FAQs » fi-Plan Partners Investing Insights

Financial Considerations When Dealing with Alzheimer’s and Dementia

Apr 272012

Quint Cook, Executive Vice President, Wealth Consultant, Financial Planning 04/27/12: Although it’s an unfortunate situation, I often deal with clients who have a loved one that has been diagnosed with some form of Dementia or Alzheimer’s. Anyone facing this type of situation wants to be focused on their loved one rather than dealing with stressful financial decisions.

If you are dealing with this type of scenario, the first thing you should do is surround yourself with a team of professionals who are experienced in dealing with Alzheimer’s and Dementia. This would consist of a financial advisor, legal counsel, health care specialist, and mental health professional.

Frequently Asked Questions:

Here are three of the most common questions I receive when I am giving financial advice to a client.

Q: Should I start making financial plans now or should I wait?

A: You want to start making financial plans immediately after diagnosis while the loved one can still participate in the planning process. Once the loved one can no longer participate in the decision making process, the hard decisions become harder and stress levels can rise.

Q: How can I manage the costs associated with Alzheimer’s and Dementia?

A: There are various governmental programs such as Medicaid, V.A. Benefits, tax deductions, and tax credits that can be used to offset a significant portion of what could be staggering medical costs. There are also insurance options such as long-term care or accelerated death benefits for life insurance that will advance death benefits in case of a terminal diagnosis.

Q: How can I protect my loved one’s assets for future generations?

A: There are many financial considerations when addressing your loved one’s assets for future generations. Based on your loved one’s individual needs, your team of professionals should develop a strategy to avoid the complicated financial pitfalls that may occur, such as the “5 Year Look Back Rule”. While I do not give legal counsel, our firm has the ability to create a team of these professionals with our trusted business partners to meet your needs and the needs of your family. We can also incorporate and work with any professional with which you already have a relationship.

If you have this need, let us assist you with building a team of knowledgeable professionals who collectively can develop a sound financial strategy for you. This way, you can focus on being the caregiver for your loved one, knowing you have a financial strategy in place.

I would like to talk with you should you have any questions or concerns. You can call me at (205) 989-3498 or email me by clicking here.

Quint Cook
Executive Vice President
Wealth Consultant

Because of regulations, comments have been turned off.

When Couples Disagree On… Retirement?

FAQs, retirement No Responses »

Apr 202012

04/20/12: At some point we all hope to retire and enjoy the fruits of our labor. In our investment firm, part of our financial planning process is to discuss how couples envision their retirement and what their dreams and goals are for their golden years. However, what if one spouse wants to retire and the other wants to keep working?

In the past, it was traditionally the husband who retired promptly at age 65, after receiving a gold watch for his service and a nice corporate pension to live on through retirement. Then the wife would loyally follow him to a golf community where they spent the rest of their years together.

Today’s arrangements are vastly different. In many cases the wife has a career also and may not be ready to retire when the husband does. According to a recent Wall Street Journal article, which cites a study conducted by Fidelity Investments, 62% of the couples polled said they don’t agree on their expected retirement ages. In fact, only 16-20% of couples will retire in the same year with the vast majority of couples retiring within three to five years of each other, according to the research conducted by Fidelity Investments.

The article also notes that 47% of couples don’t agree on whether they will continue to work in retirement. After spending the vast majority of your married life apart during the day, it isn’t surprising that couples sometimes struggle with the adjustment of one spouse being at the home more often. Frequently Asked Questions

What can help this process?

The Wall Street Journal article confirms what we at fi-Plan Partners have known for years regarding how to ease the stresses around retirement; it’s communication. Communication with each other is the key, as is communication with a financial planner or retirement coach to discuss how each spouse envisions retirement. At fi-Plan Partners, we have been helping clients map out a retirement strategy for three decades and it is a cornerstone of our trademarked financial planning process “Your Financial House”. As our President and CEO, Greg Powell, likes to say “a bored retired male is more dangerous than a bored teenager.”

So, does this raise any questions about you and your spouse’s plans and vision for retirement? I would enjoy talking with you both to help find answers to your questions. We do that with our clients every day. Give me a call or email me by clicking here and let us guide you towards a happy and fulfilled retirement.

Franklin Bradford, CMT
Vice President, Wealth Consultant

Note: Because of regulations, comments have been turned off.

5 Reasons Your Business Website Isn’t Working for You

FAQs, Small Business No Responses »

Mar 092012

Chris Davis picture 03/09/12: Just about every business that wants to succeed has a website. These days, a website can be thrown together in a manner of minutes on any number of “build your own click and drag” websites. On the other hand, a business can spend months developing, creating and fine tuning their site. Your company’s website can work for you, against you or simply do nothing at all… which is the same as working against you in my book.

As the web designer for fi-Plan Partners, I talk often with our business owner clients about their website and advise them on ways to make their site more valuable. If you feel like your website isn’t working for you, here’s my humble, but experienced top five reasons why.

5 Reasons Your Business Website Isn’t Working for You

1. You don’t know what you want from your website

There are very few if any, “set it and forget it” money making sites out there, so don’t have the goal of “making money.” You need to be more specific. Next to having a product or service that is valuable and in demand, you need to have specific goals that you want your website to accomplish. If you desire direct sales, you will need an eCommerce site, which is a totally different kind of website where the goal is to capture leads for potential customer follow-up. You know your product or service better than anyone, so the key is to know your customer, what they want, how they want to receive it, and provide it online in the most user friendly way. When you develop measurable goals, you can track and study your website stats (through Google Stats or your hosting company) and reassess and fine tune your site according to that information. This takes time so be patient.

2. Your site is all about your business and not about your target audience

Experts say that when someone visits your website, you have exactly 3 minutes to convey who you are and what you do. After that, if visitors decide they are interested, you need to show them you understand them and have what they need. Business websites that don’t work are usually filled with content that is just about the company and not about the customer. A visitor is asking you when they visit your site, “What’s in it for me?” If you can’t lead them to the correct answer quickly, they will click away.

3. You are not using Search Engine Optimization (SEO) best practices

How many of us can remember the last time we opened a Yellow Pages book to find information on a business we are looking for? Where is your first place to find that information? Say it with me, “You Google it” (or use Yahoo or Bing). These companies make money from advertisers when people use their search engines. People will use the engine that gets them to the best information online fast. The search engines have criteria by which they judge whether your site has the information people want. If your site does not meet that criteria, your site will be no better than a house for sale on a dead end street with no real estate listing. If it can’t be found… well, it won’t be found.

Just about anybody can design a website these days, but for your website to work for you, your web design person (or company) should know this criteria set forth by the search engines and guide you as you provide content for your site. This is called Search Engine Optimization or SEO. If they don’t, it’s time to find another.

4. You’re business is not involved in social media

You need to go where the people are and social media sites, like Facebook, Twitter, YouTube and LinkedIn, are just a few places where millions of people gather online every day to share information. If you can build relationships with those people through engaging dialogue and by providing valuable information, these tools can be the tour bus that brings visitors to your website. There are unwritten rules of engagement to be sure to watch, listen and learn before you jump in.

5. Your site never changes

You must give your audience a reason to come back. If they visit your site once, read everything, then come back a few days later and there is no new and valuable information, they most likely will never return. Why would they? This is where blogging can be your most powerful tool for providing consistent, new and valuable information for your site. Notice that I said, “valuable information.” You can’t just blog about anything. You must provide information that people can use… things that make them say, “I’ll use that today and later, I’ll come back for more.” This establishes your business as an expert in your field and trusted resource… and people love to do business with businesses they trust. I encourage you to check out our daily blog on our site to see how we are striving everyday to give something of value to our readers.

There are many other factors that can make or break your website. These are just a few. If you would like to talk with me and receive a free initial evaluation concerning your business website, please email me here or call me at (205) 989-3498.

Chris Davis
Director of Integrated Communications

Because of regulations, comments have been turned off.

IRA Changes: 2011 vs 2012

FAQs, Financial Insights Blog, Investment Answers, Quality of Life No Responses »

Jan 202012

1/20/12 It’s tax time again, and that means you may be considering contributing to an individual retirement account. I have attached a document with useful information for IRA and other plan contribution limits for both 2011 and 2012. I have included in the document the deadlines for opening an account, as well as making your contribution. To view or download this document click here.

It is important to know that fi-Plan Partners does not give tax advice. Please remember that not all contributions are tax deductible. You should consult a tax professional before making your final decision regarding contributions.

Regardless of the type of retirement plan you choose, contributing regularly is the key to building a strong retirement savings. Don’t put off saving for retirement because you are still in your 20’s or 30’s either, early contributions pay off! If you have additional questions or would like to inquire about opening an IRA, please email me here or call me at (205) 989-3498. We look forward to helping you build your retirement assets.

Amy Marquis
Chief Operations Officer

12 Predictions for 2012 – 2012 Economic and Market Outlook

economic data, Economic Outlook, FAQs, Financial Insights Blog No Responses »

Jan 132012

Mac Frasier 01/13/11 With 2011 in the rearview mirror, it is time to look ahead to this year and see what the markets will have in store. As we make these predictions we are reminded of the great quote from John Kenneth Galbraith, “The function of economic forecasting is to make astrology look respectable.” That being said we feel like these 12 predictions best represent our views on what is in store for investors in 2012.

Volatility is here to stay – Uncertainty with regards to Europe and the presidential election in the U.S., will keep investors on edge.
Europe will dominate the news and markets– This should hardly come as a surprise seeing that a day doesn’t pass without some type of news coming out of Europe. We expect the problems of the Euro-Zone will continue to affect the financial markets for the whole year.
Greece leaves the Euro-Zone – Despite numerous bailouts, Greece will finally realize they are better off on their own. By leaving the Euro-Zone, they will be able to print their own currency with hopes of inflating their woes away.
U.S. businesses come home – After years of outsourcing, U.S. companies will realize there is no place like home. Rising wages in emerging markets and supply chain problems are just some of the reasons businesses will choose to move back to the U.S. We also have better transportation, cheaper energy and plenty of people looking for employment.
The U.S. economy will grow, but still leaves much to be desired – Despite improving earnings from corporate America, the U.S. economy as a whole will struggle to grow. We believe unemployment, political uncertainty, and low consumer confidence will prove to be too much of a drag to allow for significant GDP growth. We expect GDP growth to be under 2.5%.
Mortgage rates stay low – Due to record low interest rates and no sign of them rising, mortgages will stay near historically low levels. Unfortunately, many Americans will not be able to take advantage of these rates with an estimated 20% of homes currently underwater.
Facebook IPO – After many years of anticipation, we will finally see the Facebook IPO. The real question will be how successful it will be. If the 2011 IPOs of similar companies are any indication, we should see a successful open that is followed by a disappointing performance in the following months.
We will see QE3 – In an effort to stimulate financial markets in the U.S., we will see the Federal Reserve start Quantitative Easing 3 sometime in the first half of 2012.
Mergers and acquisitions will dominate the news in the U.S. markets – Corporate America currently has a tremendous amount of cash on their balance sheets. The surplus of cash combined with low interest rates should lead to a boom in M&A activity, as shareholders demand that capital be used or returned to them in the form of dividends.
Mid and small cap stocks outperform – In staying with the previous prediction, we expect these areas to outperform because they are usually the beneficiaries of M&A activity.
Companies will raise dividends – Cash rich companies will continue to raise dividends. We also expect to see increased dividends from companies that traditionally do not pay dividends. For example; Cisco started a quarterly dividend in 2011.
Expect the unexpected – There will be some unexpected events that will have an impact on the markets. In 2011, the markets were impacted by the Arab Spring protests, Japanese earthquake/tsunami, debt ceiling debate, and Euro-Zone crisis. Just thinking about the events is enough to scare some investors out of the market, but the truth is each one of these presented investment opportunities for those people willing to look for them.

In addition to my 12 predictions, you can also download here one of many research reports we look at on a regular basis. It is an informative piece and I thought you might enjoy it.

If you have additional questions or would like to discuss how we will use this forecast in managing portfolios, please give me a call at (205) 989-3498 or email me here.

Mac Frasier
Senior Vice President
Wealth Consultant

Decoding Our Secret Language

FAQs, Investment Answers No Responses »

Nov 212011

11.21.11: As with most professions, financial advisors have developed a unique vocabulary that leaves outsiders wondering what exactly we are talking about. Like most advisors, I can be accused of using these terms and unintentionally muddying the waters at times.

If you are like me, you probably hate having a conversation with someone and not really know what they are talking about. One of our goals at fi-Plan Partners is not only to provide financial advice but also to provided financial education.

To help you gain knowledge and confidence about your financial decisions, here are just a few of the terms you may have heard in our discussions in the past.

American Depositary Receipt (ADR) – a security issued by a U.S. bank in place of the foreign shares held in trust by that bank, thereby facilitating the trading of foreign shares in U.S. markets. Some examples of ADR’s are BP, Toyota, and BBVA Compass.

Basis point – One gradation on a 100-point scale representing 1%; used especially in expressing variations in the yields of bonds. Fixed income yields vary often and slightly within one percent and the basis point scale easily expresses these changes in hundredths of 1%. For example, the difference between 7.83% and 7.88% is 5 basis points.

Convertible – A bond or preferred share that may be exchanged by the owner for common stock or another security of the same company, in accordance with the terms of the issue.

Net asset value (NAV)– Usually used in connection with investment companies (Mutual Funds or Closed-End Funds) to mean net asset value per share. An investment company computes its assets daily, or even twice daily, by totaling the market value of all securities owned. All liabilities are deducted, and the balance is divided by the number of shares outstanding. The resulting figure is the net asset value per share.

Discount – The amount by which a preferred stock, bond, or closed-end fund may sell below its par value or NAV.

Premium – The amount by which a bond, preferred stock, or closed-end fund may sell above its par value or NAV.

Yield – The dividends or interest paid by a company expressed as a percentage of the current price. A stock with a current market value of $40 a share, paying dividends at the rate of $3.20 is said to return 8% ($3.20÷$40.00). The current yield on a bond is figured the same way.

Please email me here if you have additional questions or have a term that I didn’t cover. Also, if you have ideas or topics you would like us to cover in our blog, please let us know.

Mac Frasier
Senior Vice President
Wealth Consultant

Note: The opinions voiced in this material are for general information and are not intended to be specific advice. Any indices such as the S & P 500 can’t be invested into directly. Past performance is no assurance of a future result.

Because of regulation, comments have been turned off.

Two Farthings of Thanksgiving Trivia

FAQs, Financial Insights Blog No Responses »

Nov 182011

11/18/11 This time of year brings out the history associated with Thanksgiving and Colonial Times. In our current economy, many people debate the value of money and its decreasing ability to purchase goods and services. We all know the value of money has changed drastically in the years since the first Pilgrims set foot on this continent, but the idea sparked my interest into what type of money the Colonists actually used. When you examine records of daily life in the colonies, you will frequently see references to money. But reading eighteenth-century references to money can be like reading a foreign language. Colonists used several overlapping currencies, all linked to the English monetary system, which itself had three different units and countless colloquial denominations. And even if you can translate all the terms into raw numbers, it’s hard to know what those numbers meant to people. How much was a pound worth? What could it buy?

Just as we use quarters, nickels, and dimes, the Colonists had other kinds of coins besides pennies and shillings, and some of those coins had colorful names. Here are some of those coins and their values:

Farthing - ¹/₄ penny

Half penny (ha’penny) - ¹/₂ penny

Penny - 1 penny

Tuppence - Not actually a coin, but “two pence” was pronounced “tuppence” and you may see it written that way.

Threpenny bit - 3 pence

Sixpence or tanner - 6 pence

Shilling or bob - 1 shilling (12 pence)

Half-crown - 2 shillings and 6 pence

Crown - Five shillings (today worth 50 pence)

Half sovereign - 10 shillings (gold coin)

Mark - ²/₃ pound (13 s 4 d). Used for accounting only; no coin worth this amount was minted.

Quid - Slang for a pound.

Sovereign - 1 pound (gold coin)

So as you sit around the Thanksgiving table with your family and friends searching for interesting topics for discussion, consider this description of the money of Colonial America and impress your guests with your knowledge of the currency of that time. If you have any other interesting facts about Thanksgiving please share by emailing me here. I always love learning new trivia.

I hope you all have a safe and wonderful Holiday Season. Happy Thanksgiving!

Amy Marquis
Chief Operations Officer

Life Insurance and the Single Girl

FAQs, Financially Smart Women, Quality of Life No Responses »

Oct 212011

10/21/11: Reasons every woman should have an insurance policy

Most young, single women don’t think about life insurance. In fact, less than 5% of all insurance policies sold in the past year have been contracts for single women. Most people in general don’t contemplate the need for life insurance until they get married, have a child, or incur a large debt. But even a single girl needs to give plenty of thought to purchasing a life insurance policy.

Quint Cook, Executive Vice President and Wealth Consultant, states that there are many reasons one should have an insurance policy. He asks clients, “Do you own your own home? Do you have unsecured debt such as student loans or credit card bills? What would happen to this debt if you were to die unexpectedly?” Chances are your estate will not be able to cover these costs in a timely manner, leaving your family to bear the financial burden. I’m sure you would agree with me when I say I never want to be a financial burden on my loved ones. With life insurance coverage, you will have peace of mind knowing your financial responsibilities and debts are covered in the event of your death.

Quint also points out that at our younger and healthier age, we have the opportunity to purchase life insurance at a reduced cost. The older you are the higher the health risks and premiums, so it’s smart to purchase life insurance now. You can easily add to your coverage when life changes occur such as marriage or having a child. Other than reduced costs, there are other benefits to purchasing life insurance at a young age. As time passes you will accumulate a cash value in your policy, which can be used to help secure loans and provide a more desirable credit profile to lenders. Building a strong financial base at an early age is always beneficial down the road.
Insurance policies are available in many formats, such as: Term Life, Whole Life, and Variable Policies. Costs vary depending on the type of coverage you elect as well as any pre-existing health conditions or risks. If you would like to know more about life insurance or any other financial topic, I recommend you call Greg Powell or Quint Cook at fi-Plan Partners today.

For more financial insights for the single woman, call me at 205.989.3498 or email me here.

Amy Marquis
Chief Operations Officer

A Single Girl’s Guide for Renegotiating Your Credit Card Debt

FAQs, Financially Smart Women, Quality of Life No Responses »

Oct 142011

10/14/11 Negotiating terms and fees with your credit card company

Whether it’s a result of trying to make ends meet during graduate school or falling victim to the lure of overpriced stilettos, most of us single girls have credit card debt. Overcoming the bad spending habits is just the first step. Paying off the debt in a timely manner is the next step. There are some quick and easy ways to negotiate the fees associated with your debt. Negotiating terms and fees with your credit card company can really save you money each month if done properly. Most of the time, everything from the annual fees to the interest rate can be lowered with some effort. You cannot expect to simply ask for a lower rate and get it without some effort on your part. Instead you will need to take a more skilled approach along the following lines listed below:

1. Request a Lower Interest Rate

Did you know 9 times out of 10 the interest rate you are paying monthly/annually is negotiable? If you have been a good customer with a solid history of on-time payments, the credit card company should find little issue in lowering your interest rate. Simply call your credit card company and request a rate that is at least 2% below the national average. Using your good payment history as leverage, you should be able to get this done without much hassle. To find acceptable rates, try searching Google or calling any friends you may have in the financial industry. The more information you have, the better.

2. Fees Are Negotiable

With most companies, credit card fees can also be negotiated. The easiest fee to get waived is the late fee, provided you paid your bill within a few days of the due date. If you have a solid credit history and are rarely late, use this as leverage on the phone. Stress the fact that you paid your bill only two or three days after the due date, and that as a reliable, on-time customer, you would like that fee waived or you will not be using their card any longer. It is important to stress the option of no longer using their card. This is a sure fire way to get their attention. Other fees, such as annual fees or cash advance fees may not be as negotiable as late fees, but it’s worth the phone call to see if you can get them reduced. Also, inquire what the annual fee covers or provides. If you can show no realized benefits, you may be able to get a credit for a prior annual fee that you have paid.

3. Request a Lower Minimum Payment

It is best to pay as much as possible each month towards your outstanding balance. If you are in a bind financially and cannot pay the higher minimum payment, ask for your minimum to be lowered. This strategy is most effective if you are behind by several months on your payments. Credit card companies would rather get some money rather than no money, so if you request a different payment plan they will likely be willing to work with you. Make sure you determine how much you can afford to pay monthly before calling so that you know your limits when the negotiations begin.

4. Ask To Speak With the Supervisor

Often times we feel we are getting the runaround when we speak to a call center representative. It is best to ask for a supervisor if you feel you are getting nowhere with the person on the other end of the phone. You don’t have to be rude, just simply say it seems you can’t help me, so I would very much like to speak with your supervisor please. Frequently, the supervisors have more authority and are the real decision makers on the floor anyway, and you have a better chance of getting somewhere with them. They are more concerned with retaining your business, even if that means meeting you halfway on a request they wouldn’t normally grant. It never hurts to ask!

5. Get Your New Terms in Writing

If you are successful in renegotiating your credit debt, request that the company mail you a brief statement of the new terms in writing. This provides you with proof of your new terms and conditions, so that if your next statement comes unchanged, you have something on paper to point to. Without it you will be forced to call the credit card company and play the “he said, she said” game as you go through the pains of renegotiating the same terms.

Credit card debt can loom over you like a rain cloud and any relief is always a plus. I hope you find these tips helpful if you are in a position to renegotiate your debt. Just remember, if you have any questions feel free to call me at 205.989.3498 or email me here.

Amy Marquis
Chief Operations Officer

The Benefits of a 529 College Savings Account

FAQs, Financial Insights Blog, Investment Answers No Responses »

Oct 072011

10/7/11 This time of year thousands of parents are writing checks for Fall semester tuition payments. To make the financial burden easier, parents should consider establishing a 529 College Saving Plan early on when planning for college. Below are some of the top benefits for establishing a 529. Depending on your state of residency, more benefits may also be available.

Federal Tax Benefits

529 plans offer unsurpassed income tax breaks. Although your contributions are not deductible on your federal tax return, your investment grows tax-deferred, and distributions to pay for the beneficiary’s college costs come out federally tax-free. The tax-free treatment was made permanent with the Pension Protection Act of 2006.

State Tax Benefits

In addition to the federal treatment of your contributions, your own state may offer some tax breaks such as an upfront deduction for your contributions or income exemption on withdrawals. You should research what benefits residents receive for investing in your own state’s 529 plan. If your state offers no additional benefits, you have the pick of every 529 plan offered in the country. Be sure to compare multiple state plans.

Account Owner Maintains Control

You, the account owner, stays in control of the account. You decide when withdrawals are taken and for what purpose. Compared to custodial account under the Uniform Transfers to Minors Acts (UTMA), the 529 plan gives you much more say in how your investment is used and when funds are distributed for the minor.

Low Maintenance & Fees

A 529 plan can provide a very easy hands-off and worry free way to save for college. Once you decide which 529 plan to use, you complete a simple enrollment form. You can make occasional contribution or sign up for automatic deposits that can be deducted from your bank account free of charge. The ongoing investment of your account is handled by the plan, not by you. Plan assets are professionally managed either by the state treasurer’s office or by an outside investment company hired as the program manager.

Simplified Tax Reporting

You won’t receive a Form 1099 to report taxable or nontaxable earnings until the year you make withdrawals.

Flexibility of Investments

If you want to move your investment around you may change to a different option in a 529 savings program every year (program permitting) or you may rollover your account to a different state’s program provided no such rollover for your beneficiary has occurred in the prior 12 months. Each 529 plan will have different rules that may impact the number of changes you can make, so compare the features of individual plans if flexibility is important to you.

Larger Deposits Allowed

Everyone is eligible to take advantage of a 529 plan. The amounts you can put in are substantial (over $300,000 per beneficiary in many state plans). Generally, there are no income limitations or age restrictions. Again, each state’s plan may have different regulation and limits on contribution; be sure to research that aspect of a state’s plan that you are interested in.

I would love to answer any of your questions as well as help you set up an 529 College Savings Account. Feel free to email me here or call our office at (205) 989-3498.

Amy Marquis
Chief Operations Officer

Older Entries