VESTED Summer 2019 by CAPTRUST

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The Science of Happiness

Doug Rauch Mission for Nutrition PLUS Navigating a Crisis P(recession) Urban Bounty The Gift of Life

SUMMER 2019

At CAPTRUST, we believe we have a profound responsibility to share our success with those less fortunate than us. One way we do that is through the activities of the CAPTRUST Community Foundation, our in-house, employee-run charitable foundation. Its mission is to enrich the lives of children in communities we serve. The foundation, a registered 501(c)(3) charity, was formally organized in 2007 to provide our employees with opportunities to participate as a group in community outreach efforts and to offer their time, passion, and financial support as a way to give back.

â€œ History will judge us by the difference we make in the everyday lives of children. â€? Nelson Mandela

We invite you to like the CAPTRUST Community Foundation on Facebook.

COMMUNITY FOUNDATION

captrustcommunityfoundation.org | toll free: 855.649.0943 4208 Six Forks Road, Suite 1700 | Raleigh, NC 27609

Volume 5, Issue 2 | Summer 2019 PUBLISHER

Thank you for your support and positive feedback about VESTED. I feel like it really is making a difference in our readers’ lives, and it’s rewarding to be a part of it. I enjoy the articles myself and always glean a few nuggets from the latest issue. I hope you do too. This issue’s Second Act hero is Doug Rauch, retired national president of Trader Joe’s and founder of Daily Table, a nonprofit grocer that’s bringing healthy and fresh food to underserved Boston neighborhoods. Rauch’s journey from grocery executive to social entrepreneur is a case study on how to bridge the gap from career work to a fulfilling next chapter. Also in the summer issue, we feature a variety of topics, including: • how to avoid making bad choices during times of crisis; • using trusts to safeguard an inheritance;

J. Fielding Miller Chief Executive Officer EDITORS John Curry Editor in Chief

EDITORIAL ADVISORY BOARD

And this issue’s installment of Investment Strategy from CAPTRUST Chief Investment Officer Kevin Barry and Investment Strategist Sam Kirby, titled “P(recession),” examines a series of key U.S. economic indicators and explores the probability of recession in the near term.

• urban foraging; and

As always, we appreciate your article ideas, thoughts, and suggestions. Please keep them coming!

• paying it forward via organ donation.

All the best,

• sudden wealth syndrome and how to cope with a large financial windfall;

This issue’s must-read feature, “The Science of Happiness” by regular contributor Kim Painter, looks at the latest research into happiness and offers a few thoughts and tips on how you can engineer a more positive mental state.

Alysa Cronin Managing Editor

Jeremy Altfeder Financial Advisor

Mike Gray Senior Vice President, Financial Advisor

Rush Benton Senior Director, Strategic Wealth

Land Hite Senior Vice President, Financial Advisor

Hugh (Trae) Cole Financial Advisor

Greg Middleton Director, Advisor Group

Ellen Crowley Vice President, Financial Advisor

Aaron J. Morris Vice President, Financial Advisor

Nick DeCenso Senior Manager, Wealth Strategy

Teri Parker Vice President, Financial Advisor

Philip D’Unger Specialist, Wealth Solutions

Alysia Tacinelli Client Management Consultant

Karen Denise Director, Wealth Operations

Kyle Tucker Senior Vice President, Financial Advisor

Justin Gartman Client Management Consultant

Tiffany Walker Senior Wealth Planner

ART DIRECTION AND MARKETING Lonzetta Allen Associate Art Director

John Curry Art Director

Harrison Brackett Jennifer Mastrapasqua Graphic Designer Distribution Manager

WITH THE ASSISTANCE OF

J. FIELDING MILLER CAPTRUST Chief Executive Officer

Azul Photography Raleigh, NC

Worth Higgins & Associates, Inc. Richmond, VA

Gabrielle Burke Pittsburgh, PA

Getty Images Seattle, WA

CONTENT AND CONTRIBUTORS

Gabrielle Burke

KEVIN BARRY

ALYSA CRONIN

SAM KIRBY

JEANNE LEE

Kevin Barry is CAPTRUST’s chief investment officer and leads the Consulting Research Group, the team responsible for investment manager due diligence, asset allocation, and discretionary investment management for the firm’s wealth management and institutional advisory clients. Barry studied finance at La Salle University in Philadelphia and the University of London, where he received a Master of Science degree in financial management.

Alysa Cronin is a relocated New Englander who now resides in Raleigh. She serves as managing editor for VESTED magazine and contributing author for captrust.com. Cronin received a Bachelor of Science degree from Plymouth State University and has been working in the financial services industry since 2004. In her spare time, she enjoys being outdoors and spending time with her husband, Dave, and her two young sons, Kyle and Thomas.

As leader of CAPTRUST’s Investment Strategist team, Kirby works with the firm’s financial advisors to assist clients with investment strategy, selection, and monitoring. He has 15 years of financial services experience. Kirby earned a Bachelor of Arts degree in journalism from the University of North Carolina and a Master of Science degree in management from North Carolina State University. He is a CFA charterholder.

Jeanne Lee is a freelance writer living in the lovely college town of Oberlin, Ohio. She has written about consumer and business topics for 20 years, including stints at Fortune and Money. Her work has appeared in publications like USA TODAY, Fortune Small Business, and Health. She loves thinking about ways for people to hack their finances and daydreams of paying off her mortgage before she has to pay for college for her two boys.

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Features 4

Columns

THE SCIENCE OF HAPPINESS

PASSION PURSUITS

LASTING LEGACY

EXPERT ANGLE

GLEANINGS

CLIENT CONVERSATIONS

CAPTRUST HAPPENINGS

by Kim Painter

MISSION FOR NUTRITION by Sylvana Smith

NAVIGATING A CRISIS

Urban Bounty by T. Edward Nickens

Trusts: Safeguarding an Inheritance by Jeanne Lee

by Kim Painter

MARKET REWIND

P(RECESSION)

MONEY MINDSET

by Sam Kirby and Kevin Barry

Suddenly in the Money by Alysa Cronin

T. EDWARD NICKENS

KIM PAINTER

SYLVANA SMITH

T. Edward Nickens is an awardwinning journalist, editor-at-large for Field & Stream, contributing editor to Audubon, and a frequent contributor to Garden & Gun and Shooting Sportsman. He has served as host, co-producer, and lead writer on TV and web series and authored the best-selling book Field & Stream: The Total Outdoorsman Manual. Nickens is a recognized expert on hunting and fishing culture, conservation, and environmental issues.

Kim Painter is a freelance writer specializing in health and lifestyle issues. She was a USA TODAY staffer for many years and has continued to contribute to the newspaper as a reporter, columnist, and blogger. She lives in McLean, Virginia, where she practices what she preaches: wearing sunscreen, eating broccoli, and getting at least 10,000 steps a day.

Sylvana Smith is a freelance writer living on an antebellum farm in central North Carolina. Educated at Carnegie Mellon University and the University of North Carolina, she writes marketing communications for Fortune 100 companies. She has been a professional journalist and marketing writer for more than 20 years.

The Gift of Life by Alysia Tacinelli

Organ Outreach

ALYSIA TACINELLI Alysia Tacinelli is a freelance writer from New York, currently living in Raleigh. She spent a couple of years living in London, where she earned her master’s degree in publishing studies and started her career in the editorial department at Bloomsbury Academic. When Tacinelli is not working as a client management consultant at CAPTRUST, she’s tucked away trying to finish her first novel.

All publication rights reserved. None of the material in this publication may be reproduced in any form without the express written permission of CAPTRUST: 919.870.6822. ©2019 CAPTRUST Financial Advisors. The opinions expressed in this report are subject to change without notice. This material has been prepared or is distributed solely for informational purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. CAPTRUST does not render legal, accounting, or tax advice. If you require such advice, you should contact the appropriate legal, accounting, or tax advisor. The information and statistics in this report are from sources believed to be reliable but are not warranted by CAPTRUST Financial Advisors to be accurate or complete. Performance data depicts historical performance and is not meant to predict future results.

THE SCIENCE

LESS HAPPY

Here’s one of the greatest paradoxes in the science of happiness: If you survey a group of older adults about who is happier, young or old people, most will say young people are happier—but they will be wrong. Study after study from around the globe suggests that happiness over the lifespan follows a u-shaped—or perhaps smile-shaped—curve. Both young and old people are happier than the relative sad sacks of middle age. Some recent surveys in the U.S. even suggest older adults are now happier than stressed-out young adults, says Linda George, a professor of sociology at Duke University.

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OF HAPPINESS by Kim Painter

MORE HAPPY At age 71 herself, George says she is “very happy.”

The Foundations of Happiness

Of course, not everyone is happy in old age—or at any age. And aging baby boomers, as a generation, appear less happy than their parents were at the same stage, George says. But science has some more good news: There are ways to protect and increase your happiness, even when faced with the challenges common in later years—everything from illness to loneliness to loss of purpose.

Before you start seeking your own bliss, it helps to know what science has discovered about happiness.

“It is possible for older people to get happier,” says Sara Orem, a life coach who teaches courses in gratitude and mindfulness at Osher Lifelong Learning Institute at the University of California, Berkeley. Orem, who left a corporate job to get a PhD at age 60, says her own efforts to find more joy have paid off. “I think I am much happier than I used to be,” she says.

First, if you suspect that some people are naturally happier than others, you are right. Genetic factors account for up to half of the difference in happiness between individuals, according to Sonja Lyubomirsky, a professor of psychology at the University of California, Riverside, and author of two popular books—The How of Happiness and The Myths of Happiness. “When you look around you, you see that some people are happier than others. But that doesn’t mean that we can’t be happier,” she says. “It just takes more effort for some people.” The events in our lives also matter, but they matter less than you might think. 5

SONJA LYUBOMIRSKY: Professor, Author, and Happiness Expert Sonja Lyubomirsky is a professor and vice chair of psychology at the University of California, Riverside. She has been studying how and why happiness can shift over time for more than 29 years. Lyubomirsky is currently exploring the potential of happiness-sustaining activities such as expressing gratitude, performing acts of kindness, and visualizing a positive future. Lyubomirsky’s best-selling book, The How of Happiness, and her second book, The Myths of Happiness, have been published in 28 countries. Her work has been written about in hundreds of articles, and she has appeared on numerous TV and radio shows, including CNN News, Sirius XM’s the “Michelangelo Signorile Show,” and Today. Sonja Lyubomirsky

One famous study, published in 1978, found that recent lottery winners were not significantly happier than average folks. In the same study, researchers found that people paralyzed in accidents were slightly less happy than others, but not nearly as unhappy as might have been expected. Subsequent studies have found stronger evidence that life events do matter. Researchers have found, for example, that a welcome divorce can boost well-being, while a disabling illness can dampen it.

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The common belief that older people are largely unhappy is grounded in sheer ageism. We have incredibly entrenched negative stereotypes about later life. The idea that most of us will become grumpy old men and bitter old ladies is just wrong.

But hedonic adaptation—the tendency of humans to return, Linda George more or less, to a happiness set point—is always at work, Lyubomirsky says. That’s one reason, she says, that many older people can remain happy. “Most people are more resilient than they think and can adapt to even major losses,” she says.

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The Secrets of Happy Aging

“We do have our aches and pains and losses, but most of us adjust and do just fine, at least until we hit a final decline. That period of decline usually is brief and at the very end of life,” George says. While it can be healthy for young people to worry about their futures, older people often thrive when they are able to focus on what really matters to them right now, says Alan Castel,

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Josh Blanchard

The common belief that older people are largely unhappy is grounded in sheer ageism, says George. “We have incredibly entrenched negative stereotypes about later life. The idea that most of us will become grumpy old men and bitter old ladies is just wrong,” she says.

a professor of psychology at the University of California, Los Angeles, and author of Better with Age: The Psychology of Successful Aging. “Our goal is not to be happy every moment of the day, but you need to be aware that you can be happy,” Castel says. That attitude can make the difference, he says, when losses and setbacks occur. Orem, the California life coach, says she has benefited from focusing on the good things in her life. On a recent trip to London, she says, she and her husband realized they no longer had the stamina to walk long distances and use the subway.

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Our goal is not to be happy every moment of the day, but you need to be aware that you can be happy. That attitude can make the difference, when losses and setbacks occur. Alan Castel

“So, one day we took the bus, and it took an hour longer,” she says. When she was younger, she would have been annoyed by the inconvenience. But that day, she says, “it was so pleasant, just sitting there and enjoying the view out the window.” That kind of acceptance and appreciation, she says, can make aging a pleasure.

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Ways to Get Happier It’s never too late to pick up new habits associated with being happier. Here are a few ways to increase happiness at any age, according to psychology professor Sonja Lyubomirsky and other happiness experts.

same kind act repeatedly. People also seem to get a boost when they pick a day of the week to perform many random acts of kindness. In fact, according to a recent Forbes article, spending money on other people makes you much happier than spending it on yourself.

• Use your strengths in a new way. People with a growth mindset • Write a gratitude letter. Research has shown time and time believe they can improve. This makes them happier and better at again that being grateful is good for your health, mood, and handling difficulties. They embrace challenges and treat them general well-being. In fact, it’s one of the easiest things you can as opportunities to learn something new. Think about your do to increase your mental health. Think about someone you character strengths—traits such as bravery, creativity, and appreciate and draft a letter to him or her. Through the note, tell perseverance. Then identify a new way you could use that trait the person how much he or today. You might use your bravery she means to you, your to try a new hobby or your creativiPeople with a growth mindset believe recognition of what he or she ty to cook a new dish. Write about has done for you, and how your experience and how it made they can improve. This makes them appreciative you are of his or you feel. happier and better at handling difficulties. her existence and actions. You don’t even have to send the • Meditate on positive feelings They embrace challenges and treat them letter to get the benefits. toward yourself and others. Metta as opportunities to learn something new. bhavana, or loving-kindness • Count your blessings. Happy meditation, is a method of Think about your character strengths— people know how important it developing compassion. It comes traits such as bravery, creativity, and is to savor the taste of delicious from the Buddhist tradition, but it foods, reflect on the interesting can be adapted and practiced by perseverance. Then identify a new way conversation they just had, or anyone, regardless of religious you could use that trait today. appreciate being able to step affiliation. Loving-kindness outside and take in a breath of meditation is essentially about fresh air. Happy people also tend to avoid gossip and judging cultivating love. The basic idea: You sit quietly and imagine others. Some people find it helpful to keep a gratitude journal, loved ones sending you love and kindness; you then send love but you don’t have to write in it every day. In fact, some research and kindness to them. suggests the sweet spot is once a week. Just take a few minutes to write down five things for which you are grateful. • Do more of what you like. Most people “know what makes them happy and unhappy, and they do things that make them happy,” • Practice optimism. Think about your best possible future—the Lyubomirsky says. “They spend time with people they like.” life you imagine if everything goes well over the next few years. Then spend 10 minutes writing continuously about what you A caveat: These techniques work best for people who are eager to try imagine, using as much detail as possible. And remember, no them. Forcing a skeptic to start a gratitude journal or a meditation one wakes up feeling happy every day. Even the happiest of practice is not going to be productive. And different techniques will people are no exception. Happy people just work at it harder work better for some people than for others. than the rest of us. They constantly evaluate their moods and make decisions with their happiness in mind. The road of life has high points and low points for all of us. But the good news is that there are things anyone can do to lift their • Practice acts of kindness. Studies suggest that performing a happiness level. So, take a suggestion that appeals to you and give it a variety of kind acts may have more impact than performing the try. The only thing you have to lose is a frown.

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Mission for nutrition by Sylvana Smith

After Doug Rauch embarked on a fellowship program for retired executives at Harvard University, his travels to Cambridge on the Massachusetts Turnpike took him by a billboard that made an indelible impressionâ€”and guided his future.

The billboard, sponsored by the Greater Boston Food Bank, said, “One in six Americans are hungry.” Rauch’s first thought was, “That just can’t be right.” As former national president of the Trader Joe’s grocery chain who guided its expansion from nine stores in Southern California to more than 400 stores nationwide, he knew we were in a land of plenty. In fact, from farm to fridge, we waste up to 40 percent of the food we produce, enough to fill the Rose Bowl every day. So why do nearly 50 million Americans struggle to put meals on the table? “Having spent my career in the food industry, I knew that America had more than enough food to feed everyone,” Rauch says. “So why weren't we? This started me down the road of discovery about the real nature of hunger in America and what we can do about it.” That road led him to create the Daily Table grocery stores in the Dorchester and Roxbury neighborhoods of Boston. Daily Table addresses the paradoxical dual challenges of hunger and obesity by providing convenient, healthy, and surprisingly affordable food. “Think of us like a T.J. Maxx or Marshalls for food,” states the nonprofit’s website.

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The food is donated or deeply discounted from well-known brands and local growers, national distributors, and nearby retailers. The food could be surplus, approaching expiration date, or imperfect in appearance. It’s food that would otherwise be destined for a landfill. Now in its fourth year, Daily Table moves about a million nutritional servings a month into the community. That’s a million servings not coming from a vending machine, a convenience store, or a burger griddle. It’s a million steps toward a community’s healthier living, at fast food prices or less. “Our intention wasn’t to be just a grocery store,” said Rauch. “We are a 501(c)(3) nonprofit because we are dedicated to relieving hunger and food insecurity and raising the community’s health. And we do that by masquerading as a food market.”

The Accidental Grocer

Having spent my career in the food industry, I knew that America had more than enough food to feed everyone. So why weren't we? Doug Rauch

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After earning a Bachelor of Arts degree in history and then waiting to hear back about graduate school, Rauch was at a crossroads. A friend who was general manager of the natural food store Erewhon tried to persuade him to come work in his company’s distribution center.

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“That didn’t sound very appealing to me,” Rauch recalls. “But this was the ’70s, and the company was filled with bright-eyed, idealistic, optimistic people who were excited about food systems in the world. I thought, wow, this is an interesting group of people.” A stint with this pioneering company would fill the gap Generally speaking, until grad school.

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struggling

This was 1977, and Trader Joe’s needed a new raison d’être. Competing with 7-Eleven was not the way forward. One differentiator was that Trader Joe’s had a successful private-label wine business, offering its own Charles Shaw wines for $1.99—“two-buck Chuck”—compared to other popular wines at $5, $6, or $7 a bottle. That people who are model was working. Alcohol sales far surpassed food sales. economically can’t afford

But he stayed and became vice fresh fruit and vegetables, so they end president and general manager. Why not do the same for food? “In the process, I started selling “I spent the next year or two working up eating high-sugar, highly processed Erewhon products through this with Joe to formulate the privateempty calories. funny retail chain in Southern label program at Trader Joe’s, California called Trader Joe’s basically reinventing how customers Doug Rauch Pronto Market.” At the time, the think about store brands,” said markets looked like any Rauch. “Up until that point, ‘private 7-Eleven, the shelves lined with label’ was just a price point, cheaper Wonder Bread, Hostess snacks, Campbell’s soup, soda, and cigarettes. and lower quality than national brands. We turned that around and started creating destination products that were distinctive, unique, When Erewhon’s West Coast division was sold, Rauch thought or priced significantly lower than the national brand.” The concept about Trader Joe’s. “I had always loved interacting with the worked. Within 10 years, food revenues surpassed alcohol, and company. They were incredibly available. When I called Trader Trader Joe’s was poised to become a wildly successful grocery chain. Joe’s, no one screened the call, asking who’s calling, what’s this in regard to, or is he expecting the call. If [founder] Joe Coulombe “I woke up one morning, and I had been with the company about was around, someone found him and put him on the phone. I 12 years, and I suddenly realized this is my career,” Rauch recalls really liked that.” with a chuckle. “I was kind of doing this while waiting to figure

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out what to do with my life. Suddenly I realized, I’m a grocer. How did that happen? It is a great place, with great people, very entrepreneurial, very innovative. It was a really fun, engaging, exciting place to work. Still is.” Nudged by Coulombe, who was a big fan of business guru Peter Drucker, Rauch got his Executive Master of Business Administration degree at nearby Claremont Graduate University. “When I graduated from Drucker School of Management, the executive team at Trader Joe’s said, ‘You’re the new smarty pants business guy. You’re going to write the business plan for how we’ll grow outside of California.’” The rest is a case study of which MBA students dream. Between 1990 and 2001, the number of stores quintupled, and profits soared tenfold. In 2008, Trader Joe’s had the highest sales per square foot of any grocer in the country, according to BusinessWeek. At the same time, Ethisphere magazine listed Trader Joe's among its most ethical companies in the U.S. But for Rauch, it was the right time for a change.

Graduating, Not Retiring “It was 2008; I was 56, soon to be 57, and I had been traveling extensively with Trader Joe’s, particularly with all the expansions, opening up all the new stores,” said Rauch. “And, frankly, I wasn’t having the fun I was having before. It was a very different business. I remember going to Minneapolis in January, when it was minus 10 degrees, to look at a patch of dirt that was going to be a new store. I thought, ‘This isn’t fun.’ The ceaseless travel and the management side of the business lost its appeal for me.” According to Rauch, the puzzles and challenges of creating a private-label program, nurturing a distinctive culture and product portfolio, scaling a nine-store chain to compete with behemoths such as Ralphs and Vons—those things were heady, but now it was time for something else.

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Pretty quickly, I determined I wasn’t going to be satisfied just sitting on boards. Doug Rauch

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“I didn’t know what that looked like. I had no idea what I was going to do,” said Rauch. “But I wasn’t going to call it retirement.” Rauch spent the next year and a half doing some consulting, serving on boards and as a trustee for the top-ranked Olin College of Engineering. “Pretty quickly, I determined I wasn’t going to be

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satisfied just sitting on boards. A lot of it is just not as operationally satisfying for someone who had spent his life as an operator.”

An Encore Career for Social Good A colleague at Olin told Rauch about a new Advanced Leadership Initiative at Harvard. Distinguished business professor and author Rosabeth Moss Kanter had created a program to help leaders at the top of their fields apply their skills to national and global social issues in their next life stage, particularly relating to health and welfare, children, and the environment. The first session was underway. A Boston Globe article sealed the deal for Rauch. This was the next step. “What attracted me was the concept of taking people who had completed their primary careers but still had gas in the tank—10 to 15 years or longer to still be actively engaged—and let them have the use of the college, all the schools, working with faculty and students—to figure out how to tackle some major social ills,” said Rauch. “Then it hit me. This isn’t about learning, this is about doing. This is about taking your lifetime experience and adding some knowledge and information to social enterprise.” Then came the billboard—one in six Americans hungry in a land of plenty, including plenty of waste. Rauch reflected on our dysfunctional food culture. Earlier generations had experienced food scarcity through economic depressions, wartimes, and crop failures in the era before electricity and refrigeration. Baby boomers could be the first generation that took abundance for granted. “At first I was thinking, it’s just a distribution issue, a logistical question. I thought I could help with that, but it turned out it wasn’t that. You’d better really understand what the problem is if you’re trying to solve it. Otherwise you’re going to come up with some elegant and beautiful solutions to the wrong problem,” says Rauch.

Nutrition with Dignity “Generally speaking, people who are struggling economically can’t afford fresh fruit and vegetables, so they end up eating high-sugar, highly processed empty calories—junk food, if you will,” says Rauch. “So, the solution isn’t what I thought it was. It isn’t about distribution bottlenecks. They’ve already got a full stomach. We’ve got to get them a healthy meal.” “That turns out to be complicated, because low-value calories such as corn and high fructose corn syrup are cheap. Nutrients are expensive. So, the question became, how can we afford to provide fruits and vegetables in an economically viable manner?”

Why not launch a massive fundraising effort and create another food bank? Food banks fill a critical need. For instance, Feeding America—the third-largest U.S. charity—feeds more than 46 million people through its vast network of food pantries, soup kitchens, shelters, and other community-based agencies. However, a Feeding America leader told Rauch that many people who qualify for food charities don’t use them. Why? Is it transportation, immigration concerns, or language barriers? “It turns out it’s much simpler than that. They’re ashamed, embarrassed. They don’t want a handout. That was a big awakening. Many people would rather keep their dignity than their health. I realized if we’re going to solve this problem at scale, we had to come up with a way that the person in need has a dignified exchange,” says Rauch. “A handout sets up an imbalance,” says Rauch. “If we’re selling the product, even if it’s for pennies on the dollar, people are going to interact with us in a very different way. In that dynamic, they hold the power of the purse; they end up, by definition, having a sense of agency and dignity.”

Friendly Retail Stores The Dorchester Daily Table store opened in June 2015, followed by a second location in nearby Roxbury. Membership is free, and Daily Table currently has 42,000 members. Rauch is scouting for third and fourth locations—and eyeing expansion into other states. The stores offer an upbeat, clean, and friendly retail environment. Hand-lettered signs add a vintage market feel. The aisles and crates are brimming with fresh, healthy food options at budget-friendly prices: a pound of bananas for 29 cents, a can of tuna for 55 cents, or a dozen eggs for $1.19.

Nutrition by Design Rauch worked with a task force of nutritionists to quantify “healthy” to guide food decisions. For the last four years, Daily Table has met or exceeded these guidelines in food prepared in-house and purchased and donated food items. The stores do not even sell soda. In 2017, the head of the Supplemental Nutrition Assistance Program (SNAP) visited Daily Table along with an entourage of U.S. Department of Agriculture representatives. He declared Daily Table to be one of the only stores where food stamp recipients can get the 2,000 calories a day of nutritious food they should be eating and still have money in their pockets at the end of the month. “We’re very proud of that, because for us, it’s the litmus test of how well we are meeting our mission of delivering nutrition at an affordable value,” says Rauch.

The Bottom Line While Rauch would love for Daily Table to be self-sustaining, it does rely on monetary and in-kind donations. “I don’t care if you’re Walmart or Costco, you can’t bend the cost curve enough to have nutritious food compete with junk food. You can’t get fruits and vegetables to be as cheap as sugary, processed food,” says Rauch. About 20 to 30 percent of merchandise is donated; the rest is purchased at discounts. Daily Table also relies on 200 to 300 hours a week from volunteers working alongside 60 employees hired from the local community who are paid 25 percent more than local minimum wage. “We cover about two-thirds of our expenses from our own generated revenue, but we hope with more stores—and we are fundraising to open additional stores—we can come close to breaking even,” says Rauch. When the economics are viable, the hope is to expand the mission across the country.

Instead of a burger and fries, busy customers can choose a nutritionist-approved dinner of two pieces of chicken, brown rice, and vegetables for $1.99 or pick up ready-tocook and grab-n-go prepared meals. A teaching kitchen offers free cooking classes several days a DAILY TABLE week. More than 100 educational modules show members how to have food be tasty, nutritious, Daily Table believes that delicious, wholesome, and affordable food and healing. should be available to all. It is on a mission to help communities make “I don’t think you’ll find any place in Massachusetts where you can get a prepared meal with the recommended nutritional values for $1.99,” said Rauch. “It’s made possible because Daily Table works with a broad network of suppliers who offer donations and special buying opportunities. Food that might otherwise go to waste is now crafted into meal options that compete with unhealthy fast food options.” 14

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great choices around food by making it easy for them to choose tasty, healthy, convenient, and truly affordable meals and groceries. Daily Table does this in a respectful manner that honors its customer, engendering dignity. 450 Washington Street Dorchester, MA 02124

2201 Washington Street Roxbury, MA 02119

617.506.0219 | dailytable.org

Tips from a Successful Encore What advice would Rauch offer other executives who might want to pivot on their primary careers into a socially conscious second act? Stay in the game. “I’m a huge fan of remaining engaged in the world for as long as you can, as long as you’ve got the energy and mental capacity to do so. I think we all live healthier, longer lives and find our deepest sense of satisfaction when we’re engaged in something meaningful that’s larger than ourselves.”

Don’t go it alone. “Look for ways you can partner with other organizations and individuals.” Daily Table partners with suppliers, advisory teams, social service agencies, healthcare providers, educators, and policy makers. “Try to help others and have others help you; it’s all about interdependencies.”

Find your passion. “It’s not easy to solve entrenched societal problems, such as hunger, high school dropouts, or poverty. These are large, systemic problems, and systemic problems don’t have single-vector solutions. The answers will be harder than you think and take longer than you thought, and the only way you’re going to stick with it is if you feel a real passion for it.”

Don’t fall into the happiness trap. “One of the lies we tell ourselves is that the purpose of life is to be happy, and to some extent, we judge our success by how happy we are. Happiness isn’t a goal; it’s the result of living a purposeful life. You rarely achieve happiness if you seek to pursue it. Instead, engage in something meaningful, and you’re much more likely to find it.”

Tap your lifetime of networks. “When you retire, there’s no reason to throw away a lifetime of social and work connections. Use them. I found it incredibly helpful to reach out to parts of the community I’d been very engaged with in 35 years of retail and reestablish relationships under new circumstances.”

UrBan BOUNTY by T. Edward Nickens

The next time your stomach is growling as you dash from one office building to the next, you might want to watch your step. There’s a new kind of street food craze sweeping the country, and its ingredients could be right under your feet. Urban foraging is an inside-the-city-limits version of the ancient practice of searching for and utilizing edible wild plants. And while it might seem surprising to think that a big-city environment could provide a between-conference-calls snack—much less the ingredients for a full meal—urban foraging has become wildly popular. From left to right: elderberry (Sambucus nigra), chicory flower (Cichorium intybus), chickweed (Stellaria media), prickly pear cactus (Opuntia ovata), and sumac (Rhus glabra)

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Chefs are taking to the streets to add foraged greens to their dishes. Parks and nature preserves are offering guided wild edibles tours. And while many cities are beginning to regulate urban foraging in public spaces due to its growing popularity—more on that later—municipal areas still offer savvy foragers an opportunity to spice up their daily meals with highly nutritious wild foods. “Trying to survive on wild plants would be a serious challenge, but a diet made up of 10 percent wild foraged foods is as easy as can be,” says Mark Vorderbruggen, a Texasbased research chemist and edible wild plants expert who teaches urban foraging techniques at the Houston Arboretum and other Lone Star nature preserves. “And many of these plants are literally growing up around the sidewalk, so it’s mainly a matter of opening your eyes to what’s right there under your feet.” Consider the redbud, a small flowering tree that grows on city streets across the country. It’s one of the earliest flowering trees, with stunning red-purple flowers that cling directly to the tree’s branches. Even if you don’t know the plant by name, it’s a good bet you’d recognize a redbud once it was pointed out. And redbud is a prime urban foraging plant, says Vorderbruggen. In the spring, those striking flowers that turn the heads of passersby are delicious when plucked from the tree and eaten raw. They can be added to salads or used to top cupcakes and pies. And a few weeks after blooming, each of those flowers turns into a peapod. “Just like something you’d see in the grocery store,” Vorderbruggen says. “When they’re about a half-inch long, they are tender and delicious, and you can eat them raw or add them to a stir-fry dish.”

from sidewalk cracks to front yards to greenways. In the South, wax leaf myrtle is an oregano-like plant that adds a definite dash to lasagna. The tender leaves of common plantain have a nutty, close-to-asparagus taste and can be quickly stir-fried in olive oil. The young shoots of Japanese knotweed—a hated invader across much of the country—have a lemony, rhubarb-ish taste that’s led them to the kitchens of Manhattan chefs. In fact, many of what we consider weeds in North America are actually beloved garden plants brought over by European settlers that now grow wild. Sow thistle and dandelion, Vorderbruggen says, were cultivated as food plants. But since they don’t have pests and predator controls in the American environment, they’ve spread so quickly and far that we now consider them weeds.

Purslane (Portulaca oleracea)

And while toxic plants abound—making plant identification a critical foraging skill—these wild foods can be very healthy. Foraging experts point out that the plants tend to be denser with nutrients than many of their cultivated counterparts, thanks to growing in soils that haven’t been depleted over decades of farming. Collectors need to be aware of areas that have been sprayed with herbicides or pesticides, and stay away from older buildings with lead paint that can leach into soils. But many wild plants have dense root systems that tap minerals deep in the soil and transfer that bounty to delicious leaves, shoots, and flowers.

Every Rose Has Its Thorns The growing interest in wild edibles has some cities working to make sure foragers don’t love a local park’s hedgerows to death. Cities such as Chicago and Washington, D.C., have outlawed foraging on public lands such as street rights-ofway and municipal parks.

All from a common landscaping tree.

It’s not allowed in New York City, although guerrilla foragers are common in Central Park. So, it’s always It’s the same with plants such as purslane and lambssuggested to check local foraging laws wherever you quarter, wild onion, and peppergrass. Urban environments are. And where foraging on public lands is allowed, be around the country are chock-full of edible wild plants, sure to stay away from sensitive habitats, such as from lesser known fruits such as persimmon wetlands, and take no more than you can use to a virtual salad bar of greens that grow in a single meal. Wax leaf myrtle (Morella cerifera) 17

Collectors need to be aware of areas that have been sprayed with herbicides or pesticides, and stay away from older buildings with lead paint that can leach into soils.

THE FORAGING FOODIE If you’re finding yourself curious about what’s to eat in your neck of the woods, here are a

And the best approach, says Vorderbruggen, is an even more hyper-local strategy. “Start in your own yard and in your own neighborhood,” he says. “Begin at your doorstep and identify the plants you see every day, and you will be amazed at what’s edible.” Then move out from your own yard to your neighbors’ yards.

few resources to get you

When you walk the dog or ride a bike, figure out what plants look interesting, and you’ll likely see a few that can find a place on your plate.

collaborative map of foraging opportunities.

“This is so much easier than pulling out an identification guide and looking for a particular plant,” Vorderbruggen says. And you sidestep any regulations on plant collecting when you forage on lands nearby. “Just ask a neighbor, ‘Hey, do you mind if I weed your lawn?’” Vorderbruggen laughs. “And then tell them what you find. People just can’t believe all the food that’s right there in the front yard.”

landscape. Falling Fruit also offers an app for

started in your foraging quests. Try the Falling Fruit map at fallingfruit.org. This Colorado nonprofit offers users a worldwide Users mark sites and update the map constantly to reflect the changing foraging Android and iPhones. The go-to guidebook for foragers both inside and outside city limits is Peterson’s A Field Guide to Edible Wild Plants, which is small enough to tuck into a daypack for an afternoon hike or a briefcase for business travelers who want to glean from the wild during a metropolitan lunch hour. Another popular reference is The Forager's Harvest: A Guide to Identifying, Harvesting, and Preparing Wild Edible Plants. This guide covers 32 of the best and most common edible wild plants in North America and offers readers tips on how and where to find them, harvesting suggestions, and how to prepare a meal using what you’ve found. Another good digital resource is wildedible.com. With a foraging guide to help you properly identify wild edibles and improve your foraging skills, this website has a lot to offer. Scan its listing of popular foraging books, or use its

Dandelion (Taraxacum officinale)

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edible wild plants reference guide to read about some of the more common wild edibles.

NAVIGATING A CRISIS by Kim Painter

No one gets through life without crisis. We all lose loved ones, and many of us, at one time or another, lose jobs, homes, or our health. Some of us see terrible things and live through disasters that make the evening news. Any one of us could find ourselves in crisis tomorrow.

For Jane Ehrman, now 68, a life-defining crisis came when she was members to escape the fire or reach the basement before the a 37-year-old mother diagnosed with aggressive breast cancer. Ann tornado hits. People in this state famously find the strength to lift Kaiser Stearns, 76, says her life was rocked by a long-ago divorce heavy objects and fight off wild animals. and a close friend’s suicide. Charly Jaffe, 29, endured a series of crises, including sexual assault, a But people in danger also make severe sports injury, and a nearbaffling errors of judgment. They death experience when she was stand on the beach after a tsunami Those kinds of events [crises] create just a young college student. warning or run back into a burning house for a wallet. They convince a tear in the fabric of your life story. All of these women say they are themselves that their drooping face Your life was one way before the stronger today for the trials can’t possibly be a sign of stroke they’ve faced—and have dedicated and take a nap instead of going to a event and another way afterward. their lives to helping others find hospital. That’s why we have drills Your job is to reweave the story of that strength. and awareness campaigns to teach us what to do in such emergencies. your life. Ehrman, who lives in Cleveland, is Practice and a script can help us a stress relief coach for first overcome denial and shock, Art Markman responders and people facing Markman says. medical crises. Stearns, a professor at the Community College of Baltimore County, is a psychologist That means, he says, that many of us stumble around in a state in and author of several books, including Living Through Personal which our thinking and emotional skills are dulled. Crisis. Jaffe left a job at Google to help run a yoga school in Australia and now works as a crisis counselor, while finishing a Missteps During Crisis master’s degree in psychology and education at Columbia University. She also helped her father, entrepreneur Richard Jaffe, Here are some common mistakes people make while in that fog, write a book called Turning Crisis into Success. according to the experts.

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Crisis changes all of our lives, says cognitive scientist Art Markman, a professor of psychology at the University of Texas at Austin. “Those kinds of events create a tear in the fabric of your life story. Your life was one way before the event and another way afterward,” he says. Once a crisis recedes, Markman says, “Your job is to reweave the story of your life.” Most of us manage to do that, eventually. But along the way, many of us make a few very human mistakes.

This Is Your Brain on Crisis The first stage of a crisis is often an emergency—the moment you see your spouse collapse from a heart attack, smell the smoke coming from your kitchen, or hear the roar of an approaching tornado. At such moments, Markman says, our bodies and brains prepare for action: “You breathe in a way that brings a lot of oxygen in; your heart rate goes up. Your focus of attention narrows so you can pay attention to what is going on in that situation.” It’s the classic fight or flight response, and, when it works well, it helps us do the things we immediately need to do—calling 911 and getting an aspirin for the heart attack victim or gathering family

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• They make big, irreversible decisions. Widows sell the family home. Angry ex-spouses burn old photos. Hurricane survivors flee their communities, leaving lifelong support systems behind. Stearns, the Baltimore psychology professor, says her rule of thumb for anyone in crisis is “don’t destroy it, don’t give it away, and don’t sell it.” Markman agrees: “Whenever possible, kick the can down the road,” and save big decisions for later. • They isolate themselves. “Social interactions are a wonderful salve,” Markman says. Stearns says our need for social support in times of distress goes deep. “We were made to be pack animals. We are made to survive with others.” • They confide in the wrong people. “It’s really important to avoid negative people,” Stearns says. “There are people who will judge us, people who will not keep confidences, people who will try to fix us, and some of those wrong people are our own family members, unfortunately.” • They pretend to be fine. When Jaffe returned to college after a serious injury and life-threatening complications, she was suffering symptoms of depression and post-traumatic stress disorder. “But I didn’t want to share it with anyone because

I was afraid people would think I was crazy,” she says. “Instead, I would have a panic attack, wash my face, and go back to class and ask for the notes I had missed.” • They reject professional help. “It’s not a bad thing to have someone to talk to who has some training and has no vested interest in how things come out,” Markman says. It’s especially urgent to reach out if you suffer symptoms of post-traumatic stress, such as flashbacks, nightmares, severe anxiety, or symptoms of depression, such as hopelessness, lack of interest in life, or thoughts of suicide. • They beat themselves up. Too many people listen to a harsh inner judge at times of distress, says Ehrman, the Cleveland stress relief coach. “We tell ourselves we are stupid, we are incapable, or we never do anything right.” Many ruminate on upsetting events, looking for where they went wrong, Markman says. “They keep asking, ‘Did I miss the signs? Is there something I could have done?’”

What Happens When a Crisis Lasts?

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When disaster leads to an ongoing crisis—a long hospital stay, a ruined home, the aftermath of a death—our brains and bodies often stay in stress mode. We may not have a script for what to do then. That’s the position many people find themselves in when they become caregivers for a loved one with dementia or another serious long-lasting condition. Stearns says too many people in that difficult situation succumb to what some social scientists call John Henryism—the affliction of the legendary steel-driving man who worked so hard at a seemingly impossible task that he died. In her book Redefining Aging: A Caregiver’s Guide to Living Your Best Life, Stearns urges caregivers to find other role models. While we often express admiration for apparently tireless caregivers, those who never take a break risk their own health, she says.

Caregivers who find and use outside support are more likely to find meaning in their caregiving journeys, Stearns says. Those who go it alone are more likely to feel overwhelmed and spent.

Finding a Way Through Most people are more resilient in a crisis than they think they will be, the experts say. “Bear in mind that every life is ultimately touched by something that we consider tragedy,” Markman says. “Human psychology is fairly well designed to withstand those crises.” While there is no single correct path to healing, “hope is looking at your situation realistically and finding a way through,” Ehrman says.

In her case, finding a way through a mastectomy and chemotherapy meant going to a therapist who taught her how to take her mind to better places—through a technique called guided imagery. Once she was healthy, she went back to school to get a master’s degree in education, with a focus on mind and body medicine. Today, she teaches guided imagery and self-hypnosis to others in distress. Stearns also responded to crisis, a divorce at age 27, by going back to school. Seven years later, she had a doctorate degree in psychology. Later, she adopted two daughters and went on to write four books. She has faced other crises such as the suicide death of a friend and the deaths of family members, including her mother. Losses never get easy, she says, but you do learn from them. “One of the most important things to understand from the beginning is that you have to be kind to yourself, because healing takes time, and you are going to feel bad before you feel better,” says Stearns. Here are some things you can do to ease the pain: • Assemble a support team. Your crisis may call for professional help—financial advisors, lawyers, physicians. But you also need people who will hold your hand and listen to you without judgment, Stearns says. Make a list of friends, family members, co-workers, neighbors, or others who might be willing to lend a hand—and then start asking them to do so. • Accept help. It’s OK to tell eager-to-help neighbors and friends what you need—whether it’s a meal for your family, a walk for your dog, or a trim for your lawn. “We have this false belief that asking for help is a sign of weakness, but it’s a sign of strength; it’s a willingness to be vulnerable,” Jaffe says. Be prepared with a specific list of ways people can help. When someone asks what they can do, pull out your list. It might include picking up prescriptions and groceries, bringing meals, helping you with household chores, or taking shifts with your loved one so that you can get out. • Keep up routines. If you love your job and you can work during a crisis, do it. Keep going to worship services, fitness classes, sporting events, and other places where your crisis is not on the agenda. “We all need some places where we don’t have to talk about whatever it is we are grieving,” Stearns says. • Treat yourself. After her mother’s death, Stearns says she looked for ways to be kind to herself. She started getting regular manicures and keeping fresh flowers in her house—habits she maintains more than a decade later. When you do get time away, make it meaningful, relaxing, restorative, or fun. In other words, do not squander it on laundry, cleaning, or shopping. Instead, visit friends, see a movie, or go to a grandchild’s school play. Or find a quiet spot to read, knit, or play a favorite game with a friend. • Tell stories. In the days after a death, people often tell the story of the loved one’s last hours over and over. When we go through any trauma—from a car crash to a nasty fall—we often feel the urge to tell that story repeatedly as well. That can be healthy, Markman says, if we are able to put together “a coherent story—something that you can pick up as a whole and put down as a whole.” Writing in a journal can help in the same way, he and other experts say. Most of us will make it to brighter days. And it’s good to remember that, Stearns says: “There are times when we all feel powerless and weak, but in the back of your mind, you can say that ‘someday I’ll be strong.’ You just have to say that down the road, you will take this pain and do something good with it. You will find ways to learn from it.”

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PREPARING FOR THE NEXT CRISIS If your life is crisis-free right now, congratulations. You are living in the proverbial calm before (or between) the storms of life. That means you have a chance to prepare for the next crisisâ€”even if you donâ€™t know what it will be. Here are a few ways to do that: Get trained. Everyone should know CPR, the signs of a stroke, and how to stop a life-threatening bleed. Check with local hospitals and Red Cross chapters for class schedules. Many will send trainers to your business or community group. Maintain or build a community. If you move, get to know your neighbors. If all of your neighbors have moved, get to know the new folks. If your ties are slipping, work on reconnecting with family and friends and building new connections through volunteer work, hobbies, or whatever makes sense for you.

Build a basic disaster supply kit. The essentials include at least a three-day supply of food and water, extra batteries, and a first aid kit, according to the federal Centers for Disease Control and Prevention. Details can be found at ready.gov. Save responsibly. No matter how much money you have invested, you also need some ready cash, in case of an emergency. Rule of thumb: Have a minimum of three to six months of income you can access without disturbing retirement accounts. Take good care of yourself. Sleep well, eat nourishing food, and stay physically active. Give meditation a try. If you are burned out before the crisis hits, recovery will be even harder.

TRUSTS:

SAFEGUARDING AN INHERITANCE by Jeanne Lee

It’s a common estate planning worry. Would a large inheritance squelch your children’s drive to carve their own paths in life? Billionaire Warren Buffett of Berkshire Hathaway has been suggesting for decades that you should leave your children enough money so they feel they can do anything, but not enough so they’ll do nothing.

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It’s a conundrum many parents and grandparents will have to face in the coming decades. Over the next 25 years, a staggering $68.4 trillion in wealth is expected to transfer between generations, according to a 2018 report from research firm Cerulli Associates. Are the heirs prepared to handle all that money? There’s a lot to worry about. A nest egg intended to cushion kids’ lives could instead lead to failure to launch. Kids could spend their way through hard-earned fortunes in a few years. Too much comfort could sap their natural ambition. Also, they might be treated differently by people because of their money or fall victim to gold diggers and false friends. The best solution? Estate planners say a well-designed trust can provide families with plenty of protection against inheritance loss or inadvertently creating a stereotypical trust fund baby.

to finish medical school in order to inherit your house. With a trust, you could make such a condition—or virtually any condition— giving you greater control over the distributions that are made.

The Flexibility of Revocable Living Trusts There are many types of trusts, but the most common is a revocable living trust. It’s called “living” simply because it goes into effect while you’re alive, and “revocable” in that you are free to change the instructions you provide. “A trust allows a grantor to specify conditions for receipt of benefits, such as income or principal. Furthermore, a trust allows a grantor to spread trust income or principal over a period of time, instead of making a single, lump sum gift,” says Britton.

Influencing Heirs from the Great Beyond Estate planning attorney Tyler Britton says he’s noticed an interesting difference in the way baby boomers are now using trusts for the upcoming generation of millennial heirs. “As an estate planner, I am seeing an increase in the amount of conditions found in trust documents,” says Britton, professor of trust and wealth management at the LundyFetterman School of Business at Campbell University in Buies Creek, North Carolina.

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For example, you can set age-based payouts. “Twenty or 30 years ago, it was common for a grantor to specify that his or her heir could not access trust principal until the heir A trust allows a grantor to specify attained the age of 21 or 25,” says conditions for receipt of benefits, Britton. “With millennial heirs, some grantors are opting to set the age to such as income or principal. receive trust principal to 30, 35, or even Furthermore, a trust allows a grantor 40. Their reasoning varies from apprehensions about millennial to spread trust income or principal spending, saving, and work ethic to over a period of time, instead of concerns about creating trust fund babies.” making a single, lump sum gift.

Tyler Britton

The individuals creating the trusts want to set up guardrails that take into account the beneficiaries’ different lifestyles, priorities, and desires. These conditions allow a grantor to feel like he or she is still in control during his or her lifetime or after death. Perhaps it’s no surprise that the cohort that invented helicopter parenting would try various avenues to micromanage their survivors’ financial paths—even after they depart this life. A trust is basically a legal agreement in which one party—called the grantor or trustmaker—puts assets (like real estate, cash, stocks, or bonds) in the care of another party, the trustee. The trustee manages the assets and carries out the instructions over time, for the benefit of a third party, the beneficiary, who could be a person or an institution. Doesn’t a last will and testament take care of all that? Only partially. A will gives instructions for distributing your property and is essential for naming guardians for minor children. But you typically can’t set specific conditions in a will, such as requiring your daughter

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A trust can be set up for a specific number of years or for the child’s lifetime, for example. The trustee could manage the principal and use investment income to pay distributions to the child. A drawn-out payment schedule, such as a distribution every five years, can prevent the inheritance from being spent too quickly. “Other common conditions include postsecondary education requirements and drug testing,” says Britton.

Irrevocable Living Trusts Provide Liability Protection Irrevocable living trusts can’t be terminated and are very difficult to change. Such trusts can be used to reduce taxes or protect assets against creditors or lawsuits. “A common use for an irrevocable trust is to provide asset protection for a grantor and his or her family. By placing assets into an irrevocable trust and naming an independent trustee, a grantor relinquishes control over and loses access to trust assets. Therefore, if structured properly, the assets in an irrevocable trust cannot be reached by a grantor’s creditors,” says Britton. 25

Trusts are traditionally associated with the very wealthy, but even middle-class families can take advantage of trusts to clarify how assets should be distributed after death. An estate planning professional can help you design a trust that best fits your particular situation. That doesn’t mean you can escape existing legitimate debts just by moving all your money into an irrevocable trust. “If a grantor conveys assets to an irrevocable trust in order to defraud or delay a legitimate creditor, a grantor is engaging in fraudulent conveyance. If a creditor can prove fraudulent conveyance, a court can reverse a grantor’s asset transfer to a trust and allow creditors to access trust property to satisfy judgments,” cautions Britton.

Spendthrift Trusts Protect Heirs from Themselves and Others A spendthrift trust won’t turn your heirs into financial whizzes, but it can safeguard property in the trust from loss. “The term ‘spendthrift’ is often misleading. Not only does this type of trust protect heirs who lack proper judgment when it comes to spending money; this trust also protects financially responsible heirs from certain lawsuits and creditors,” says Britton. While money is in the trust, your heir can’t spend it, give it away, or lose it. “In other words, a beneficiary cannot spend or pledge his or her interest in a trust, and certain creditors cannot seize a beneficiary’s interest in the hands of a trustee,” says Britton. Once it’s paid out from the trust, however, the beneficiary can spend the money in any way he or she sees fit, and it would no longer be protected from creditors.

Special Needs Trusts Protect Eligibility for Benefits Another reason for an irrevocable trust would be to provide financial support for a child with a disability, while protecting his or her eligibility for public assistance. You can put money or property into a special needs trust and appoint a trustee to use the funds to purchase necessities for the beneficiary. The beneficiary doesn’t own the property in the trust, so it would not prevent the person from applying for government benefits. Trusts are traditionally associated with the very wealthy, but even middle-class families can take advantage of trusts to clarify how assets should be distributed after death. An estate planning professional can help you design a trust that best fits your particular situation.

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WHERE TO GET STARTED The type of trust used, and the mechanics of its creation, will differ depending on what you are trying to accomplish. In fact, you may need more than one type of trust to achieve all of your goals. And since some of the following disadvantages may affect you, discuss the pros and cons of setting up any trust with your attorney and financial professional before you proceed: • Generally, you need a significant lump sum to initiate a trust. • A trust can be expensive to maintain—trustee fees, professional fees, and filing fees must be paid. • Depending on the type of trust you choose, you may give up some control over the assets in the trust. • Maintaining the trust and complying with recording and notice requirements can take up considerable time. • Income generated by trust assets and not distributed to trust beneficiaries may be taxed at a higher income tax rate than your individual rate. • There is a possibility that your child’s eligibility for financial aid will be negatively impacted. Broadridge Investor Communication Solutions, Inc.

P(recession) by Sam Kirby and Kevin Barry

Business Cycle Peak Expansion

Peak?

Recession Expansion

Depression Recovery Trough

We have the privilege of working with a diverse range of clients, ranging from individuals and families to nonprofit institutions to companies across all industries and geographies. As is so often the case, we learn just as much (or

Gabrielle Burke

more) from them as they do from us. We learn about the conditions of their businesses, where they see risks and opportunities, and what questions are top of mind for them.

Figure One: Google Search Trend Data on the Topic of Recession

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In our conversations with clients over the past few months, the main question has been remarkably consistent: Are we on the brink of a recession? Are our clients just a pessimistic bunch? We don’t think so! To be sure, we examined Google search trend data and found that searches on the topic of recession reached a level of popularity in December more than triple that of mid-2017. As shown in Figure One, searches on the term “recession” reached peak popularity in early 2019. What has caused this recession obsession? We can think of several contributors, including:

to answer our clients’ questions on the probability of a recession in the near term—or as a statistician would say, the P(recession).

Recessions and Bear Markets Given the importance of the topic, you would think there would be a consistent definition of a recession. Anecdotally, we think of recessions as periods of economic slowdown when more people are out of work. The ultimate umpire of recessions, the National Bureau of Economic Research, does not use a fixed definition for recessions; rather, it uses a range of economic measures to mark the beginnings and endpoints of recessions. Generally, it does so well after the fact, when they are easier to see.

• The calendar. It has been a decade since we emerged from the recession triggered by the global financial crisis—a period of expansion that, this summer, will become the longest in U.S. history. • Our memories (and scars) from the last recession—the most severe since the Great Depression—are lasting. • The media has initiated a steady drumbeat of headlines and news clips on the topic.

Within the investment community, the most common definition is two consecutive quarters of declining gross domestic product (GDP). If we translate the phrase “declining GDP” into tangible terms, it means lower levels of consumption and production of goods Recessions and bear markets are and services—everything from homes, cars, and chai tea lattes to software two distinct economic events, licenses, hotel stays, and airline flights. even if they often coincide and This decline translates into fewer jobs; lower pay, tips, and bonuses; and reinforce one another. reduced corporate profits.

• Stock market volatility, a measure of future uncertainty, suggests that investors are having some trouble reading the tea leaves. The signals are mixed. In this article, we will take a closer look at the procession of events that often occur before economic downturns and, in so doing, seek 28

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Notice that declining stock prices isn’t included in this list. Recessions and bear markets are two distinct economic events, even if they often coincide and reinforce one another. In classic chicken-or-egg fashion, reduced levels of economic activity can cause stock prices to drop, and stock price declines can erode both confidence and wealth, leading us into recession.

But that is not always the case. For example, in late 2018, U.S. stocks experienced a 20 percent price decline—the technical definition of a bear market—even as GDP growth continued at a healthy pace. Stock prices quickly rebounded in the first quarter, reaching new all-time highs in April.

Pre-cession There is no checklist to identify when the next recession will occur. If recessions were predictable, they’d be preventable. However, there are a number of signals that have commonly occurred before or at the onset of past recessions. Below, we review seven signals used to gauge our current position within the business cycle. Some of them appear all clear, while others are beginning to flash yellow. While these signals are not conclusive on the timing or severity of the next recession, they can help us keep our expectations (and emotions) in check. Asset Bubbles A common occurrence near the end of a business cycle is the emergence of market excesses, or price bubbles. With the benefit of hindsight, these bubbles often seem obvious—such as the high-flying prices of technology stocks in the late 1990s or real estate prices in the mid-2000s, when the growth in home prices far outpaced income (as shown in Figure Two). Today, we don’t see asset price bubbles—at least nothing so obvious. Home price appreciation has moderated, and the price level of U.S. stocks is near its long-term average (relative to earnings). We have not seen irrational exuberance in the form of dramatic inflows of investor money into stocks, and investors have received recent high-profile initial public offerings—such as Uber and Lyft— soberly. One area that bears watching is corporate credit. Fueled by an extended period of exceptionally low interest rates, corporations have issued large amounts of bonds, and investors have been quite comfortable bearing the credit risk, given the strength of the economy. However, if investors become fearful of future risks and rising rates, or a weakening economy impairs the issuers’ ability to repay, the price of these securities could suffer, with an uncertain impact on the economy. Figure Two: Home Prices Compared to Per Capita Disposable Personal Income

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Sources: Bloomberg, FRED, Robert Shiller; Index=100 as of January 1, 2000.

Figure Three: Percent of Balance 90+ Days Delinquent by Loan Type 15%

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Source: New York Federal Reserve Consumer Credit Panel/Equifax

Leading Economic Indicators The most commonly cited forecast of future conditions is the basket of economic indicators published by the Conference Board, a nonprofit think tank. The index includes data across 10 categories, including employment, manufacturing activity, construction activity, stock prices, lending conditions, and consumer sentiment. The most recent release indicated a modest improvement in conditions during the first quarter of 2019, with an overall balance between positive and negative indicators—although a longer-term softening trend remains in place.1

Bad Credit On the topic of credit, another economic warning sign is consumer loan delinquency. With higher interest rates, we have seen credit card and auto loan delinquency rates tick up in recent years. The New York Federal Reserve estimated that 4.6 percent of all outstanding debt was delinquent at the end of March, and serious delinquencies for credit cards have been trending upward since 2017. Auto loan delinquencies have been inching up since 2012, as seen in Figure Three. In contrast, delinquency rates on mortgages remain low and healthy, supported by an exceptionally strong jobs environment.2

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Inflation Inflation is so important to the economy that keeping it under control is one of the two primary policy objectives of the Federal Reserve. The other is maintaining full employment. Inflation is like heat within an engine. Too little, and it stalls; too much, and it overheats. A little inflation provides consumers with the ability to spend through higher wages and a belief that tomorrow’s prices will be higher than today’s rising wages, which can create the willingness to spend. If wage growth cannot keep pace with rising prices, it equates to reduced consumption. Today, inflation remains moderate and very close to the Fed’s 2 percent target. However, an extended trade conflict could introduce inflation pressure—perhaps reducing the Fed’s ability to cut rates if it becomes necessary to stimulate a weakening economy.

Inflation is so important to the economy that keeping it under control is one of the two primary policy objectives of the Federal Reserve.

Interest Rates The Fed’s primary tool is the ability to set the interest rate charged to commercial banks for short-term loans. When this rate is lower, banks are encouraged to lend—an expansionary policy that stimulates the economy. Conversely, a higher discount rate makes it more expensive for banks to borrow funds, constricting lending and dampening growth. In the aftermath of the financial crisis, the Fed lowered its target rate to effectively 0 percent— an exceptional move to restart the U.S. financial engine. Since then, the Fed has raised rates nine times to reload this policy weapon in preparation for the next recession. An often-cited recession warning sign is the difference between short-term rates, which are highly influenced by the Fed, and longer-term rates, which are more market-driven. When this relationship—known as the yield curve—flattens and then inverts, the market is showing concern over future growth prospects. This phenomenon has preceded every recession for the past 60 years, and we witnessed one in March—although it lasted just four days. While this is not necessarily an omen for a recession in the near term, it is a powerful signal worth watching. In fact, the New York Fed’s economic model based upon this relationship places the odds of a recession in the next 12 months at 27 percent—the highest level since mid-2008.3

Employment The jobs picture stands out as the strongest argument that the U.S. economy remains on sound footing. An economy at full employment means there is a job for everyone willing and able to work. Income stability improves spending power and confidence and means that the nation’s labor resources are being used efficiently. However, there can be too much of a good thing—labor shortages can trigger wage inflation, and if companies aren’t able to find and hire qualified people, they are not able to fulfill their maximum growth potential. While the current employment picture is strong, we will be watching it closely for signs of weakening or overheating. Confidence When it comes to money, our behavior is driven by confidence—which can be fickle and fragile. Confidence is influenced by tangible events—a healthy pay raise, the loss of a job, the number of new orders and sales—as well as our degree of uncertainty. A chief financial officer is less likely to fund a new project if his or her view of future business conditions is less clear. Today, the confidence picture is mixed. Buoyed by a strong jobs picture, consumer confidence remains high. Business confidence, on the other hand, has softened in recent months—likely affected by the waning effects of the Tax Cuts and Jobs Act and uncertainty surrounding China trade talks.

Is Another Crisis Looming? We can say with confidence that another recession is coming. We just can’t say when or how severe it will be. Recessions are hard to spot. As one economist recently recounted, during the 2001 recession, only 7 percent of economists surveyed thought a recession was underway two months after it began. Today, 25 percent of economists surveyed expect a recession within the next year.4 Recessions are a normal and healthy, if painful, part of the business cycle. They are a way for economies to heal, rebalance, and emerge stronger—although this provides little comfort to displaced workers or pre-retirees watching the value of their savings decline when they need them most. Historically, the U.S. has experienced recessions in about one of every seven years, or 15 percent of the time. Over long periods of time, the trend of the U.S. economy is positive. Expansions have been greater in duration and magnitude than slumps; as Warren Buffett has often said, it does not pay for the long-term investor to bet against the U.S. economy. And as difficult as it is to correctly predict the onset of a recession, it’s even harder to see the daylight when it’s darkest and reinvest in time to benefit from a rebound. Market timing is a greater threat than market volatility for long-term investors—it’s far better to stay the course with a sound strategy and a steady hand.

Recessions are a normal and healthy, if painful, part of the business cycle. They are a way for economies to heal, rebalance, and emerge stronger.

“Global Business Cycle Indicators,” The Conference Board, 2019.

“Quarterly Report on Household Debt and Credit,” Federal Reserve Bank of New York, 2019.

Estrella, Arturo and Trubin, Mary R., “The Yield Curve as a Leading Indicator: Some Practical Issues,” Federal Reserve Bank of New York, 2019.

Goolsbee, Austan, “You Never Know When a Recession Will Sneak Up on You,” The New York Times, 2019.

STOCKS CLING TO SOLID GAINS Despite recent market volatility, all asset classes are in positive territory for 2019. Spooked by geopolitical events and hints of slowing economic growth, stocks pulled back in May but remain broadly higher for the year. Meanwhile, bonds have provided stability, performing well during this volatile market environment. • After a strong start to 2019, U.S. stocks gave back some of their gains in May, but they have still notched double-digit returns for the year so far. • While international developed and emerging market stocks have followed a trajectory similar to U.S. stocks, emerging market stocks have been harder hit by trade concerns. • Bonds have managed surprisingly strong gains through May, as interest rates fell to their lowest level in nearly two years. • Public real estate held on to first quarter’s gains despite market turbulence. It is this year’s standout performer. • Strategic opportunities eked out a slight gain for the year but lag other asset classes.

MARKET INDEX PERFORMANCE

17.1%

(as of 5.31.2019)

Q1 2019

17.0%

14.0% 10.9%

10.4%

YTD 2019

7.5% 4.8% 1.1%

2.9% 0.9%

Strategic Opportunities

U.S. Bonds

International Stocks

U.S. Stocks

Real Estate

LOOKING FORWARD The U.S. economy continues in expansion mode, bolstered by better-than-expected corporate earnings. Lower mortgage rates support the housing market and U.S. consumers are benefiting from low unemployment and rising wages. The ongoing tug of war between the strong U.S. consumer and escalating trade tensions continues to cause volatility in the markets. The Federal Reserve remains on hold in the near term as it monitors U.S. growth and the trade dispute’s impact. The Fed may be at the end of its rate-hiking cycle and could consider rate cuts if the economic outlook weakens. We are monitoring several other factors, including turmoil in Washington, tensions in Venezuela and North Korea, and Brexit’s uncertain outlook.

Asset class returns are represented by the following indexes: Russell 3000 Index (U.S. stocks), MSCI All-Country World ex-US Index (international stocks), Bloomberg Barclays U.S. Aggregate Bond Index (U.S. bonds), Dow Jones U.S. Real Estate Index (real estate), and HFRX Absolute Return Index (strategic opportunities).

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SUDDENLY IN THE MONEY by Alysa Cronin

Receiving a financial windfall should be a positive milestone that permanently alters an individual's or family’s future for the better. Yet, gaining immediate and substantial wealth can often have the opposite effect, leading to a new set of challenges that can put that wealth at risk. The prevalence of squandered wealth has become so commonplace that it has spawned its own financial term. Sudden wealth syndrome, a condition first identified by psychologist Stephen Goldbart in the late 1990s, describes the feelings of stress, guilt, and similar emotions associated with the gain of an often-unexpected financial windfall. Goldbart is co-founder of the Money, Meaning, and Choices Institute (MMCI), a group of psychological professionals who work with wealth holders and their financial advisors to address the emotional issues and challenges of wealth. As MMCI explains on its website, society equates money with happiness and success. Most of us have a hard time believing that the rich have problems with their wealth. The institute has identified several primary symptoms of sudden wealth syndrome, including: • Recurrent and persistent thoughts and impulses related to money; • Anxiety and depression in response to stock market volatility— what they call “ticker shock”; • Extreme guilt that inhibits good decision-making and leads to behaviors that punish individuals who believe they do not deserve their wealth; • Confusion over identity, whether the suddenly wealthy are the same people as before and how that should affect their relationships and priorities; and • Depression from the realization that gaining all the material things desired does not lead to happiness and satisfaction. Other organizations have also been established to address the financial and emotional issues of sudden wealth, including the Sudden Money Institute, whose founder, Susan Bradley, created the Certified Financial Transitionist® designation.

“

Wealth creates emotion, and emotion drives decision-making. Acknowledging this is a first step to coping with sudden wealth. Cathy Seeber, CFP®, CeFT®

”

own emotional and financial issues, while the unsolicited sale of a business may also leave a business owner unprepared to deal with his or her new reality. Other wealth transfers are more predictable, such as a large sale of stock, a company going public, or the passing of a loved one with a terminal condition. “You want to help people figure out how they will adapt to change when the windfall occurs, and you want to do this ahead of time whenever possible,’’ says Seeber, who works with clients across the country. “All these decisions impact a person’s well-being.”

“These struggles may result in social isolation, the breakdown of relationships, mental and physical fatigue, depression, and, in some cases, utter hopelessness,” explains CAPTRUST Financial Advisor Cathy Seeber. MMCI views sudden wealth syndrome as a turning point in a person’s life that, if dealt with effectively, can be transformative and beneficial to not only that individual and his or her family but also to the larger community. We have all heard about lottery winners or professional athletes who squander their fortunes, but this same sudden wealth syndrome can also impact the beneficiaries of more common financial windfalls. A female client of Seeber’s, for example, acquired an eight-figure divorce settlement that was accelerated by the death of her former husband. The sudden wealth sparked an emotional response, causing the woman to move to Los Angeles, buy a mansion, and gift a large sum to her son to provide for his future. In just a few years, her client’s assets shrank from $13 million to $8 million. “Wealth creates emotion, and emotion drives decision-making. Acknowledging this is a first step to coping with sudden wealth,” explains Seeber, one of a select group of CERTIFIED FINANCIAL PLANNERS® who is also a Certified Financial Transitionist®. This is the first designation in the human dynamics of financial change and transition in the wealth management industry. Seeber’s training enables her to address the feelings and values triggered by sudden wealth in addition to the traditional financial consequences. How wealth is acquired can often determine the best strategies for managing it. An inheritance or life insurance settlement from the unexpected death of a family member comes with its

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“The root cause of a client’s lack of implementation of sound advice is his or her inability to adapt to change. Anticipation of a life-changing event, experiencing the actual event, and integrating the event into your life can involve a tremendous amount of internal realization. When the work isn’t addressed because no one notices it’s there, negative consequences occur,” says Seeber. From a tactical standpoint, Seeber advises sudden wealth recipients to resist the urge to act rashly. Instead, she suggests putting newly gained assets in a safe place—such as a money market account or certificate of deposit—allowing adequate time to prioritize their situations and form a plan. Angat Saini, an attorney with Accord Law in Toronto, also recommends depositing most newly acquired assets in an insured account, but says allowing for a small spending spree can be a helpful part of the transition process. “Take some of that money and spend it right away—in order to satisfy the urge to impulse spend,” Saini says. “That way you can get that urge out of your system while a long-term financial plan is being created.” Dealing with such urges and emotions are so ingrained in a person’s psyche that Seeber and other financial planners often recommend assembling a planning team that includes not only a financial advisor, estate planning attorney, and accountant, but also a therapist. Such expertise can help individuals not only cope with their sudden wealth but plan prudently for the life changes that wealth will bring. “Sudden wealth syndrome is really not a syndrome because it’s not a group of signs and symptoms,” Seeber says. “Most recipients don’t see it coming, although there are some who go through the anticipation of sudden wealth.”

Seeber educates clients on the four stages of financial transition associated with a financial windfall: • Anticipation. Prepare for an event that has not yet occurred. • Ending. Some aspect of life has come to an end, and perhaps your identity has changed as a result.

Not every instance of sudden wealth comes with an anticipation stage, but they all involve a passage from an individual’s or family’s former life to a life with significantly more financial assets.

• Passage. It takes time to relate to the change and adapt to it. • New normal. Establish the beginning of a new life after the event has been fully integrated. Not every instance of sudden wealth comes with an anticipation stage, but they all involve a passage from an individual’s or family’s former life to a life with significantly more financial assets. The passage stage can last years. “Some people try to force passage, but this is an important learning stage, where you can dream and set expectations and build the brain trust of your financial plan,” Seeber says. During the passage, individuals’ feelings can run the gamut from the power of possibility to fear, anxiety, chaos, and even survivor guilt. Many sudden wealth recipients fear their identity will be compromised, while others become mentally and physically fatigued from dealing with all the new issues that wealth creates. Some recipients of sudden wealth worked diligently their entire lives to realize a liquidity event such as the sale of a business. Such individuals may immediately consider the tax and wealth transfer implications or the need to invest their proceeds. This can be of concern to older wealth recipients who may plan to pass on their windfall to heirs. Saini suggests establishing trusts as an effective way to distribute wealth—both gifting assets during the recipient’s lifetime and reducing estate taxes upon death. A complete understanding of the purpose of the new money and the outcome the individual would like to create is also crucial. An exercise in managing the expectations of others is equally as important. “Most people jump right to the financials, but if they don’t understand the why of their wealth, then the what doesn’t matter,” Seeber explains. Instead, she recommends asking three important questions when facing a life transition: What do you need to protect? What do you need to let go of? What “new” needs are going to be created now, soon, and later? This third question can set the stage for assembling the brain trust that will help form a comprehensive financial plan. As Seeber likes to say, “Good decisions make a good life.”

t f i G e

Th of

e f i L by Alysia

i Tacinell

As people begin to consider end-of-life planning, they often reflect on what type of legacy they will be leaving behind. Discussions about heirlooms and whatâ€™s going to be gifted to family members and charities often feature prominently. But what about gifting life? Making the decision to become an organ donor is a deeply personal oneâ€”one that could provide immeasurable lifesaving benefits. Whether donating organs to those in desperate need or donating a whole body to the advancement of medical research, the donorâ€™s gift is a way to give death meaning and to keep the memory of his or her life alive.

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One Life Touches Many Gina Kosla was 18 years old and attending Coastal Carolina College when she started experiencing shortness of breath. A cystic fibrosis sufferer, she had contracted pneumonia. Her family made a decision to fly her to Duke Medical Center in Raleigh, North Carolina. Thankfully, Gina only had to wait six days to receive a double lung transplant. “We felt elated. In the same thought, there is someone out there who may be passing this world,” said Reyna Kosla, Gina’s mother, when describing the moment they found out an organ was available. “There is also a family and friends grieving. Whoever the donor may be at whatever time God designates this to happen, we all must think of the donor too.” Gina’s new lungs came from Jillian Koch, a healthy 14-year-old girl, who was dreaming of moving to San Francisco to become a sculptor, when a sinus infection traveled to her brain causing a fatal subdural empyema. Deanne, her mother, describes the reason behind donating her daughter’s organs: “I needed my daughter’s life, no matter how short, to have meaning. But most of all, I wanted a part of her to live on. I simply would not accept that this was all there was, and I refused to let Jillian’s story end there. I never realized the profound impact our decision would have. It has changed my life forever.” Jillian’s organs were also able to save a man who had been waiting two years for a left kidney and pancreas, a mother of two from New York with her right kidney, and a woman who had less than 24 hours to live with her liver. Jillian’s largest donation, her skin, will better the lives of dozens of people, such as burn victims and babies born with serious physical abnormalities. People who decide to become organ donors can save up to 12 lives—if the hands, face, and corneas are donated—and those who choose to donate tissue can help improve the lives of up to 50 people, according to the U.S. Department of Health and Human Services. The department also states that another person is added to the national transplant waiting list every 10 minutes and, as of January 2019, the total number of hopeful organ recipients was 113,000. This number is surprising since 95 percent of U.S. adults support organ donation. Unfortunately, only 58 percent of Americans are actually registered as donors.

The average wait time for a kidney from the national deceased donor wait list is five years. Nearly 100,000 people are on the waiting list for a kidney transplant. Many more are waiting for a kidney than for all other organs combined.

The disparity between those who support organ donation and those who donate could be partially attributed to lack of communication. Whether donating intentions are included in a will or through a discussion with family members, it’s important to make your intentions clear ahead of time. Those wanting to sign up as donors can go to organdonor.gov to register. If you live in a state that offers the option to become an organ donor on your driver’s license, you can always be added to the registry through the selection of the donor option.

Living Donors Gift Second Chances Dr. Denise Laurienti is a nephrologist in Winston-Salem, North Carolina. She specializes in kidney care and the treatment of kidney diseases. She is also a kidney donor. In January of 2018, Laurienti donated one of her kidneys to her sister, Sarah Queen, who has been battling lupus since she was 7 years old.

These programs depend on the altruistic nature of donors to advance the medical field. According to Katrina Hernandez, vice president of donor services for Science Care, which serves as a link between donors and medical researchers, “Each donor brings a project one step closer to its goal.” Doctors and scientists wouldn’t be able to progress their understanding of diseases and discovery of treatments without whole-body donors.

“Ironically, I am a practicing nephrologist,” says Laurienti. “So, I see patients needing kidney transplants every day. I am frequently encouraging patients to ask family members or friends to be donors for them. I really can’t imagine how hard that would be to have to ask your loved ones. I really didn’t want my sister to ever have to ask people. I was so happy that I was a perfect match and that she didn’t have to do that.”

Science Care is one of several organizations helping to facilitate the donating process. Each donor who goes through the organization contributes to six research projects, such as testing for earlier detection of Alzheimer’s disease, research into the latest drug therapies, and surgical training for physicians learning to perform lumpectomies and mastectomies for breast cancer.

According to the American Kidney Fund, the average wait time for a kidney from the national deceased donor wait list is five years. Nearly 100,000 people are on the waiting list for a kidney transplant. Many more are waiting for a kidney than for all other organs combined.

Perhaps surprisingly, it’s easy to register to donate your body to Science Care or similar organizations. The only age restriction is that the potential donor must be 18 to join the registry. If the donor is still alive, he or she can complete a form, found online at sciencecare.com, and if the person has already passed, family members can call 800.417.3747 to register and go through a short medical screening that determines if there is a match with an ongoing research project.

A year after Laurienti’s and Queen’s surgeries, they’re both doing great. Laurienti said of her sister, “She has been skiing twice in the past year and really has had no issues. Every now and then, I have to be sure she is getting labs checked. She feels so good I think she forgot she had a kidney transplant.”

Above: Queen and Laurienti after their transplant surgeries (left to right) Below: Laurienti and Queen six months after their surgeries

Through Laurienti’s selfless gift, she’s improved her sister’s quality of life, and now they both have the opportunity to create more memories together, as a family, for years to come.

Donating to Research Creates an Impactful Legacy Consider how many lives could be saved if more people included whole-body donation with their end-of-life planning. Perhaps the most selfless way to leave a legacy of purpose is to donate with the aim of establishing cures and understanding. Whole-body donation is predominately used for teaching medical students, but, in other cases, donations can help educate forensic teams on how bodies decompose, aid in the discovery of new treatments and surgical approaches, and assist in the testing of new medical devices. 38

Summer | 2019

Once a body has been accepted, Science Care covers all the costs, including transportation, cremation, and the filing of the death certificate.

The U.S. doesn’t have a centralized agency for whole-body donations. However, the American Association of Anatomists has come up with a policy for how bodies should be handled when they’re donated. States vary in how they accept applications for whole-body donation and where a body is gifted. In some states, such as Nebraska, donors can determine which medical institution they’d like to go to. Unlike organ donation, the age of the donor doesn’t matter, and someone can pledge to be a donor at any point during his or her life. Whole-body donation is a socially responsible way to leave behind a substantial legacy. Not only is a donor providing a vessel to save lives, but he or she is also giving hope to future generations. Hope that doctors and scientists will discover cures for diseases such as Alzheimer’s, blindness, or even cancer. Hope that doctors will learn new surgical procedures that will help improve the future for us all.

Organ Outreach Get your give on all year round by joining in a

2019

local or national event to raise awareness

JULY 14–27

about the lifesaving benefits of organ, eye,

Every Community Has Opportunity

and tissue donation.

This two-week event developed by Donate Life America and the Association of Multicultural Affairs in Transplantation was created to focus on the importance of donation and transplantation in multicultural communities.

Visit organdonor.gov for more information on upcoming events for donors and families. 2019

2020

SEPTEMBER 23–27

2019

National DMV Appreciation Week

NOVEMBER 15–17

The Division of Motor Vehicles (DMV) partnership remains the primary source of donor registrations. This week marks a time for transplant recipients to show appreciation for donors and families through national and local events.

JANUARY 1–31 National Volunteer Blood Donor Month

National Donor Sabbath

A month dedicated to highlighting the importance of giving life through the donation of blood.

National Donor Sabbath marks an occasion for faith leaders, donor families, transplant recipients, and industry professionals to participate in activities to increase donor awareness.

2020

FEBRUARY 14 National Donor Day Also known as National Organ Donor Day, this yearly observation is targeted at increasing awareness about the extreme need for organ donation.

2020

APRIL 20–24

2020

APRIL 1–30

National Pediatric Transplant Week

National Donate Life Month

This observance offers industry professionals a platform to engage clinical partners, to share innovative breakthroughs and patient stories, and to honor donor families.

Donate Life America leads this annual celebration to focus national attention on organ, eye, and tissue donation and transplantation.

2020

JULY 17–22 Donate Life Transplant Games Modeled after the Olympics, the games are a multi-sport festival for individuals who have undergone lifesaving transplant surgeries. Athletes receive medals, and there are special events that recognize the success of donation and transplantation, while honoring the generosity of donors and their families.

READER Q & A

In this issue, we explore the latest Social Security projections and insight on planning for the future of the program, along with a look at the importance of creating and maintaining a home inventory.

I’ve heard recently about financial issues Social Security is facing. Is there reason to be concerned?

The financial solvency of Social Security is a long-standing issue, and the media tends to sensationalize it. The latest bout of media hype started at the end of April when the trustees of Social Security released their latest financial projection. While the program’s long-term outlook has not changed much from last year, what the media didn’t tell you is that it is slightly improved from 2018 due to the health of the labor market.

and retirement ages will affect your benefits. • Stress test your plan. If you want to make sure your financial plan for retirement will work—even if Congress takes action that may lower Social Security benefits—ask your financial advisor to model multiple retirement income scenarios. For example, see what your retirement plan looks like if Social Security is reduced by 10, 20, or 30 percent.

According to the projection, outflows from the retirement program will exceed its income in 2020. The problem stems from people living longer, a smaller working-age population, and an increase in the number of people in retirement. By 2050, the number of Americans age 65 and older will increase from about 48 million today to more than 83 million.1 As a result, more people will be taking money out of the system, and fewer will be paying into Social Security. What’s going to happen? First, it is important to say that this program is not going away. According to ssa.gov, among elderly Social Security beneficiaries, 48 percent of married couples and 69 percent of unmarried persons receive 50 percent or more of their income from Social Security. Congress will have to fix the program, although the fix may come with changes to contributions and benefits and may require means testing of some kind. Considering the likelihood of changes, it’s best to make sure your retirement plan accounts for the uncertainty: • Check your benefits. Estimate your Social Security retirement benefits based on your actual earnings record using the Retirement Estimator calculator on the Social Security website (ssa.gov). You can create different scenarios based on current law that will illustrate how different earnings amounts

Winter | 2019 Summer | 2019

• Take action, if necessary. If you find that you can survive with the reduced program benefits, anything you actually receive will be a boost to your income. If the analysis shows you need to consider putting aside more money to make up for a cut in benefits, work with your financial advisor to create a plan that supports those needs. Remember that everyone’s financial circumstances are unique, so work with your financial advisor to come up with a plan that works financially for you and also gives you comfort that you’re on the right track.

Ortman, Jennifer; Velkoff, Victoria; and Hogan, Howard, “An Aging Nation: The Older Population in the United States,” Census.gov, 2018.

What is the point of a home inventory? Do I need one?

Many of us have made our homes in areas prone to wildfires, flooding, tornadoes, or hurricanes. But even if your home is not in such an area, you might still find yourself living through the type of disaster that makes the evening news. A home inventory is a simple way to give you and your loved ones a place to start picking up the pieces should your home experience a catastrophic event. A home inventory is a complete and detailed written list of the property that’s located in your home and stored in other structures like garages and toolsheds. It should include your possessions and those of family members or others living in your home. A home inventory can help substantiate an insurance claim, support a police report when items are stolen, or prove a loss to the Internal Revenue Service. In the event of a disaster, a home inventory will spare you the headache of having to create a listing of all your possessions based on memory alone. Here are some tips to get started. • Tour your property. Look around every room in your home and the spaces where you have items stored, such as a basement, garage, or shed. You can go low-tech and write everything down in a notebook or make a visual record of your belongings by taking videos or pictures. Be sure to open cabinets, closets, and drawers, and pay special attention to valuable and hard-to-replace items. • Be thorough. Your inventory should be detailed. When practical, include purchase dates, estimated values, and serial and model numbers. Refer to colors, dimensions, manufacturers, and materials whenever you can. If you can locate appraisals for valuables and receipts to support bigticket items—even better—include copies of those too. Try to identify every item that you would have to box or carry out if you were to move out of your home. Don’t forget tools and outdoor equipment like lawn furniture and barbecue grills.

The only things you should leave out of your inventory are the four walls, the ceiling, the floor, and the fixtures. • Keep it safe. You will need two copies of your home inventory: one at your home where you can easily access it and another copy somewhere else to protect it in the event your home is damaged by a flood, fire, or other disaster. This might mean giving it to a trusted friend or family member for safekeeping. If you’re tech savvy, storing it on an external storage device you can take with you or on a cloud-based service might be a good option. Regardless of whether the inventory is recorded on film, computer software, a sketch pad, or the back of an envelope, keep a copy of it stored somewhere safe, like a safe-deposit box at a bank or your desk at work. • Update it periodically. As valuable or important items come into your possession, add them to your inventory as soon as possible. For accuracy, you should review your home inventory annually. It’s also a good idea to share an updated annual version with your insurance agent or representative to help determine whether your policy coverage and limits are still adequate. Hopefully, you’ll never have to use your home inventory, but if you have to deal with a catastrophe, you’ll be happy you took the time to make a permanent record of all your possessions.

If you have a question for the VESTED team, we’d love to hear from you and see if we can help. Please send your questions to us at VESTEDmagazine@captrust.com.

GIVING BACK

The CAPTRUST Community Foundation announced its annual Charity of Choice and National Grant recipients, and CAPTRUST colleagues participated in a number of volunteer opportunities. Charity of Choice and National Grants Each year, the CAPTRUST Community Foundation (CCF) selects a Charity of Choice and three organizations to receive gifts from the National Grants program. The chosen 501(c)(3) organizations’ core missions must align with the CCF’s mission to enrich the lives of children in the communities we serve. We are pleased to announce that the CORRAL Riding Academy was selected as the 2019 Charity of Choice. The academy aspires to shepherd girls through their difficult middle and high school years and into college. The five-pillar approach used by CORRAL allows girls to take what they learn at the program and apply it in their lives far beyond the horse farm. CAPTRUST is also pleased to announce this year’s $25,000 national CCF grant award recipients: • Boys & Girls Club of Santa Barbara • JUST TRYAN IT • TeamSmile

Stamp Out Hunger Food Drive

Walk MS: Twin Cities 2019

Metropolitan Ministries

CAPTRUST colleagues were out in force on May 11 to help with Stamp Out Hunger, the largest one-day food drive in the country. Volunteers helped to unload U.S. postal trucks so mail carriers could get out on the road delivering mail and picking up canned goods.

The annual Walk MS: Twin Cities event was held May 5 at Minnehaha Park in Minneapolis. Out of 365 teams, CAPTRUST finished 19th in fundraising, collecting a total of $5,300 to support those living with multiple sclerosis.

Colleagues from our Tampa office organized a day of service at the Metropolitan Ministries. Volunteers assisted with serving a hot lunch and making box lunches and helped recipients shop for clothes, food, and toiletries from donations received.

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(Top) CAPTRUST’s Minneapolis office participated in the Walk MS: Twin Cities event (Middle) Tampa office volunteers at Metropolitan Ministries (Bottom) Duke basketball coach, Mike Krzyzewski, with Jon Meyer at the Emily K Center, where CAPTRUST colleagues helped set up nearly 40 computers for K-12 students.

Atlanta

CAPTRUST GROWTH Over the past several months, CAPTRUST has added five financial advisors to its ranks and opened two new regional offices. Brandon Aber

In April, Brandon was promoted to a financial advisor position on Jason Stanicek’s team. He is responsible for providing investment advisory services, financial planning, and comprehensive wealth management services to high-net-worth individuals and families. Brandon earned a Bachelor of Science degree from the University of North Carolina at Wilmington and a Master of Business Administration degree from East Carolina University.

Sydney Jennings

Sydney joined CAPTRUST in January 2019 as a financial advisor responsible for supporting business development initiatives on Dan DiGiacomo’s team. She earned her Bachelor of Science in Business Administration degree from the University of Florida. Prior to CAPTRUST, Sydney was an agent and financial representative for New York Life Insurance.

New Office in Atlanta FiduciaryVest, an Atlanta-based institutional advisory firm, joined CAPTRUST in April, bringing more than $13 billion in client assets under advisement to the firm. Established in 2005 by FiduciaryVest Managing Partner and CoFounder Philly Jones, the firm has been providing investment advisory and fiduciary support services to qualified and nonqualified retirement plan sponsors for nearly 15 years. Please welcome financial advisors Philly Jones, CFA; Zack Sadler, CFA; and Evan Melcher, AIF®, ARPC, CIMA®, CPFA.

Che-Che McCrimmon

Che-Che received a promotion to a financial advisor position on Beryl Ball’s team in April. She is responsible for providing investment advisory services to fiduciaries of corporate retirement plans. Che-Che earned a Bachelor of Applied Science in Business Administration degree from Campbell University and a Master of Public Administration degree from North Carolina Central University.

Elaine Phillips

Elaine joined CAPTRUST in April 2019 as a financial advisor on the Lake Success team. She is responsible for providing investment advisory services to institutional clients, including fiduciaries of retirement plans for volunteer firefighters, foundations, and endowments. Prior to joining CAPTRUST, she was a member of the New York State Senate and served as chair to the Senate Internal Governance and Ethics Committee, the Senate Banking Committee, and the Senate Infrastructure and Capital Investment Committee. Elaine has held executive-level positions with Goldman Sachs and J.P. Morgan in addition to serving as mayor for the Village of Flower Hill in Nassau County, Long Island.

Anne Reed, CFP®

Anne joined CAPTRUST in April 2019 as a financial advisor on Danny Summerlin’s team. She is responsible for providing investment advisory services, financial planning, and comprehensive wealth management services to high-net-worth individuals and families. Anne received a Bachelor of Science degree from the College of Charleston and holds the CERTIFIED FINANCIAL PLANNER™ designation.

Bethlehem, PA

New Office in Bethlehem In May, McQueen, Ball & Associates joined the firm. This Pennsylvania-based wealth management practice brings more than $1.3 billion in client assets under advisement to CAPTRUST. Founded in 1981 by Jerry B. McQueen, McQueen, Ball & Associates boasts an exceptional team of financial advisors with expertise in all areas of financial and investment strategy, specializing in holistic tax, retirement, and estate planning. Please welcome financial advisors Jerry B. McQueen, CFP®; William J. Schultz; Christopher Zavecz, CFP®; Todd Fungard, CFA; Michael J. Peters, CFP®; Earlaine Klinger, CFP®; Gregory Pietrobon; Alana Tallarico; and Karen Culver.

CAPTRUST GROWTH We are excited to share two notable hires within the areas of investment research and business operations. Andy Marino

Andy joined CAPTRUST from FiduciaryVest in April 2019. As an investment strategist on Sam Kirby’s team within CAPTRUST’s Consulting Research Group, he specializes in financial market reporting tailored to both institutional investors and private clients. Prior to joining FiduciaryVest, Andy was the director of research and a portfolio manager with Eton Advisors.

Kelly Pickering

Kelly Pickering joined CAPTRUST in March. She serves as a client service manager within the firm’s Business Operations Group and is responsible for supporting our wealth client service team. Prior to CAPTRUST, she was an operations manager for Raymond James Financial. Kelly received a Bachelor of Arts degree from Eckerd College. She has worked in the industry since 1996.

CAPTRUST RECOGNITION NEW SHAREHOLDER PARTNER In January, CAPTRUST recognized an advisor colleague who has made invaluable contributions to the organization, its clients, and the communities we work in by naming Kyle L. Tucker, CFP®, as the firm’s newest financial advisor shareholder partner. Kyle joined CAPTRUST in 2007 as senior vice president and financial advisor. He is responsible for providing comprehensive wealth management and retirement advisory services to high-net-worth investors, private foundations, and corporate executives. Prior to joining the firm, Kyle served as a financial advisor with Atlantic Capital Management. He has worked in the industry since 2003 and holds the CERTIFIED FINANCIAL PLANNER™ designation.

CAPTRUST Makes Top 10 Best Financial Advisors List

In March, AdvisoryHQ named CAPTRUST in its 2019 ranking of the Top 10 Best Financial Advisors in Tampa and St. Petersburg, Florida. The AdvisoryHQ ranking team evaluates financial advisors in and around Tampa and St. Petersburg. The selection process is based on a range of criteria, including fiduciary duty, independence, transparency, level of customized service, history of innovation, fee structure, and wealth of experience.

Summer | 2019

Miller Named Innovation Award Winner

CAPTRUST Chief Executive Officer Fielding Miller was one of this year’s InvestmentNews Icons and Innovators Award winners celebrated at a recent dinner. The mid-April gathering was attended by about 220 people representing all areas of the financial services industry. The InvestmentNews Icons and Innovators Award winners were chosen from a group of 19 finalists by an advisory board made up of InvestmentNews Icons and Innovator honorees from 2016 and 2017.

Nine Teams Named to Barron’s Top Consultant List

We are pleased to announce that nine CAPTRUST advisor teams have been named among Barron’s 2019 Top 50 Institutional Consultants. This is the publication’s fifth annual institutional consultant ranking, which recognizes the nation’s top teams specializing in investment consulting for defined contribution and defined benefit plans, endowments, and foundations. The CAPTRUST teams and their lead advisors ranked as follows: 3 – Team Schott, led by Stephen Schott, Hollywood 7 – Team Esch, led by Dan Esch, Minneapolis 15 – Team Schmitt, led by Barry Schmitt, Richmond 17 – Team Strickland, led by Jon Strickland, Raleigh 18 – Team Stanicek, led by Jason Stanicek, Raleigh 26 – Team Wilt, led by Steve Wilt, Akron 34 – Team Edwards/Schantz, led by Jim Edwards and Wes Schantz, Allentown 44 – Team Des Moines, led by Jim Pierce, West Des Moines 46 – Team Strodel, led by Jim Strodel, Charlotte

2019 Corporate Philanthropy Award

In April, the Triangle Business Journal announced its 2019 Corporate Philanthropy Award winners. CAPTRUST was one of 20 honorees chosen from a pool of more than 70 nominees. The winners comprise various nonprofit entities, corporations both large and small, and individuals who have gone above and beyond to make a difference in the local community.

PLANADVISER Top 100 List

This year, CAPTRUST was named to the 2019 PLANADVISER Top 100 Retirement Plan Advisers list. With more than $298 billion in assets under management as of December 31, 2018, CAPTRUST was listed in the section of “Mega Teams With $12 Billion or More in Retirement Plan Assets Under Advisement.” Additionally, CAPTRUST was named to the list segment titled “Mega Teams With More Than 300 Retirement Plans Under Advisement.” Further, CAPTRUST’s Texas-based Michael Maresh and Pennsylvania-based Scott Wertheim were named to the PLANADVISER Top 100 list’s subcategory of “Individual Advisers With $1 Billion or More in Retirement Plan Assets Under Advisement.”

Wat Keys Receives Elite Advisor Award In January, the National Tax-Deferred Savings Association (NTSA) announced CAPTRUST’s Wat Keys, CFP®, CRPS, as one of four 2019 Elite Advisor Award recipients. The NTSA Elite Advisor Award recognizes the contributions of advisors who have advanced best practice standards in the 403(b) and 457(b) retirement industry and, in so doing, have improved the ability of American workers to build a successful retirement.

Scott Andrews Receives Excellence Award Scott received the CAPTRUST Way Excellence Award during the firm’s April SYNERGY meeting in our Raleigh, North Carolina, headquarters. During his five years at CAPTRUST, Scott has always worked to make the firm’s software solutions more efficient and lower cost while making them more functional for users. Behind the scenes, he has implemented substantial changes that will help ensure that CAPTRUST continues to deliver exceptional service to our clients.

Shareholders’ Retreat In March, CAPTRUST held its 15th annual Shareholders’ Retreat at the Raleigh Marriott Crabtree Valley. CEO Fielding Miller and COO Ben Goldstein addressed nearly 250 shareholders in attendance, reviewing 2018 financial and business performance and looking at what lies ahead for the company. The meeting’s highlight was a look at the firm’s latest recruiting and acquisition accomplishments, which was hosted by CAPTRUST’s Rush Benton and Rick Shoff. As always, the meeting included a two-hour Q&A session, during which shareholders were invited to ask the firm’s senior leadership any and all questions on their minds.

We know that investors are looking for experienced and trusted advisors who can provide wealth management services that are focused on their unique circumstances and tailored to their goals. In more than 30 years of acting as a fiduciary to some of the country’s biggest retirement plans, we have

Jonathan Stoller, CFP® Financial Advisor West Hollywood, CA Steve Morton, CPA, CFP® Principal, Financial Advisor Greensboro, NC Walter Abele, CFP® Financial Advisor Greensboro, NC

gained valuable insights that we can apply to your wealth planning and investment challenges.

captrust.com • 919.870.6822 | toll free: 800.216.0645 • 4208 Six Forks Road, Suite 1700 | Raleigh, NC 27609