health.wealth.life Winter 2014

Winter 2014

health. wealth. life.

New Year New Resolutions New Opportunities

In Pursuit of What Matters Most.

Winter 2014 CO N T E N T S PAGE 3 – A Letter from Terry Horan, President & CEO PAGES 4-5 – Creating a Culture to Improve Physical & Financial Health PAGE 6 – Tips to Help Your Employees Jumpstart Their Journey of Physical &

Financial Wellness

PAGE 7 – Factoring the Cost of Health Care into Your Retirement Planning PAGES 8-9 – HORAN Capital Advisors Leverages Technology Solutions to Meet Clients’ Needs PAGE 10 – Enabling Clients to Protect Their Dreams Through Disability Insurance PAGE 11 – HORAN Significantly Increases Commitment in Dayton Region PAGE 12 – HORAN Sponsors Wright-Patt Credit Union’s Savings Race HORAN Sponsors Cincinnati Symphony Orchestra’s One City, One Symphony

HORAN SCHOLARSHIPS HORAN is proud to offer scholarships to our clients and their immediate family members to four regional universities: the University of Cincinnati, Wright State University, Xavier University and the University of Dayton.

Information about the scholarships as well as application forms will be mailed in late January.

Please visit horanassoc.com to learn more about HORAN’s scholarship opportunities.

PAGE 13 – HORAN Named Finalist in Best Places to Work for Fifth Year in a Row HORAN Ranks Seventh on United Way of Greater Cincinnati’s Tremendous 25 Wright State University Inducts HORAN into Heritage Society

PAGES 14-15 – Client Spotlight: E-Technologies Group & 4C for Children Please join us in welcoming our new corporate clients!

- Cincinnati Precision Instruments, Inc. - City of Bellbrook - The C.M. Paula Company - Reading Rock Inc. - St. Bernard Soap Company - City of Loveland - JANCOA Janitorial Services - Middletown City Schools

- ORMET Corporation - RDI Marketing Service Inc. - Episcopal Retirement Homes Inc. - City of Marysville - ADF Engineering - Greater Cincinnati HealthBridge - J&B Steel Erectors Inc.

Cover: The two bowls on this issue’s cover are the awards HORAN received for being named the Cincinnati Business Courier’s Healthiest Employer of the Year in 2012 and 2013. The awards have a place of pride in our training center and serve as a reminder of the important role we serve to advise our clients on how to achieve a healthy culture for their employees. As we begin the New Year, the awards also motivate us to continue along a path of improving the health of our own employees and leading by example.

health. wealth. life.

Look for us online! Go to horanassoc.com and click on Education to find out more about upcoming educational opportunities as more seminars will be scheduled throughout the year. Also, visit our Newsroom to view the online version of health.wealth.life.

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HORAN had much to celebrate and be thankful for in 2013. We hope the year 2014 will be just as memorable and we look forward to the great moments ahead of us. The articles in this issue of health.wealth.life. embody the theme of New Year, New Resolutions and New Opportunities.

New Year

The beginning of a new year is a critical time for planning and evaluating finances to help shape your future. In the wealth section, we discuss the importance of reviewing your retirement plan and factoring in the increase in health care costs.

Assessing your insurance coverage is just as important as reviewing your financial assets each year. Make a point to go through your policies with your trusted advisor (hopefully one of us) to see if there are any areas where you are lacking coverage. In the life section, we share a special story from one of our clients relating to disability insurance. Our client discusses his experience and how it is imperative to understand policies to ensure you receive full value from the coverage purchased.

New Resolutions

Each new year brings a renewed focus on health as New Year’s resolutions are made and hopefully kept. Our feature story highlights the importance of physical and financial health and the critical role both play in overall wellness. This year, we challenge you and your employees to make resolutions to improve your physical and financial health. On page 6, we provide tips on how you can help jumpstart your employees’ wellness journeys.

We believe good health and sustainable wealth create a better quality of life for our clients and their families. That is why we come to work each day.

Since its founding in 2010, HORAN Capital Advisors (HCA) has been a great asset to our business. HCA builds on the values HORAN has demonstrated for decades: integrity, service, passion and discipline. In the wealth section, we discuss how HCA is using technology to address clients’ specific needs, and their yearly resolution to provide clients with optimum service.

New Opportunities

HORAN significantly increased our commitment to the Dayton region in 2013. Advanced Benefit Planning, Inc. (ABP), an employee benefits agency, joined the firm in August and the HORAN Regional Office in Dayton moved to a larger space within the Kettering Tower in October. Both are opportunities to grow, support and advise our clients and engage as a meaningful partner in the community.

Our client spotlight shows the success of two of our small-business clients: E-Technologies Group and 4C for Children. These two clients share their achievements and plans for the future as well as discuss their challenges with health care reform and the resulting opportunities to work with us to find creative ways to continue to grow and succeed.

On behalf of all HORAN employees, I wish you and your loved ones a very successful new year. May 2014 bring you and your family joy and happiness in every aspect of your health, wealth and life.

In the spirit of a New Year, New Resolutions and New Opportunities,

Terence L. Horan, CLU, ChFC President & CEO of HORAN TerryH@horanassoc.com

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A letter from Terry Horan

In Pursuit of What Matters Most.

health

E

C

reating A C U L T PHYSICAL AND

mployers are faced with an abundance of challenges in offering their employees affordable health care coverage. In order to overcome these challenges, many employers are choosing to offer wellness programs to help their employees get healthier in an effort to reduce absenteeism, increase retention and contain health care costs.

According to the 2013 Health Plan Survey conducted by HORAN’s national partner, United Benefit Advisors (UBA), the nation’s largest independent benefits advisory organization, 21% of Ohio employers and 31.9% of Kentucky employers offered a company-sponsored wellness program, compared to 18.7% nationally.

HORAN attributes being named a Healthiest Employer of Greater Cincinnati for two years in a row to a robust wellness initiative and an engaged wellness committee, both of which HORAN’s leadership team strongly supports.

Using the HORAN Health Management Way, a process and platform we use to help clients with wellness, HORAN has been able to develop our own specialized approach to wellness which has enabled us to move along our own continuum and achieve true health outcomes just as we have with our clients.

There are many benefits of workplace wellness, including higher job satisfaction, increased employee engagement and improved productivity and attendance. At HORAN, we have also noticed elevated teamwork and camaraderie as a result of wellnesssponsored activities as employees spend more time together in an effort to become healthier.

“I believe the employees of HORAN are the most valued assets of the company,” said Terence L. Horan, CLU, ChFC, President & CEO of HORAN. “The purpose of our wellness program is to protect those assets by providing every HORAN employee with the tools and resources needed to achieve optimal health.”

The New Year is an opportune time to start a wellness journey at your organization as countless individuals make New Year’s resolutions to get fit, eat healthier and reduce stress. The tips on page 6 will help encourage your employees to work towards meeting their personal goals for 2014 and stay on track with their wellness journey through the entire year. Feel free to share these tips with your employees and encourage your wellness committee to discuss how they can help your employees stay on track in 2014.

“21.9% of North Central Region (including Ohio and Kentucky) employers offer a companysponsored wellness program, compared to 18.7% nationally.”

health. wealth. life.

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wealth

URE TO IMPROVE F I N A N C I A L H E A LT H

E

mployers are grappling with the high cost of health care. Many are encouraging employees to adopt healthy lifestyles to address the spiraling cost of health care - a very important step, but employers should also recognize that a significant number of their employees are dealing with financial stress that can contribute to medical issues and lost productivity.

Our clients often ask themselves tough questions on how they can help their employees become more financially secure and encourage retirement saving in the current economic environment. The following are examples of common focus areas employers ask us about regarding actions they can take to help employees take control of their retirement: • Making savings seem simple and achievable.

• Helping employees create retirement income that can be counted on.

• Providing expert retirement advice.

HORAN hears these kinds of concerns expressed frequently.

The high cost of health care, the reduction in benefits from 401(k) and other defined contribution plans, care for aging parents, care for children who can’t pay for college - all conspire to create substantial concerns for individuals still in the workplace.

Chip Castle, a managing Director at Blackrock, recently wrote an article about the lack of savings of individuals looking to retire. The article, “Retirement in 2014: It’s Your Number That Counts,” highlights a number of facts that point to the savings shortfall of potential retirees, including: • $6.6 trillion: The amount the Center for Retirement Research has estimated as the gap between what people will need in retirement and what they have actually saved.

• 20 years: A generation ago, when most of the current retirement system was created, life expectancy at 65 was 5 to 7 years. Today, it’s closer to 20 years, meaning if you retire at age 65, your retirement timespan is three times longer than the previous generation’s retirement.

• 65%: Building on the last point, a couple at age 65 has a 65% chance of one of them reaching his or her 90th birthday.

• 50%: Only 50% of investors understand how much they will need in retirement, according to Blackrock’s Investor Pulse survey.

Among the most disturbing numbers is a statistic that arose from The Employee Benefit Research Institute’s 2013 “Retirement Confidence Survey,” which states that 57% of

Americans report less than $25,000 in total household savings and investments (excluding the value of their primary homes and any defined benefit plans).

You are probably asking yourself, “why aren’t we saving sufficiently?” Debt problems were cited in the survey as a major reason, with 55% of workers and 39% of retirees reporting they are having a problem with their level of debt.

On top of this - only half of workers and retirees say they could definitely come up with $2,000 if an unexpected need arose within the next month.

The problem: few seek financial advice. Just 23% of workers and 28% of retirees reported that they had obtained investment advice from a professional adviser. Of those workers who sought advice, only 27% followed all of it.

At HORAN, we believe our most valuable service to our employer clients is individual consultation with employees to help them understand and actualize their own retirement needs.

Through individual consultation, we have helped thousands of employees understand the importance of savings and how to invest money to create a secure future.

We think there never has been a more critical time to employ this service.

Article contributed

by Terence L. Horan, CLU, ChFC, President & CEO of HORAN; Michael D. Napier, CFP®, Director of Financial Planning at HORAN; and David I. Templeton, CFA, Portfolio Manager & Principal at HORAN Capital Advisors. *Information in graph ©2013 METLIFE, INC., “MetLife 2013 Study of Employee Benefit Trends”

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health TIPS TO HELP YOUR EMPLOYEES JUMPSTART THEIR JOURNEY OF PHYSICAL & FINANCIAL WELLNESS 1) Get a physical and financial check-up – Knowing your numbers is a crucial starting point for creating annual physical and financial goals.

Encourage your employees to visit their primary care physician for an annual physical to know what areas of their health to focus on this year. Also, have employees review their financial assets, including a review of their taxes, to have a better understanding of their current financial state.

2) Make a plan and be specific – Recommend your employees

schedule time for themselves throughout the week to work towards their personal health and financial goals and encourage them to make a physical or mental note of what they will do and when.

3) Design a competition and incentivize – Focus an office-wide

8) Take advantage of technology – Technology has helped to make many of our daily tasks easier. Why not use it to help your employees meet their New Year’s resolutions too? Have your employees download these apps based on their goals to help them get started.

If an employee wants to get fit – Try the Nike Training Club app (free for iOS and Android), which allows you to enter your current fitness level and select your personal goals. From there the app provides you with a list of workouts to help you meet your goals. It also has step-by-step video demonstrations and audio guides to assist you through each workout. Just as the infamous Nike brand has its own slogan, the Nike Training Club app does too: “Your personal trainer. Anytime. Anywhere.”

competition around a popular resolution in your office. Do a lot of employees want to get fit in 2014? Hold a walking competition. Have your employees group themselves into teams of four and use pedometers to track how many steps each team member takes during the day. At the end of every week, add up all four team members’ steps for a team total. After a month of competition, the team with the most steps wins a prize!

If an employee wants to reduce debt – Try Intuit’s Mint Personal Finance app (free for iOS and Android), which will track your income, expenses and overall financial health. The app allows you to securely track your financial state at any time by syncing with your bank and credit/debit cards. Mint also enables you to set personal financial goals like saving for a home, car or vacation and tracks your progress every month.

4) Construct a budget (and stick to it) – Work with employees on setting

If an employee wants to reduce stress – Try the Take a Break app (free for iOS and Android), which guides you through meditation when you need to take a break. The app offers a stress relief meditation or a work break option if you want a shorter meditation. You can also choose to listen with or without music.

a monthly budget and sticking to it to help relieve stress, reduce debt and plan for a healthy retirement. Have them start with reviewing their earning statements from the previous year, which will provide a clear picture of their household income. Employees should then make a list of their bills and a list of anticipated expenses to form a budget. Don’t forget to have them include their debt and savings amounts in their budget - the budget should include weekly, biweekly and monthly savings goals.

5) Use a buddy system - Create an open discussion around New

Year’s resolutions in your workplace and encourage employees with similar resolutions to help one another. Having a teammate to help along the way will enable employees to work together and motivate one another. For example, if a group of employees want to reduce the number of times they go out for lunch to save money and eat healthier, encourage them to partner together and be one another’s accountability partners. Gathering a group of individuals together who are working towards a similar goal will help facilitate overall success as individuals will be more likely to stick to their plan if they have other people holding them accountable.

9) Help track their progress – If you notice an employee doing a

tremendous job working towards a New Year’s resolution goal, make a point to recognize the effort. Consider holding a lunch where the standout employee can talk about his or her physical and/or financial health journey and tell others what he or she has found to work.

10) Seek professional advice – Your employees’ mix of physical and

financial health objectives is unique. Their plan to address these goals should be the same. Employees may need a partner who will focus on providing a thorough understanding of their situation, needs and preferences and help them plan to meet their goals to obtain physical and financial wellness for a healthy future.

6) Pay yourself first – Talk to your employees about automatically (or

manually) routing a specified amount from each paycheck to their savings account before paying monthly expenses and making optional purchases. This tactic will help them build up preserved capital and ensure consistent saving.

Encourage them to put aside money each month using automatic savings tools such as a 401(k) or Roth 401(k). Are they already saving? Have employees evaluate their budget to consider increasing the percentage they are saving.

7) Provide stress relievers – Many individuals try to take on stress

reduction for their New Year’s resolution. Consider providing onsite solutions to help employees reduce their stress. Offering stress relievers at work such as onsite massages or after-work yoga classes or encouraging work breaks for stretching can help your employees reduce workplace stress.

health. wealth. life.

Keeping a calendar is a great way to help stay focused on daily and long-term goals.

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wealth FACTORING THE COST OF HEALTH CARE INTO YOUR RETIREMENT PLANNING Over the last decade, we have faced a massive dilemma as the cost of health care has far outpaced inflation. The increase in medical care has had a significant impact on personal finances and retirement plans, which has resulted in a reduction of savings and an increase in debt obligations.

According to a 2012 consumer survey conducted by Nationwide Financial, 79% of individuals have underestimated or do not know their medical costs.

It is estimated that a lifetime of outof-pocket health care expenses for a 65-year-old couple retiring in 2010 will be on average between $250,000 and $430,000, but may be more or less depending on actual health status, geographic location and longevity.

For many of us, it may be difficult to accurately estimate the cost of health

care due to medical procedures and/or prescriptions as a result of preexisting health conditions.

Expenses can arise from multiple components of health care including medical insurance premiums, deductibles, co-payments; co-insurance associated with hospitalization, doctors and tests; prescription drugs and long-term care. End-of-life care can be the most expensive health care cost as a typical Medicare supplement insurance policy may not cover all of your needs. The three types of end-of-life care and respective usage based on claims filed include home health care (49%), assisted living (24%) and nursing home care (27%).

Through our premier partnership with M Financial as a preferred provider and partner, HORAN has exclusive access

to software that creates a personalized health care cost estimate for individuals.

Rather than simply deducting the amount needed for retirement using basic cost assumptions as most analyses do, this health cost assessment tool evaluates an individual’s health and creates health and financial assumptions for future health care needs.

“We think it is important to have a customized plan in place to address the rising cost of health care in order to have a more secure retirement,” said Michael Napier, CFP®, Director of Financial Planning at HORAN. “Using tools such as the health care cost assessment and other financial planning software can help forecast one’s particular needs to determine if you can self-fund with your own assets or if you need additional insurance to help fund future health care costs.”

The following chart shows the total estimated cost of health care in retirement 250,000

$

50,000

$

10,427

$

14,967

$

21,514

217,788

$

85,187

$

62,779

$

18,618

$

$

10,000

$

2,000

$

400

$

2017

2022

2027

2032

2037 Total Projected Expenses

2042 Long-term care claim begins

Amounts for under age 65 assume 100% member responsibility for private health insurance premiums and other associated medical costs. Amounts for age 65 and older assume coverage by Medicare Part A and include insurance premiums for Medicare Part B, D and supplemental insurance, plus additional associated medical costs.

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wealth

HORAN Capital Advisors Leverages Technology to Meet Clients’ Needs H

ORAN Capital Advisors, LLC (HCA) is a key part of the HORAN Wealth organization that currently advises and manages on more than $1.2 billion in assets, collectively.

HCA focuses on the investment and planning needs of high-networth families and institutions, and believes successful investment management firms do more than

health. wealth. life.

manage investments; they manage the changes in delivering a superior client experience.

HCA has partnered with several premier technology firms to provide cutting-edge solutions that are innovative, flexible and value-added.

The organization maximizes the latest technology solutions to meet the

investment and planning needs of its respective clientele. Critical components in meeting those needs and creating a better client experience include: • Dissemination of timely information • Research and analysis of client investments • Trade support and portfolio reporting

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A company’s commitment to technology reflects its desire to maximize efficiencies and act in the best interests of its clients. HCA partner, Envestnet | Tamarac©, estimates firms with superior technology spend 30% less time on operational aspects of their business.

This frees up time to focus on more valuable activities such as investment research, portfolio reviews and client interaction. Technology is a key differentiator and can lead to better results.

A state-of-the-art portfolio research platform assists HCA in screening for investments, analyzing economic data and quoting/charting specific securities. The ability to centralize and summarize key investment data is critical for researching investments; HCA’s systems offer access to macroeconomic and company-specific research.

“We leverage our best thinking for clients to screen, track and review investments that add value across all our client portfolios,” said David Templeton, CFA, Portfolio Manager at HCA. “HCA is able to utilize technology to be more efficient with our time, which in turn allows us to utilize our experience to tailor portfolio strategies to meet our clients’ individual objectives.”

The investment universe is very broad and complex. Investors now have the ability to purchase individual stocks and bonds, exchange traded funds (ETFs) and notes, mutual funds, hedge funds and a wide array of other investment alternatives.

“The ability to screen for investments under specific parameters, review and analyze the fundamentals of these potential investments and then execute trading in client portfolios

quickly and efficiently is paramount in the fast-paced markets we experience today,” said Templeton.

“This can be very time-consuming and without the proper technology and infrastructure, one can become overwhelmed and distracted from other value-added elements that can deliver a better client experience.”

HORAN Capital Advisors has engaged Envestnet | Tamarac© for portfolio reporting, monitoring, advanced trade modeling and rebalancing, performance reporting, customer communication tracking and an online client portal.

“We knew that building a strong technological foundation was critical to our long-term success,” said Mark Bennett, CFA, Portfolio Manager at HCA. “As a leading practice management firm in our industry, Envestnet | Tamarac© has given us greater capabilities than most RIAs. When we act on specific investments, we trade across most of our client portfolios while taking into consideration many unique circumstances of our individual clientele. Utilizing a ‘tax-aware’ trading system to implement changes across our client accounts allows us to quickly determine the tax consequences of any prospective changes and consider alternative strategies where necessary. This multifaceted logic can have a meaningful impact on overall performance.”

leads to better client outcomes.”

HORAN Capital Advisors is a “high touch” investment advisory practice.

They continuously engage clients in face-to-face meetings as well as communicate by e-mail, telephone, webinar, etc. The practice is centered on assisting clients with longerterm financial planning including everything from estate planning, to charitable giving, investment and retirement allocations and tax planning.

A company’s commitment to technology reflects its desire to maximize efficiencies and act in the best interests of clients.

As HCA Portfolio Manager, Nick Reilly describes, “Our system tracks, reports and stores client data and communication. This may include notes from past investment reviews or important papers such as tax returns and trust documents. Maintaining consistent information about our clients and changes to their lifestyle

HORAN Capital Advisors, LLC (HCA) is a registered investment advisory firm dedicated to establishing and maintaining long-term client relationships.

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life

Enabling Clients to Protect Their Dreams Through Disability Insurance Disability insurance can be a difficult subject to address. No one wants to think about the possibility that something could happen to prevent them from being able to live the life they’ve been working toward or even to continue to live as they currently are.

However, the statistics tell a story that cannot be ignored. A healthy 35-year-old male has a 21% chance of becoming disabled for three months or longer during his working career and a healthy female has a 24% chance of becoming disabled for three months or longer during her working career, according to The Council for Disability Awareness.

Ultimately, disability insurance is about protection; it’s about giving individuals the ability to have choices and to be in control of their financial lives should something unforeseen occur. Disability insurance coverage can help people pay bills, pay for rehabilitation, keep their businesses running, safeguard assets and preserve retirement dreams.

It Could Happen to Anyone

• Just over 1 in 4 of today’s 20 year olds will become disabled before they retire.* • Over 37 million Americans are classified as disabled, about 12% of the total population.+ • More than 50% of those disabled Americans are in their working years, from ages 18 - 64.+

Case in Point

HORAN client, Scott C. Stoller, DDS, owned his own family and cosmetic dentistry practice in Cincinnati for 10 years. In 2008, he was forced to sell his practice after having undergone several surgeries to attempt to correct nerve damage in his right arm.

During the timeframe between his surgeries, Stoller’s practice suffered and his income dropped because he was unable to perform the same procedures he had been doing for years.

“Along the way I had given up doing a lot of procedures that I had been performing previously such as root canals, extracting teeth, etc.,” said Stoller. “I got to the point

health. wealth. life.

where I was losing grip on the instruments and wasn’t happy or comfortable practicing dentistry anymore.”

Stoller had purchased a disability insurance policy through HORAN in 1997. He also obtained a business overhead insurance policy to protect his business.

“You never plan on having to use it, but I think that everyone needs to have one in place in order to protect yourself,” said Stoller. “If something happens and you don’t have a policy, then you’re very limited to what you can do in the future.”

Social Security and Employer Plans Have Shortcomings

Anyone who is working and paying into Social Security is eligible to apply for Social Security Disability insurance, but the average benefit is only $1,130 a month. According to the U.S. Social Security Administration, 65% of initial Social Security Disability insurance claim applications were denied in 2012.

Additionally, many employers offer their employees disability insurance through a group plan that will replace anywhere between 40 and 60% (pre-tax) of an individual’s salary. The level of benefit is limited and usually ranges between $5,000 and $10,000 per month. In addition, those benefits are taxable to the employee since the employer pays the cost of the coverage.

Social Security Disability insurance and employer-sponsored group plans are both beneficial but have shortcomings in the amount of coverage available. Personal disability insurance allows individuals to tailor the amount of coverage they obtain based on several factors including income, lifestyle-spending and occupation.

“My wife and I had made some major life changes just before my disability including adopting our son and building our dream house, which increased our monthly expenses,” said Stoller. “Had I not had this disability insurance policy, we would have been up a creek without a paddle and that would not have been a good situation.”

The Importance of Professional Advice

An insurance adviser can help individuals make decisions on how to best tailor their disability insurance coverage. For example, selecting “own-occupation” disability coverage would allow the insured to receive full benefits if she cannot perform her current occupation, even if she decides to switch roles and start working in another position.

“Modified own-occupation” disability coverage is slightly different because the insured would get paid if he was not able to do his current job, but if he decides to work elsewhere, he would lose some or all of his benefits, or the insurance company would only cover the gap between his pre-disability income and post-disability income.

An insurance adviser is able to work through other decisions on coverage such as adding a cost of living adjustment (COLA) rider, choosing whether or not to pay taxes on premiums and selecting the right time for future benefit increases.

“I would highly encourage everyone to find a way to fund a disability policy and to do it with after-tax dollars so that you can protect your education, investments and yourself,” said Stoller. “You never think it will happen to you, but you really need to protect yourself and your family in case something does happen.” * U.S. Social Security Administration, Fact Sheet, February 7, 2013. + U.S. Census Bureau, American Community Survey, 2011.

THE FIN A N C I AL IM PACT O F D I SAB I LI T Y - 65% of initial Social Security Disability Insurance claim applications were denied in 2012.1 - Can your family live on $1,130 a month?

That’s the average monthly benefit paid

by Social Security.1 - Medical problems contributed to 62% of all personal bankruptcies filed in the United States.2 1. U.S. Social Security Administration, Disabled Worker Beneficiary Data, December 2012.

2. U.S Courts, Bankruptcy Statistics, 12-Month Period Ending December 2007.

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community HORAN SIGNIFICANTLY INCREASES COMMITMENT IN DAYTON REGION In August 2013, HORAN acquired Advanced Benefit Planning, Inc. (ABP), whose reputation for customized service and strong value of commitment to clients was a natural fit with the HORAN philosophy. This represents an increased commitment to the Dayton region.

“HORAN’s expansion in the Dayton market grows the depth, expertise and resources committed to the region as we create proactive employee benefit strategies to contain costs as well as navigate through the complexities of the Affordable Care Act,” said Doug Miller, CHC, Executive Vice President of HORAN. The HORAN and ABP partnership brought HORAN the opportunity to partner with many significant organizations in the Dayton community including Dayton Metro Library, Piqua City School District and French Oil Mill Machinery Co., among others.

In October 2013, HORAN also expanded their office space within the Kettering Tower in downtown Dayton to accommodate recent employee and client growth in the area.

“Our continued expansion in the Dayton marketplace required additional space to ensure we were meeting the needs of our clients,” said Terence L. Horan, CLU, ChFC, President & CEO of HORAN. “We made the decision to expand our offices in the Kettering Tower to provide the resources our employees need to best serve our clients in the Dayton area.”

HORAN’s new office, under the leadership of Erik Freudenberg, CBC, Vice President and Dayton Market Leader, provides more space and additional resources for employees. The new office space will also have hoteling capabilities for employees who travel to Dayton on a daily basis.

HORAN is honored to serve the Dayton community and has been active as a corporate citizen in supporting organizations such as Dayton Go Red, Wright State University, the Boonshoft Museum of Discovery, American Heart Association sponsorships in Dayton and Piqua, the Dayton Philharmonic Orchestra and the Sinclair Foundation, among many others. HORAN is committed to being a community partner to support continued growth in the Dayton region.

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community

HORAN Sponsors Wright-Patt Credit Union Annual Savings Race One of HORAN’s new clients, Wright-Patt Credit Union (WPCU), offers a nationally recognized “Savings Race” competition that encourages families in the Dayton region to increase savings, reduce debt and achieve personal goals, all in an eight-month time period.

Five families, or teams, strive to achieve goals such as funding their child’s college education or saving for unexpected medical costs, and compete to win prizes ranging from $1,500 to $10,000. HORAN was a proud sponsor of the WPCU Savings Race sixth edition alongside companies such as the Kettering Health Network, Dayton Children’s Hospital and Ronald McDonald House. Each year the race has a different theme. The theme for the 2013 WPCU Savings Race was “Health and Financial Fitness,” a mantra that parallels HORAN’s tagline - health, wealth, life.

HORAN Vice President, Erik Freudenberg, contributed to several educational sessions regarding insurance, including an Insurance 101 Workshop and a financial seminar featuring Dave Ramsey, an American financial author, radio host, television personality and motivational speaker.

In the past five years, the Savings Race has impacted 25 families and helped them increase their net worth by over $670,000 an average of $26,000 per family-within the eight-month period of the competition. The WPCU Savings Race reminds families of the direct correlation between personal finance and health, and how vital it is to reach and maintain fitness in both. Viewers can vote for the Savings Race teams and track their progress at savingsrace.com.

HORAN Sponsors Cincinnati Symphony Orchestra’s One City, One Symphony HORAN was proud to sponsor the Cincinnati Symphony Orchestra’s performance of One City, One Symphony on November 16, 2013. This year HORAN celebrates 65 years of promises kept, spending 24 of those years in partnership with the Cincinnati Symphony Orchestra.

HORAN sponsored the performance as a gift to the city in celebration of the company’s 65th anniversary. The Cincinnati Symphony Orchestra gave HORAN a special plaque displaying the One City, One Symphony program at a special reception prior to the event.

The Cincinnati Symphony Orchestra is a dynamic ensemble of the world’s finest musicians. The organization has played a leading role in the cultural life of Greater Cincinnati and the Midwest since its founding in 1895. HORAN is proud to partner with our valued client, the Cincinnati Symphony Orchestra, and will continue to support the arts throughout the region.

health. wealth. life.

HORAN President & CEO Terry Horan and Executive Vice President Doug Miller receive a commemorative plaque from Steve Sunderman, May Festival Executive Director, and Trey Devey, President of the Cincinnati Symphony Orchestra, at the November 16, 2013, performance of One City, One Symphony.

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HORAN Named “Best Places to Work” Finalist Five Years in a Row

H

ORAN was named a Cincinnati Business Courier’s Best Places to Work finalist for five years in a row, 2009-2013, and was recognized at the annual awards event held at Duke Energy Center on November 14. HORAN won the Best Places to Work award in the medium-size company category in 2009 and is one of few companies selected as a finalist for five consecutive years.

The Cincinnati Business Courier recognizes the “Best Places to Work” in Cincinnati on an annual basis. Any company headquartered in the 17-county Greater Cincinnati region, with more than 10 employees is eligible to apply. The Business Courier executes a 40-question anonymous survey of employees, to discover the companies with the most engaged workforce.

The survey is conducted by an independent market research company and measures how employees feel about management effectiveness, trust and commitment to professional development.

“HORAN’s internal work environment translates into wonderful outcomes for our clients,” said Terence L. Horan, CLU, ChFC, President & CEO of HORAN. “Our clients and partners receive the type of service, respect and care that occurs when employees have a positive environment and ultimately enjoy what they do every day. We are committed to continuous improvement, to keep learning from our team and to grow as we strive to deliver outstanding solutions to our clients. We want to constantly improve because we believe that is how we will grow and continue to provide outstanding service and value to our clients.

HORAN is honored to receive this designation.”

HORAN Ranks 7th on United Way of Greater Cincinnati’s “Tremendous 25” List

Wright State University Inducts HORAN into Heritage Society

HORAN ranked number seven on the United Way of Greater Cincinnati’s list of “Tremendous 25,” raising $1,129 per capita for the 2013 campaign. The list is comprised of the top 25 companies in the region who gave the highest per capita to the campaign.

These companies are not considered large enough to be included on the “Top 25” list. The organizations on the “Tremendous 25” list are required to have at least 25 employees and 55% employee participation in the 2013 campaign.

The HORAN campaign began on September 25 and concluded on October 10 with a casino-themed fund-raising finale. Employees paid entry fees to participate in competitions such as ping pong, office putt-putt and a first for HORAN - jeans day. There were also several raffles and items available for auction to raise money for the campaign.

The United Way of Greater Cincinnati raised $61.7 million during this year’s campaign, achieving its second highest new-dollar total in 10 years.

HORAN was inducted into the Wright State University Heritage Society in recognition of HORAN’s support and contribution to the university. Mikal Jeffries (left) and Erik Freudenberg (right) are members of HORAN’s Wright State University account team and attended the induction ceremony to represent HORAN.

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clients

Client Spotlight - E-Technologies Group & 4C for Children HORAN is pleased to highlight the stories of two clients in this issue of the magazine, both of which are classified as small businesses—E-Technologies Group and 4C for Children. According to the 2013 Health Plan survey conducted by our national partner, United Benefit Advisors (UBA), the nation’s largest independent benefits advisory organization, 98% of all employers offering their employees an employee-sponsored health plan are considered small or midsize companies. This is an astronomical percentage of companies who will be affected by health care reform’s new regulations and compliance requirements. We chose a for-profit (E-Technologies Group) and nonprofit (4C for Children) to show the challenges posed to both types of industries. HORAN has a dedicated team to serve small business clients and specializes in providing a full spectrum of products and services to assist small employers in creating strategic benefits programs that not only contain costs, but also enhance the well-being of employees.

E-Technologies Group: Engineering Outcomes In 1993 Steve Veldhuis and Doug Fagaly co-founded Control Concepts & Design Inc. (renamed E-Technologies Group in 2000) to help improve their clients’ businesses utilizing robust technology to create highquality solutions.

Headquartered in West Chester, Ohio, E-Technologies Group has an extensive, global reach and provides technology solutions for clients on four continents.

“We do things at E-Technologies Group that no one else does in the country or the world, and that has been our biggest distinction—to be able to stay ahead of the curve,” said Stuart Herman, JD, SPHR, HR Director and Legal Counsel at E-Technologies Group. “We saw certain technologies starting to come into play in manufacturing and we became the experts.”

E-Technologies Group offers specialized services including comprehensive automation services, validation, engineering and design solutions, machine process services, business intelligence solutions, project services and information technology. They partner with companies in industries ranging from pharmaceutical, consumer goods, chemical process, food processing and packaging and parts manufacturing, among many others.

Inc. magazine named E-Technologies Group a Top 100 consulting firm in 2007 and a Top 50 engineering firm in 2008. In 2007, 2008 and 2009, the Cincinnati Business Courier recognized E-Technologies Group as one of Greater Cincinnati’s “Fast 55” companies, an honor that distinguishes the region’s fastestgrowing companies. E-Technologies Group has seen rapid growth in the past few years and they look to keep expanding, which has presented new changes and challenges for the company. They are looking to expand and grow the services they offer by establishing additional offices in other countries.

“We are trying to push through to that next level. I think getting from 50 to 100 employees is a lot easier than getting from 100 to 150 employees,” said Herman.

“There is a whole new set of challenges that come along with regulatory, compliance, infrastructure and overhead and facility.”

Stuart Herman, JD, SPHR, HR Director and Legal Counsel at E-Technologies Group

health. wealth. life.

Health care reform has provided many small businesses with challenges associated with being able to provide their employees with employer-sponsored health plans. Employers need to factor in how much they are able to provide as an organization and what will seem reasonable to an individual and his or her family in order to retain their employees.

“Our benefits strategy is critical for our

budget, planning for our future, our employee retention and employee recruitment,” said Herman. “We are looking at it from a financial perspective all around, not just the company’s finances, but our employees’ finances.”

Small businesses now have to analyze and evaluate their organization’s budget to an entirely different degree than ever before, and make adjustments due to changes in health care reform regulations and compliance requirements.

“We’ve been working with HORAN on how we can get creative to think outside the box and get creative with how we approach our benefits strategy,” said Herman. “I know I can count on them, so there is a real trust-build.”

E-TECHNOLOGIES GROUP INDUSTRY Engineering and Information Technology LOCATION West Chester, Ohio KEY PERSONNEL Steve Veldhuis and Doug Fagaly Co-Owners and Co-Founders

NUMBER OF EMPLOYEES 51-99 YEAR FOUNDED 1993

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4C for Children: The Early Childhood Experts Last year, 4C for Children celebrated 40 years of working to improve early childhood education and child care so that all children could succeed. With offices in Cincinnati (1972), Northern Kentucky (1992) and the Dayton Miami Valley (2006), 4C for Children has taken best practice and philosophy on early childhood care to have an expansive reach in the region.

The organization works with parents, teachers, individuals who work with young children in child care centers, family child care homes and before and afterschool programs to increase individuals’ knowledge of working with young children.

“We see ourselves as the early childhood people or experts, which is something we really want to communicate by teaching teachers, supporting families and advocating for high-quality services for young children and their families,” said Sallie Westheimer, President & CEO at 4C for Children. “Advocacy is key to our work because there are many barriers for families that often get in the way of success, so we want to make sure that public policy at the local, state and national levels is developed so that it best supports families and children.”

4C for Children offered 1,300 training courses on topics ranging from basic health and safety to child development and curriculum, leadership development and many other topics last year, which garnered 24,000 total attendees.

Westheimer credits 4C for Children’s success to the organization’s knowledgeable and talented staff, their use of data for accountability and continuous improvement and their network of partners. She spoke excitedly about 4C for Children’s plans for the future, mentioning the expansion and further development of several programs including E-Learning components, nutrition program, School and Community Connections, Strengthening Families and the Cincinnati Preschool Promise.

In order to attract and retain the 4C for Children’s staff, the leadership team works to offer a high-quality benefits package.

Pictured (left to right): Greg Varner, Chief Financial Officer, Sallie Westheimer, President & CEO, and Ann Thomas, Human Resources Manager.

4C FOR CHILDREN “Over time, we have developed a total compensation system for our benefits strategy,” said Ann Thomas, Human Resources Manager at 4C for Children. “As our strategy and philosophy point out, we have salaries that may be lower in the marketplace, but we want to attract and retain quality people to do the work that we do so we have taken the global position that we want our benefits to be a higher quality.”

HORAN has partnered with 4C for Children for over 10 years to help them accomplish this goal and navigate the challenges of health care reform.

“HORAN is our source for information on the Affordable Care Act and has provided advice and guidance,” said Westheimer. “We can turn to them with questions because there is so much noise out there. HORAN has been a great supporter for what to expect and what’s coming next.”

INDUSTRY Nonprofit (Early Childhood Education and Care) LOCATIONS Cincinnati, Ohio Covington, Kentucky Dayton, Ohio KEY PERSONNEL Sallie Westheimer, President & CEO NUMBER OF EMPLOYEES 51-99 YEAR FOUNDED 1972

4C for Children is a pioneer and leader in early childhood education and has stood as the region’s strongest advocate for high-quality child care and early childhood education for more than 40 years. 4C for Children is a trusted resource that delivers high ethical standards, outstanding performance and excellent service for its clients. | 15 |

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Best Wishes for a Happy and Healthy New Year

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