THE COLUMBUS DISPATCH | Special Advertising Section | sunDAY, october 4, 2015
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Figure 1: Information from http:// www.census.gov/construction/cpi/
are you in charge of your money?
Let us help you.
Financial Planning Day Wednesday, Oct. 7 details inside
Find a financial planner in your area at
PlannerSearch.org
We serve to inspire those who deliver, support and need financial planning.
Ohio’s largest membership organization for CFP® professionals including members who support the financial planning process.
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THE COLUMBUS DISPATCH | Special Advertising Section | sunDAY, october 4, 2015
Get free personal fiscal advice on Financial Planning Day Great news, Columbus! Don’t miss this great Financial opportunity to set up your Planning Day financial goals and action Oct. 7 • 4-7 p.m. plans with the assistance Columbus State of financial planner profesCommunity College sionals on the upcoming Conference Center Financial Planning Day! Mark your calendar for Additionally, financial Wednesday, Oct. 7, from counseling workshops Martina Peng 4-7 p.m. at the Columbus will be available during Ph.D., CFP® State Community College the event on topics such Conference Center for a truly noas retirement planning and tax planstrings-attached financial planning. Seats are limited! By preregisterning opportunity, provided by the ing you will be granted first admisFinancial Planning Association of sion to the event. Central Ohio. Preregister online at On Financial Planning Day, expefinancialplanningdays.org/event/ rienced Certified Financial Planner columbus-financial-planning-day. professionals will be available for Walk-ins are also welcome. one-on-one counseling with individuWe hope you will join us on als and couples. No products will be Oct. 7, and take the steps to feel sold, and no business cards will be empowered so that you can achieve exchanged. your personal life goals. Instead, the focus will be on you and personalized, private advice in Dr. Martina Peng, Ph.D., CFP,® is the areas of financial topics such as chair of the Department of Accounting, budgeting, debt management, retireFinance and Economics and chair of ment, investments, funding college the Bachelor of Science in Financial education, estate planning, tax planPlanning Program at Ross College of ning, insurance and more. Business at Franklin University.
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Financial Planning Association of Central Ohio
board of directors
Kristen Moosmiller, CFP® President
Partnership Financial, LLC (614) 328-9319 ext. 106 Kristen@partnershipfinancial.com
Kevin Spray, CFP® Secretary
Summit Financial Strategies (614) 885-1115 kevin@summitfin.com
Michael H. Mulhern, CPA (inactive), CFP® Government Relations Director
Martina Peng, Ph.D., CFP® President-elect & Programs Director
Scott Eichar, CFP,® CPA Treasurer
Paul Dolce, CFP® Career Development Director
Jim Atkinson, CFP,® AIF,® MPAS Public Relations Director
Franklin University (614) 947-6174 martina.peng@franklin.edu
Financial Solutions, LLC (614) 604-3551 pdolce@financialsols.com
Isao Shoji, CFP,® CLTC Pro Bono Director
Total Retirement Solutions, LLC (614) 854-6669 mike.mulhern@LFG.com
David Bowman NexGen Director
The Schumacher Group (614) 390-9642 isao.shoji@ampf.com
Hamilton Capital Management (614) 273-1000 bowmandavidc@gmail.com
GBQ Partners, LLC (614) 947-5233 seichar@gbq.com
Columbus Capital (614) 656-1230 jim.atkinson@raymondjames.com
William Vasil, CFP,® CPA, MAcc MEMBership director Ary Roepke Mulchaey (614) 486-3600 wvasil@armcpa.com
Michael McMeans, CFP® partnership director
Silverling Financial (614) 898-6100 mike.mcmeans@infinexgroup.com
admin@fpacentralohio.org www.fpacentralohio.org
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THE COLUMBUS DISPATCH | Special Advertising Section | sunDAY, october 4, 2015
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THE COLUMBUS DISPATCH | Special Advertising Section | sunDAY, october 4, 2015 ■
Mark Aldridge, CFP,® CFA, ChFC® Aldridge Financial Consultants, LLC (614) 824-3080 mark.aldridge@raymondjames.com
Teri Alexander, CFP,® MSFP Alexander Financial Planning, Inc. (614) 538-1600 talexander@afp-advisors.com
Samantha Anderson, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 samantha.anderson@b-r-r.com
Aaron Armstrong, CFP,® CFA Budros, Ruhlin & Roe, Inc. (614) 481-6900 aarmstrong@b-r-r.com
James Atkinson, CFP,® AIF,® MPAS Columbus Capital (614) 656-1230 jim.atkinson@raymondjames.com
The largest membership organization for CFP® professionals in Ohio that includes members who support the financial planning process.
Find a financial planner near you at PlannerSearch.org
Shawn Ballinger, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 shawn.ballinger@b-r-r.com
Mark Beaver, CFP® Keeler & Nadler Financial Planning (614) 791-4123 mark.beaver@keelernadler.com
Geoffrey Biehn, CPA, CFP® Trinity Financial Advisors, LLC (614) 848-7667 gbiehn@tfadvisors.com
Pamela Birkenholz, CRPC Waddell & Reed, Inc. (614) 799-0373 x110 pbirkenholz48370@wradvisors.com
Kurt Brown PDS Planning, Inc. (614) 481-8449 kbrown@pdsplanning.com
Connie Demers, CFP® Demers Financial Planning (614) 451-4505 dfp@rrohio.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 Ellis, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 aellis@b-r-r.com
Jason Farris, CFP,® CAP® Waller Financial Planning Group, Inc. (614) 457-7026 jfarris@waller.com
James Budros, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 james.budros@b-r-r.com
Robert Cochran, CFP® PDS Planning, Inc. (614) 481-8449 rcochran@pdsplanning.com
Jason Codrea, CFP,® CMFC Codrea Financial (614) 452-8185 jason@codreafinancial.com
Mark Coffey, JD, CFP® Summit Financial Strategies, Inc. (614) 885-1115 mark@summitfin.com
John Deitrick, CFP® Advanced Retirement Design, LLC (614) 602-6506 jdeitrick@advancedretirementdesign.com
Bob Franz Alexander Financial Planning, Inc. (614) 538-1600 bfranz@afp-advisors.com
Gwen Gloeckner, CDFA, CLTC Gloeckner Financial Group (614) 310-2400 gwen@gloecknerfinancial.com
Jim Hamilton PDS Planning, Inc. (614) 481-8449 jhamilton@pdsplanning.com
Rita Itsell PDS Planning, Inc. (614) 481-8449 ritsell@pdsplanning.com
Christopher Johnson, CRPC, AAMS, CLTC, CEP, AWMA Collaborative Financial Partners (614) 799-2900 christopher.k.johnson@ampf.com
Barri Jones, CFP® A Squared Financial (614) 888-6516, ext. 1989 barri@asquaredfinancial.com
Andrew Keeler, CFP® Keeler & Nadler Financial Planning (614) 791-4123 andy.keeler@keelernadler.com
Robert Keidan, CFP® Keidan Financial Consultants, LLC (614) 469-5003 bob@keidanfinancial.com
Scott Kidwell, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 skidwell@b-r-r.com
Katherine Kincaid, CFP® Waller Financial Planning Group, Inc. (614) 457-7026 kkincaid@waller.com
Michael Kline, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 michael.kline@b-r-r.com
Jessica Lee Budros, Ruhlin & Roe, Inc. (614) 481-6900 jlee@b-r-r.com
Laurie Licata PDS Planning, Inc. (614) 481-8449 llicata@pdsplanning.com
Whitney T. Logan, CFP,® CLU, ChFC ® Logan Financial Group, LLC (614) 442-0214 whitney.logan@raymondjames.com
Douglas Lynch, CPA, CFP,® CFA Lynch Financial Group (614) 791-8884 dlynch@lynchfinancialgroup.com
Samantha Macchia, CFP,® ChFC ® Summit Financial Strategies, Inc. (614) 885-1115 samantha@summitfin.com
Meghan Mader, CFP,® CRPC, RICP, MSFP Collaborative Financial Partners (614) 799-2900 meghan.m.mader@ampf.com
Richard Martin, CFP® Steinhaus Financial Group (614) 431-4342 ric.martin@lfg.com
John McHugh, CFP,® CPA , CAP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 jmchugh@b-r-r.com
Jamie P. Menges, CFP,® CPA PDS Planning, Inc. (614) 481-8449 jmenges@pdsplanning.com
Michelle Merkel, CFP® Merkel Financial Services, Inc. (614) 481-4455 merkelfinancial@merkelfinancial.com
Joseph Messinger, CFP,® ChFC,® CLU Capstone Wealth Partners, Ltd. (614) 754-7805 jsm@capstonewealthpartners.com
Brian Mills, CFP® SS&G Wealth Management, LLC (614) 573-7776 bmills@ssandg.com
Fred Minich, CFP,® AAMS Edward Jones (614) 451-6004 fred.minich@edwardjones.com
Richard Nadler, CFP® Keeler & Nadler Financial Planning (614) 791-4123 richard.nadler@keelernadler.com
Christopher Olsgard, CFP® Waller Financial Planning Group, Inc. (614) 457-7026 colsgard@waller.com
Stephen Polk, CFP® Polk Financial Services, LLC (614) 488-6597 spolk@columbus.rr.com
Christina Povenmire, CFP,® MBA CMP Financial Planning (614) 487-1244 christina@cmpfinancial.com
Debbie Price, JD, CPA, CFP® Price Planning, LLC (614) 848-3860 debbie@priceplanning.com
Kenneth Reed, AAMS Logan Financial Group, LLC (614) 442-0214 michael.reed@raymondjames.com
Scott Rendle, CFP® Waller Financial Planning Group, Inc. (614) 457-7026 srendle@waller.com
Mel M. Rochowiak, MBA Principal Financial Group (614) 792-8085, ext. 123 Rochowiak.mel@principal.com
Daniel Roe, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 droe@b-r-r.com
Peggy Ruhlin, CFP,® CPA/PFS Budros, Ruhlin & Roe, Inc. (614) 481-6900 pruhlin@b-r-r.com
Ted Saneholtz, CPA, CFP,® ChFC® Summit Financial Strategies, Inc. (614) 885-1115 ted@summitfin.com
Michael Scherer, CFP® Summit Financial Strategies, Inc. (614) 885-1115 mike@summitfin.com
Dean Schuler PDS Planning, Inc. (614) 481-8449 dschuler@pdsplanning.com
John Schuman, JD, CPA, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 jschuman@b-r-r.com
John Sestina, CFP,® ChFC® John E. Sestina and Company (614) 326-3077 john@managingtobewealthy.com
William Shorthill, CFP® Beacon Hill Investment Advisory (614) 469-4685 Bill@bhadvisory.com
Douglas Smith Douglas C. Smith Company, LLC (614) 885-1480 stocksmith@hotmail.com
Beth Sparks, CFP® Raymond James & Associates (614) 442-2340 beth.sparks@raymondjames.com
Key to Accreditations:
Timothy Stevenson, CFP,® EA Frazier Financial Advisors, LLC (614) 793-8297 tstevenson@frazierfinancial.com
Matthew Stewart, CFP® Key Private Bank (614) 460-3453 Matthew_J_Stewart@keybank.com
Isaiah Stidham, CPA, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 isaiah.stidham@b-r-r.com
Jeffrey Suchy, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 jeffrey.suchy@b-r-r.com
Tim Swain, CFP® Summit Financial Strategies, Inc. (614) 885-1115 tim@summitfin.com
Wendy Trout, CFP,® CAP® Summit Financial Strategies, Inc. (614) 885-1115 wendy@summitfin.com
Gary Vawter, CFP,® MS, ChFC,® AEP Vawter Financial, Ltd. (614) 451-1002 gary@vawterfinancial.com
Todd Walter, CFP,® CPA The Joseph Group (614) 907-8638 todd.walter@josephgroup.com
Amy Weldele, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 amy.weldele@b-r-r.com
William Whitaker, MS, CFP® Summit Financial Strategies, Inc. (614) 885-1115 william@summitfin.com
Kevin Wuebker, CFP® Budros, Ruhlin & Roe, Inc. (614) 481-6900 kevin.wuebker@b-r-r.com
AAMS . . . . . Accredited Asset Management Specialist AEP . . . . . . Accredited Estate Planner AIF® . . . . . . Acredited Investment Fiduciary AWMA . . . . Accredited Wealth Management Advisor CAP® . . . . . Chartered Advisor in Philanthropy CDFA . . . . . Certified Divorce Financial Analyst CFA . . . . . . Chartered Financial Analyst CFP® . . . . . . Certified Financial Planner ChFC® . . . . . Chartered Financial Consultant CLTC . . . . . . Certified in Long-Term Care CLU . . . . . . Chartered Life Underwriter CMFC . . . . . Chartered Mutual Fund Counselor
CPA . . . . . . Certified Public Accountant CRPC . . . . . Chartered Retirement Planning Counselor EA . . . . . . . Enrolled Agent JD . . . . . . . Juris Doctor MAcc . . . . . Master of Accounting MBA . . . . . . Master's in Business Administration MPAS . . . . . Master Planner Advanced Studies MS . . . . . . . Master of Science MSFP . . . . . Master's in Financial Planning PFS . . . . . . Personal Financial Specialist RICP . . . . . . Retirement Income Certified Professional
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, october 4, 2015
End student loan debt — one family at a time In 2004, total student-loan debt was $4 billion. Only 10 years later, it has soared to more than $1.2 trillion. At the current rate, this number will double by 2022. Even Joe Messinger, CFP® more alarming, the default rate in Ohio stands at 16.7 percent, which is the seventh highest percentage in the U.S. Two out of three students from the class of 2013 had student loans, owing on average $28,400, according to the Project On Student Debt. As a result, they are putting off life decisions like getting married, buying a home and starting a family. This impacts not only individuals, but also our economy as a whole. So what is a hardworking middle class family to do? Here are four steps to end the student-loan-debt crisis one family at a time: 1. Seek out the facts. Become informed consumers of a college education. College costs and processes have changed drastically since many of us went to school. Put in the time or seek professional guidance to make sure you don’t pay a penny more for college than you absolutely have to. 2. Begin planning now. You have to be proactive and not reactive. Have a money conversation with your student so he or she understands the importance of making a financially viable decision. Just because your student gets into his or her dream college doesn’t mean you can afford it without burying them in a mountain of debt. 3. Know you’re out-of-pocket cost. Don’t rule schools out based on the sticker price. Some of the most expensive schools have large endowments and offer significant tuition
discounts. A great place to start is the Net Cost Calculator, which every college is required to have on its website. This will give you an estimate of the out-of-pocket cost to attend based on your individual financial circumstances and your student’s academic achievement. 4. Understand how loans work and their impact on the future. After you have done all your research, saved what you could, chosen a college that fits you academically, socially and financially, you may be forced to look at loans. What to do then? • Determine how much you will need to borrow for the entire four years and during what year(s) you will borrow it. This is critical, as The Federal Direct Stafford Loan is capped at a certain amount each year, and it is “use it” or “lose it.” Generally, these loans offer more flexibility and the best interest rates and terms. Avoid private student loans unless they are absolutely necessary. • Don’t take out more in student loans than you estimate your first year salary to be. For example, if the average starting salary in your chosen field is $40,000, your total studentloan debt should never exceed that number. • Look at a sample budget. Your student needs to be aware of what the budget will look like based on his or her salary and how taxes and student loans will impact his or her bottom line. Student-loan payments will cramp their style — or your style — if they have to move back home because they can’t afford an apartment. This isn’t easy, but by working with your financial planner, you can build a well-thought-out plan to graduate on time with manageable student-loan debt without robbing your retirement. Joe Messinger, CFP,® is CEO of Capstone Wealth Partners & College PreApproval.
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Do you have happy money? Earlier this year, my family made our first trip to Disney World. It truly was a magical vacation. Upon our return, I asked myself, “What made this trip so special compared Todd Walter, CFP,® CPA with others we have taken?” Disney certainly does things the right way. My parents and my brother’s family were there, too. Each of these definitely contributed to the fun, but why was this money so well spent? And how can I translate that lesson to other purchases? In their book, Happy Money, authors Elizabeth Dunn and Michael Norton draw upon their extensive research to show which spending decisions make us the happiest. Here are the five ways they suggest we spend our money to buy the most amount of happiness. • Buy experiences – Material goods provide less long-term happiness than experiential purchases. For an experience to have the biggest impact, it should bring people together, make for a memorable story to be retold, be linked to who you are as a person or provide a unique opportunity. Experiences like vacations, a nice meal, a concert or sporting event, or even a day in a coffee shop with a good book can provide greater happiness than material things. • Make it a treat – Our tendency is to have less appreciation over time the longer we have or do something. We like shiny, new toys. This was our first family trip to Disney, so it was special. If we went a couple times each year, I’m certain even Disney would lose its magic after awhile. If you are in a rut with something you used to enjoy, consider taking a break from it. • Buy time – There are ways we can use our money to buy ourselves more time, such as hiring a housekeeper or
a lawn-care service. We flew to Disney instead of driving to get two more days in the park. Time is definitely a valuable resource. As the authors note, “When something is valuable, it is typically perceived to be scarce. As time becomes worth more money, people see that time as increasingly scarce.” We can feel like we have less time when our salary increases. To combat that, they suggest volunteering or giving our time to others. A reallocation of our time can actually “buy” us more happiness. • Pay now, consume later – We are happiest with a purchase when we can separate the pain of paying for it with the reward of consumption. Consuming now and paying later is counterproductive to happiness. Thus the allure of the all-inclusive vacation; we paid up front and left our wallets at home. We still experience pain in the purchase, but we are excitedly anticipating the vacation, so it doesn’t hurt as much. We are now free to enjoy all the vacation has to offer. Disney’s prepaid meal plan definitely made the food taste better. • Invest in others – Spending money on others produces more happiness than spending money on ourselves. The research on this is overwhelming. Giving our money away not only can make us happier, it can make us physically healthier and even make us feel wealthier. When investing in others, it needs to be our choice — not an obligation. It helps to have a connection with those we invest in and to know we are making an impact. Milton Hershey said, “One is only happy in proportion as he makes others feel happy.” Ask yourself “What are some of the best purchases I have made in the past?” Then look at the preceding categories. Do you see a connection? That’s happy money! Todd Walter, CFP,® CPA, is with The Joseph Group Capital Management.
A Squared Financial Family Focused Planning www.cbuscapital.com “Our business is helping yours”
Barri Lynn Jones, CFP® 300 West Wilson Bridge Road Worthington, Ohio 43085 614.310.0272 ASquaredFinancial.com Barri Lynn Jones, CFP,® is a registered representative of FSC Securities Corporation, a registered broker-dealer and Member FINRA and SIPC. A Squared Financial, LLC, is not affiliated with FSC Securities Corporation or registered as a broker-dealer or registered investment advisors.
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THE COLUMBUS DISPATCH | Special Advertising Section | sunDAY, october 4, 2015
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Social Security: What should you do at age 62? calculated using a Is 62 your formula that takes lucky number? into account your If you’re eligible, 35 highest earnthat’s the earliest ings years. age you can start If you begin receiving Social collecting retireSecurity retirement benefits ment benefits. If at age 62, each you decide to start monthly benefit collecting benefits Bob Keidan, CFP® check will be 25 before your full to 30 percent less retirement age, than it would be you’ll have comat full retirement age. The pany. According to the Social Security Administration (SSA), exact amount of the reduction will depend on the year approximately 73 percent of you were born. Conversely, Americans elect to receive you can get a higher payout their Social Security benefits by delaying retirement past early. your full retirement age, What will your because the government retirement benefit be? increases your payout every month that you delay retireYour Social Security retirement, up to age 70. ment benefit is based on the The accompanying chart number of years you’ve been shows how much an estimatworking and the amount you’ve earned. Your benefit is ed $1,000 monthly benefit at
full retirement age would be worth if you started taking a reduced benefit at age 62.
Have you thought about your longevity? Is it better to take reduced benefits at age 62 or full benefits later? The answer depends, in part, on how long you live. If you live longer than your “break-even age,” the overall value of your retirement benefits taken at full retirement age will begin to outweigh the value of reduced benefits taken at age 62. You’ll generally reach your break-even age about 12 years from your full retirement age. For example, if your full retirement age is 66, you should reach your break-even age at 78. If you live past this age, you’ll end up with higher total lifetime benefits by waiting until full retirement age
Social security Retirement Benefits Based on what an estimated $1,000 monthly benefit at full retirement age would be worth if you started taking a reduced benefit at age 62.
Birth Year Full Retirement Age 1943-1954 1955 1956 1957 1958 1959 1960 or later
66 years 66 years, 2 months 66 years, 4 months 66 years, 6 months 66 years, 8 months 66 years, 10 months 67 years
Benefit $750 $741 $733 $725 $716 $708 $700
Source: Social Security Administration
to start collecting. However, unless you’re able to invest your benefits rather than use them for living expenses, your break-even age is probably not the most important part of the equation.
Will your spouse be affected? When to begin receiving Social Security is more complicated when you’re married. The age at which you begin
receiving benefits may significantly affect the amount of lifetime income you and your spouse receive, as well as the benefit that the surviving spouse will be entitled to, so you’ll need to consider how your decision will affect your joint retirement plan. By Bob Keidan, CFP,® and prepared by Broadridge Investor Communication Solutions, Inc.
Why your health savings account should be a priority
4 symptoms that may be hazardous to your wealth
A Health Savings especially if annual Account (HSA) can be income exceeds the Roth an extremely beneficial IRA limitations set by tool for financial indethe IRS. Health Savings pendence. An HSA allows Accounts qualify for the an individual to pay for same tax-free growth of a qualified health expenses Roth IRA, with an added and save for future qualitax deduction. fied medical expenses on a Some may be hesitant tax-free basis. to maximize contributions Samantha Anderson, CFP® The individual must to an HSA because the be covered under a highfunds are required to be deductible health plan to be eligible, utilized for qualified medical expensand the HSA could be rolled over to es. However, an important and often the next year. As of 2015, an indimissed fact about Health Savings vidual may contribute up to $3,350 Accounts is that reimbursements per year, and a family may contribute are not required to be distributed in up to $6,650. Individuals age 55 and the same year expenses are incurred. older may contribute an additional Reimbursements may be made from $1,000. an HSA at any time for past medical Contributions are tax deductible, expenses as long as the expenses were and may be made up to the tax-filing incurred after the HSA was opened. deadline of the next year. The IRS It is highly encouraged to save all also allows one tax-free rollover from receipts in the case of an audit. an IRA to a Health Savings Account An HSA can be a very valuable tool up to the annual contribution limits, when regular contributions are made which could be recommended to utiwhile there is still time to take advanlize if cash flow is tight (this type of tage of long-term, tax-free growth, contribution does not qualify for a tax and before taxpayers become inelideduction). gible upon enrollment in Medicare. An HSA can be funded with either One potential disadvantage of pretax dollars or with after-tax dollars holding a high balance in your HSA and a subsequent above-the-line tax is that upon the owner’s death, an deduction. There is no income limita- HSA can be passed to a spouse taxtion that affects a taxpayer’s eligibility free. However, if the HSA is passed to contribute to an HSA, and funds to a nonspouse beneficiary, the from an HSA may also be withdrawn fair market value of the account is at any age as long as the funds are included in the beneficiary’s income used for qualified medical expenses. and the account loses its tax-free benAlthough the IRS dictates that efit. Because the account cannot be health insurance premiums do not passed tax-free to a nonspouse benefiqualify as qualified expenses, there ciary, it’s best to begin spending the are exceptions for long-term care account later in life and save the Roth insurance, COBRA, coverage while IRA that passes tax-free upon death, receiving unemployment compensaor that non-qualified account that tion and Medicare. HSAs grow tax-free receives a ‘step-up’ in cost basis at for the remainder of the taxpayer’s death, for your children to inherit. lifetime. HSAs provide a significant opporSamantha Anderson, CFP,® is with tunity to capture tax-free growth, Budros, Ruhlin & Roe, Inc.
Over the past 30 years, the get so caught up in the stock market, as measured daily grind of the market by the S&P 500, has returned that they forget about their on average 11.06 percent per ultimate financial goal. If year while the average invesyou are targeting a 7 pertor of stock mutual funds has cent long-term return, then only averaged 3.79 percent, remember what it takes to according to the Investment achieve that goal: patience, Company Institute. discipline, proper diversifiObviously, there is some sort cation and not constantly Mark Beaver, CFP® of illness plaguing the average second-guessing whether to individual investor out there. Here are move in or out of cash. Overtrading, in four symptoms to look for to ensure you and out of investments, is recognized don’t catch the disease. as the main reason the average investor vastly underperformed the market, 1. Are you manic-depressive? according to Dalbar, a financial services market research firm. The term manic-depressive describes investor behavior so well that econo3. Need to lose a few pounds? mists actually use those same terms to define extreme market and economic We all tell ourselves we will shed movements. The mania was in full force a few pounds, but the trick is actuduring the dotcom craze of the early ally doing it. The same is true for your 2000s. It seemed that just about anyone investments. Picking a good mutual could be a good stock picker and make fund is one thing, but if your funds are big returns. charging excessive fees, then maybe it’s But it didn’t last forever. In 2002, time to trim some fat. No matter how tech stocks plummeted, and investors in good a fund manager may be, if they are many tech stocks lost their shirt. On the charging 2 percent to do it, it is like padflip side, there was 2008, where many dling upstream. While some asset classes investors, possibly those who remained tend to carry higher expenses than shirtless, panicked and sold at precisely others, fees should be reasonable when the wrong time. Eventually, they had compared with peers. to make the decision as to when to get 4. ‘Unwealthy’ diet back into the market. Hopefully they didn’t wait too long. Media today may be the cause of a lot It is easy to let our emotions get the of problems in the world, but let’s just best of us, especially when it comes to stick to investing for now. Consuming making or losing money. But in these too much financial news can drive any highs and lows, we have to try to keep person crazy. It is important to remema level head and make disciplined deciber that these shows have a lot of time sions. to fill, and they know the only thing that will keep your attention is either 2. Memory loss boom or bust. They need to make you either really excited or really scared. I can be as forgetful as the next perAn investor would be better served by son. Because of that, I have found ways changing the channel (football season), to jog my memory and remind myself or turning off the tube completely. of what is important to get me back on track. Mark Beaver, CFP,® is with Keeler & This is also important in a successful investment strategy. Investors often Nadler Financial Planning.
Sick of stocks?
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THE COLUMBUS DISPATCH | Special Advertising Section | sunDAY, october 4, 2015
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A new generation of gifting via College 529 Plan
people go to Toys R Us and Remember birthday parpick up the latest toy or ties when you were younggame. Your grandchild’s er? They usually consisted eyes light up with exciteof your mom’s homemade ment when he rips open cake, and your family sitthe paper and sees the ting around the table singlatest and greatest techno ing Happy Birthday before thingamajig, and many you blew out the candles. hugs and thank yous Have you been to a birthensue. day party lately? Parties Katherine Kincaid, CFP® As exciting as this is, I these days are full-on ask you to go take a peek extravaganzas, limited only in the birthday boy or girl’s by imagination: bounce room. Do you see rows of forgotten houses, cotton candy, princesses, batgames with broken pieces? How about ting cages, trampolines and llama stacks of toys that never see the light rides. of day? There has to be a better gift The guest list for these parties is that isn’t going to turn into old junk. a mile long. Usually, there are 10 to What if you could give a gift that 20 children plus family, friends and would be remembered for years to neighbors. No one would dare come come? to such a soiree empty-handed. Most
What about the gift of a college education? We all know college tuition costs are out of control. Parents help out as much as they can, but in many cases the cost of four or more years of a college education far exceeds the family savings. You can be a part of the village that sends your child, grandchild or great grandchild to college by making a contribution to a 529 plan, a college savings plan that allows for tax-deferred growth and tax-free distributions when used for post secondary education. Anyone can set up an account, and anyone can contribute to an account that is already open. Now, I know a contribution to a grandchild’s college fund would not get the same reaction as a video game, but trust me when I say I
know there will be much gratitude, albeit a little delayed. However, the parents will be ecstatic about the contribution, and it will not be forgotten. Making a contribution to a 529 plan is not a small gift that will go unnoticed. It is a gift that will be remembered for a very long time. Imagine if someone had made a contribution to your child’s college fund; would you have forgotten about it? Check in with the grad about six months after graduation, when student loan payments begin. That is when you can expect a great big hug and a thank you for making their education possible. Katherine Kincaid, CFP,® is with Waller Financial Planning Group, Inc.
Why is my home insured for more than its market value? with like kind and Many people quality of materiincorrectly assume als and workmanthe amount of ship, within a dwelling coverage reasonable time (insurance for the frame. structure of the • Contractor home) listed on profit and overtheir homeowner’s head, typically policy is directly around 10 percent tied to the marChristopher Olsgard, CFP® for each. ket value of their • Architect, home. In reality, engineer and other specialty dwelling coverage is based contractors for design and/or on the size of the house and decoration. the average cost of construc• Cost of adhering to curtion in the area. rent building codes. The average cost of conAs you can see from the struction is often calculated chart at the right (based by estimating software that on U.S. Census bureau’s derives its data from local Price Index of Single-Family contractors and building Houses Sold), construction material wholesalers. The costs have been somewhat software determines what volatile over the past 15 years the estimated cost would be and have increased signifito rebuild a home, assuming cantly in the past four years. the following: If you have not reviewed • The home is rebuilt
Source: http://www.census.gov/construction/cpi/ your coverage with your insurance agent recently, you may be setting yourself up for a very unpleasant surprise. Also, if you have completed any major renovations or additions to your home, be sure to contact your agent to adjust your coverage as well. As with most things in
life, there can be a large difference in a policy when comparing insurance companies. While none of us anticipate a catastrophe, if you ever encounter one, you will not regret insuring with a quality company that includes some of the following less common benefits: • Debris removal
• Site preparation to bring the condition of the land back to a suitable state • Demand surge, which can often inflate the cost of materials and labor • Code updates, which may increase the cost of future construction • Overtime overages, which might be necessary to expedite construction Although it may be easier to keep an eye on the value of your home, it can be equally important to watch the coverage you have in place. Don’t jump to conclusions if your coverage increases. Rather, investigate the reason for the increase, and evaluate whether you need to take action. Christopher Olsgard, CFP,® is with Waller Financial Planning Group, Inc.