ohio. The reader and his wife just sold their home for $20,000 less than they paid for it two years ago and are asking if they can claim it as a capital loss. "A loss on the sale of a primary residence," answers Robinson, "is a non-deductible personal loss." But, he points out, the loss (or gain) isn't simply how much you got when you sold the house minus how much you paid for it. For tax purposes there are a number of adjustments that can affect this number. For example, you're allowed to subtract certain expenses of the sale from the selling price, and you're allowed to add the cost of certain improvements to what you paid for the home. Robinson's advice? Consult IRS Publication 523 Selling Your Home (available at irs.gov). Then "if you are at all unsure how to handle the sale of your home on your tax return, consult a qualified tax advisor."

Associate at Cambridge Cape Cod Advisors gains college planning credential

Congratulations to Philip L. Stockton, an advisor with Gregory Fenton at Cambridge Cape Cod Advisors in Cape Cod, Massachusetts. Today he was awarded the Certified College Planning Specialist credential through the National Institute of Certified College Planners (NICCP).

Cleveland's The Plain Dealer - How one advisor plans to spend her economic stimulus check

In today's Plain Dealer article "Most plan to spend tax rebates, surveys show" Cleveland reporter Teresa Dixon Murray takes a look at how some of the area residents who work in finance-related fields plan to spend their economic stimulus checks. Among their plans: paying bills and college tuition, saving, and special projects in and around their homes. Connie Stone of Stepping Stone Financial in Chagrin Falls, Ohio and her husband will put half of their tax rebate check into their cash reserve fund and will use the other half for trees, shrubs, and perennials . Stone--who is a master gardener--says, "My husband and I are fanatical about landscaping and gardening." They bought a 104-year-old house ten years ago and have been gradually working on the landscaping since then. These purchases, she says, "will provide a return for the next 20 or so years."

InvestmentNews - Advisors can focus on what makes clients smile

"Meeting with clients right now might not be much fun," says Kathleen Rehl of Rehl Financial Advisors in Land O'Lakes, Florida. With the turmoil on Wall Street providing more than enough pessimism to go around, it's a good time to turn to something less bleak, and the title of her article in this week's InvestmentNews says it all: "Refocus clients to big-grin goals." And what, exactly, is a "big-grin" goal? For each of us, says Rehl, it's the answer to the question, "What would give you lots of joy and put a huge smile on your face this year?" Some of the goals her clients' answers have identified are traveling, redecorating, celebrating a family event, improving their health, and getting organized. "Presuming that the goal is affordable," says Rehl, "the advisor's job is giving a green light to spend." To read the entire article, click on the View link to the right.

InvestmentNews - April 15 tax deadline poses a tough problem for a number of investors this year

According to Lipper, Inc. of New York, for 2007 mutual fund investors will owe a record-breaking $33.8 billion in taxes on capital gains distributions. In this week's InvestmentNews article "Deadline on taxes a greater menace for many advisers" Brooke Southall describes the situation some investors find themselves in: 2007 will mark the first year of capital gains since 2000 when the technology bubble burst, and falling home values and a declining stock market are making it difficult for these investors to raise the money to pay the capital gains taxes they owe. Advisors meeting with their clients to sort through these problems are filing a record number of extensions; these may buy time, but they are no panacea, says Avani Ramnani of Athena Wealth Advisors in Jersey City, New Jersey. "Extensions only enable you to gather any missing information. This is not an extension to pay your taxes," she cautions. "If someone extends their deadline and does not pay what was originally due to the Internal Revenue Service, they get levied with interest and penalties. That may not be worth delaying the payments." To read the article, click on the View link to the right.

Wealth Manager - Donna Skeels Cygan honored

Congratulations to Donna Skeels Cygan of Essential Financial Planning in Albuquerque, New Mexico for being named in this month’s issue of Wealth Manager as one of "The Top 50 Women in Wealth Management." Of this honor, the editorial staff of the magazine says, "This is not merely a list of who has the most assets under management or who has the highest production numbers. Some, for example, are on this list because of less-tangible contributions they've made to women in the profession, such as serving on committees or mentoring. However, they all have at least one thing in common: they are role models for the next generation of women advisors."

Financial Advisor - Moving the financial planning industry toward professional status

This month's Financial Advisor article "Why Aren't We There Yet?" by David Drucker uses the opening of the College for Financial Planning in 1972 as the inception date of the financial planning industry. Why then after nearly 40 years has the industry not achieved professional recognition, he asks. Bert Whitehead of Cambridge Connection in Franklin, Michigan weighs in: "The first thing we have to do," he notes, "is get rid of our sales mentality. Many people who come into financial planning are just looking for that seven-figure W-2 they get from making a big annuity sale." Jenna Hung of LifeStream Financial in Santa Clara, California adds that the public needs to see financial advisors as true fiduciaries. "Their perception of financial advisors as members of a true profession would also be advanced," she says, "by more quality control, in the form of some kind of peer review process, the establishment of career paths for the next generation of advisors, and a mentoring system..." To read the article, click on the View link to the right.

Newsweek - Many baby boomers can't afford to retire

For many leading-edge baby boomers who are nearing retirement age, the title of Daniel McGinn's and Temma Ehrenfeld's article in this week's Newsweek says it all: "Retirement Postponed." The housing bust, the weakening economy, and the volatile stock market have all taken their toll on the retirement plans of many Americans who had planned to sell their homes and downsize to a condo, pursue a second career or part-time work, and/or rely on their 401(k)s for retirement income. Essentially, many baby boomers who thought they would be quitting work by now have discovered that they simply can't afford it. "There's a lot of sheer panic out there," says Bert Whitehead of Cambridge Connection in Franklin, Michigan.

The Boston Globe - Dana Levit fields finance questions in live Q & A session

Dana Levit of Paragon Financial Planning in Newton, Massachusetts took personal finance questions from readers in today's online Money Makeover chat sponsored by The Boston Globe. One concern common to a number of the callers was debt: "Trouble," for example, has $54,000 in credit card debt, is committed to becoming debt-free, and is looking for a good debt consolidation place. Levit's response? "My favorite organization is a non-profit consumer credit counseling service that is part of the National Foundation for Credit Counseling. Their name is CCCS Credit Advisor, and their number is 800-208-2227. ... The first step is to talk to a counselor at CCCS, and they'll be able to tell you more about your options. Keep up the good work!" To read a transcript of the entire broadcast, click on the View link to the right.

Wall Street Journal - Some things to consider about retirement-contribution protection insurance

Retirement-contribution protection insurance, designed to continue funding the retirement of an individual who has become disabled, is attracting interest among financial advisors. In today’s Wall Street Journal article "Securing a Nest Egg" Karen Hube describes how these policies can be used to supplement standard disability coverage, which usually replaces enough income to cover a family's day-to-day needs but not enough to continue funding retirement accounts. This could be especially important for those with high incomes, since disability insurers have caps on how much they will pay out each month. While someone earning $30,000 a year might be able to replace 75% of his income, someone earning a much larger salary might be able to replace only 40%. Additionally, those who earn part of their income as "extras" could come up short when it comes to disability coverage. "Policies often are tied to base salaries and don't factor in bonuses, stock options, and commissions," says Barry Kaplan of Cambridge Southern Financial Advisors in Atlanta. Another important issue when considering this type of coverage is tax liability. If you are able to get group coverage through your employer, contributions will continue to be made into the retirement plan. But if you get an individual policy, an irrevocable trust will be set up in your name if you become disabled. And with the trust, any distributions are subject to taxes which are paid annually out of the trust's assets, even though the distributions are reinvested in the trust. "To keep taxes to a minimum, you can choose tax-efficient investments within the trust," says Kaplan, adding that "you may defer taxes by investing in an annuity within the trust."

Cleveland's The Plain Dealer - Online retirement calculators are no substitute for professional advice

A number of reputable companies and organizations have begun offering free online access to retirement calculators, says Cleveland reporter Teresa Dixon Murray in today's The Plain Dealer article "Retirement planning: basic tips." And since most consumers don't seek professional help as they plan for retirement, these new, sophisticated tools can help with the number-crunching. However, the best retirement calculator isn't a substitute for sitting down with a professional, she notes, but for those who are using them--even as a starting point--there are some important tips to keep in mind. First, be realistic about what your living expenses will be in retirement. "Many people spend just as much in retirement as they did when they were working," says Ken Robinson of Practical Financial Planning in Cleveland; he recommends drawing up a true budget and then trying it out. "Once someone decides what he can get by on in retirement, he needs to practice living on it," Robinson says. "That test drive for a couple of months will show whether it's a realistic estimate." Also, figure out how much you can withdraw each year without running out of money and don't assume you'll never touch your principal. "It's unreasonable for people to assume they can live off interest alone," says Connie Stone of Stepping Stone Financial in Chagrin Falls, Ohio. And, at the same time, be realistic about investment returns: Stone likes "6 percent, the ultimate conservative number." And count on living a long time, adds Robinson: "While the average life expectancy may be in the mid-80s, don't hang your calculations on that," he cautions. "You should look at how long your money will last if you live to 95 or 100." And don't forget big-ticket expenses in retirement, Robinson reminds us: "Make sure you've accounted for how you'll pay for adequate health-care coverage in retirement...and allow money for home repairs and other emergencies." And, notes Stone, "Don't hinge your entire financial future on one Web site. At the very least, pump the same number into several reputable calculators and see how they compare." She adds this final cautionary note: "While online calculators can be useful, they're not the same as developing a financial plan with an expert."

Newsweek - New financial planners needed now for baby boomers nearing retirement

In this week's Newsweek article "Planners Wanted ASAP" Jane Bryant Quinn reports that 50,000 new financial planners are needed, "and in a hurry" since baby boomers are now approaching retirement age and need help making financial decisions "that could make or break their lives." Her advice to them? First, steer clear of investment advisors and seek the help of a financial planner instead. "Unlike investment advisors," she notes, "planners take a holistic view of your situation--your personal needs and goals, how much you can afford to spend, whether you need long-term care insurance and ways of conserving capital." Second, Quinn recommends looking for planners who practice as fee-only and neither sell products nor accept commissions. And consumers aren't the only group for whom fee-only planning makes sense. Some commissioned planners and brokers are getting tired of making their living by selling "stuff, especially tax-deferred annuities, insurance and high-fee mutual funds," and Quinn notes that these "breakaways" tend to migrate to a "fee-based" and then a full, fee-only practice over time. For those moving toward this type of practice, whether as a "breakaway" or as someone changing careers (since most financial planners enter the field as a second career), she recommends the Alliance of Cambridge Advisors for help in transitioning into the business of fee-only financial planning.

Financial Advisor - ACA membership recommended for new financial planners

In this month's Financial Advisor article "Blueprint For Success" David J. Drucker looks at the resources available for financial planners who are new to the field. One of the advisor networks he highlights where new planners can find the assistance and support they need to get their business started is the Alliance of Cambridge Advisors. Founded by Bert Whitehead of Cambridge Connection in Franklin, Michigan, this network of fee-only advisors trains its members in the concepts and processes pioneered by Whitehead since 1972. Sheryl Clark of Sunrise Financial in Tucson, Arizona started in the financial planning field by working for Whitehead in 1991, and by 2000 she was "fully ensconced" in the Cambridge experience, noting that "Cambridge members don't have to recreate the wheel. We learn how to price our services, how to set up our files and handle appointments and are even given a proprietary software system." Jenna Hung of LifeStream Financial in Santa Clara, California also sings the praises of Cambridge: "I've learned how to manage clients' expectations and to add value." To read the article, click on the View link to the right.

InvestmentNews - Rising health care costs force many baby boomers to delay retirement

In this week's InvestmentNews article "For baby boomers, a longer ride into the sunset" Lisa Shidler describes the situation many boomers find themselves in: As health care costs rise, they may have to delay retirement until they are over 65 or perhaps phase into it. Rebecca Preston of Preston Financial Planning in Providence, Rhode Island has a number of clients who have expressed an interest in foregoing full retirement in favor of phasing out of work. "Clients...find the idea of continuing to get health care while working attractive," she says. She has a number of university professors and doctors who are hospital employees and plan to continue working at their own pace. "Retirement is definitely not the gold watch and waltzing out the door at age 65," notes Preston. "I think those days are largely over." To read the article, click on the View link to the right.

Three ACA members to speak at 2008 NAPFA National Conference

Three members of the Alliance of Cambridge Advisors will be featured speakers at the 2008 NAPFA National Conference. Celebrating the 25th anniversary of NAPFA, this year's conference will be held from May 13-16 at the Long Beach Conference Center in Long Beach, California.

Thursday, May 15 William Starnes of Mallard Advisors in Newark, Delaware will be a panel member discussing "What We Learned When We Merged."

That same morning Bert Whitehead of Cambridge Connection in Franklin, Michigan will speak on "Segueing from AUM to Value-Based Annual Retainers."

Friday, May 16 Jill Gianola of Gianola Financial Planning in Columbus, Ohio will be a speaker on the topic "NAPFA University: School of Investments - The Investment Policy Statement" for three consecutive sessions, Chapters 1, 2, and 3.

For more information on the conference and for a full description of each of these presentations, click on the View link to the right.

InvestmentNews - How financial advisors can assist new widows

In this week's InvestmentNews article "Making a new widow's life easier," Kathleen M. Rehl of Rehl Financial Advisors in Land O'Lakes, Florida describes how financial professionals need to be mindful of the human element--as well as financial planning--when providing support for a new widow. Says Rehl, "It's important for you to listen, really listen. Listening helps you guide her in making appropriate decisions. Begin by asking, 'What can I do to help?' rather than just telling her what to do." It's also important, she points out, to be patient and remember that a new widow is living from one day to the next, so it's best to stick with short-term goals rather than overwhelming her with long-term goals at this time. To read the entire article and learn how Rehl assists new widows, click on the View link to the right.

Louis Rukeyser's Mutual Funds - Alliance of Cambridge Advisors recommended to those seeking the help of a financial professional

In this month's Louis Rukeyser's Mutual Funds article "Prudent Advice" Hannah Choe says to choose your financial advisor "with as much care as you would your doctor or attorney." Even though this will take some work and time, the effort will more than pay off in the long run. In addition to researching education, credentials, professional background, and services offered, it is “vital,” she says, to look at the fees financial advisors charge and to be wary of those who collect commissions. One of her recommendations is the Alliance of Cambridge Advisors whose fee-only method serves the best interests of clients: "The fee-only method prevents conflict of interest between the client and financial advisor while guaranteeing objective advice."

InvestmentNews - This couple's story shows why you shouldn't buy a new house until you've sold the old one

In his article in this week's InvestmentNews Bert Whitehead of Cambridge Connection in Franklin, Michigan has advice for those who have vacant real estate for sale in the current market. "Why it may pay to sell losing real estate" describes the situation two of his clients found themselves in. In their 40s with $750,000 in investments and a combined annual income of over $250,000, they had moved with their two children to a new city and bought a new $1million home. Although the future looked bright, they were under a large cloud: Over three months had passed since they moved, and their former house--which had been appraised at $750,000 two years before when they refinanced--had not sold. Says Whitehead, "My clients had broken the No. 1 rule for homeowners: Don't buy a new home until you sell the old one!" Panicked when they came to him, they were paying a $4,000 mortgage payment on their new house plus $2,500 for their former house. Additionally, they were paying $12,000 annually in property taxes, $300 a month for insurance on their now-vacant former home, and $600 a month for its utilities and landscaping maintenance. "In total," notes Whitehead, "my clients were shelling out over $50,000 a year in carrying costs. On top of that, they had to face the sobering reality that property values in their old neighborhood were dropping by 5-10% per year, amounting to another $40,000 or more in annual carrying costs." To read the article and learn what Whitehead advised, click on the View link to the right.

BusinessWeek.com - Protecting your portfolio in this shaky market

In today's BusinessWeek.com article "Risk: Smart Strategies for Tricky Times" reporter Ben Steverman asks how investors can protect their portfolios in today's shaky market. Stocks started the year 2008 by dropping even more than they did at the end of 2007; huge banks are being forced to raise extra capital at high interest rates; the credit markets remain seized up in the wake of the subprime meltdown. Since this is a good time to give investment portfolios a "risk tune-up," Steverman asked several financial planners for their advice on how to position themselves in these risky times. Staying diversified to maximize returns and minimize risk is important, notes Barry Kaplan of Cambridge Southern Financial Advisors; he adds that even risky investments are acceptable in moderation, provided they are part of a broader strategy: "You have to look at how it fits into the overall portfolio." A number of the planners interviewed, while granting that there are ways to try to keep risk at a minimum, also question whether managing risk is even possible since there are simply some things about the future that are not predictable. Says Kaplan, when a financial panic happens "everyone heads for the door at once, and no one's risk model has that built in." To read the article, click on the View link to the right.

Consumer Reports Money Adviser - A realistic look at the possibilities of retiring abroad

Retiring abroad was once seen as a way to ensure a lifestyle beyond American means, but the declining U.S. dollar has caused some of those inclined to make such a move to take a second look. Even so, with some forethought and planning it can become a reality, according to Greg Daugherty's article "The cost of living in paradise" in this month's Consumer Reports Money Adviser. He suggests taking taxes into account; they may actually add up to less than you were paying in the U.S., especially if you lived in an area with high property taxes. He also reminds those considering such a move to keep logistics in focus; you'll need to be mindful of the regulations governing Social Security and Medicare, and you may want to make changes to your investment portfolio since living abroad can make the falling dollar hit you harder. And, he notes, keep in mind that there are special costs related to living abroad; Robert Walsh of Lighthouse Financial Advisors in Red Bank, New Jersey points out that it is important to ask yourself "how often you would expect to fly back to the U.S., either for leisure or for medical checkups." And, he adds, "If you have kids or grandkids, especially of the young and impoverished variety, you may want to budget a few bucks to subsidize their airfares to visit you."

Financial Advisor - Gay couples need to plan carefully for the possibility of divorce

In this month's Financial Advisor article "With Gay Marriage Comes Gay Divorce" Caren Chesler points out that financial planners should warn gay couples--even more than heterosexual couples--that they need to plan for divorce or risk facing some "hefty financial consequences." The main problem is that the federal government and most states do not recognize gay marriage; this means that if a gay couple divorces any assets transferred between the partners--even alimony--is considered a "gift" by the IRS and can be taxed if the amount transferred is over the $12,000 annual limit or the $1,000,000 lifetime limit. Planners interviewed for this article agree that the best option is for gay couples to plan for divorce at the onset of their relationship and to transfer assets to one another slowly over time so that they do not set off a taxable event. However--even though federal tax laws favor heterosexual married couples--there is one benefit to being married and gay that derives from the fact that the IRS doesn't recognize same-sex marriage. The partners in a gay marriage continue to file as individuals, and, notes Dana Levit of Paragon Financial Advisors in Newton, Massachusetts and President of PridePlanners Association--a non-profit group that educates financial professionals on the needs of non-traditional families, that means all of the caps afforded to individuals are retained. "This is where it's a good thing to be gay," says Levit. "Things that get phased out for joint filers just don't apply." To read the article, click on the View link to the right.

Financial Advisor - Considerations for retirees planning to start a small business

A number of baby boomers are nearing retirement having overspent and undersaved during their working lives, making the prospect of starting a small business during their retirement years an attractive one. In this month's Financial Advisor article "Boomers in Business," David J. Drucker reminds those in the financial planning industry that advising retirees and near-retirees on forming and operating a small business is a skill the boomer generation is forcing them to train for. Says Tina Anders of Anders Financial Planning in Petaluma, California, "AARP says that 80% of boomers will want to work in retirement, they have the time to properly develop a business plan, and they've probably paid off their mortgages. They also say banks are looking more favorably upon funding retirees' small business proposals since many boomers have relevant experience and networks in place." In light of this, there are important considerations for planners with clients considering starting a small business. First, size up clients' capabilities: Do they have experience running a small business? Second, examine their financial situation: Will their finances be devastated if the business fails? Finally, be sure they understand the importance of a business plan: If they find that the business is not on track, does their plan include ways to modify their strategy or even exit the business? These questions need to be posed and answered, since the impact of a failing business--especially in retirement--can be significant. To read the article, click on the View link to the right.