For the Love of Libraries

We hope you all had an enjoyable Valentines Day!  As Financial Planner Kate Welker, CFPⓇ writes below, she not only loves her special someone’s, but also her library and all the resources it provides for!  But before you dig into her article, we have a few brief announcements.

  • TD Ameritrade has notified us that on March 15, 2019, they will begin mailing annual Standing Letter of Authorization (SLOA) confirmation notices to our clients/  The confirmation will list all active SLOAs that we have on record for your accounts as of December 31, 2018. You might be wondering, “what is a SLOA?”  This is what allows us to transfer money between your accounts when you request it. If you notice a bank account you no longer want listed, notify me and I’ll ask to have it removed.

  • In other news, we were very excited to learn that Fund For Women of the Southern Tier, Inc. is currently offering two education grants!  The deadline is March 1st, so if you know a young lady (including those young at heart too) that is going off to college this fall, make sure to forward this message to them.  “These grants are to be used to remove any barrier to the pursuit of their educational endeavors. Examples may include paying for college textbooks, technical supplies, assistance with past due tuition bills, fees for professional licensing exams, etc. Award criteria includes a demonstrated financial need.”

    • Ten - $500 Grants

    • Four - $2,500 Grants


For the Love of Libraries

by Financial Planner Kate Welker, CFPⓇ

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“Libraries are community treasure chests, loaded with a wealth of information available to everyone equally, and the key to that treasure chest is the library card. I have found the most valuable thing in my wallet is my library card.” - First Lady Laura Bush

As financial planners we are always working to make the best use of our resources. Normally we are talking about our financial resources, to use those in the most meaningful way and saving where possible. We are often surrounded by places in our communities that offer opportunities to save a little more of our financial resources. In light of seeing that it was recently “love your library” day I wanted to look at how you can love your library to save money and find resources that you might not realize are available.

Whenever I have to describe myself one of the top adjectives I use is bookworm (or as someone recently dubbed me, a bookdragon). When most parents are struggling to encourage their children to read, mine were telling me to put the book down to focus on the more urgent things in life like my chores or where I was walking. As a parent I have passed this trait on and I find our household going through a lot of books. Since I am not willing to devote that much of my budget to purchasing books we have made the library a regular part of our routine and I have begun to realize the additional services to be found there.

Obviously thinking of a library you think of the books. Mystery, fantasy, true crime, romance, so many books across many genres. I read mainly for entertainment and will sometimes forget the wealth of resources in non-fiction books available at our library. In high school I would use the classical research section for papers, but now I appreciate the whole non-fiction section. Want to learn a new skill? Instead of paying to join a class try to find a manual at the library. Bored of cooking the same recipes? Make cooking at home fun and try a new cookbook, my library has a whole shelf available. Starting a business and need to learn more on your industry? Check the library.

One of my favorite new tools I have discovered is the ability to borrow ebooks. The apps Overdrive and Libby allow you to link to your library using your library card information. These are free apps and as long as your library is part of the system there are thousands of titles available. You can choose to read within that app or export to the kindle app which is available as a free app on ios, android, and amazon devices.

Beyond the books there are other items available to loan. Movies, audiobooks, music, board games, puzzles, e-readers and the list goes on. The movies may be more classics than blockbusters, but instead of spending the money on a rental, occasionally take advantage of the collection available at the library. Get to know your librarians and ask what resources beyond books may be available to you to borrow.

Within the library you might be surprised to find new technology to take advantage of. Most libraries have had computers available for those that don’t have access at home, but these offerings are expanding. I was recently speaking with an attorney handling legal issues for libraries as they are trying to find ways to reach more patrons in a digital age.  Items such as scanners, virtual reality sets, and 3D printers are being added at more libraries daily.

The best advice is to get to know your librarians. They are an incredible resource and will be able to keep you up to date with the latest resources your library has to offer. If there is a resource you need that they do not carry, they may be willing to order it for you. Many libraries also offer educational classes, one to watch for is Money Smart week coming up March 30th to April 6th, 2019. Several of the planners here at Rooted Planning Group will be setting up educational sessions in their local neighborhoods. Check out https://www.moneysmartweek.org/ to find an event near you.

Financial Planning Strategies: Money Dates

We are real romantic’s here at Irvine Wealth Planning Strategies / Rooted Planning Group!  We want you to have a Money Date for Valentines Day!

To hear from a couple that clearly talks about money in their marriage, listen to Episode 51 - A Conversation with Brian and Natalie Hanks

“If you have only one smile in you, give it to the people you love.” - Maya Angelou


Do you need a “Money Date” for Valentines Day?

By: Financial Planner Kerrie Beene

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What more could anyone want for Valentine's Day besides a serious talk about finances? That sounds romantic.....

​Right, but sometimes these talks can end up bringing you closer. And, being on the same page with your spouse is worth more than any Valentine gift you could buy.

Money is in a lot of conversations that we have with our significant other. Small interactions about money happen on a daily basis.  Sometimes, these harmless interactions can create a negative feeling. A lot of times, we may not even realize this is happening.

My husband makes me nervous on a daily basis because Bass Pro and Cabela's have it worked out where he gets at least one magazine or coupon from them daily. So, what does that lead to? ....... I need a gun, fishing poles, or even a boat...  And, that was just this week.

However, he probably feels the same way when my magazines roll in..... JCrew, Ballard Designs, and Pottery Barn are always waiting on me when I open the mailbox. We actually need another piece of furniture... We really do. Isn't furniture considered a need?

These small conversations that come up daily can stir our emotions about money. The truth is, if you would sit down and get past the argument, you probably both have the same priorities. However, when we ignore the hard conversations, then the easy drive-by conversations can cause problems. I actually want him to have a boat, and he agrees that we need another piece of furniture. The problem is how will it be paid for and what are we not spending that money on that we should be.

I think in the busyness of day to day life we ignore the important issues and want to escape with the fun purchases. However, we both want our kids to go to college, and that hard conversation about money and priorities can be very helpful. The goal is for money to work for you, not you working for the money.

So, how do you have that hard conversation with your significant other?

Set goals and priorities first, together. Once goals are set, it makes the money conversation work better because you have agreed what is most important.

  1. Be humble. If you are the one who handles the money, it is easy to see your spouse's mistakes.  But, if you look closely, you have some too! And, let the past be the past! Don't go into the conversation in attack mode.

  2. Don't expect perfection. Expect progress instead. Moving in the right direction is all that is necessary. Life happens and is hard sometimes. The point is to make sure you and your significant other are going in the same direction.

If a "Money Date" is what you need, schedule one with your spouse.  If you are ready to take your financial planning to the next level, feel free to reach out to any of us at Rooted Planning Group. We all love goal planning and helping people figure out how to use their money to meet those goals!


Happy Valentines Day

Kerrie



Parallels of Investing and Baking

It’s February, the month of Love!  Do you know the history of Valentine’s Day?  Beyond the “Hallmark” holiday it has become, there is some interesting history.  Have we peaked your interest, read more from the History Channel: History of Valentine's Day. Since it is the month of love, how about a little lovin’ from the oven...


How investing is like baking
by Scott DuMond, CFPⓇ

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With Valentine’s Day approaching, consider making something you love for someone you love. How about chocolate chip cookies? My wife has made excellent pies since the day I met her. She makes a fantastic flakey crust, just like her mom’s. Her apple pies are legendary!  However, as good as her pies have been, she has always had difficulty making chocolate chip cookies. She admittedly said so herself. We have friends that make outstanding chocolate chip cookies, like none other. They even shared the recipe with us. However, every time my wife, Valerie, tried to repeat the mix they always came out flatter and harder than expected. They were still chocolate chip cookies, don’t get me wrong.  My boys and I would still eat and enjoy them, but something was still amiss.

One day while thoroughly enjoying the cookies baked by our friend, we lamented Valerie’s inability to match the quality.  We asked what her secret was. We were overjoyed when our friend invited us over for a “Cookie 101” demonstration. Valerie received first hand instruction on how to create those much coveted cookies.  She was in her glory for baking is one of her passions.

Here is what we found out…

  • Make the whole recipe, it makes a big difference.

  • DO NOT use softened room temperature or melted butter.  To quote our friend, this will make the cookies “flat and bleh”!  Instead take the butter out from the refrigerator first before gathering up all the other ingredients and equipment.  

  • This is the clincher…when creaming the butter and sugars together, use a mixer and be sure to mix for a good four minutes! It must be CREAMY.  Repeat the four minute creaming process after adding the eggs and vanilla to the butter sugar mix.

  • When mixing the dry ingredients into the wet ingredients mix only long enough to blend the two together. *Over mixing will produce tough cookies.

  • The last hint is to UNDERBAKE the cookies. Pull them when they are just getting golden brown around the edges and on top.

My wife has been elated to add this fantastic recipe to her baking repertoire.

Now let’s apply these concepts to investing.

It is no secret that the investors, on average, receive a lower return than the assets they are investing in. For example see the graph below based on a study by Dalbar ending in 2016.  Over a ten year period, the US stock market earned an annualized return of 6.95%. Over the same time frame the average stock investor return was 3.64%.

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This relationship has been consistent from study to study and time period to time period. Investors tend to get a much lower return then the investments they are investing in. How come? It comes down to one simple truth.
While many people are able to come up with a reasonable diversified portfolio by themselves or with help they will make a change when investments are doing poorly. When there is bad news and the market is losing money, yes December was very painful for me too, people will find it necessary to sell their mutual funds and wait for the market to rebound. This is an example of buy high, sell low and then buy high again. *By over stirring and over changing their portfolio, not only are they missing out on returns, they are hurting themselves substantially.


If we were baking and we over stir, we end up with flat hard cookies. If we are investing and we move money around too much, we end up with lower returns.

So what should we do?

  1. Choose an appropriate investment mix that fits your risk tolerance.

  2. Measure your risk tolerance each year to make sure that it hasn’t changed. We hate having a market drop remind us we are taking more risk than we are comfortable with.

  3. Rebalance when there is a change in your asset allocation due to excessive returns or drops.

  4. Do not react quickly and take your money out of the market when there is bad news and the market drops. Instead, look at this as a buying opportunity.

Interested in the famous recipe Valerie now uses?

1 lb butter

1 ½ cups sugar

2 cups brown sugar (not firmly packed)

2 tsp vanilla

3 eggs

6 cups flour

1 ½ tsp baking soda

1 ½ tsp salt

4 cups chocolate chips

Instructions:

  • Preheat oven to 350 degrees

  • Using a mixer, cream together butter and sugars (4 minutes)

  • While creaming the butter and sugars, mix all dry ingredients in a separate bowl

  • Add vanilla and eggs to the butter and sugar mixture, beat another 3 to 4 minutes

  • Add the dry ingredients into the wet mixture, along with the chips. Mix only until blended through and dough forms.

  • Bake one tray at a time for 8-10 minutes (until just barely golden brown)

Financial Planning Strategies: Organize for Success

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Organizing brings consistency... consistency brings success.  By Matt Fizell

“Organizing is what you do before you do something, so that when you do it, it is not all mixed up”. –A.A. Milne 

With the month of January quickly coming to a close and a few really awesome blog posts focusing on organization being released over the course of the month, I wanted to take this opportunity to tie it all together with “why” we should be organized.

If you the reader are similar to most Americans, 75% of you who created a “New Years Resolution” have likely already thrown it to the curb, and are not on track to reach the big, sweeping declaration which would make 2019 “The year I finally do …..” and hit that goal you wanted to achieve as 2018 came to an end.  According to a Forbes article, only 8% of Americans who set a resolution will actually hit their goal. Like most Americans, I too am guilty of failing a previous resolution, and last year I realized for me… organization was the issue.

The main reason why MOST have already failed is a combination of vague goals, which do not have a clear measurement of success for the goal setter, and simple lack of organization.   “I want to lose weight”, “I want to make more money”, “I want to save more” are all really great examples of the common goals we see and hear about in the news at the end of the year.  Statements are not goals, and if we do not have clear goals… they will be nearly impossible to complete due to the simple fact we do not know how to prepare for the journey ahead.

So as I usually do in my blog posts... IT’S STORY TIME!  For my “resolution” last year, I had the goal of getting back down to my original college weight, a goal that I had continually put off year after year. My first job out of college had a breakroom constantly stocked with sugary snacks from co-workers who liked to bake, client lunch meetings were paid for, and corporate trainings usually entailed catered lunch/dinner, which led to me putting on nearly 15 pounds of extra weight in two years. I was serious about losing the weight this time around, and understood if I wanted to lose 5 pounds a month, I could only eat 1850 calories per day. If you have a similar goal in weight loss, I highly recommend the “MyPlate” app available on all smartphones, it is free to use!

After finding “my number” based on when I wanted to lose the weight by, I then had to organize my pantry and fridge, which meant getting rid of a lot of unhealthy snacks... this is no different than ridding your budget of unnecessary spending with your discretionary income, overspending on the things that WON’T help you hit your goals.  From there, I went to Amazon, bought Tupperware and a food scale so I could organize my meals for the week, and pre-entered each custom meal into my calorie tracking app. These were the steps I needed to have prepared so my plan for weight loss wouldn’t go off track, and while I have had a couple “cheat” days and bad weeks of being organized in my diet, I have lost nearly 20 pounds since I  began my journey 13 months ago.

There isn’t a doubt in my mind if I wouldn’t have taken the steps to actually understand and interpret what I needed to do to hit my goals that I would have failed miserably... again.  If you truly want to change your habits in your everyday life, you need to have a solid target to shoot for, and organize your life in the proper manner to make sure no matter what happens that you are in a position for success.  This may mean spending a little extra time and effort up front, but it will result in a higher probability of hitting your goals and avoiding wasted time going around in a circle.

Whether it is your weight, your finances, or something new you want to accomplish, understanding why it is important to you and what organizational approach you need to take along the way that will set you up for a higher chance of success.  If retiring earlier is on your mind or perhaps you aren’t enjoying your current line of work, know what you need to accomplish in order to make that happen and use organizational tools such as budget to understand where your money is going, how much is going to each area, and how much needs to be put towards your goal instead.  This will help you understand the timeline of your journey, and from there you can begin to develop checkpoints along the way so you don’t feel the “are we there yet?” syndrome kicking in.

If we set ourselves up for success, we can focus on taking our time and enjoying our lives in the process of reaching our goals.  When we don’t feel constantly stressed out about “how far behind I am”, we can take pressure off of ourselves and give the best version of ourselves possible to the things and people we love in our lives.

We hope you enjoyed our January series on getting organized!  Since February is the month of love, stay tuned for our series around love and finances!  

Organize and De-Stress

“Organization is the Foundation to get the Rest of My Life in Gear.”  Kathi Lipp

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We are excited to announce the launch of the Financial Organization Challenge is happening today!  As a reminder, this is 12 - tasks over the next 12 - months to increase your financial wellness. This wellness program will include a monthly video explaining the task and a monthly Q&A video.  If you know someone who might be interested, please contact Kerrie@irvineadvise.com or visit the RPG - 2019 Financial Organization Challenge Facebook Page.

Also, if you’d like to learn more about Social Security and Medicare mark your calendar for January 30th and February 6th as Financial Planner Kim Anderson will be hosting two webinars on this topic.  Stay tuned for more information on these webinars.

We hope you enjoy this week's edition of Monday Morning Quarter-Buck and the organizational advice provided by Financial Planner Becky Partridge.


Organize and De-Stress in 2019

By Becky Partridge

Do you ever feel overwhelmed by the piles of paper around you? What about the in-box full of emails or the computer where you can’t find the document you’re looking for? If that is something you’re feeling, you’re not alone. It can be very exhausting trying to figure out where you want to start when getting organized but trust me, once you get papers and emails organized it’s like taking a breath of fresh air.

A great starting point is to simply go through the papers and emails, and discard the junk mail. This will greatly reduce what you have to sort through later on. The next step I recommend is to get a file organizer (file cabinet, box, or file tote) for your physical papers. For emails and electronic documents, I would create general folders for the main topics and then inside of each folder you can make more specific folders. At this point, you haven’t filed anything, but it will help greatly once you start sorting through the documents and you can always create different folders and rename them if need be. Now comes the “fun” part. You get to go through each and every paper, email, and document you have. To avoid being overwhelmed and to increase the likelihood of fully finishing the project, try making a goal to tackle a pile every night or every week. This process doesn’t have to be done immediately.

Once you get through all the papers, emails, and documents, you will feel like you can breathe again. You will continue to get mail and emails so I would suggest that you set aside 10-15 minutes a week, or however long you think it will take you, to go through this week’s worth of mail and emails. This will help you stay on top and not feel bogged down again. Also, the junk mail and junk emails are unnecessary and you can often unsubscribe from them. For e-mail, you can try to contact the companies and ask to be removed from their mailing lists; for emails, there is usually a fine print “unsubscribe” link at the bottom of the email.

As you are getting organized, pay attention to some of those documents, it’s a great time to think about your personal and financial goals too.  

Strategizing Wealth Risks

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You can probably tell from the theme of the blogs this month that we are focusing on getting organized.  Why is this such an important topic that we feel the need to keep hammering on it? Being organized, if a risk event actually occurs, is key to both the success of knowing how to handle the event and understanding the “why” behind any decisions that have to be made during a potentially highly stressful situation.

For clients, we will be asking you about, and/or updating, your risks during the review meetings this year, we know some of these aren’t exactly “fun” to talk about, but they are important:

  • Loss of property risk (i.e. a home or car) due to a Peril

  • Liability Risk (i.e. someone suing)

  • Large expense risk (i.e. replacing a roof, furnace, car, health care, college)

  • Loss or change of a job (i.e. company reduction in workforce)

  • Economic Risks (i.e. recessionary pressures affecting portfolio performance)

  • Loss of Life (i.e.a spouse or significant other)

  • Disability (i.e. unable to work)

  • Safety Risk (i.e. does your neighborhood have safety issues, are you aware of who and what is around you?)

If you are a small business owner, then you may want to also think of:

  • Reputation Risk (i.e. someone representing your company could behave in a manner that causes the business to lose reputation)

  • Employee Risk (i.e. their problems can become your problems and the laws around employment can be challenging)

  • Loss of business or prospective business

  • Safety of Employees

  • Compliance with Federal and State Laws

  • Operation and Business Continuity Risk (i.e. how does the business continue if one of the above happens to YOU)

I’ll share two recent personal experiences from the lists above, just to drive the point home.

  • Safety Risk:  I know many of you are going to be shaking your head yes to this question - have you ever been walking out of the grocery store, pushing a cart, reading an email, Facebook post, text message, etc.?   I was recently doing that and Brent brought it to my attention. For those of you that know him, you know he’s low drama, so when he starts a sentence with, “You know….,” it makes me pause. He went on to say, “that device you have in your hand makes you a target.  You aren’t paying attention to what is going on around you.” He’s right. Yes, I admitted that he was right and now it is forever out on the internet...maybe that’s a risk I should have considered! In all seriousness, someone who is texting while driving could be equally distracted, resulting in a major injury. It could also be that someone is watching and waiting for that distracted person to steal their purse.  So tuck the phone away in your organized purse and be less distracted for your safety!

  • For my business owners, you will relate to this one.  I had a corporate account I had prepared a request for proposal on.  The company sent out a basic request and I responded with what I thought was a solid proposal, I was even told, “our employees would be lucky to get to work with you.”  This was in December, and with a statement like that, I thought I was a pretty good contender, so when I was working on my budget for 2019, I included the potential revenue from that prospective client, along with increased time and wages for one of our part-time employees.  I was shocked and disappointed on Friday when I was told I wasn’t selected. I reached out to find out why and discovered there was unclear messaging on both sides of the “table.” I did provide the services they were asking for, but they had changed the scope of work I thought they desired.  Therefore, based on what I gave them, they didn’t feel I was the right selection. Although I was disappointed, thankfully I didn’t put the cart before the horse. Although I budgeted for additional staff, I hadn’t yet added them. That risk of not being able to pay yourself and the employees is particularly high for our small business clients, so being organized around projects and planning for the disappointments is key to longevity.

Financial Planning Strategies to Avoid Holiday Spending Remorse

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Happy New Year!  As I mentioned last week, not only did the calendar change, but we are also adding a few new services and blogs!  

Last week I mentioned that Kerrie Beene was launching a “Get Financially Organized 101” program.  She will be live at 1:15 PM EST / 12:15 CST Today (Monday, January 7th) kicking off the Financial Organizational Challenge 2019.  This event will share all the details of the program and will be recorded if you can’t attend live.  

On Wednesday, Kim Anderson will be launching a new blog that will be posted on our website, as well as delivered in your email box.  “Getting Over the Hump” will focus on issues that pre-retirees and retirees often find challenging. Her first release will be called, “Can I Switch from Medicare Advantage to Medigap during OEP (January 1 - March 31, 2019)?”

You will also start to notice the name “Rooted Planning Group” along with Irvine Wealth Planning Strategies.  This is part of our 2019 Rebranding process.

We look forward to working with you and helping you achieve your financial goals in 2019 and beyond! Remember life is about events, supported by dollars and cents!  Building these strategies mentioned by Kate below will help strengthen your roots in 2019!


Strategies to avoid Holiday Spending Remorse

by Kate Welker

This week everyone is still looking forward to the new year, resolutions for a better year and a better you are exciting and hopeful, and the holiday decorations are starting to come down. Unfortunately for many Americans the credit card bills will also start arriving. The site MagnifyMoney tracks Christmas spending and shows that on average Americans acquire over $1,000 of debt over the Christmas season. Did you end this season and find yourself with a higher than normal credit card balance? Are you suffering from some spending remorse?

You might have just finished cleaning up the gifts and decorations, but I’m going to ask you to go back to Christmas for a little bit and make your Christmas list for next year now. Instead of wishes you are going to make a list of everyone you bought for, how much you spent on them, and any other spending you had associated with the holidays.This is much easier to do now while it's fresh in your mind and you can look through your recent spending. Make sure to include food purchased for parties, decorations, teachers gifts, everything above normal monthly spending.

When you have the list completed take a hard look at it. First look at the total number and see how you feel about that. Is the total what you expected or is it much higher than you realized? This list creates the starting point for the amount you should start budgeting now for next year’s Christmas spending. If there are categories that were overspent in, you are now aware to pay attention to that in the future. Use this to set guidelines for where you would like to limit your spending.

Take your total spending and divide that number by 12 to get the amount to set aside monthly. Set these funds aside in a separate account.

Having your list of individuals to purchase gifts for ready to go will also help organize your spending as it happens. As you purchase something record it so you don’t forget and keep a running tally. One of my goals for this next year is to be more thoughtful in the gifts I give, using my money to gift people something they can really use or appreciate. By having the names organized in advance you can also track gift ideas for that individual and be prepared to take advantage of offers throughout the year that can save money or make those budgeted dollars go further.

If you are feeling any financial stress after this holiday season, envision enjoying your Christmas and not worrying about the mounting debt. Take some time to plan and organize your lists and include Christmas spending in your budget throughout the year. Let’s all look forward to enjoying a relaxed holiday and guilt free January.

Get Financially Organized 101

Monday Morning Quarter-Buck

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Happy New Years Eve!!  I always look forward to this day.  I think it is because there is comfort in knowing so many of us are hitting the “reset” button on or about something in our lives.  Statistics show that most New Year's resolutions don’t make it past January, but what if this year could be different? Our team spent most of December developing a program to do just that around your finances!  In fact, on Monday, January 7th, Kerrie Beene will be launching a new Facebook live program - The 2019 Financial Challenge. We will be posting information on our Facebook page and website later this week, along with registration details.  The cost of the program is only $30 per month and will include monthly video’s, action steps, Q&A sessions, and so much more! We are very excited to offer this “get organized” financial education program to the community!  Wishing you a very Happy New Year!  


GET FINANCIALLY ORGANIZED 101

By Kerrie Beene

“For every minute spent organizing, an hour is earned.” - Benjamin Franklin


New years is filled with hopeful resolutions that all lead back to getting on track in some area of our life. Financial goals are always Included in the popular resolution lists. Whether you make a new years resolution or not, getting your financial life organized is one of the most important things you can do for long-term success.  Being unorganized causes a lot of financial stress and even costs us time and money. If we can spend the time now getting things in order, the payoff is the clarity to plan for the future.

Here are 5 tips for getting organized:

  1. Pick your place. Pick a place where all your important documents will be kept.  This doesn’t have to be an office with a fancy file cabinet. I have a crate with file folders in my closet.  You can also create online file storage using this same method.

  2. Organize your Files. Spend a few minutes and create the folders you need to keep important documents.  This includes everything. All mortgage, car loans, insurance, medical, retirement, other benefits, and even a folder for each family member.  Use what you have, no need to go buy a label maker or anything fancy. Just some hanging folders with a crate, an accordion folder, or some type of folder system.  

  3. 2 Minute Rule. We receive a lot of mail and emails on a daily basis.  Follow David Allen’s 2-minute rule - If it will take less than 2 minutes, do it now.  If you received a piece of mail and it just needs to be filed, go do immediately. If you receive an email that needs to be kept, create a folder in your email.  No more wasted brain space.

  4. Summarize. Once you have everything in order, you can create a financial summary.  Start with your assets (everything you own, such as the house, retirement accounts, savings, etc.) minus what you owe (mortgage, car payment, etc.).  This summary is called your net worth and is often needed when applying for mortgages and other types of loans.

  5. Maintain. At a minimum, clean out your folders yearly.  I like to do it more often because less is more with paperwork.  It also will help you keep a running total of your net worth.

Happy New Year and a Toast to Getting your Financial Life Organized!

In 2019, Rooted Planning Group will be hosting a series called the 2019 Financial Organization Challenge - stay tuned for more information!

Visit Past blog articles at https://www.irvineadvise.com/blog/

You can also now follow Amy on Twitter https://twitter.com/amyirvineadvise(@amyirvineadvise)


Market Uncertainty

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“I have a strange combination of fearlessness and massive insecurity.” - Penny Marshall

I’ve always been a big fan of Penny Marshall’s, not only because she produced great work, but because she was a woman who marched to her own drum, but was respectful in the way she did it.  She was a role model to other women who worked in male-dominated professions, yet she was inclusive. She was a gift on this plant and I wanted to take a moment to recognize her passing on December 17, 2018, and to the disease that took her: Diabetes.  You may be asking why I am pointing this out, and the answer is two-fold:

  1. I’m truly saddened by her passing, as I mentioned, I looked at her as a role model, and

  2. We will be focusing on health a bit more in 2019.  Not just financial health, but physical health as well.  Diabetes is one of the most expensive health-related conditions that exists.  According to the Center for Disease Control and Prevention, the “total estimated cost of diagnosed diabetes in 2017 was $327 Billion.”  These costs are “2.3 times higher than expected costs” of non-diabetes.  Being healthy might be an expensive investment, but the costs of being unhealthy are even greater.

Speaking of healthy living, as I was researching for this blog, I came across a quiz offered by the University of Rochester Medical Center called, “What Do You Know About Stress.”  It showed up in my feed at the very top, could Google be telling me something?   Yes, the end of the year and holiday’s always seem to add some level of stress to my plate as I’m trying to complete some unmovable deadlines, while also trying to enjoy some time off knowing that tax season is just around the corner.   I’ll often ask people, “what keeps you up at night.” The answer depends on what is going on in their lives, and I’m sure if I asked that question right now, it might be the overall stock market performance that has you concerned.

We have a lot going on here in the US that, in my opinion, is causing enormous volatility.  Remember the markets don’t particularly like uncertainty, which is exactly what is going on.  The S&P 500 is down 9.60% YTD as of Friday, the Dow is down 9.20% YTD as of Friday, and the Aggregate Bond market is down 2.80% as of Friday.  This means even the most conservative (in terms of volatility) portfolios are down YTD. What has caused this? In my opinion, these three things are at the top of the list (although there are many more influences):

  • Rising interest rates do affect current bond positions.  When interest rates rise, bond prices fall, but if you hold the bond to maturity, you get your interest and face value.  So for example, if you are mid-way through holding a 5-year - $10,000 Corporate Bond, you might see the price of that bond be less than $10,000; but if hold that bond until maturity, you will get the $10,000, plus the interest in between.  The current value of the bond is showing you what it would be if you sold it today. Over the weekend Treasury Secretary Mnuchin held calls with the CEO’s of top banks to discuss the “market turmoil.” His conclusion was “The banks all confirmed ample liquidity is available for lending to consumer and business markets.  We continue to see strong economic growth in the US economy with robust activity from consumers and business”

  • Tariffs.  This is not meant to be a political statement.  I don’t believe any country should have tariffs, but they do exist and the uncertainty of where they are going is certainly causing fear on Wall Street.  One of my favorite quotes by Warren Buffett talks about market corrections creating opportunity, “So smile when you read a headline that says ‘Investors lose as market falls.’ Edit it in your mind to ‘Disinvestors lose as market falls—but investors gain.’ Though writers often forget this truism, there is a buyer for every seller and what hurts one necessarily helps the other.”  I bring that up because although we are not officially in market correction territory, it certainly is close and it feels that way.

  • Government confusion.  Yes, I call it confusion.  Again, I’m not trying to create a political statement, but when 400,000 individuals in the United States are wondering when their next paycheck might come (even if they get back pay), that creates enormous fear and uncertainty and it looks like the shutdown will continue until at least Thursday.

We continue to analyze this data and, as I mentioned last week, we are making small adjustments to the portfolio to potentially capture some capital losses.  

We will certainly be talking to you about our 2019 outlook in the first quarter meetings and welcome any questions you might have about how this affects your long-term goals.

A Year of Financial Planning Content in Review

Finishing Strong and a Year In Review

By Amy Irvine, CFPⓇ, EA, MPASⓇ

“Ability is what you're capable of doing. Motivation determines what you do. Attitude determines how well you do it.” - Lou Holtz

 
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2019 is only weeks away, I personally cannot believe how quickly this year has flown by.  As I started brainstorming the list of “what happened” at the firm for this year-end recap I was astounded by the fact that it all happened in one year!  

But before I dive into all the exciting changes that packed 2018, I want each of you to take the next 15 - 30 minutes to give yourself a present that will cost you nothing, but potentially save you both financially and emotionally.  I’d like you to go into all of your financial websites and email accounts and change your passwords. Was that a groan I heard? However, it seems like every time we turn around a new breach of information has occurred, so why not set a date with yourself to protect your finances?  Be prepared, we will be asking you this question in the first half of 2019 as we meet with you.

My recommendation is to create a phrase that you will remember but replace numbers with some of the letters and a symbol too!  Feel like you have too many passwords? There are password management systems that exist, but make sure if you use one of them that you change the main password at least every 90-days, if not sooner.  Also, if possible, add multi-factor authentication, where you have to receive a special code when you log in.

We also wanted to let folks know that we will be doing some tax loss harvesting on some of the accounts as the year winds down; both the bond and equity markets have been so volatile this year that we will be looking for some opportunities to switch holdings in order for you to take tax losses this year.

For those of you in the Corning area, we will have someone at the office during the following times this year, weather permitting:

  • Monday - 9 - 4 (Sandy)

  • Tuesday - 9 - 5 (Becky)

  • Wednesday - 12 - 3 (Debbie)

  • Thursday - 9 - 5 (Becky)

Also, so that we all get to enjoy time with our families, the office will be closed December 24 - December 28th.  We will be checking messages several times throughout the day to address any immediate needs.

Now let's reminisce about 2018...

At the end of 2017, I knew I had to make a decision.  Grow the firm or not. I thought long and hard about this decision; growing the firm was very scary to me but the thought of not being able to help more people saddened me.  Kate Welker and I had reconnected in the fall of 2017 and I felt like that reconnection was a perfectly timed. Both Kate and I took the chance and by mid-year, we knew it had been the right decision! Kate is focusing her time working with small businesses who are too small for a CFO, but need one. She also works with families with young kids - which she happens to have first hand knowledge and experience.  Kate’s big professional success this year was passing the CFP exam!

Becky then joined us in April, as she was finishing out her internship.  We were so thrilled by her motivation and desire to become a great planner that we had to figure out a way to keep her around.  We are honored to have her two days a week as she continues to work at a tax office the other days. In November, Becky sat quietly for the Series 65 and passed.  Becky will be listed as an advisor at the firm in 2019 and would like to begin helping her generation by consulting on one of the biggest problems they have...student loans.  Based on the feedback from our advisory board, Becky will be offering both an hourly consultation as well as a project plan around student loans and debt management. This is a very atypical service offered by financial planners, which is why we love offering it!  It supports one of the major goals I had for the practice, which was to provide financial planning services to anyone who wants it; not just people that have accrued assets to invest, but to people who need some direction on HOW they can accrue assets.

Matt was hot on Becky’s heals with a great eye for operations and paraplanner.  Matt and I actually started talking back in October of 2017, but he didn’t join the firm until May of 2018.  His patience and persistence to join the firm was impressive and he continues to be an enormous help in streamlining our processes. Matt has passed his CFP exam, but is working through the three-year experience requirement, which should be completed this May. Matt will continue to work in the capacity of our COO (Chief Operations Officer), but he would also like to begin working with young, high income earning individuals.  I’m excited that Matt is taking on this focus, as this is another underserved group of individuals!

Kerrie then joined the firm in August of this year.  She and I had met at the Dallas XY Planning Conference in 2016 and we were in a college planning group together.  Kerrie is a busy mom with teenagers, which is exactly the type of person she likes working with. She understands their struggles and challenges.  She and her husband are planning for their kids to go off to college and they know the pain of competing goals; they also know the challenge of keeping a healthy lifestyle and the desire to “get it together.”   She is so committed to this goal that she has co-developed a “Get Financial Healthy and Organized Program” that will be launching in 2019. Stay tuned for more to come on this exciting program! In addition, Kerrie will be finishing up her experience requirement in 2019, having passed the exam in November of 2016.

Kim, our resident CPA, followed very quickly after Kerrie and also joined the team in August.  Kim was also a co-XYPN member and a member of the college planning group that Kerrie and I were part of, but she found that she really enjoys working with those that are pre-retirement age. Could there be a theme here? Kim is of that age group, she “gets” the challenges pre-retirees are being faced with and the big decisions that need to be made! One of her favorite areas to analyze is Social Security and Medicare. In addition to the planning around pre-retirement, she’s launching a consulting service that also provides a narrow focus on the various social security strategies.

Scott, who is a CFP and professor of financial planning at SUNY Alfred State College rounded our planner additions for 2018.  Scott had previously worked in the education system as a financial advisor for TIAA; he knows the SUNY and CUNY system like the back of his hand both as a planner and as someone who is IN the system.  Scott will continue to focus his attention and expertise in that area.

Sandy Rowe joined the firm in October of 2018 in a client support position.  She and Debbie Konopski will continue to provide client care and support to the team through all the many behind the scene actions.

Some strong collaborations formed in 2018!  We began working with First Ascent Asset Management as a sub-advisor and we couldn’t be more thrilled with that relationship.  The offer such wonderful resources and valued experience to the investment portfolios, and this year was a challenge on that front!  

Additional 2019 Programs

Our 2018 Employee Financial Wellness Program rollout was a hit and we are going to continue to grow this program.  There have been numerous studies that show financial stress can affect employee productivity! As many of you know, I’ve been a Fiscal Fitness Coach for a few years, and towards the end of 2018 we decided to expand that service and grow the employee wellness program in conjunction with the Fiscal Fitness Network.  We are VERY excited to announce that ALL of our planners will be offering this service in 2019.

2019 Projects

We have some big projects on our goal list for 2019 too!

We will be looking at all of software and vendors in 2019 to make sure they are still a good fit for our clients and we’d love to get your feedback!  If you are willing to serve on a technology advisory committee, please let me know.

Our website will be on the updating block later this year as well!  One of the major reasons this is on the project list is because we are working on some rebranding for the Firm.  With the growth in the number of planners, we wanted a DBA that would reflect the diversity of the team, and how it impacts our clients lives. After a great deal of discussion and again bouncing the ideas of the client advisory group, we’ve registered Rooted Planning Group as a DBA for Irvine Wealth Planning Strategies.   You will continue to see the Irvine Wealth Planning Strategies brand, but you will also start to see the Rooted Planning Group brand in 2019. We will be rolling out more communication about this new brand very soon!