FPA of MN Newsletter – July 2016

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President’s Message – July, 2016

As we move into the second half of the year there are many things to reflect on, but more importantly many to look forward to! There are a number of exciting events in the months ahead for FPA of MN.

I’ll be playing in the annual FPA MN Golf Tournament and hope you will consider joining the group on August 1. 2016 marks the 17th year of the event bringing members and partners together for a day of fun and giving back to the community. This year the charity pick is Can Do Canines! They are dedicated to enhancing the quality of life for people with disabilities by creating mutually beneficial partnerships with specially trained dogs. If golf isn’t your game of choice, you can still have fun with us. Join the Bocce Ball Tournament and participate in the Pro hosted golf clinic.

In the fall you have the opportunity to join the largest gathering of thought leaders in financial planning at the FPA Annual Conference – BE. BE 2016 is being held in Baltimore on September 14-16 at the Baltimore Convention Center. If you are planning to join me at the conference you can save $25 by using the Promo Code CHBE16.

A highlight of the year for our chapter is the annual Symposium. We are back into the month of October this year meeting on October 10 & 11 at the Minneapolis Convention Center. The agenda for 2016 is robust and filled with top-notch speakers. The committee has continued to work on bringing attendees what they are asking for. You will not be disappointed! Make sure you register by July 31st to participate in the early registration discount.

Be sure to mark your calendars for a wonderful event bringing free financial planning to the public. Financial Planning Day Twin Cities is being held on October 29 in Saint Paul. I can’t encourage you enough to participate in the event which has been highly praised by past attendees.

I had mentioned that there are many things to look back upon in our first half of the year. I was lucky enough to be one of the 107 attendees at the 2016 NexGen Gathering in Dallas last month. The weekend was a great reminder of the energy and passion that is within the profession and our association. I came back reenergized and thankful to be apart of the NexGen group, the FPA, especially the MN Chapter and the profession. If you want to know more – just reach out to me, I love to talk about Gathering!

We have continued our work on the initiatives set out by the 2016 Board to focus in on all that we offer and to make improvements along the way. If you want to help us out, we are always looking for more volunteers – either on committees or helping with our community based partners. The leaders of our chapter are building on improving communication, working to reach all of our members and being the community that fosters the value of financial planning.

Jeanna Fifer, CFP®
Cahill Financial Advisors

SYMPOSIUM BREAKOUT - October 10, Nathan Dungan - Families, Money and Meaning: An Interactive Case Study

REGISTER NOW and save $100

Presentation Scheduled for Monday, 1:10-2:10 pm
Pending CE Approval: 1 CIMA, .75 CLE Stnd
Approved CE: 1 CFP, 1 NASBA/CPE, 1 MN insurance, 1 WI insurance

Preparing future heirs for the various roles and responsibilities that come with inheriting wealth is a multi-layered topic. For many families, that will likely mean moving beyond an “event” mindset (addressing it one or two times a year at family gatherings) and adopting a more strategic approach—one that provides numerous age-based opportunities to build and nurture qualitative and quantitative capabilities for successful and lasting outcomes. In this learning session Nathan Dungan, founder and president of Share Save Spend®, will utilize a case study to demonstrate how he is working with families to proactively educate and equip current and future generations for a variety of opportunities and responsibilities. Nathan will share insights on some of the successes and shortcomings families are experiencing, as well as, discuss various tools and techniques his organization is using to help families foster a more collaborative and supportive learning community; critical elements to enhance their financial wellbeing.

SYMPOSIUM BREAKOUT - October 10, Stuart Bear - The Trust Walk: Walking Down the Path of Various Types of Trusts and Avoiding Hot Coals at the Same Time

REGISTER NOW and save $100

Presentation Scheduled for Monday, 1:50-2:40 pm
Pending CE Approval: 1 CIMA, .75 CLE Stnd
Approved CE: 1 CFP, 1 NASBA/CPE, 1 MN insurance, 1 WI insurance

When a person says “I have a Trust” or “I think I need a Trust,” there are different contexts in which the word “Trust” is used. There are Trusts established during one’s life, which the person establishing the Trust may change or may not change, and each type has benefits and risks associated with it. There are other types of Trusts that are written into legal documents, such as a Will or a Revocable Living Trust, that relate to how assets are to be distributed to beneficiaries after the person establishing the Will or the Revocable Living Trust has passed away. These are known as Testamentary Trusts.

This seminar will provide complete clarity as to the different types of Trusts and when it is appropriate to utilize a specific type of Trust. The person attending this seminar will have a much better understanding of how various types of Trusts can be utilized to achieve planning goals and objectives.

REGISTER TODAY for Early Bird Pricing! Rates increase $50 on August 1st.

SYMPOSIUM BREAKOUT - October 10, Matt Cosgriff - Why Intrapreneurship is the Key to the Future of the Wealth Management Industry

REGISTER NOW and save $100

Presentation Scheduled for Monday, 2:30-3:30 PM.
Pending CE Approval: 1 NASBA
NO CE: CFP, WI insurance, MN insurance, CLE, CIMA

Wealth management firms face numerous challenges in the coming decades. The headwinds include the aging advisor workforce and shortage of young advisors getting into the industry, the alarming rates at which heirs will potentially fire their longstanding family’s advisors upon wealth transfer, and the lack of any formal succession planning across many of today’s established advisory practices.

In the midst of challenges and rapidly evolving change across industries, Deloitte recently estimated that Fortune 500 companies today will stay listed in the top 500 for only 19 years compared to nearly 55 years in 1960. This remarkable fact further emphasizes the pace at which change is occurring across all industries and on companies of all sizes. Wealth management firms, especially those that have historically operated less as enterprises and more as small businesses, must continue to evolve in order to stay relevant.

This session will explore the concept of intrapreneurship and how it can help tackle many of the challenges advisors face today in an ever-evolving landscape. Intrapreneurship is not a silver bullet, but rather about instilling a culture of thinking differently to drive effective and sustainable innovation in the midst of a rapid change.

In this session you’ll hear how a financial services company is using intrapreneurship and specifically with regard to how intrapreneurship can be used to cater to young professionals. Attendees will walk away with a better understanding of what intrapreneurship is, why it’s important, and ultimately a blueprint for integrating intrapreneurship into your firm’s culture to tackle the big challenges of the day.

SYMPOSIUM BREAKOUT - October 11, Jeff Lanza – Hoodlums to Hackers: How criminals get our information and what we can do to stop them

REGISTER NOW and save $100

Presentation Scheduled for Tuesday, 10:55-11:45 AM.
Pending CE Approval: 1 CFP, 1 MN insurance, 1 WI insurance, 1 CIMA, 1 NASBA and .75 CLE Stnd

Freezing Your Credit Reports
Following a recent presentation, I learned from an audience member that his boss had been the victim of one of the most severe cases of identity theft.

The man’s identity had been used to purchase a tractor valued at $140,000,to open numerous credit card accounts, checking accounts, file fraudulent tax returns and more. In order to commit this type of fraud or identity theft in general, the crook needs the victim’s social security number. In most cases, of identity theft, the victim never knows how the thief obtained their personal information. That was the case here.

Even if you are careful protecting your social security number, that key identifier is in the hands of many people, some of whom, as history has shown, have not done a great job of protecting it.

Your best protection against financial identity theft, where the crook gets loans, opens checking accounts and credit cards in your name, is to freeze your credit reports.

This should be done at the three major credit reporting agencies, Experian, Equifax and Trans Union.

Freezing, as the word implies, is a near total lock down of your credit reports. To explain how it prevents identity theft, here is an example:

A crook obtains your name and social security number from a “dark website” that buys and sells personal information. That site may have purchased the information from hacker who breached a computer at a health care provider that had your social security number.

The crook uses your information to apply for a Visa credit card. Visa processes the application and requests a credit check at one or more of the credit reporting agencies. Since your credit reports are frozen, Visa cannot obtain your credit history and will reject the application for the credit card.

Credit report freezes are more effective than “fraud alerts” on your credit reports, because sometimes these alerts are ignored and unless you have already had your identity stolen, a fraud alert expires after 90 days, although it can be renewed.

The rules, costs and procedures for freezing your credit reports vary by the state of your residence. Go to this link and click on your state to get more information about freezing your credit reports: www.consumersunion.org

SYMPOSIUM BREAKOUT: October 11, Dr. Mary Bell Carlson, Beyond the Numbers: Finding the Motivation

REGISTER NOW and save $100

Presentation Scheduled for Tuesday, 2:55-3:45 pm
Anticipated CE: 1 CFP, 1 NASBA/CPE, 1 CIMA, .75 CLE Stnd

Beyond the Numbers: Finding the Motivation
Have you ever had that moment when you’ve spent countless hours working on a financial plan to find out that your client didn’t implement the recommendations you gave? Why? You did a slam dunk presentation, made sure to answer all of their financial questions, and laid everything out in an easy to read format. But nothing changes. They continue in their old ways no matter how hard you try. What do you do now?

If you are like many planners, it can be frustrating to not be able to motivate a client to implement the recommended changes. What is going on? Is it you? Is it them? How do you make them change? If you’ve ever wondered this, then this workshop is a must attend event!

In my research and practice, I’ve learned that a client's motivation (or lack thereof) is central to the success (or lack of success) to an effective financial plan. I will give you insight into how the human brain works and how to motivate your clients for good. Using research from psychology, I’ll teach you how to implement these behavior changing techniques in your practice. It will help you become a better listener, engage with others more effectively, and be genuine in your approach. You will learn more about not only how to engage with your current client base more effectively, but also connect in a way that will increase your referral base and enhance long-lasting relationships with your clients.

Come learn how to apply proven techniques from the field of psychology to encourage your client’s motivation and improve your relationships. It is an opportunity that you cannot afford to miss!

Social media ideas:
Want more insight on #clientbehavior? Then come learn techniques you can implement today to make your practice more effective. Taught by @MaryBellConsult #behavioralfinance

Need insight on how to motivate clients? Then don’t miss this session @FPAMN. Taught by @MaryBellConsult

SYMPOSIUM SPEAKER - October 11, Weston Wellington - Redefining Investment Advice


Closing Keynote - Redefining Investment Advice
Presentation Scheduled for Tuesday, 4:05-4:55 pm
Anticipated CE: 1 CFP, 1 MN insurance, 1 WI insurance, 1 NASBA/CPE, 1 CIMA, .75 CLE Stnd

Markets throughout the world have a history of rewarding investors for the capital they supply. Companies compete for investment capital, and millions of investors compete to find the most attractive returns. Markets quickly incorporate information from this competition into security prices.

Traditional investment approaches strive to beat the market by taking advantage of pricing “mistakes” and attempting to predict the future. Too often, this proves costly and futile. Predictions go awry and managers may hold the wrong securities at the wrong time, missing the strong returns markets can provide. Meanwhile, capitalist-based economies thrive—not because markets fail but because they succeed.

The futility of speculation is good news for the investor. It suggests that prices for public securities are fair and that portfolio structure, not mispricing, helps explain differences in average returns. It also proposes that it may be possible to outperform markets, but not without balancing risks and costs against expected returns. Financial research identifies what we believe to be the sources of investment returns.

What is the science behind this research? Who developed it? How should it be put to use? Weston Wellington, a vice president at Dimensional Fund Advisors, explains why every investor needs to hear this story.

Financial Planning Volunteer Opportunity with Tubman

In partnership with the Foundation for Financial Planning (FFP) and Association of Financial Planning (AFP) of Minnesota, Tubman is excited to announce several volunteer opportunities for Certified Financial Planners, Certified Divorce Financial Analysts and Financial Planners! Tubman is looking for volunteers to provide ongoing financial planning services, including workshops and one-on-one financial planning appointments at each of its three locations: Tubman Center East (Maplewood), Tubman Center West (Minneapolis) and the Chrysalis Center (Minneapolis).

Tubman helps women, children and families struggling with relationship violence, substance abuse and mental health. Throughout the Twin Cities, Tubman provides safe shelter, legal services, counseling, elder care resources, youth programming and community education while guiding and sustaining individuals and families on the journey from chaos and fear to healing and restoration.

Tubman is the state’s largest provider of domestic violence services, with over 20% of all Minnesota shelter beds for women and children experiencing family violence. The agency offers a full complement of services including family violence shelter and transitional housing; mental and chemical health assessment, treatment, and support; legal services; parenting education and child care; youth programs and in-school violence prevention; resource counseling, financial literacy and job readiness education; caregiver support and elder care resources; and community education and professional training.

Current volunteer needs:
Currently Tubman is looking for Financial Workshop Facilitator volunteers to provide financial planning workshops one to two times per month on Tuesday afternoons from 1-2 pm at our Maplewood location. Tubman and the Foundation for Financial Planning have worked together to develop tailored curriculum for these workshops. Workshop volunteers will use this curriculum, in addition to other resources that will be provided. Topics include budgeting, saving and investing, credit, debt, identity theft and credit card fraud.

Due to the unique nature of client needs at Tubman, we do require all volunteer to attend Tubman’s Volunteer Training Series. The next opportunity to attend this training is in August of 2016.

If you or any of your colleagues are interested in sharing your financial expertise, as well as a unique and rewarding service opportunity, please contact Julia Sisson (612-767-6544), the Jobs, Education and Finance Coordinator at Tubman.

Better Practices for Serving Senior Investors

Submitted by: Donald McNeil, Esq. - Professional Issues Committee Member

That sound you are hearing outside your office are over 10,000 champagne corks popping every day as Baby Boomers retire. Each year, over 3.6 million Baby Boomer investors will turn age 65, with these investors accounting for more than 75 percent of financial assets in our country. These substantial assets and the potential cognitive effects of the normal aging process make senior investors vulnerable to financial exploitation. FINRA and the SEC have made protection of senior investors a priority and are expecting financial professionals to strengthen their roles as the first line of defense for this vulnerable group.

As part of that effort, the FINRA National Senior Investor Initiative Report highlighted recent industry trends that impact senior investors. In a series of examinations, FINRA focused on a broad range of topics, including the types of securities being sold to senior investors, training of firm representatives, and how firms address issues relating to aging (e.g., diminished capacity and elder financial exploitation). In this report, FINRA provided some recommendations for better practices:

  • Requiring a series of mandatory continuing education courses that will address the stages of mental capacity and solutions to handling an investor’s potential diminished mental capacity, such as involving a family member or third party to attend meetings and document all interactions;
  • Using written supervisory procedures that require approval to participate in unscripted seminars that are not subject to the principle pre-use approval requirements;
  • Distributing evaluation forms to seminar attendees to solicit feedback in order to identify any issues of concern that may violate firm policies;
  • Using more detailed customer account information to determine both short and intermediate term expenses;
  • Requiring representatives to memorialize in firm computer systems conversations between the planner and senior investor relating to recommendations;
  • Establishing strict firm product concentration guidelines for senior investors;
  • Requiring a customer signature on a disclosure form indicating that the customer received a prospectus;
  • Providing a detailed description of registered representative compensation for each product sold on their website.

In the last year, FINRA also rolled out a new Senior Helpline (844-57-HELPS (844-574-3577)) on its web page. Senior investors are encouraged to use this hotline to seek help or register complaints, and FINRA may use its regulatory authority to follow up and obtain restitution for senior investors.

With the deafening sound of happy new retirees popping champagne corks every day, the best financial planners will have a plan in place for providing excellent service to our senior investors.

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Diversity Scholarship Deadline for the FPA Annual Conference is August 8

The diversity scholarship deadline for the FPA Annual Conference is August 8. Winners of the diversity scholarship will receive:

  • Free registration to the FPA Annual Conference
  • Hotel accommodations for the conference and
  • Meals during the event (up to 4 days)
  • Travel to and from the conference site (capped at $500)
  • One year paid individual FPA membership
  • One year free subscription to the Journal of Financial Planning
  • One year paid dues to an FPA chapter of the winner’s choice
  • One year paid local chapter monthly meeting fees

To be eligible for this scholarship you must be a financial services student or professional who demonstrates and acts upon an intense desire to affect the diversity of the financial planning profession which includes but is not limited to:

  • raising awareness of the profession in diverse communities
  • serving diverse communities with financial planning and/or
  • increasing professional opportunities for diverse communities within the financial planning profession

To apply, complete the Diversity Scholarship Application found on the Diversity Scholarship webpage and send two letters of recommendation from either professors or financial services professionals on original letterhead or email format clearly listing author’s name, position, company and contact phone information to:

Diversity Scholarship Program
Financial Planning Association
Attn: Christine Richardson
7535 E Hampden Ave #600
Denver, CO 80231
Email: FPADiversity@OneFPA.org

Scholarship submissions must be complete (both letters of recommendation and application) and received at FPA by the submission deadline. Submissions received after the deadline, or still incomplete will not be forwarded to the Selection Subcommittee. Items postmarked on the submission deadline and not received on time will not be considered.