CARTER FINANCIAL MANAGEMENT — CELEBRATING 35 YEARS
WINTER 2011
35 YEARS
THE QUARTERLY NEWSLETTER OF CARTER FINANCIAL MANAGEMENT AND CARTER ADVISORY SERVICES
NEW RETIREMENT PLAN FEE DISCLOSURE REGULATIONS By P. Jordan John
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he two most important ways to maximize the assets in your companysponsored retirement plan are to contribute P. Jordan John as much as possible and hold the line on fees. Excessive fees can seriously diminish the size of your nest egg. This makes it all the more disappointing and frustrating that participants’ access to information about the fees and expenses they are charged has been spotty at best. The new 408(b)(2) fee disclosure regulations issued last July by the Department of Labor (DOL) will require all retirement plans covered by the Employee Retirement Income Security Act (ERISA) such as 401(k) and 403(b) plans to reveal and explain their fees beginning in July 2011. Overall, this new requirement is an improvement but still far from perfect. You’ll finally know how much you’re paying in overall expenses. However, you may not know how much of that total goes to investment management versus administrative costs or how those charges compare to other plans. Once a year your plan will send you a breakdown of the annual operating expenses for each of your plan’s investment options, as both a percentage of assets and as a dollar amount per thousand dollars invested. The disclosure will also reveal sales fees and other charges.
That way you can quickly identify the lowest cost funds in the plan, but you still won’t know whether the fees are truly low compared to other plans or outside investments. You’ll also receive a quarterly statement disclosing your retirement plan’s expenses for accounting, record keeping, and other administrative services (these fees average 0.11 percent to 0.18 percent of assets in plans with $500 million or more in assets and double that or more for smaller plans.) However, the statement will only show fees that are deducted directly from your account. While some plans do dock your balance directly for all administrative costs, it’s more common for them to also tap a portion of your investment expenses to cover some or all of these fees. These “indirect charges” will not be broken down on the quarterly statement. If your account is charged $100 annually for legal fees and a fifth of the 0.75 percent you pay in annual investment expenses goes to cover other administrative costs, then only the $100 will show up on your quarterly statement. Despite minor shortcomings, wider disclosure should serve to focus more attention on fees which could create pressure on employers and plan providers to drive down costs once plan participants realize how much they are paying to save for retirement. If you can’t wait till July, then one great online resource for getting expense information and comparisons to other 401(k) plans is www.brightscope.com*. However, BrightScope’s information continued on page 6
TEN THINGS YOU MAY NOT KNOW ABOUT SOCIAL SECURITY By Dwight Wanken, CIMC
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ocial Security is similar to the ozone layer. We all know it’s there now, and we count on it being there in the future. Yet Dwight Wanken, CIMC most people don’t know more about it than that. Here’s a short list of interesting facts about Social Security. 1. Social Security benefits do not automatically start coming in the mail the first day of Normal Retirement Age. They must be applied for. The easiest way is to apply is to set-up an appointment with the local Social Security office or call 1-800-772-1213. 2. To get an official statement of all the earnings recorded in your Social Security account, an estimate of your current disability and death benefits, and an estimate of future retirement benefits, fill out a Form #7004 Request for Social Security Statement, obtainable at your local office. 3. If you do not find and correct errors in your Social Security record within three years, they become part of your permanent record. Therefore, you might want to check on them every three years or so. 4. You can work during retirement, but if you earn too much it will reduce the size of the benefits you are receiving from age 62 up to your continued on page 6
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PRESIDENT’S LETTER Winter 2011
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s we began the year 2000, the beginning of a new decade, I was nervous. I had been worried about equity Bill E. Carter, valuations since CFP ®, ChFC, CLU 1997. That year I first wrote Tom James, president of Raymond James, expressing my concerns about equity valuations and the need for investments that had low correlations to U.S. equities. I had learned from my time as a trustee on the Texas A&M Foundation there were a group of investments known as “alternative investments” that met this objective. I wrote Tom James again in 1998 and 1999 expressing my concerns about market valuations. I knew Tom shared these concerns because he had discussed them at the Raymond James National Conferences in 1998 and 1999. Finally, to his credit, in the latter part of 1999 he employed Fred Whaley to lead a new department to research and perform due diligence on alternative investments which, up until that time, had primarily been available to large pension funds and endowments. I will share more about Fred and his department later. As we all know, the technology bubble exploded in 2000, and a recession began with stocks — especially large cap stocks that were dominated by technology companies taking a huge hit. Over the next couple of years, we had many prospective clients come in to our office who had lost 45 to 80 percent of their net worth because they had concentrated their investments in technology. It is important to reflect on these years, especially focusing on investor ®
psychology. When prospective clients were asked what their expected return was on investments, the answer we received in 1997 and 1998 was generally 20 percent and by 1999 it was 30 percent. We graciously declined these potential clients, and I am so glad we did. Those high expected returns were normal for the times. Many of my friends, several considered the most outstanding financial planners in the country, took some of those clients believing they could educate them to accept more historic returns in the 10-11 percent range. They painfully discovered their attempt at modifying client behavior or expectations would not work.
So, what is ahead for the economy and the markets as we begin 2011? Every year at this time, I start one of my favorite tasks, which is to read the investment and economic outlook forecast for the coming year. That is how we entered the decade of 2000 to 2010. The recession caused by the technology bubble bursting was itself relatively mild, but the subsequent bear market was extended by the events of September 11, 2001, resulting in either negative or very low equity returns. Then, many things changed. Policy decisions kept interest rates low, constraints on mortgage lending became, at least compared to today’s standards, non-existent, and the explosion of derivatives, especially credit default swaps, began to grow at alarming rates. These transactions were off-balance-sheet transactions, and most people were not aware of what was happening. Easy, easy
money, but the times were good. The party started coming to an end in 2007, and the equity market hit its low point on March 9, 2009, with the Dow falling to 6,547. So, what is ahead for the economy and the markets as we begin 2011? Every year at this time, I start one of my favorite tasks, which is to read the investment and economic outlook forecast for the coming year. Listed below is a partial list of what I have been reading. • Forbes – Special Edition 2010 Investment Guide to the Markets • Smart Money, The Wall Street Journal, “Where To Invest in 2011” • Kiplinger’s Personal Finance, “Where To Invest in 2011” • Fortune – Investor’s Guide 2011 • Barron’s Outlook – 2011 • Bottom Line Personal – The Shrewdest Money Moves You Can Make in 2011 You may think this is information overload, but it is not. I do this research every year and actually enjoy it. To give you an idea of the difference of opinion on what will happen, in Barron’s 2011 forecast, they quoted several people, some of whom are shown in the table below. Many of these were also quoted in other periodicals I read. The most optimistic outlook was by David Kostin, whose target for the S&P 500 is 1,450, and the most pessimistic was Douglas Cliggot of Credit Suisse, whose target for the S&P 500 is 1,250. The most optimistic for GDP for 2011 was James Paulsen with Wells Capital at 4 percent and Henry McVeigh with Morgan Stanley at 4 percent. Even though David Kelley is listed at 3.7 percent in the Barron’s article, in his recent conference call he said he would not be surprised to see GDP reach 4 percent in 2011. He thinks the only thing it will take for that to happen will be for consumer and investor confidence to come back. At a recent board meeting Dr. Tom Savings,
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Name
Company
Predicted 2011 GDP
Predicted 2011 S&P 500 Target
Predicted Year-End 10 Year Treasury Yield
Brian Belski
Oppenheimer
3.0%
1,325
3.0%
David Bianco
Bank of America/Merrill Lynch
2.8%
1,400
4.00%
Douglas Cliggott
Credit Suisse
2.8%
1,250
3.50%
David Kelly
JP Morgan Funds
3.7%
1,400
4.25%
Barry Knapp
Barclays Capital
3.1%
1,420
3.50%
Jeff Knight
Putnam
3.5%
1,350
4.25%
David Kostin
Goldman Sachs
2.7%
1,450
3.25%
James Paulsen
Wells Capital Management
4.0%
1,425
4.00%
Henry McVey
Morgan Stanley Investment Mgmt.
4.0%
1,363
4.00%
Michael Ryan
UBS Wealth Management
2.7%
1,350
3.25%
who runs the Private Enterprise Research Center at Texas A&M University, said he expects GDP to be 4.5 percent, which is the highest we have seen from any economist or money manager to date. Something you may find interesting among this group of forecasters is that the majority of them felt the three areas to avoid were healthcare, utilities, and telecom. Not everyone is convinced. There weren’t many negatives this year in regard to the economy or the market. But I do have three to share with you. One is from the Barron’s Roundtable One, from Marc Faber, Managing Director, Marc Faber, Ltd., Hong Kong. “The U. S. market has almost doubled since March 6, 2009. Some emerging markets have gone up much more than that. A correction is overdue. Then we’ll have the second leg of the bull market. In the third year of the presidential cycle, you want to be in the most speculative stocks. As we approach the 2012 election, the Fed is going to print like hell. I am bearish about everything, but in my bearishness I’ll be better off in stocks than government bonds.” The next negative is from Money Magazine Investor’s Guide 2011, in an interview with Gary Shilling. Gary Shilling is a highly respected economist who I have followed for years. When asked “Why do you think
deflation is more likely than inflation?” His answer was, “Deflation is caused by supply exceeding demand. As countries like China and India build excess manufacturing and service capacity, respectively, they don’t have the internal demand to absorb the output. So it ends up being exported. And of course you no longer have the U.S. consumer buying like there’s no tomorrow. That increases downward pressure on prices.” When asked “What is holding back demand?” His answer was “People no longer trust their stock portfolios. They have sucked all the money out of their houses. And unemployment is high. With slow growth, there isn’t going to be enough job creation. That encourages people to save because they don’t know what’s going to happen tomorrow. The savings rate is now about 6 percent, up from 1 percent in April, 2005. I think it’s headed back to double digits, which is where it was in the early 1980s.” “None of the longer-term issues have been resolved: The developed world still has too much debt, wage growth is sub par, and central banks are running out of bullets to use during the next downturn,” says Henry McVey, Morgan Stanley Investment Management’s head of global macro and asset allocation. “But we’re getting a cyclical reprieve,
engineered by the central banks.” Since 2007, I have been saying we need to get the real estate crisis solved to get on solid footing in the economy. Kiplinger’s “Where to Invest in 2011,” states, “Governmentencouraged loan modification programs are not working, and the foreclosure pipeline is clogged. So, foreclosures continue to back up, implying that yet more houses will be dumped into a weak market. One of the more pessimistic mortgage analysts, Laurie Goodman, of Amherst Securities, thinks that ultimately 11 million borrowers – a frightening 20 percent of the total – could lose their homes absent a change in government policy.” Overall, the preponderance of predictions for 2011 is positive. As I pursued my annual task of reading predictions for the coming year, I was surprised how positive the overall tone was. While common sense seems to indicate that the economy is improving, and the Federal Reserve continues to do everything it can with QE2 to ensure economic growth continues, I would have been more comfortable had there been more skepticism. I would have preferred a more negative forecast because so many times through the years when the consensus predicted the markets and economy were going to lean one way, they went continued on page 4
page 4 the other way. However, I have to admit I find myself in the positive camp as it appears the economy is truly beginning to expand. A common theme this year was globalization. The articles consistently mentioned the need to invest globally and to be highly diversified. Diversification is not just diversification among different asset classes such as large cap growth and value stocks, small cap growth and value stocks, and international funds, domestic and emerging. To be diversified in the future will require investments to diversify among different types of assets. This will include, but is not limited to, private equity, master limited partnerships, managed futures, hedge funds (this covers a large set of investments that can vary greatly from one another,) to investments currently being developed and structured. At the beginning of this letter I said I would say more about Fred Whaley and the Alternative Investment Department at Raymond James. I mention this because I think it is more important than ever to be as diversified as possible, and that includes alternative investments. Thus, Fred Whaley and his group’s due diligence efforts in this asset class become very important to all of us. Dr. Ed Davis, president of the Texas A&M Foundation and a good friend
“Looking ahead, investors need to be mindful of the lessons of the last decade as they navigate what is likely to be a difficult environment.” since 1965, often shares research with me he receives through his position. These articles and newsletters are always interesting and informative about the economy and the markets. The latest item that Dr. Davis sent me was “Reflections of a Decade,” written by Cambridge Associates CCC, the consulting firm employed by the Foundation. In Cambridge’s conclusion of “Reflections of a Decade,” I found the following paragraph to be full of wisdom. “Looking ahead, investors need to be mindful of the lessons of the last decade as they navigate what is likely to be a difficult environment. They should attempt to glean lessons from history while recognizing that its utility is limited, and strive to avoid the natural tendency to anchor their views to the familiar—which would cause them to interpret secular shifts in the environment through the wrong historical lens. Investors need to focus on valuations, seek true
diversification, assume only those risks that they reasonably expect to get paid to take, and pay close attention to manager selection. Risk management is essential, including both tail risk and the core risk of failing to maintain purchasing power of assets after spending. Perhaps even more than in the past, investors must constantly and rigorously question their assumptions concerning asset classes, portfolio strategy, and capital markets. Given the fragility of the global economy, we continue to focus on quality, maintaining adequate protection against the risks of inflation or an extended period of economic contraction, and finding ways to be defensive and diversified. At the same time, we remain on the lookout for valuation-based investment opportunities.” As we begin the year 2011, my two biggest concerns are the fragile recovery in housing and potential policy mistakes coming from Washington. It would not surprise me at all to see equities at the top of the asset sectors that perform well in 2011, but as you look over the longer term and try to manage risk along with returns, I think alternative investments (investments that do not correlate with the S&P 500) should be a greater percentage of all investors’ portfolios. As I close this letter, I find the S&P
FINANCIAL TRENDS . . . . . . . . . . . . . . . 12/31/09 . . . . 3/31/10. . . . . 6/30/10 . . . . 9/30/10 . . . 12/31/10 Dow Jones Industrial . . . . . . . . . . . . . . . . . . . 10,548.51 . . . . . 10,856.63 . . . . . . 9,774.02 . . . . . 10,788.05 . . . . . 11,577.51 NASDAQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,291.28 . . . . . . 2,397.96 . . . . . . 2,109.24 . . . . . . 2,368.62 . . . . . . 2,673.02 NAREIT Composite . . . . . . . . . . . . . . . . . . . . . . 111.73 . . . . . . . . 118.71 . . . . . . . . 112.58 . . . . . . . . 125.03 . . . . . . . . 133.03 Russell 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 634.09 . . . . . . . . 678.64 . . . . . . . . 609.48 . . . . . . . . 676.14 . . . . . . . . 793.22 MSCI-EAFE . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,573.17 . . . . . . 1,584.28 . . . . . . 1,348.13 . . . . . . 1,561.01 . . . . . . 1,658.30 Prime Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.25% . . . . . . . . 3.25% . . . . . . . . 3.25% . . . . . . . . 3.25% . . . . . . . . 3.25% Gold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,091.50 . . . . . $1,113.30 . . . . . $1,245.50 . . . . . $1,307.80 . . . . . $1,421.10 10-Year U.S. Treasury. . . . . . . . . . . . . . . . . . . . . . 3.85% . . . . . . . . 3.84% . . . . . . . . 2.95% . . . . . . . . 2.53% . . . . . . . . 3.30% 30-Year U.S. Treasury. . . . . . . . . . . . . . . . . . . . . . 4.63% . . . . . . . . 4.72% . . . . . . . . 3.91% . . . . . . . . 3.69% . . . . . . . . 4.34% 1-Year Certificate of Deposit . . . . . . . . . . . . . . . 0.55%*. . . . . . . . 0.55%* . . . . . . . . 0.55%*. . . . . . . . 0.30%* . . . . . . . . 0.30%* Past performance may not be indicative of future results. Source of Information: Issues of the Investment Book and The Wall Street Journal. *Bank of Texas rate
page 5 500 Index hovering around 1,330 and the Dow Jones Industrial around 12,280. We have had a good run in the market, so do not be surprised or concerned if we soon encounter a market correction. However, if the consensus view of economic growth in 2011 is correct, the correction should not be too deep and should not last long before the market once again regains its upward trajectory. Here is hoping for a steadier ride in 2011.
Bill E. Carter, CFP ®, ChFC, CLU® President Diversification and asset allocation do not assure a profit or protect against loss in declining markets.
Alternative investments are available only to those who meet specific suitability requirements, including minimum net worth tests. Please review any offering materials carefully, and consult with your tax advisor or accountant prior to investing. There are special risks involved with alternative investments, including investment strategies, and different regulatory and reporting requirements. There can be no assurance that any investment will meet its performance objective. Futures trading is speculative, leveraged, and involves substantial risks. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Any opinions are those of Bill Carter and not necessarily those of RJFS or Raymond James. Investments mentioned may not be suitable for all investors. Past performance may not be indicative of future results.
CALENDAR • March 29th – Investment Seminar with Jeff Saut, 6:30 p.m. registration at the Westin Galleria • May 30th – Observance of Memorial Day – Office Closed • July 4th – Observance of Independence Day – Office Closed • September 5th – Labor Day – Office Closed • September 17th – Carter Investment Conference/City Place • November 24th – Thanksgiving Day – Office Closed • December 26th – Observance of Christmas Day – Office Closed ■
CARTER CHARITY DAY
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artin Luther King, Jr., said “Everybody can be great because anybody can serve. You don’t have to have a college degree to serve; you only need a heart full of grace. A soul generated by love.” On December 14th the entire Carter Financial Management team participated in the annual Charity Day at the Salvation Army Thrift Store in north Dallas where as volunteers, we were able to donate our time to the Salvation Army’s Angel Tree program. The purpose of the Angel Tree is to provide toys and clothing to families and children in need. As a result, the Salvation Army was able to provide for over 52,000 individuals in the DFW Metroplex! The morning started with unloading the truck where gift after gift was separated and organized into bins for each family. We were all amazed at the generosity of this great community and agreed that this was an incredible experience. By the end of the day we left lighter of heart, thankful to be part of spreading Christmas cheer knowing that so many families would benefit from this service. If you would like to learn more about this program or other volunteer options please visit SalavationArmy.com or email mnebeker@cascfm.com. ■
We donated our time to the Salvation Army’s Angel Tree program.
page 6 “New Retirement Plan Fee” continued from page 1 may be one to two years old. If your retirement plan is among the 55,000 that BrightScope rates you may receive a free estimate of how much you’re currently paying in investment and administrative fees and compare that to a low-cost 401(k.) This legwork can help you zero in on your plan’s lowest cost funds. While you can’t control administrative fees, if BrightScope shows they are high, share that information with your human resources department and suggest they speak with your financial advisor about lower-cost retirement plans and alternative plan providers. If you own a company or serve as a
“Ten Things About Social Security” continued from page 1 Normal Retirement Age. The limits on such earnings are currently $14,160 for 2010. Benefits are reduced by $1 for every $2 that you earn over this amount. After you attain your Normal Retirement Age, you may work as much as you want with no reduction in benefits although they may become taxable if you earn too much. 5. You can increase the size of your retirement benefit by delaying collection of your benefits and by remaining on the job past full retirement age. This higher benefit comes from extra earnings toward your account and a credit awarded for this patience ranging from 3 percent to 8 percent of your benefit depending on your date of birth. 6. For people born after 1937, Normal Retirement Age will increase. For example, if you were born in 1940, full retirement age is 65 and 6 months; born in 1950, it is 66. Anybody born in 1960 or later will be eligible at age 67. 7. Social Security disability benefits do not continue past Normal Retirement Age. The month before
human resources administrator and sponsor a qualified retirement plan you have a fiduciary responsibility to act in the best interest of your plan participants. Ensuring your retirement plan fees are reasonable in relation to the services provided and that you have a documented process in place to manage the plan and monitor performance is critical to minimizing your fiduciary liability and avoiding potential DOL or IRS audits and fines. If you don’t have an investment policy statement to guide the selection of plan investment options, an investment committee to monitor plan performance, and a third party administrator to ensure proper record keeping and accurate reporting to the DOL and IRS you are leaving yourself
you attain normal retirement age the disability benefits are automatically converted to retirement benefits. 8. There is a limit to the amount of benefits that can be paid on each Social Security record called the Maximum Family Benefit, generally around 150 to 180 percent of the worker’s benefit. If this limit is exceeded, the family benefits are reduced. 9. Ex-spouses, widows, and divorced widows may all be eligible for benefits on a spouse’s record. Provided the requirements are met, they may even all be collecting on the same worker’s record. 10. There are two Social Security trust funds, one used to finance retirement and survivor’s benefits and the other used to finance the disability program. Money not used to pay current benefits is invested only in U. S. Government Treasury bonds. Social Security is a significant resource for many retired individuals. Spend some time with your financial planner learning about what part these benefits should play in your retirement planning future. ■ Dwight Wanken is a Senior Vice President with Carter Financial Management. Email: dwanken@cascfm.com
exposed to potential audits, fines, and lawsuits. If you have not requested bids from other plan providers in the last several years now is a great time to do so. In order to make sure you are getting the most out of your firm’s retirement plan call your financial advisor and ask them to conduct a free no-obligation plan review. ■ P. Jordan John is a Registered Financial Advisor with Carter Financial Management. Email: jjordan@cascfm.com * Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members.
SHRED DAY Save the date! Our next Shred Day will be on Saturday, April 30.
HIGHLIGHTS • Tara Scottino attended FPA Chapter Leaders Conference in Denver, CO on Nov. 6-7. • Brandon Ratzlaff graduated with his MBA from The University of Texas at Dallas. • Bill Carter attended Capstone Group Study in Phoenix, AZ on Jan. 27-30. • Bill Carter and Tara Scottino attended Raymond James Dallas Regional Conference on Feb. 8-10. ■
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WOMEN AND INVESTMENTS
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any of us believe common stereotypes about women have gone by the wayside, but some of those ideas are still lurking in the shadows. Ideas such as “women don’t have a head for numbers” or “women aren’t interested in investments.” However, women Claudia King tend to be slightly better investors than men according to a University of California at Davis study, http://www.gallup.com/poll/ 8953/Female-Investors-More-Wary-Shaky-Economy.aspx. Many women interrupt their careers to raise children. This interruption perpetuates erroneous thinking partially due to the fact that because women often spend less time in the work force they tend to have fewer investment assets. The interruption of a career has longlasting effects on retirement savings for women. Stop and start savings will not produce the same result as consistent savings over a forty-year career. The investment challenges women face are unique. They often work only part-time and thus may not have access to some of the best options for retirement savings. Traditional IRAs are always an option. The deductibility will be limited by their Modified Adjusted Gross Income if their husbands participate in an employer-sponsored retirement plan. Ability and interest are not necessarily the only factors preventing women from being active in investing. Generally speaking, large portions of the population have received minimal financial education. For many, their only formal education about financial matters may
MEET JEFF SAUT March 29, 2011 6:30 p.m. | Westin Galleria
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s Raymond James’ chief investment strategist and a managing director of the firm’s Equity Research department, Jeff Saut provides timely and insightful market commentary to Raymond James financial advisors, their clients and institutional clients through daily strategy calls, weekly written commentary, as well as local and national media appearances. A disciple of the markets for more than 30 years, Jeff possesses a breadth of experience in the field few can match. He was managing director of research at Roney & Co. when
be the required economics class in high school or college. In some instances typical marital roles play a part. The husband takes care of his retirement plan at work and any other investing falls on him by default. The need for women to have financial education and professional help can become obvious under unpleasant circumstances. In general, women outlive their husbands. The period following the death of a spouse is emotionally draining and yet questions about everything from “Where are the extra set of car keys?” to “What should I do about his 401(k)?” abound. Friends and family want to help, but the consequences of errors can have far-reaching effects. In the case of a husband who has developed Alzheimer’s, his wife now needs to care for her husband, run the house, and take on all the responsibilities formerly handled by her husband. His illness has the potential to quickly diminish the savings of a lifetime. Divorce is no less devastating. Especially when children are involved, the decisions are not only life- changing but are fraught with emotional fallout. Financial plans can become invaluable tools in laying out the needs of all family members. While the stereotypes still exist, the reality is that when it comes to investing and financial planning the challenges for women are unique and varied. In dealing with or preparing for any of life’s difficult moments drawing on the expertise of a professional advisor can help provide a sense of direction and help to avoid the many pitfalls along the way. ■ Claudia King is a Registered Financial Advisor with Carter Financial Management. Email: cking@cascfm.com
it became part of Raymond James in 1999. Prior to that, he was managing director of equity capital markets for Sterne, Agee & Leach. His responsibilities there included equity research, investment banking, institutional sales and syndicate. After graduating from St. Andrews in early 1971, Jeff began his career on a trading desk in New York, becoming a trading desk manager in 1972. In 1973, he joined E.F. Hutton & Company, where he began following equities and providing research commentary. He subsequently worked as a securities analyst for Wheat First Securities, and then Branch Cabell & Co., where he was director of research and acted as portfolio manager for the firm’s affiliate, Exeter Capital Management. Jeff was also director of research for the regional brokerage firm Ferris, Baker Watts, Inc., where he developed the firm’s research and institutional sales efforts. ■
WEALTH MANAGEMENT FOR THIS GENERATION AND THE NEXT
12222 Merit Drive, Suite 1800 Dallas, Texas 75251
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CARTER FINANCIAL MANAGEMENT/CARTER ADVISORY SERVICES TEAM Bill Carter, CFP ®, CLU ®, ChFC, President • Robert H. Berg, CFP ®, Senior Vice President • Kathy A. Muldoon, CFP ®, Senior Vice President • Tom McIntire, CFP ®, CLU ®, CFA, Senior Vice President • Tara Scottino, CFP ®, Senior Vice President • Sue Spellman, CFP ®, Senior Vice President • Dwight Wanken, Senior Vice President • Carol Croy, CFP ® • JoAnne B. Galbraith, CFP ® • Tyler Russell, CFP ® • Patty Hammond, CFP ® • Jonathan Meaney, CFP ® • Tom L. Potts, Ph.D., CFP ® • Brandon Ratzlaff, CFP ® • Taylor Steele, CFP ®, CLU ® • Stephen H. McDonald, CFP ® • Joel Berg • Adrian DeLeon • Jordan John • Claudia King • Brian Fralin, CFP ®, Midland Branch • Sheldon Zeiger, CFP ®, JD, Chicago Branch
CFM MISSION & CONTACT Our mission is to become our client’s trusted advisor by providing superior financial planning services that enable our clients to define and achieve their financial and life goals. You can reach us at: Phone 214-363-4200 . Fax 214-363-4369 . www.cascfm.com
EMAIL UPDATES: Help us keep our records up-to-date by sending your name and email to lmartin@cascfm.com. As always, Carter Financial Management and Carter Advisory Services will not distribute your contact information to anyone. All information is kept strictly private.
RJFS DEADLINES Cutoffs: Trades/Mutual Funds.......................................3:00 CST No Load Mutual Funds – Buys: ....................1:00 CST No Load Mutual Funds – Sells:.....................2:30 CST Government Bonds ...........................................4:00 CST Wires-From Customer Accts. ..........................12:30 CST
REMINDER: If you are making out a check for your Raymond James account, please note we can only accept checks payable to Raymond James or Raymond James & Associates. We cannot accept checks payable to Carter Financial Management or Raymond James Financial Services. Thank you for your cooperation.
SECURITIES AND INVESTMENT ADVISORY SERVICES OFFERED THROUGH RAYMOND JAMES FINANCIAL SERVICES, INC. MEMBER FINRA/SIPC. ADVISORY SERVICES OFFERED THROUGH CARTER ADVISORY SERVICES. BUSINESS & FINANCIAL SUPPORT SERVICES OFFERED THROUGH CARTER FINANCIAL MANAGEMENT. Carter Financial Management is an independent firm. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Any opinions are those of Carter Financial Management and not necessarily those of RJFS or Raymond James. Investments mentioned may not be suitable for all investors. Expressions of opinion are as of this date and are subject to change without notice. Past performance may not be indicative of future results.