InTouchstatic.contentres.com/media/documents/309b87cb...• skimming cards • phishing • shoulder...

EIG®

Ellenbecker Investment Group

InTouchSince 1996 3rd Quarter 2015

EllenbeckerInvestmentGroup | ellenbecker.com Exceptional Planning. Extraordinary Service.®

In this issue:2 EIG Family Office2 Identity Theft3 Practicing for Retirement

and Creating a Legacy 4 Income for All Seasons4 Stand Up and Play5 Cash Flow Management5 Calendar of Events6 How Long Should You

Keep Tax Records6 Rewarding Shareholders7 Estate Planning7 Sharing Finances

as Newlyweds 8 Preparing Your Child

for College9 Why You Can’t Afford

NOT to Make Time9 Dad and Money10 Capital Market Consultants

Market Update11 Kids Corner:

Double Rainbows

The CEO of Your Family’s Finances

N35 W23877 Highfield Court, Suite 200 | Pewaukee, WI 53072 | (262) 691-3200705 E. Silver Spring Drive | Whitefish Bay, WI 53217 | (414) 727-6920

Julie Ellenbecker-Lipsky, CFP,® CDFA™

President and Wealth AdvisorEllenbecker Investment Group

We haven’t all been business owners of large corporations during our

working careers so it is not always natural to think in terms of profit and loss, trends and cycles, expenses and transparency, budgeting, forecasting and human capital management. However, that may be just what is needed to carry out a successful financial plan.

Going forward, I encourage you to think of your investment portfolio and retirement plan as the beloved family business. Many of us have consistently sacrificed, worked tirelessly and saved diligently over the years to create our retirement portfolio. As the President and Founder of your family business, it is important to start managing your investment portfolio in terms of performance, expenses, downside protection and upside potential. In order for you to manage at your best, it is equally important to hire a Chief Executive Officer (CEO).

Ask yourself the following questions:

Are my dollars working as hard for me as I worked to save them? Think of every dollar you have as an employee and make sure they are each bringing value to your overall plan.Do I have the right business partners working with me every day? These partners include your tax accountant, estate planning attorney and insurance professional. Make sure they are all working together to ensure that nothing is being overlooked.Are there any risks my business is facing that I am unaware of? Do you have a CEO looking at future forecasting and risk assessment? Is your business able to weather a market correction? Have you prepared well enough for that pending volatility?

Is my business diversified enough to take advantage of a positive market climate? Are you taking enough risk and prepared to take advantage of market opportunities?Are the fees I am paying transparent and competitive? Are your business partners constantly looking for ways to be more cost conscious? Are you receiving a competitive value for the fees you are paying? Are your employees working hard for their money?How would you describe the culture at your family business? Does everyone have the same vision and goals as you do? Do you have plans for the future of the business in writing if something should happen – both for the ‘black and white’ financials as well passing down your ethics for future generations?

At Ellenbecker Investment Group, we consider ourselves your personal CEO so you can enjoy the benefits of your hard work and determination over the years. We create, communicate and implement your retirement vision. We want you to understand your plan and be assured you have the right partners in place. Our job is to report to you, the President and Founder, regularly and work tirelessly to maximize the value of your investment portfolio.

If you are ready to better understand your current business plan and evaluate if you have the right leaders in place, please call and schedule an appointment today. n

As a former Vice President of Trust Services, one of my responsibilities was to encourage

and facilitate family meetings. We opened the lines of communication and became an advocate for our clients’ families and beneficiaries. Supporting families and creating plans for wealth transfer was a natural extension to the services we provided to our clients.

Many things have evolved in the last twenty five years since I was in the banking and trust industry. However, the importance of family meetings and legacy planning has not changed.

Imagine being invited to a meeting at your attorney’s office to find out when you arrive that you are attending the first family meeting after your death. Imagine watching your family discuss their memories and begin talking about finances. What would you see? Who would be the leader of this meeting? Would your family be celebrating a life well lived and organized or would they be in conflict and feeling vulnerable?

Family meetings serve many purposes and I have listed the top ten benefits of having a meeting while you are healthy and able to bring your family together.

1. They provide clarity to the responsibilities of the Trustees and Power of Attorney obligations.

2. Conversations that are difficult to broach are carefully crafted to promote connection rather than disconnection.

3. Individual strengths are discussed for current and future involvement.4. Family values are identified and agreed upon.5. Many families develop their own code of ethics.6. Philanthropic legacies are explained or launched.7. Disparities between beneficiaries and old wounds are identified and

addressed.8. Planning can be done for the next generation.9. Addressing how fear could impact the family and their decisions.10. It is an opportunity to see into the future, to observe your family’s dynamics.

Often clients are reluctant to have a family meeting that shares their personal details such as net worth and cash flow. A successful meeting is not dependent on disclosing your net worth but rather dependent on each person having a voice and an opportunity to express their concerns and feeling heard. The true gift comes at your death when your family will come together to celebrate your life opposed to feeling like a turtle on their back not knowing who to trust.

We encourage all of our clients to take advantage of our Family Office Services. You can contact your advisor to arrange a convenient time for your family to meet and they will help you create an agenda for your meeting. Ideally, encourage everyone to commit to an annual meeting to review any changes and answer any questions that have come up. n

2 | EllenbeckerInvestmentGroup | ellenbecker.com

Identity TheftIdentity theft is an important topic and one that (unfortunately) happens too often. Below are a few important items to note:

How do thieves get your information? It’s VERY easy.

• information given out casually • dumpster diving • skimming cards • phishing • shoulder surfing • mass data breaches at retailers

Phishing is an email disguised to be from a trusted source and may ask for personal information, such as your account number, password, or Social Security number. The message may also say that your account or services will be disabled if you fail to respond. We would like to remind you that Ellenbecker Investment Group and TD Ameritrade will never ask for such information in an email. We encourage you to be vigilant when it comes to email, especially ones sounding urgent or asking for personal information.

If you were to receive a suspicious email from TD Ameritrade, please contact your EIG advisor or forward the email to [email protected] and do not click any of the links in it. TD Ameritrade will then investigate.

EIG Family Office

Karen J. EllenbeckerFounder & Sr. Wealth Advisor


Exceptional Planning. Extraordinary Service.®| 3

Practicing for Retirement — Be a Volunteer

Most of these groups are looking for volunteers so if you are interested in trying something new, just let us know. We can connect you to the appropriate person. Volunteering can help you stay mentally alert, keep active and provide a sense of purpose. Consider including your children or grandchildren in your volunteer efforts as well. It can be a meaningful way to teach them about philanthropy and spend time together to make a positive impact on the lives of others. n

Diane Byrne, CFP®, AIF®Wealth Advisor


Retirement can be the time to do the things you have postponed

during your working years. As you may know from my previous articles, I suggest you start practicing before you retire. Volunteering and giving back are top items on many of our clients’ “to do in retirement” lists. If you take time now to see what you like, connect with and/or have a passion for, you will have a better idea on what you would like to get more involved with upon retirement.

According to The Volunteer Center of Greater Milwaukee, (www.volunteermilwaukee.org), 36% of people in Wisconsin already volunteer. Their website lists opportunities for volunteering at homeless shelters, environmental protection organizations, food pantries, special events, nursing homes, museums, children centers, schools, nature centers, community gardens and more.

At EIG, we strive to lead by example. Our Ellenbecker Investment Group Charitable Foundation, Stand Up and Play Paramobile and Community Recycling Day are a few of our general programs. On a personal level, many of us are involved with our local schools, churches and other organizations by volunteering our time and/or providing financial support. We also serve on boards to help lead various not-for-profit groups.

Some examples of the organizations our clients and employees support include:

Literacy Services of Wisconsin; Habitat for Humanity of Waukesha County; Wisconsin Humane Society; Rogers Memorial Hospital; Ronald McDonald House; Waukesha County Museum; Women and Girls Fund of Waukesha County; House of Mercy – West African Ministries; Junior Achievement.

Volunteering that Led to a LegacyMy mom and dad were not traditional volunteers. With others, they created their own organization, a Dixieland jazz band named “Six Friars and a Monk.” My dad played clarinet in the band and my mom did the administrative work. Over the years the band volunteered their time and talent by sharing their music with hundreds of audiences. Our family has created a legacy with the Douglas and Eleanor Gmoser scholarship fund, in memory of our mom and dad.

Each year a $1,000 scholarship is awarded through Jazz Unlimited to a high school student who plays a reed instrument. What a wonderful way to keep the volunteer spirit alive!

Doyousupportanorganizationthathasvolunteeropportunities?If so, please contact Wendy Bitter at [email protected]. We will be hosting a seminar, Volunteer Connection: Giving Back in Retirement in the EIG Education Center on August 18. The event will give an opportunity to match volunteers with organizations looking for volunteers.

Community Recycling Day, May 16, 2015

Investors often overlook an important feature of their total return: income.

Total return is made up of two distinct factors, capital appreciation (price return) and dividend yield (income return). While growth often takes front and center as the focus of investor’s efforts, income is arguably the more important part of this return equation.Within a diversified portfolio, income will take two forms. The first comes from your bond holdings. Bonds pay interest to their holders. Your individual bonds and bond mutual funds may not increase much in the form of capital appreciation, but will pay you a consistent stream of income, as well as providing downside protection to your portfolio. The second comes from dividend paying stocks and mutual funds. Dividends are a share of a company’s profits that are paid out to shareholders, allowing shareholders to increase their position in the stock when receiving a steady stream of income. When paid on a high-quality stock, dividends can help soften market losses. Since 1926, the U.S. economy has seen many up and down markets with price volatility, but regardless of the fluctuations in stock market prices, income return for the stocks has remained relatively consistent over time.

Not surprisingly, income plays a large roll in a properly diversified portfolio. At EIG, we look at investments that meet three broad objectives: Income, Income & Growth, and Growth. Investments with an Income objective typically include bonds and bond mutual funds. To meet this objective, we are not looking for capital appreciation but rather income in the form of bond interest payments. These bonds present advantages for the majority of investors. For our younger investors in the accumulation phase of their portfolio, this income section represents stability. Interest payments are consistent and the underlying prices of the bonds should not fluctuate more than a few percentage points either way. The Income & Growth section of a portfolio consists of high quality dividend paying stocks. These stocks will pay a dividend yield. A focus on dividend income works in just about all market environments. When the market is up, not only are you receiving regular dividend payments, but you are also seeing the growth of the underlying stocks. These same stocks are still working hard when the market is down. Your shares may go down in price, but you will be able to buy more shares with your dividends, only now you are buying at a discount.

Dividend income can be beneficial in a portfolio depending on the investment horizon as well. For our younger investors who are in the accumulation phase of their portfolio, investing in income producing securities and reinvesting the dividends is a quick and easy way to grow a portfolio. Reinvesting dividends allows a portfolio to grow by accumulating more shares. For those currently in retirement and spending their portfolio, dividends provide a consistent stream of steady income. With the case for Income clear, some would argue, “Why invest in growth at all?” Growth is still needed to stay one step ahead of taxes and inflation and an important part of a diversified portfolio.Regardless of the stage of life you are in, income is no longer just the icing on the cake, but rather a driving force behind your financial well-being. n


Income for All Seasons

Kristina Schnuckel, CFP®, AIF®Wealth Advisor


Stand Up and Play The objective of the Stand Up and Play Foundation is to provide the opportunity for people without the full use of their legs to participate in activities not available to them. While this unit was originally designed for golfers, it can also be used in other recreation, sports and leisure activities such as fishing, skeet or archery. A generous gift from the Ellenbecker Investment Group Charitable Foundation makes the Paramobile available in our community AT NO CHARGE TO THE USER. It will provide mobility and support required to participate in activities that require standing. We will work with each user to provide training, arrange the activity and provide a volunteer to assist them.

For more information, visit: standupandplayfoundation.org.

Calendar of EventsJuly 4 – 11:30am Whitefish Bay 4th of July Parade(1-10pm Klode Park Festivities;9:30pm Fireworks)July 6 – 7:00pm Stand Up and Play - First Pitch Miller Park - Milwaukee Brewers vs. Atlanta BravesAugust 13 – 9:00am Stand Up and Play Training Pewaukee Office August 18 – 1:00 – 3:00pm Volunteer Connection: Giving Back in Retirement EIG Education Center, Pewaukee Office October 13 – 1:00 – 3:00pm and 6:00 – 8:00pmMedicare Seminar EIG Education Center, Pewaukee Office Waterfront Wednesdays on Pewaukee Lake Join us every Wednesday now through August 26 as EIG and Foundations Bank sponsor Waterfront Wednesdays on Pewaukee Lake. Live music from 6-9pm, weather permitting. Learn more: waterfrontwednesday.com.To receive our weekly email updates, please email us at [email protected].


Cash Flow Management

Jean Range, CFP®Wealth Advisor


Most individuals can reflect on how money - too much or not enough -

can cause stress. Maybe you are reading this chuckling thinking how can too much money cause stress? The old phrase, “The more you have, the more you worry about money,” comes to mind. However, most of us experience stress from the lack of money.That said, it is important to discuss eliminating that stress through budgeting and becoming more financially fit. If I were to ask everyone reading this article “What stresses do you face daily?” a large percentage would respond that they stress over money and their weight. What is interesting is we have control over both. I will leave the topic of one’s physical weight to experts - physicians and nutritionists. But studies have shown they go hand-in-hand. Individuals who are physically fit tend to also be financially fit. So now that I have made my case to inspire everyone to hit the gym/health club, let’s focus on getting financially fit.When meeting with clients who struggle getting their finances in order, there is one common culprit – debt. Debt stresses our weekly cash flow as well as future vacation and retirement plans. So, how can you improve your financial health?1. Pay Yourself First: Start with your 401(k)/403(b). At a minimum,

contribute enough to get 100% of the company match. Then, increase your contribution by 1% every 3 to 6 months. You may consider starting monthly contribution to an investment account to create an emergency fund. If you are successful at paying yourself first, your budget is only constrained to the remaining dollars left in your checking account.

2. Spend Wisely: Spend your money in a way that you can honestly say the purchase was a need — not a want.

3. Start Tracking Your Spending: This will help you save more money today as well as when you near retirement.

4. Use Debit Cards: Try to avoid credit cards unless you have the ability to pay off the balance monthly.

5. Review Your Investments: Your 401(k)/403(b) account may have the largest balance. That said, when was the last time you reviewed your investment allocations?

6. Review Your Insurance: What would happen if you or a spouse would pass away? Do you have sufficient auto and home insurance? What happens if you become disabled? If these questions cause stress, seek out a professional to assess your insurance needs.

7. Estate Planning: We all know death is a part of life. With proper estate planning you can relieve stress on your family members as well as transfer your financial legacy to the individuals and charities you desire in the most tax efficient manner.

8. Track Your Successes and Challenges: This will allow you to acknowledge the positive impact you have had on your financial fitness as well as adjust your thinking/planning to avoid challenges. n

Resources: http://www.savingsecrets.com/article_10steps.html, http://www.mainstreet.com/article/we-all-think-getting-physically-fit-makes-us-fiscally-fit-as-well

Gala2015

Many of you joined us on beautiful Lake Geneva this past August for our

2014 Client Referral Gala... Watch for more details about this year’s

gala, to be held September 30, 2015.

How long you should keep tax records is one of our most

frequently asked questions. It is a combination of your personal situation and the statute of limitations.

The statute of limitations determines how long the taxing agencies can review your tax returns. Federal tax returns can generally be audited for up to 3 years after filing and up to 6 years in cases of underreported income. The State of Wisconsin generally has a 4-year statute of limitations. That is why many sources state that you should keep your records for 7 years so that you take into account all of the federal and state statute of limitations.

We recommend keeping your actual tax returns indefinitely. The returns

may contain cost basis information, carryovers, etc. which could be useful many years later. You can generally use the 7-year rule above for the supporting documentation, such as business and investment income, real estate taxes, mortgage interest, charitable contributions, etc. If you are confident that you don’t have underreported income, you can keep your supporting documents for only 4 years, which takes into account both the general 3-year federal and the longer 4-year Wisconsin statute of limitations. For example, if you have only Form W-2 income to report and it would be difficult to underreport income, the 4-year rule could be appropriate.

There are situations where you want to keep supporting documents for a longer period of time. This may apply to information to support IRA contributions and distributions, and the cost of investments and real estate, including your home.

Keep in mind that these are general rules only. There are additional rules if the tax is paid after the return is filed, and there is no statute of limitations if a return is not filed or it is fraudulent. n

Two of the ways corporations can reward shareholders is by

the return of capital through stock buybacks and dividend payments. The following are some of the factors we examine when analyzing the potential impact of share repurchases and dividend policies on a company and its prospects.

Not all share repurchase programs are created equal:Probably the most important thing for investors to understand concerning share repurchases is whether the buybacks reduce the fully diluted number of shares outstanding or not. If the buybacks shrink the share count,

thereby boosting the ownership stakes of the remaining shareholders as well as the amount of profit attributable to each remaining share outstanding (earnings per share), these transactions are more likely to be favorable to shareholders. Conversely, it is less desirable when a company buys its own shares in the open market to offset the dilution caused by employees’ stock-based compensation awards.

Dividend Policy:The rate of change in dividend payments provides insight into management’s outlook. Larger dividend increases, especially those higher than the historical average, are typically an indication of an improved outlook while a declining dividend increase trend usually portends the opposite.

A company’s current yield is another item we examine closely. High current yields seem especially desirable as investors look for sources of greater income in this low interest rate environment. However, higher relative yields can be an indication that the market believes a company’s dividend is unsustainable, or that the company’s growth prospects are poor. n


How Long Should You Keep Tax Records

Cyd Walters, CPA®, CFP®, MSTAccounting & Tax Services

C.L. Walters, [email protected]

Mary Brown, CFAPresident

Campbell Newman Asset Management [email protected]

Rewarding Shareholders


Phil RemmersAttorney

Cramer, Multhauf & Hammes, [email protected]

Paige VazquezReceptionist, Director of First Impressions


I met with a husband and wife the other day who had been married

for 5 years. They asked whether it was important to establish a new estate plan since they did not have children. It certainly is important to have in place a will or trust if you have children. Yet, a review of estate planning documents is also important for newlyweds without children as those documents can have unexpected results. The documents to review go beyond just a will or trust.Change Your Beneficiaries:Many single people name parents, siblings and nieces and nephews as the designated beneficiary on insurance policies, bank accounts, investment accounts, IRAs and Retirement Accounts. (These beneficiary designations generally override statutory provisions and wills & trusts which may designate your spouse as beneficiary.) It is essential that you change the beneficiary designations to your spouse to ensure those assets will pass to your spouse and not to other persons you have named as beneficiary for those assets.

Updating your Wills:State Statutes generally (but not always) provide that the deceased spouse’s assets will pass to the surviving spouse. Yet, if a spouse has a prior will it may override the statutory provision and instead transfer the assets of the deceased spouse to the persons named in the will even though there was a subsequent marriage. Further, if one of the spouse’s has prior children the statute may provide for a significant amount of assets to go to the surviving spouse or to the children even though the wish of the deceased spouse may be otherwise. The best way to ensure certainty is to have a current will setting out your wishes.Ensure Your Assets are Titled Correctly:Naming someone else on your account will often transfer that account to them upon death. If you have someone named other than your spouse then the joint owner may receive those assets. This can be particularly true of inherited assets which were received as joint owners. Further, naming your spouse as a joint owner may be the easiest

method to transfer assets to a spouse upon death. But be aware that naming a spouse on an account or property will likely give them additional rights to that property in the event of divorce. Heath and Financial Power of Attorney:These documents allow someone to act on your behalf if you are incapacitated and unable to act for yourself. These Power of Attorneys are easy to establish and will save a lot of time and money (and a likely court hearing) if one of you is sick and is unable to manage your own affairs. A little time, thought and effort early in the marriage may save a lot of time, money and hassle later on. n

I t is truly amazing how quickly figuring out finances can come after

exchanging matrimonial vows. Our first trip to the grocery store as a married couple exposed how soon we needed to assess how we were going to handle our finances together—both large and ordinary expenses. We split the grocery bill down the middle, which began our financial decision-making process.Soon after our official honeymoon period (because of course we will be in the general honeymoon phase for a while yet), we decided to open a joint account. We discussed it and decided that our account would specifically be used for things that affect the both of us equally: large furnishing purchases, vacations, our first pets together, etc. Shortly after that

decision, we determined that it would be best for us, at this point, to split all monthly household bills 50/50 from our individual accounts.As with any “merging” process, there are challenges. While we generally share the same attitude about money, our personal money managing systems vary greatly. We have had fairly humble upbringings and that causes us to be pretty cautious about spending, however, the level of cautiousness and managing our “tuppence” differ. Finding a rhythm of spending will take time and reasoning, and as we grow together, our understanding of each other’s financial finesse will become clear. Because we are starting out our marriage with relatively little debt, it is

exciting to know that we will be able to get our financial footing together sooner rather than later. Up next on our to-do list is updating our 401(k) beneficiaries, reviewing life insurance needs and meeting with an attorney to create an estate plan. Although we are striving to figure out our finances on our own, we are glad to have resources available to help manage and plan for the future. n

Estate Planning

LifeChapters A Personal Story: Sharing Finances as Newlyweds


Julie Ellenbecker-Lipsky, CFP,® CDFA™

President and Wealth AdvisorEllenbecker Investment Group

Preparing Your Child for College (and helpful hints to prepare parents as well)

As high-school students are graduating and beginning their

next phase of life there are many things to consider.

Financial Responsibility: If you are concerned about the level of financial knowledge your teenager has going into college, use the next few months to provide an accelerated course on financial literacy. If your child uses a checking account, debit card or credit card, make sure they know when payments are due, what fees are involved and what to do if they are lost or stolen. You may want to oversee their accounts by getting a copy of their credit card bill or having access to their accounts. Now that they are legal adults, the credit card offers start pouring into the mailbox. Credit can be a good thing for a young adult if used correctly.

Estate Planning: It is hard to imagine our children needing legal documents but it is important to address Powers of Attorney for Healthcare once they turn 18 years old. Without this document, parents cannot make health care decisions for their children in a medical emergency. Please consult an attorney or refer to the WI Department of Health Services website at www.dhs.wisconsin.gov/forms/advdirectives/index.htm.

Insurance: Every student should have a medical insurance card in case they get sick. Most campuses have University Health Services to provide primary health care, health education and disease prevention services. Give your child a copy of your health insurance card and locate the campus clinic, area walk-in-clinic and emergency room making sure they know where to go for healthcare. Be sure to fill out the school’s health information release form

in order to obtain information about your child in the event of a medical situation or hospitalization.

Renters insurance can also be a vital part of planning for college. Many students bring electronics to campus as well as other valuable assets. Check with your Property and Casualty agent, to add coverage to an existing policy.

Personal Safety: Most campuses have a safety program which typically includes transportation tips as well as details on shuttle services to bring students home safely. Traveling in groups, walking in well-lit areas, carrying a cell phone and signing up for campus text alerts are examples of important safety steps. Your student should get to know the university safety program and also be sure to establish a family emergency contact plan. It is also important to have the cell phone number of a roommate as well as several friends at school in case of emergency. Also, remember to have family members program In Case of Emergency (ICE) numbers into their cell phones. If a person is unable to communicate with first responders or hospital personnel, the cell phone will be checked for contact information.

Health and Nutrition: Eating well and staying active on Eating well and staying active on campus is not an impossible feat. Spend some time with your student getting familiar with the gym or activity center. Encourage your student to get involved in regular workouts and intermural sports. College meal plans on campus are continuously getting more focused on healthy choices. Consider linking to your child with a FitBit or MyFitnessPal app to challenge each other to be active, drink water, eat healthy and much more.

Drugs and Alcohol: It is never comfortable to think of our children using drugs or alcohol, but unfortunately it is present and available on most college campuses. Having a conversation about the impact that using drugs or drinking alcohol will have on their college experience is the first place to begin. Share safe ways to drink responsibly. Remind your child there are mental health professionals on campus who can assist your student or their friends if concerns arise.

Staying Connected with Home: It is possible to maintain and strengthen a healthy relationship with your child while they are at college. Having a conversation and sharing communication requests will help both of you transition. There will be times when they are missing you as much as you are missing them. Email and texts are an easy way to stay connected because they can reply at their convenience. There is also nothing quite as comforting as opening a hand written letter or care package from family.

Moving On: Don’t spend much time focusing on the empty nest but rather focus on the endless opportunities this new, and more flexible, phase of life offers. You will finally have the time to do things that have been on hold for the last 18 years. After almost two decades of focusing on someone else, it is the new season to focus on YOU. n


Why You Can’t Afford NOT to Make TimeWhat if I told you that

a 10 minute daily practice can dramatically change your health? Many of you reading this exercise to improve the physical shape and fitness level of your body. But what about your mind? Highly-respected news websites, magazines, and newspapers are littered with research-filled articles about “mindfulness” and “meditation”. It is difficult to ignore the testimonies about how regular meditative practice helps reduce stress and induces a state of calm, peace and balance so desperately needed in today’s fast-paced world. So why are these practices hitting the mainstream, and why should they matter to YOU?Meditation has many benefits, some of which include:• eliminating negative thoughts or emotions• being present in the moment• managing stress • increasing creativity• helping to gain clarity• strengthening intuitionThere is no “right” or “wrong” way to meditate, so don’t let this stop you from beginning your own practice. It can be formal, where you might choose to join a group class with a specialized instructor, or informal where you do it on your own in whatever setting makes you feel the most comfortable. Here are some ideas to get you started in your own practice.Deep Breathing:Focus on long, slow, deep breaths. If your mind starts to wander, bring it back to your breathing.Listen, Read, Reflect:Use relaxation music to help you enter a place of deep thought. Read a text and reflect on the meaning. Scribe your thoughts or reflections in a journal.Body Scanning:Do a slow scan of every part of your body - paying close attention to areas of relaxation, pain, or tension. Walking Meditation:Get out into nature and clear your mind of all else. While slowly walking, focus on each deliberate movement of your lower extremities. Whatever you do, don’t pass judgment on yourself (or others) when it comes to your meditation practice! Remind yourself that there is no right or wrong way to be mindful. Give this simple practice a try, and enjoy its many benefits. Your health will thank you! n

Karina Stuke, M. Ed.Fitness and Nutrition Coach

Certified Personal Trainer (ISSA)Certified Health Coach (IIN)

Certified Primal Expert (Primal Blueprint)

Dad and MoneyI remember when I was about eight years old, and the ice cream-bicycle guy came down the street ringing his bell. The gaggle of neighborhood kids scattered like desperate cockroaches into their respective homes to find a dime—the cost of all the treats.Frantically I asked my dad, “Can I have a dime for an ice cream?” He reached very slowly into his pocket for the dime, and I said, “Dad, he’s gonna leave really fast.” Dad held out the dime, but when I went to grab it, he wouldn’t let it go. “Dad,” I implored, “I gotta go!”“Okay,” he said, “but I want to tell you something. If you’ll get on your bike and drive to Boyer’s Market, you can get the same ice cream treat for seven cents and have three cents left over for jaw breakers or gum, or whatever you want.” My eyes lit up with amazement at the prospect of having jaw breakers all afternoon in addition to the ice cream.I ran outside with the dime in my pocket, jumped on my bike, and did exactly as my dad advised. I taunted my friends all afternoon with my surplus jaw breakers, telling them what a great deal I had gotten. As I look back on that experience and the lesson that has stayed with me, I learned two things that day:Get the most you can out of every dime.There’s always a better deal out there if you’re willing to look for it.To this day, I strive to get the most for my money. I have learned through many a negotiation that there is a better deal available, but only to those who have the courage to ask or persist. Dad grew up poor, and I grew up with modest means and an ingrained work ethic. My children have grown up with relative affluence. I truly hope that I have done a good job of passing on financial principles and a work ethic to my children as my father did with me. I know many parents today who share my concern. According to my friend, Dick Wagner, the rules for financial success are fairly simple:• spend less than you make• save all you can• don’t do anything stupidBeing instructed in Rules #1 and #2 go a long way toward helping with Rule #3. And Rule #3 is where financial advisors (and dads) can make the greatest difference in reminding their clients (and children) that wisdom trumps greed and impatience. For me...it all started with understanding the value of a dime.©2015 Mitch Anthony. All rights reserved. Mitch is the president of the Financial Life Planning Institute and Advisor Insights Inc. He is an industry leader in training advisors on building life‐centered relationships. n


Barry K. Mendelson, CIMACEO, Senior Investment Analyst Capital Market Consultants, Inc.

[email protected]

Capital Market Consultants Market Update

FromtheJune2015EconomicCommentaryandCapitalMarketUpdate

Recap: Economic activity contracted by 0.7% in the first quarter of 2015

amid a disappointing trade picture and continued spending caution by businesses and consumers alike. Although statistical quirks and one-time factors like wintry weather in some parts of the country played a role, as did a work slowdown at West Coast ports, the lackluster report for Q1 underscored the U.S. economy’s inability to generate much momentum.

In the second quarter so far, the economy has struggled to bounce back like it did last year. As a result only a 2.0% annualized gain in real GDP in Q2 is expected. Factory output has followed this trend. Industrial production fell for the fifth straight month in April. The decline in utilities was likely payback from the surge that was seen during colder months, while mining was negatively affected by the pullback coming from the low oil prices. Meanwhile, manufacturing was flat over the month, exacerbated by the stronger dollar and the housing market looked firmer than it did this time last year with modest gains.

Outlook: Real GDP is expected to expand at a modest 2.0% annualized pace during Q2. Growth will likely be driven by a rebound in consumer spending and residential construction. International trade should be a modest drag in Q2. The continued slide in energy production and slower growth at factories will continue to weigh on growth.

Real personal consumption grew at just a 1.9% pace in Q1. The growth in consumer spending was disappointing given the plunge in gas prices.

Spending growth should gain momentum in Q2, as bigger ticket purchases bounce back following more modest gains this winter. Personal consumption outlays are expected to rise at a 2.8% pace in Q2 and 3.0% for 2015.

After dipping in Q1, residential outlays appeared poised for stronger gains. Sales of new and existing homes have shown encouraging trends recently, with new home sales and pending home sales rising in recent months. Builder sentiment has also improved. One problem is the lack of available housing inventory, which has led to firming home prices.

continued on page 11


Commercial construction is also showing some encouraging signs. Development of industrial space has picked up around major seaports and key distribution hubs. Office and retail development has been slower to get back on track, but both are improving and will add to growth once the drag from reduced oil exploration plays out.

Even with the slower growth at the start of this year and less of a rebound in the spring, the Fed remains on course to begin to raise short-term interest rates later this year, with no more than two hikes in the federal funds. Long-term rates have already

backed up following better economic news out of Europe. September remains the most likely timing for the start of efforts to normalize interest rates.

Global GDP should grow roughly 3% in 2015 before returning next year to its long-run average growth rate of 3.5%. On one hand, economic data in the Eurozone have generally been stronger than most analysts had expected just a few months ago. The cyclical upswing in the Eurozone will continue and should strengthen somewhat in coming quarters

On the other hand, however, the Chinese economy continues to decelerate as the government attempts to rebalance the economy toward more consumer spending before

a debt-fueled investment collapse leads to a deep economic downturn. The Chinese government will tweak economic policy at the margin in an effort to smooth the adjustment of the economy. Although the rate of Chinese GDP growth will continue to moderate, Chinese authorities will be able to more or less pull off a “soft landing.” nSources: The Commerce Department, The Conference Board, Department of Labor, Institute of Supply Management, Bureau of Economic Analysis, National Federation of Independent Business

Kids Corner: DOUBLERAINBOWSOnce in a while, you may have the rare pleasure of seeing two rainbows appear at once. The second rainbow is larger, but pale and hard to see. And unlike the bright “primary” rainbow, the secondary rainbow has its colors reversed: The outer band is violet, the inner band is red.

What causes a secondary rainbow to materialize? The second bow appears when light rays enter near the bottom of each raindrop, and then reflect from the inside wall of a raindrop twice (instead of once) before exiting. When these twice-reflected rays emerge from many different raindrops, we see a second rainbow, paler and wider, above the first.

Why are the second bow’s colors reversed? Doubly bent red light from the very highest drops ends up traveling over our heads. So we see violet light, bent to our eyes from lower raindrops, as the first band of light, followed by indigo, blue, green, yellow, orange, and then red from the lower drops.

Between the two rainbows, the sky appears dim. Why? Since there is extra light below the primary bow – and more light above the mirror-image secondary bow – the sky between the two looks dark by comparison.

The slice of sky sandwiched between rainbows is called Alexander’s Dark Band. It was named after Alexander of Aphrodisias, an ancient Greek philosopher who wrote about the puzzling dark patch some 1,800 years ago.Wollard, K., & Solomon, D. (2014). Where do rainbows come from? In How Come? Every Kid’s Science Questions Explained (p. 12). New York, New York: Workman Publishing Company.

Market Updatecontinued from page 10

Advisory services offered through Ellenbecker Investment Group (EIG), a Registered Investment Advisor. EIG does not provide tax or legal advice; please consult your tax or legal advisor regarding your particular situation.

Diversification and asset allocation do not guarantee positive results.

Money Sense Radio Airs Saturdays at 2 p.m. & Sundays at Noon Central Time on WISN AM 1130For over two decades, listeners have counted on Karen Ellenbecker for reliable, relevant information designed to help with life’s challenges. Each week, Karen shares her unique financial perspective and interviews local and global economists, lawyers, tax and real estate specialists, authors and other special guests.

Listen wherever you are online at newstalk1130.com.

EllenbeckerInvestmentGroup

ellenbecker.com

N35 W23877 Highfield Court, Suite 200Pewaukee, Wisconsin 53072

Ellenbecker Investment GroupEIG

®

@Money-Sense

InTouchstatic.contentres.com/media/documents/309b87cb...• skimming cards • phishing • shoulder...

Documents

Transcript of InTouchstatic.contentres.com/media/documents/309b87cb...• skimming cards • phishing • shoulder...