Financial Planning Week

THE COLUMBUS DISPATCH | Special Advertising Section | SUNDAY, SEPTEMBER 30, 2012

Financial planning week Sponsored by The Financial Planning Association of Central Ohio

OCT. 1-7, 2012

Columbus Financial Planning Day Saturday, Oct. 6

is made possible by the following:

dream big. work hard. we'll help. ™

Social Security Administration The Legal Aid Society of Columbus

Scan for more information

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THE COLUMBUS DISPATCH | Special Advertising Section | SUNDAY, SEPTEMBER 30, 2012 ■

Message from the Pro Bono Director These days, coverage of the 2012 election dominates the news.

The incoming president, whether Democrat or Republican, will have to deal with a lot of the same financial issues we face today as individuals — evaluating debt, handling a budget and making financial decisions that will impact our families, or in the President’s case, the citizens of the United States of America.

In order to best tackle these concerns, the President surrounds himself with educated advisors with expertise in areas that he simply does not have time to focus on given his other responsibilities. They help him prioritize his goals and create a plan and timeline to achieve them.

Members of the Financial Planning Association of Central Ohio serve a role that is very similar to a presi-

Kristen E. Moosmiller Pro Bono Director,

Financial Planning Association of Central Ohio dential advisor. Using an objective, client-centered, ethical process, they help bridge the gap between the economic forces of the world at large, and the personal situation of the individual and his or her family.

While none of us can control government rules and regulations, except indirectly through exercising our civic duty as voters, an FPA professional can provide expert guidance and focus. Whether you desire to create a plan for retirement, pay down your mortgage, plan for your children’s education, or perhaps all three, their competence in these areas

can help you achieve your goals.

On Saturday, Oct. 6, the FPA of Central Ohio will once again be hosting Columbus Financial Planning Day, from 10 a.m. to 2 p.m., at the Columbus Metropolitan Main Library.

One-on-one counseling sessions will be available, as well as workshops on a variety of topics, including Social Security, college planning, budgeting and debt management and estate planning.

Best of all, there are no strings attached — volunteer financial planners will not pass out business cards, marketing materials or sell products or services. Our goal is that you receive unbiased answers to your questions and leave with the tools and resources to assist you in making informed decisions. Please join us and take the steps to control your financial world. We hope to see you there.

Plan ahead for active and happy retirement years You may have excelled in planning a Whitney secure financial foundaLogan tion for your Logan ideal retireFinancial ment, but you Group may still have some work to do if you haven’t planned what you’ll be doing in the wake of your career. Financial security is necessary, to be sure, but it’s not the equivalent of achieving real satisfaction later in life.

Surveys of retirement happiness show that those who are physically and socially active are the happiest — far more satisfied with life than those who wake up on Monday following the retirement party wondering what to do. Watching television or lounging around on the porch or at the beach may be pleasant for your first few days or weeks. However, for most people this kind of uninvolved, too-muchtime-on-your-hands existence quickly leads to loneliness, boredom and depression, according to studies done by the AARP. the value of a list

You can plan ahead to avoid this. A list of your retirement plans and hopes can help you gain focus. Sketch out the kinds of regular physical activities that will keep you mentally and physically healthy.

Note what social plans you’ll have with

Financial Planning Association of Central Ohio

board of directors

Ralph Abbott Membership Director

Shawn R. Ballinger, CFP® President

Paul J. Dolce, CFP® career development

Tammi Gourley chairperson

Erin Mentel-Gaeta, CFP® public relations director

Anthony D. Konecny government relations director

Insight Bank (614) 807-3899 ralph.abbott@insightbank.com

Diamond Hill (614) 255-3349 tgourley@diamond-hill.com

Kristen E. Moosmiller, CFP® pro bono director PDS Planning, Inc. (614) 481-8449 kmoosmiller@pdsplanning.com

friends and relatives, and get in touch with organizations for which you would like to volunteer. Decide whether you want to further your education. If extensive travel is on your agenda, make a priority list. Do you plan to keep a hand in the workforce?

What about getting a pet, if circumstances allow and your health is up to it? Studies show that pets can help keep you active and are even credited with lowering blood pressure and cholesterol levels.

If you’re retired, you already know this and undoubtedly have taken action to make sure you remain active and involved with the world. If you’re not yet retired, now may be the ideal time to plan ahead by staying physically active and socially involved in ways that can be continued throughout retirement.

Article provided by Raymond James & Associates.

Budros, Ruhlin & Roe, Inc. (614) 481-6900 shawn.ballinger@b-r-r.com

Cephas Capital Management, LLC (614) 354-4740 egaeta@cephascm.com

Julia S. Seitz, CFP® programs director

Summit Financial Strategies, Inc. (614) 885-1115 julia@summitfin.com

Matthew J. Stewart, CFP® treasurer

Key Private Bank (614) 460-3453 Matthew_J_Stewart@keybank.com

Financial Solutions, LLC (614) 604-3551 pdolce@financialsols.com

First Command Financial Services, Inc. (614) 944-5720 adkonecny@firstcommand.com

Bill Shorthill, CFP® partnerships director

Beacon Hill Investment Advisory, LLC (614) 501-3205 bill@bhadvisory.com

Larry R. Zapp, CFP® secretary

Larry R. Zapp & Associates, Inc (614) 478-0500

admin@fpacentralohio.org www.fpacentralohio.org

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THE COLUMBUS DISPATCH | Special Advertising Section | SUNDAY, SEPTEMBER 30, 2012

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Follow the financial investment process to benefit your financial planning Taking care of one’s assets requires a bit of time, discipline and basic knowledge of a few financial rules. pay yourself first, and control your expenses

It is critical that with every paycheck, we pay ourselves first. With each paycheck, set aside 10 percent for savings and investing.

Consider setting aside up to eight months of income for emergencies. When we consistently pay ourselves first, we build a nest egg and force ourselves to control expenses (because we reduce our disposable income). take advantage of compound interest

Invest a comfortable portion of your savings in “safe,” income-building investments, and take advantage of compound interest.

Compounding takes place when your invested funds earn interest that builds upon your original invest-

Douglas C. Smith The Douglas C. Smith Company, LLC

ment. The larger principle now earns more interest and continues to grow.

Compound interest helps build principle that earns even more interest. limit your losses

Whether you invest in Certificates of Deposit (CDs), bonds or stocks, it’s a good idea to put your money in good-quality, value-earning and dividend-increasing investments. Invest a comfortable portion of your saved 10 percent in “safe” incomegrowing investments. Manage your expectations and don’t expect to achieve casino-like results, such as doubling your money overnight.

preserve your capital

Look for quality, value and income-producing investments that offer diversification. No one can predict which stocks will perform well, and value outperforms growth over long periods of

time. Quality, value, income and diversification are things that help build returns and limit losses. By tracking your investments and selling some shares to take profits as your investments grow, you can preserve your original

investment.

If you’d like to learn more about how to invest wisely and grow your own assets, consult a professional financial or investment planner who can help you achieve your own goals and dreams.

For over 35 years, Waller Financial Planning Group has successfully helped clients to pursue lifestyle and legacy goals by taking a team-based, comprehensive approach to financial planning and combining it with a long-term vision.

To learn more about taking the first step in controlling your financial future, contact Waller Financial Planning Group today.

Future

Investing in Your Lifestyle & Legacy Choices by DesignSM 941 Chatham Lane Suite 212 Columbus, Ohio 43221

801 Laurel Oak Suite 610 Naples, Florida 34108

(800) 676.7026 • www.waller.com Securities offered by LPL Financial, Member FINRA/SIPC. Investment Advice offered through Waller Financial Planning Group, Inc., a registered investment advisor and separate entity from LPL Financial.

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THE COLUMBUS DISPATCH | Special Advertising Section | SUNDAY, SEPTEMBER 30, 2012 ■

Join the Financial Planners of Central Ohio in Celebrating

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THE COLUMBUS DISPATCH | Special Advertising Section | SUNDAY, SEPTEMBER 30, 2012

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FINANCIAL PLANNING WEEK

Teri R. Alexander, CFP®, MSFP Alexander Financial Planning, Inc. (614) 538-1600 talexander@afp-advisors.com

Aaron T. Armstrong, CFP,® CFA Budros, Ruhlin & Roe, Inc. (614) 481-6900 aaron.armstrong@b-r-r.com

Diane Armstrong, CPA, CFP® WealthStone, Inc. (614) 267-2600 darmstrong@wealthstone.net

Brian W. Becker, CFP® Hamilton Capital Management, Inc. (614) 273-1000 bwb@hamiltoncapital.com

Geoffrey R. Biehn, CPA, CFP® President Trinity Financial Advisors LLC www.tfadvisors.com

Pamela S. Birkenholz, CRPC Waddell & Reed, Inc. (614) 799-0373 ext. 110 pbirkenholz48370@wradvisors.com

Carl C. Buckner John E. Sestina and Company (614) 792-9685 cbuckner@managingtobewealthy.com

Joseph A. Chornyak, CFP® Chornyak & Associates (614) 888-2121 chornyak@chornyak.com

Joseph A. Chornyak, Jr., CFP® Chornyak & Associates (614) 888-2121 chornyakjr@chornyak.com

Robert Cochran, CFP® PDS Planning, Inc. (614) 481-8449 rcochran@pdsplanning.com

Mark Coffey, J.D., CFP® Summit Financial Strategies, Inc. (614) 885-1115 mark@summitfin.com

Tracey Danison, CFP® Danison & Associates, Inc. (614) 487-6040 tracey.danison@danisonassociates.com

Tom Davison, MA, Ph.D, CFP® Summit Financial Strategies, Inc. (614) 885-1115 tom@summitfin.com

John R. Deitrick, CFP® Advanced Retirement Design (614) 602-6506 jdeitrick@ard103.com

Connie E. Demers, CFP® Demers Financial Planning (614) 451-4505 dfp@rrohio.com

Kevin M. Doll, CFP® Hamilton Capital Management, Inc. (614) 273-1000 kmd@hamiltoncapital.com

Ellen Dorle, CFP® Dorle Financial, LLC (614) 880-0064 edorle@ellendorle.com

Daniel Due, CFP® Budros, Ruhlin & Roe, Inc (614) 481-6900 daniel.due@b-r-r.com

Jason Eliason, CFP,® ChFC, CFA Waller Financial Planning Group, Inc. (614) 457-7026 jeliason@waller.com

Andrea N. Ellis, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 andrea.ellis@b-r-r.com

Lori L. Embrey, CFP,® MS Hamilton Capital Management, Inc. (614) 273-1000 lle@hamiltoncapital.com

Michael P. Faieta, CFP® Hamilton Capital Management, Inc. (614) 273-1000 mpf@hamiltoncapital.com

Jason E. Farris, CFP® Waller Financial Planning Group, Inc. (614) 457-7026 jfarris@waller.com

Douglas Feller, CFP,® CFA Investment Partners, Ltd. (614) 761-9087 dfeller@invp.com

Brian D. Fenstermaker, CFP,® AIF, RFC Envision Consulting Group, LLC (614)794-1111 brian@envisionconsulting.com

Peter S. Geldis, CFP® Hamilton Capital Management, Inc. (614) 273-1000 psg@hamiltoncapital.com

Gwen Gloeckner, CDFA Gloeckner Financial Group (614) 310-2400 Gwen@GloecknerFinancial.com

Paul A. Gydosh, Jr., CFP® Kensington Wealth Partners , Ltd. Lincoln Financial Advisors, Corp.

(614) 431-4336 Paul.Gydosh@LFG.com

Jim Hamilton PDS Planning, Inc. (614) 481-8449 jhamilton@pdsplanning.com

R. Matthew Hamilton Hamilton Capital Management, Inc. (614) 273-1000 rmh@hamiltoncapital.com

Robert Hamilton, CFP® PDS Planning, Inc. (614) 481-8449 Bhamilton@pdsplanning.com

Rita Itsell PDS Planning, Inc. (614) 481-8449 ritsell@pdsplanning.com

Gregory R. Johnson, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 gregory.johnson@b-r-r.com

Andrew P. Keeler, CFP® Keeler & Nadler Financial Planning and Wealth Management, LLC (614) 791-4123 andy.keeler@keelernadler.com

Robert Keidan Keidan Financial Consultants (614) 469-5003 bob@keidanfinancial.com

Charles A. Kerwood III, CFP,® ChFC Waller Financial Planning Group, Inc. (614) 457-7026 ckerwood@waller.com

Scott R. Kidwell, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 scott.kidwell@b-r-r.com

Katherine E. Kincaid, CFP® Waller Financial Planning Group, Inc. (614) 457-7026 kkincaid@waller.com

Matthew J. Kirby, CFP® Hamilton Capital Management, Inc. (614) 273-1000 mjk@hamiltoncapital.com

Michael D. Kline, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 michael.kline@b-r-r.com

Adam Koos, CFP® Libertas Wealth Management Group, Inc. (614) 543-1350 akoos@libertaswm.com

Jessica A. Lee Budros, Ruhlin & Roe, Inc. (614) 481-6900 jessica.lee@b-r-r.com

William A. Leuby, J.D., CFP® Hamilton Capital Managment, Inc. (614) 273-1000 wal@hamiltoncapital.com

Jeffrey R. Loehnis CPA, CFP® Hamilton Capital Management, Inc. (614) 273-1000 jrl@hamiltoncapital.com

Whitney T. Logan CFP,® CLU, ChFC ® Logan Financial Group, LLC (614) 442-0214 whitney.logan@raymondjames.com

Samantha Macchia, CFP,® ChFC ® Summit Financial Strategies, Inc. (614) 885-1115 sam@summitfin.com

Richard J. Martin, CFP® Steinhaus Financial Group Lincoln Financial Advisors, Corp.

(614) 431-4342 Ric.Martin@LFG.com

Robert A. Mauk, CFP® Chornyak & Associates, Ltd. (614) 888-2121 rmauk@chornyak.com

John McHugh, CPA, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 john.mchugh@b-r-r.com

Jamie P. Menges, CFP®, CPA Investment Partners, LTD (614) 761-9087 jmenges@invp.com

Joseph S. Messinger, ChFC,® CLU® Capstone Wealth Partners, LTD (614) 754-7805 x 11

Andrew L. Michel, CLU,® ChFC® Andrew Michel & Associates, LLC Lincoln Financial Advisors, Corp.

(614) 885-2853 Andy.Michel@LFG.com

Brian T. Mills, CFP® SS&G Wealth Management (614) 573-7776 bmills@ssandg.com

Timothy M. Montague, CPA, CFP,® MT

Hamilton Capital Management, Inc. (614) 273-1000 tmm@hamiltoncapital.com

Michael H. Mulhern, CFP,® CRPC® Total Retirement Solutions Lincoln Financial Advisors, Corp.

(614) 854-6669 Mike.Mulhern@LFG.com

Richard D. Nadler, MBA, CFP,® CPA Keeler & Nadler Financial Planning and Wealth Management (614) 791-4123 richard.nadler@keelernadler.com

Mike O'Brien, CFP,® CRPC® Lincoln Financial Advisors (614) 431-4307 mike.obrien@LFG.com

Christopher O. Olsgard, CFP® Waller Financial Planning Group, Inc. (614) 457-7026 colsgard@waller.com

Darnell C. Perkins Lincoln Financial Advisors (614) 431-4324 Darnell.Perkins@LFG.com

Christina Povenmire, MBA, CFP® CMP Financial Planning (614) 487-1244 christina@cmpfinancial.com

Debbie Price, J.D., CPA, CFP® Price Planning, LLC (614) 848-3860 debbie@priceplanning.com

Cathy A. Quinn, CFP® UBS Financial Services Inc. (614) 460-6589 catherine.quinn@ubs.com

Richard A. Ray, CFP® Hamilton Capital Management, Inc. (614) 273-1000 rar@hamiltoncapital.com

Scott E. Rendle, CFP® Waller Financial Planning Group, Inc. (614) 457-7026 srendle@waller.com

John E. Roessler, CPA, CFP® Budros & Ruhlin & Roe, Inc. (614) 481-6900 john.roessler@b-r-r.com

James A. Rogers, CFP® Hamilton Capital Management, Inc. (614) 273-1000 jar@hamiltoncapital.com

Ted Saneholtz, CPA, CFP,® ChFC Summit Financial Strategies, Inc. (614) 885-1115 ted@summitfin.com

Douglas C. Smith The Douglas C. Smith Company, LLC (614) 885-1480 stocksmith@hotmail.com

Beth K. Sparks, Vice President, Investments Raymond James & Associates, Member New York Stock Exchange/SIPC (614) 442-2340 beth.sparks@raymondjames.com

Isaiah S. Stidham, CPA, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 isaiah.stidham@b-r-r.com

Jeffrey E. Suchy, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 jeffrey.suchy@b-r-r.com

Gary Vawter, CFP,® MS, AEP Vawter Financial, Ltd. (614) 451-1002 gary@vawterfinancial.com

Lisa S. Walls, CFP® Hamilton Capital Management, Inc. (614) 273-1000 lsw@hamiltoncapital.com

Amy Weldele, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 amy.weldele@b-r-r.com

Kevin W. Wuebker, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 kevin.wuebker@b-r-r.com

J. Timothy Young, J.D., CFP® Hamilton Capital Managment, Inc (614) 273-1000 jty@hamiltoncapital.com

The Financial Planning Association of Central Ohio serves and inspires those who deliver, support and need financial planning.

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THE COLUMBUS DISPATCH | Special Advertising Section | SUNDAY, SEPTEMBER 30, 2012 ■

What is your college-funding plan?

You can’t pick up a newspaper, magazine, go online or turn on the television without hearing about the skyrocketing costs of college.

One of the biggest concerns for parents today is how to finance their children’s college education.

Tuition and fees at our nation’s colleges and universities continue to rise at twice the pace of general inflation.

The average price of public universities across the country has doubled in the last decade. Two thirds of college students graduated with debt in 2010, and on average they have $25,250 in studentloan debt. Collectively, student-loan debt exceeds $1,000,000,000,000. Yep, that is a trillion dollars.

If you have a high school student and feel a bit overwhelmed with college, take a deep breath — you are not alone. The vast majority of children don’t know what they want to major in, and

Joseph S. Messinger

Advanced College Planning Specialist,

Capstone Wealth Partners, LTD

many parents don’t know how they are going to pay for college. As parents enter their peak earning years they are also sending kids off to college.

Our college financial-aid system is built to ensure that funds go to those who need it most. The reality is, an increasing number of families qualify for very little needbased financial aid other than federally backed education loans, and they certainly don’t have the money to pay for everything.

Here are six practical tips to help you plan and pay for college regardless of your financial circumstances:

The average price of public universities across the country has doubled in the last decade.

• Don’t procrastinate.

Create a proactive college admissions and funding plan to ensure you don’t miss key deadlines in the process that could cost you dearly.

• Project and know your Expected Family Contribution (EFC). Your EFC is determined each year by submitting the Free Application for Federal Student Aid (FAFSA).

You can estimate your EFC by going to www.fafsa. ed.gov and clicking on the FAFSA4CASTER tool.

• Decide on your collegefunding philosophy. As a parent, think about how much you are committed to paying,

Special-needs planning and providing for the future When you have a child with special needs, your world can be turned upside down emotionally and financially. The way you plan your life and the way you plan for the future will change.

Your financial planning needs are important to address with this in mind. Embracing a new estate plan that takes into consideration the child’s daily needs, ongoing support and financial assistance should be addressed early in life.

Many children today will need lifelong care and financial support.

Engaging a qualified financial professional, attorney and child-care advocate will help you navigate the process and reduce your worries for the future. Utilizing professionals may improve your situation today and guide you in looking forward. With help, you can draft a comprehensive estate plan to ensure that your child is well provided for after your death.

A special-needs trust is specifically designed for the benefit of individuals with special needs, and can allow you to provide for your child without jeopardiz-

Gwen Gloeckner

Gloeckner Financial Group

ing his or her eligibility for government benefits — an advantage not offered by traditional trust. Government benefits, such as Medicaid and Social Security can be vital sources of support for your child, however they are needs based and could be jeopardized with an inheritance or a well-intended gift from a relative that pushes the child’s assets over the current limit of $2,000.

A special-needs trust that is ideally designed could be used for expenses not covered by government benefits, thus maintaining the lifestyle that you had been providing prior to your death. Providing for your loved ones is an important part of your financial success. Confirm that your needs are met for your current and future situations. The future will include many special children with needs, and we are part of your support team.

A special-needs trust is specifically designed for the benefit of individuals with special needs, and can allow you to provide for your child without jeopardizing his or her eligibility for government benefits.

and how much you are comfortable having your student pay. For example, you could pay for half of four years at an in-state school for each of your three children.

• Remember that a sound college plan is critical to your retirement plan. As you plan for what you can commit to paying for college, strongly consider how this impacts your retirement goals. Will you have to work longer, or retire with less?

Know how you will pay for all four years of school — before you commit to a school. One of the most common reasons students leave school is because they run out of money to pay for tuition. Before committing to attend a school, have a plan to pay for all four years — down to the penny. For example, one-third will come from savings, one-third will come from cash flow, and one-third will come from student loans.

• Utilize a “net cost calculator” to determine your child’s true out-of-pocket cost to attend college. Financial aid award letters typically combine gift aid, money you do not have to pay back like grants and scholarships, and self-help, money you have to pay back or work for, such as loans and work study. Be sure you know the difference and compare the out-of-pocket cost to attend each school before making a decision.

When will the market volatility go away?

As children, we enjoyed the rush of adrenaline when riding a roller coaster — the feeling of climbing to the top and then falling fast. As we get older, roller coasters are likely less enjoyable, particularly in the stock market.

Market volatility is something we must learn to live with for the long term, and it should be part of ongoing financial planning.

By implementing a few key concepts, the ups and downs can be a little easier. set an asset allocation strategy that matches your tolerance for risk

You can use your age to determine how much to have invested in the stock market. To determine this, subtract your age from 110 to determine the percentage you should have in stock or stock mutual funds. Also factor in how much you need to draw down from your investments each year for your income. Make sure to set aside in bonds or cash three to five times your annual income requirement.

Understand the investments you have During the past 10 years, new types of investments

Brian T. Mills

Financial Adviser,

SS&G Wealth Management, LLC

have become more popular. Exchange traded funds, target funds, currencyrelated funds and long-short funds are several that have become more widely used as part of a diversified asset allocation. Understanding the investment’s objective is important. Many might sound good, but you must understand how they could make money for you or cause you to lose money. do your due diligence

Find out how the investment performed during good markets and bad.

How did the bond perform when interest rates went up or down? Look at the beta (risk) of the investment. A beta of 1.0 means the investment should perform as well or bad as the stock market. A beta of 0.7 means the investment has 30 percent less risk than the overall market. A beta of 1.2 means the investment has 20 percent more risk than

the overall market.

Review the portfolio at least biannually and rebalance when necessary. Over time, your asset allocation could get skewed and you would be more invested in bonds or stocks. The goal of rebalancing is to move the current asset allocation back in line to the originally planned asset allocation. This rebalance, or trimming, of gains in either bonds or stocks helps minimize risk exposure to your investments during good and bad markets.

By implementing these simple strategies and concepts, the roller coaster ride can be more enjoyable.

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THE COLUMBUS DISPATCH | Special Advertising Section | SUNDAY, SEPTEMBER 30, 2012

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Recently divorced? Take these five action steps to take to protect your financial future divorce, and most people don’t realize that these assets are not controlled by your will. Are your current wishes as to what Diane happens in the event of Armstrong your death reflected in WealthStone, your documents?

Inc. • Review your investment accounts. Verify they are consistent and other estate-planning documents, such as with your risk tolerance and future goals. Often your health-care direcduring marriage, one tive, with your attorney. spouse tends to handle Changes are most likely the investments so the in order. Do you really want your future health- accounts may reflect his care decisions decided by or her bias. Also, verify that the cost basis (what your former spouse? you paid for the securi• Review your benties) is accurate and in eficiary designations on A divorce can present many challenges. Take time to review documents that will order. This will impact life insurance policies impact your financial future that may need updating due to the separation. and retirement accounts. your future tax liability.

Finally, diversify your These are commonly portfolio by eliminating overlooked after a any large or concentrat- requires the company to priced policy on your let family members con- own. ed security positions.

These are a few • Review your health tinue coverage under the group plan for up to critical steps to get you insurance benefits and three years after divorce. started. Don’t be afraid explore other options.

However, you must pay to ask for help. This can If you were covered be a difficult time, so the entire cost of the under your spouse’s premium, which can be seek advice from objechealth plan and he or tive experts that can surprisingly expensive. she worked for a comis no doubt that higher inflation and If you’re in good health, help you navigate the pany with 20 or more Investors higher interest rates are in our future. financial landscape. you may find a loweremployees, federal law typically jump Until then, investors must either into bonds be content with extremely low yields, near the botor take a bit of risk to achieve higher tom of stock Robert income on their investments. While bear markets, Cochran neither option may be palatable, that is and they PDS Planning, the reality of the moment. Salespeople often conInc. wave guarantees of 5 percent or 6 tinue to purpercent in front of seniors hungry for chase bonds yield. But the guarantees come with through most of the market’s bull run. many conditions, as well as a lock When they finally change gears and on principal access for as many as 15 move into stocks, it is often near the years. Caution is definitely the better market’s peak. part of valor with these products.

This certainly held true in the most So what are investors to do as they recent bear market, as heavy buying wait for interest rates to rise? Pouring of bonds began in January 2009, just more money into long-term Treasuries before the stock market bottomed two (Car and girl are extra.) is certainly not a logical option. While months later. Since then, many investhese have provided investors with tors have poured money into bonds much higher returns than CDs, there like there was no tomorrow. is now significant risk to owning them.

And now, three years later, bonds Just a one-percent increase in interest are still the investment of choice for rates could result in a principle loss of much of the investing populace. This has occurred even as interest rates have more than 15 percent. That is not the kind of safety folks look for in governbeen pushed to historic low levels, ment bonds. and prices for existing bonds are in A truly diversified mix of the followthe stratosphere. From January 2009 ing investments might be an option through June 2012, domestic stock that has lower risk than long-term funds had a net redemption of more Treasuries: than $300 billion, while taxable bond • Short-maturity CDs funds gained more than $790 billion in • No-load, short-maturity tax-free new dollars. Talk about bad timing. bond funds Yields on five-year U.S. Treasury • No-load bond mutual funds with Bills are just above 0.5 percent as of flexible investment strategies this writing. Local bank money market • Investments in high-yielding prerates are, at best, 0.07 percent, and oneferred stocks year CD rates average 0.2 percent local• No-load bond mutual funds that ly. To get more than one percent in own foreign corporate bonds central Ohio, savers must extend their • Conservative, high-dividend stocks maturities to at least five years. Seniors Of course, the right mix is depenmay remember with fondness the dent on each person’s income needs, 15-percent CD rates in the early 1980s. risk tolerance and time horizon. Be But much of that high yield was eaten pdsplanning.com sure to consult a CFP practitioner up by double-digit inflation that was 2200 West 5th Avenue, Suite 200 Columbus, OH 43215 614.481.8449 before making changes to your investrampant then. It’s unlikely we will see ment plan. those short-term rates again, but there Your divorce is finally over, the assets have been divided, and your new budget is in place, so you can breathe easy — right? Well, not exactly. This is a critical time when financial planning is a must. Take the following actions to ensure your long-term financial health: • As early as possible, pull the most recent copy of your credit report. You can do this quickly and at no cost by visiting annualcreditreport.com.

Make sure that everything is accurate, and be certain that you understand the accounts that are reported and how they impact your credit.

• Review your will

Finding income in today’s low-yield environment

The average cost

of owning a car is

$7,967.

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THE COLUMBUS DISPATCH | Special Advertising Section | SUNDAY, SEPTEMBER 30, 2012 ■