FPA of MN Newsletter – July 2017

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Meet our Golf/Bocce Ball Outing Charity - Homeward Bound, Inc.

What does it mean to be a “community partner?” To me, it means “working together in a collaborative way as a team to accomplish good in the community.”

This year, FPA is a partnering with Homeward Bound the charity organization that was chosen this year to receive the FPA Golf Event proceeds.

Who is Homeward Bound? Homeward Bound is a local non-profit organization that responds when a critical event occurs which finds a family unprepared and overwhelmed. Homeward Bound has vast experience, expertise and access to resources which support individuals with severe disabilities in leading a full and dignified life.

Homeward Bound’s mission: “providing innovative & life-enriching services to children, adolescents and adults with disabilities.” Homeward Bound has 20 residential homes in 10 Twin Cities Metro Communities serving our most vulnerable Minnesotans.

Please meet Matthew of Homeward Bound Bluebird house. Bluebird house is a CAC or Community Alternative Care home, providing services to 4 young men who are among the most medically fragile individuals in our community. Minnesota CAC homes provide individuals access to 24 hour nursing care. The intent of this type of home is to divert individuals with severe and compromised health issues away from hospitals and nursing homes and into the community. It is established to provide much needed medical and life support to individuals with acute health concerns.

The benefits of a CAC home are immeasurable. Individuals who live in CAC homes have an increased life-span and rate of survival. In addition to this, CAC homes save taxpayers money by providing personalized care with a smaller, known staff instead of a large hospital setting with many staff. Since being at Homeward Bound Bluebird, Matthew’s health has stabilized. The team of nurses and caregivers have provided Matthew with many years of no hospital visits or surgeries. Matthew does however continue to face serious medical challenges and every day of his life is definitely a gift to be treasured.

“The care that my son, Matthew, has received at Homeward Bound’s Bluebird House over these past years has literally saved his life. The team of nurses and caregivers has been wonderful to Matthew, providing extensive daily (hourly) cares and medical support. More than just excellent professionals, they are caring, loving people who value their clients for the wonderful people that they are.”

Steve Harris, Mathew’s Dad

It is because of organizations like FPA that Homeward Bound can continue to work toward our important mission. We want to thank FPA for your 2017 Community Partnership. We are excited to be a part of your events this year, to get to know your members and through your generous support accomplish meaningful goals. With the proceeds that FPA will be donating to Homeward Bound, we will be purchasing some very valuable and necessary medical equipment. We plan to purchase a GE Carescape Vital Signs Monitor which is a mobile device on a stand that our nurses can use to take temperatures, blood pressure, pulse rate, oxygen saturation etc.

We are also planning to purchase a Bladder Scanner that will help us measure bladder volume on individuals with severe disabilities who are non-verbal. This piece of equipment will reduce infection and other medical issues.

It is through community partnership that important services and supports can be delivered to those in need in our community. We cannot thank enough FPA for your assistance and support of individuals who through no fault of their own find themselves with extraordinary challenges each and every day.

Thank you so much!

Lori Merriam, Director of Development- Homeward Bound, Inc.

Register Your Foursome NOW
18th Annual FPA of MN Golf & Bocce Ball Tournament
Monday, August 7th · Midland Hills Golf Club - Roseville, MN

Fundraiser for Homeward Bound at June Chapter Meeting

At the June General Membership meeting the Member Experience Committee conducted a 50/50 Board for Homeward Bound. The lucky winners were:

Melanie Hardie from Life Works, $50
William Brown from MSU-Mankato, $10
And more importantly Homeward Bound came away with $140!

Thank you to all who participated.

Next month look for quick game of Heads or Tails for $5 for a chance to win some wine!

Proposed Changes to CFP Board’s Standards of Professional Conduct - Feedback Opportunity

As a fellow CFP® professional I take great interest in the work CFP Board is doing to protect the marks and ensure all bearing them are held to the highest possible standards. So, it is notable that CFP Board’s Commission on Standards has released their Draft Revised Standards of Professional Conduct of recommended changes to their practice standards a week ago.

I strongly encourage you, as a CFP® professional, to review the recommended changes as they will potentially impact you and the work you are doing as a financial planner.

To help provide you with an impactful voice on these changes, the FPA Member Advocacy Council (MAC), of which I serve as chair, is seeking your thoughts and opinions on these changes so FPA can best represent your interests to CFP Board. Our hope and goal is to gather all of this feedback and use it to formulate an official FPA position on the proposed changes to the practice standards that accurately reflects your sentiment as a CFP® professional.

To do this, we will be employing two feedback opportunities that we hope you will consider participating in.

  1. A conference call will be held on Thursday, July 6th at 4 pm ET with members of the MAC where you can hear an overview of what CFP Board is proposing in their Exposure Draft and you can share your thoughts with the MAC and fellow CFP® professionals. To register for this one-hour conference call, simply click HERE.
  2. A survey of CFP® professional FPA members will be shared with you on Friday, July 14th to collect quantitative data from you so we can gauge member sentiment on the proposed changes. An email will be sent that day with a link to the survey and additional information.

Besides these feedback opportunities you are encouraged to share any and all thoughts on the proposed changes with the MAC by sending a confidential email to FPAMAC@OneFPA.org.

With that, I hope you will join us for the conference call on Thursday, July 6th at 4 pm ET so we can begin to hear your thoughts on this important matter. Again, you can register by clicking HERE.


Nick Nicolette, CFP®
Chair, FPA Member Advocacy Council (MAC)

Symposium Scholarship opportunity for students and career changers

Do you know a college student or career changer interested in pursuing a career in financial planning? The Career Development Committee and FPA of Minnesota are offering full scholarships to attend both jam-packed days of Symposium 2017! Each scholarship recipient will be matched with a Symposium “buddy” to help navigate the first day of Symposium. Scholarship recipient resumes will also be included in Symposium materials for all registrants to view.

This is a great opportunity to learn more about financial planning, speak with professionals to grow your network, and get your resume in front of hundreds of financial planners! For more information, contact Megan Olson at meganolson8@gmail.com or see the application for more details. Deadline for applications is September 15!

SYMPOSIUM SPEAKER - October 17, Mark LeBlanc - No change. No change!

Register Today...Early Bird Rate ends July 31st: www.FPAMNSypmosium.org
Closing Keynote - Growing the Business When YOU Are the Business
Presentation Scheduled for Monday, October 17, 4:05-4:55 pm
Anticipated CE: .75 CLE Standard
Anticipated Denial: CFP, MN insurance, WI insurance, CIMA
Approved CE: 1 NASBA/CPE

The second, most difficult question for many people to answer is, "What do you want?" So many professionals are challenged by finding focus and creating a path and a plan for creating what they want in their life and work. It's so much more than setting goals.

In fact, it boils down to goals, benchmarks, milestones and standards that ensure a life of consistent and predictable achievement.

As you read this, I am embarking on my third, five hundred mile walk across Spain. The first was nine years ago. In 2014, I went back to Spain and decided to walk the Camino de Santiago pilgrimage every three years until I could not. In September, 2014, I put it on my calendar for 2017. It is amazing how fast time goes when you have something on your calendar to look forward to.

Let's use the Camino to illustrate the power of a goal and how to create a foundation for achieving it.

Camino III: April 29th through June 3rd
Goal: Walk five hundred miles in thirty days.
Benchmark: Walk an average 17 miles per day.
Milestones: Days 10 and 20
Standards: 1. Start walking by 8:00 a.m. each day
2. Drink no alcohol or soda
3. In bed by 10:00 p.m. each evening

No matter what is important in your life and work, you can break it down into these four elements. Think of your goal as the big accomplishment. A benchmark is simply a number that measures an activity or a result. A milestone is a level or point of reflection along the way. A standard is a code of conduct or commitment to a behavior.

You can apply this frame to losing weight, saving for retirement, reaching your business revenues, earning your owner's compensation, writing a book, etc. When you can write your goal and then add depth and detail regarding benchmarks, milestones and standards; reaching your goal becomes a real possibility. The alternative is to set a goal without a foundation. That is simply a dream that is seldom realized. Too many professionals are in love with their potential and never lay down a foundation for their life and work to emerge and flourish.

The first, most difficult question to answer is, “What are you willing to do to achieve what you want?"

What do you want? Maybe it's time for serious dreaming, reflection, planning and writing? Imagine yourself reaching your goal in twelve months or two years. Will it have been worth it? I believe so. It makes the hard work worth it and life worth living. What got you here may not get you there. Remember, no change...no change!

Mark LeBlanc is the author of Never Be The Same and Growing Your Business! He can be reached at (612) 339-4890.

SYMPOSIUM BREAKOUT - October 16, Jay Mooreland - Tackling Hard Meetings with Soft Skills

Register Today...Early Bird Rate ends July 31st: www.FPAMNSypmosium.org
Tackling Hard Meetings with Soft Skills
Presentation Scheduled for Tuesday, October 16, 9:50-10:50 am
Anticipated CE: 1 CFP, 1 NASBA/CPE, 1 CIMA, 1 CLE Stnd

As advisors, we do our best to meet and exceed our client’s expectations. We want to make them happy. Unfortunately, there are times when we may face an upset client. How we respond to that situation will likely define the relationship down the road. The natural response is to get defensive – especially if it isn’t our fault and/or the client is being unreasonable. Yet, unless you are looking to destroy the relationship, following what feels right is often the worst response.

How you respond to tough situations, mistakes, and client disappointments will leave a lasting impression. While you can’t control what a client says or does, maintaining a posture of real listening, humility, ownership, and transparency will dramatically enhance your value and professionalism. This presentation will empower you to develop effective responses, address client concerns and pivot the conversation to positive, productive next steps.

SYMPOSIUM BREAKOUT - October 16, Craig Empey - Minnesota Estate Taxes - What Should I Do?

Register Today...Early Bird Rate ends July 31st: www.FPAMNSypmosium.org
Minnesota Estate Taxes - My Client’s Estate Is Below The Federal Exemption, Though, Above The Minnesota Exemption – What Should I Do?
Presentation Scheduled for Monday, October 16, 1:10-2:10 pm
Anticipated CE: 1 MN insurance, 1 CLE Standard & 1 CIMA
Approved CE: 1 CFP, 1 WI insurance, 1 NASBA/CPE

Client legal and tax issues continue to compound with complexity. The complexity is further exacerbated by the divergence between federal and state laws.

This session is to focus on estate tax planning for clients with a net worth that is below the federal estate tax exemption ($5.49M in 2017), though, above the Minnesota estate tax exemption ($1.8M in 2017).

Although the client’s estate may not be subject to the federal estate tax rate of 40%, the Minnesota estate tax rate progresses from 10% to 16%.

Unused federal exemption is allocable (portable) to a surviving spouse. However, unused Minnesota exemption is not allocable.

Hence, proper Minnesota exemption planning may save the client several hundreds of thousands of dollars of Minnesota estate taxes.

In the interest of providing exemplary client service, the goal of this session is to provide you basis of understanding for such issues coupled with a series of pragmatic implementable solutions.

Craig A. Empey, attorney at law, has been assisting clients with such matters since 2005.

SYMPOSIUM BREAKOUT - October 16, Mary Schmid - How to Have Money Conversations

Register Today...Early Bird Rate ends July 31st: www.FPAMNSypmosium.org
How to Have Money Conversations
Presentation Scheduled for Monday, October 16, 1:10-2:10 pm
Anticipated CE: 1 CFP, 1 CIMA, 1 NASBA/CPE and 1 CLE Stnd

What comes up for many of your clients when they even think about having a money conversation is fear. Their brains are flooded with past memories of not being good with money, the mistakes made, or feeling embarrassed about knowing very little about such an important topic. Memories many would just as soon forget, let alone confide in to you.

Everyone has money memories and a unique relationship with money. These memories influence how we see the world, what we share in conversations, and the decisions we make. These memories influence you and your clients.

You are good at your profession. Your expertise is solid. Your preparation is completed. You are logical, and objective with your client meetings. What you may not know is that there is often something else running your conversations with your clients. Money conversations can flip the emotional switch and trigger you and your clients.

These triggers produce a chemical reaction in the brain, the neuroscience of conversations. It is the science behind having powerful conversations that open up or close down what clients say. It impacts what you say and what your clients hear you say. It influences how clients process information and make decisions.

The key to having conversations, which develop a deeper and more enduring relationship with your clients, is learning the psychology and science of creating conversations that build trust.

When you understand and apply these skills you are better equipped to co-create conversations that guide your planning process. You understand what influences you and how to open up your client conversations so clients can share what is really on their heart and minds. You develop relationships where there is mutual respect, a meaningful bonding, and you add value to the client’s life. You become the trusted advisor.

Don’t miss this session!

Impacts of the DOL Fiduciary Rule: How to Lawfully Advise Clients on what to do with their 401(k) Plan

This month’s Professional Issues Committee article is from its newest member, Brian Edstrom, Attorney with JUX Law Firm and former Director of Securities at the Minnesota Department of Commerce. This article should not be construed as legal advice. As with all regulatory matters, please seek the advice of an experienced attorney to ensure compliance.

The DOL Fiduciary Rule, which became (mostly) effective on June 9, 2017, marks a clear shift for broker-dealers. Brokers are now considered fiduciaries under the Employee Retirement Income Security Act of 1974 (“ERISA”) when providing non-discretionary investment advice to clients seeking assistance with retirement accounts or plans. Less clear, however, is the Rule’s impact on RIAs, who already owe a fiduciary duty to their clients under federal and state securities laws.

The Fiduciary Rule imposes new obligations that apply to RIAs, as well as brokers, in certain retirement planning scenarios. Most notably, if a client seeks an RIA’s advice on whether and how to roll over or transfer an employee-sponsored 401(k) into an IRA or other retirement account, the RIA’s recommendation is likely covered by the Fiduciary Rule (a “Covered Recommendation”). RIAs making Covered Recommendations are subject to ERISA’s fiduciary requirements. As ERISA prohibits “self-dealing,” RIAs are prohibited from making Covered Recommendations that may result in an increase to their own compensation, unless they comply with an applicable exemption.

One such exemption is the “level fee fiduciary exemption,” which applies to RIAs that receive only set fees, or fees based on a fixed percentage of the value of assets under management. In addition to meeting these fee requirements, RIAs wishing to rely on the level fee fiduciary exemption must also comply with certain other components of the Fiduciary Rule. Namely, they must abide by Impartial Conduct Standards set forth in the Fiduciary Rule’s Best Interest Contract (“BIC”) exemption, ensure compensation collected from clients is reasonable, and must acknowledge their fiduciary status in a written document shared with their clients. In order to rely on the level fee fiduciary exemption to advise a client on whether and how to roll over a 401(k) plan, level-fee RIAs should also be careful to consider and document the specific reasons why their recommendation is in the best interests of their client.

In December 2013, FINRA issued Notice 13-45 to remind broker-dealers of their responsibilities when recommending a rollover or transfer of assets in an employer-sponsored retirement plan to an IRA. The notice recognizes that clients in this scenario have four primary options: (1) they could leave the money in the employer’s plan, if permitted; (2) they could roll over assets into a new employer’s plan, if one is available; (3) they could roll over to an IRA; or (4) they could cash out the account value. The notice then provides a non-exhaustive list of seven factors a broker should consider when discussing these options with clients to determine a suitable recommendation.

Though Notice 13-45 was directed to broker-dealers, it now also provides useful guidance to RIAs wishing to rely on the level fee fiduciary exemption to comply with ERISA. If a level-fee RIA is approached by a client or potential client seeking recommendations on whether to roll over a 401(k), the RIA should incorporate Notice 13-45 into its client discussions and written materials. Namely, the adviser should discuss each of the four options available to the client and consider the factors FINRA raises to determine which option is in the client’s best interest. Finally, the RIA should carefully document discussions with the client, explaining the RIA’s reasoning behind their ultimate recommendation and why that recommendation is in the client’s best interest.

See the FINRA Notice 13-45

Early bird deadline is July 14 for the FPA Annual Conference!

The FPA Annual Conference in Nashville from October 2-4 will be the largest gathering of CFP® professionals and thought leaders this year. Attendees, speakers and partners are among the most innovative folks in the industry who come together to connect and share ideas. You will gain practical knowledge and strategies that you can take back to your practice. Register by July 14 and attend at a significant discount!

Special Offer! Members of FPA of MN can get an additional $50 off registration by using the NASH17CM discount code!

Apply for a Diversity Scholarship to attend the 2017 FPA Annual Conference

Applications are due August 4 for FPA Diversity Scholarships to attend the 2017 FPA Annual Conference in Nashville Oct. 2-4. The scholarship recognizes professionals who are working to encourage diversity in the financial planning profession and the population served. The merit-based scholarship recipients earn one-year FPA membership and complimentary registration and travel expenses to the conference. Apply now!

2017 Trends in Investing Report available!

With more than $4 Trillion invested in Exchange-Traded Funds (ETFs), there is now clear indication that these investment vehicles are in position for more growth in the future. The 2017 Trends in Investing Survey marks the third consecutive year that ETFs are the preferred investment vehicle among advisers, with 88 percent of financial advisers surveyed currently using or recommending ETFs with their clients. Learn what else is trending in investments among your peers. Access the full report by FPA, Longboard Asset Management and the Journal of Financial Planning!

Golf/Bocce Ball Outing and Member Perks

Summer is upon us and before you know it, there will be frost on the ground again, so with that in mind- sign up now for the annual FPA of MN GOLF and BOCCE BALL outing! This year’s event is sponsored by Vanguard and will be located at Midland Hills Country Club in Roseville. Homeward Bound is our charity benefactor for this year’s tournament, so Register Your Foursome NOW!

In this day and age of ‘rewards’ programs and frequent buyer/loyalty benefits, the Financial Planning Association also provides member perks. As members of the Financial Planning Association, we have access to both national and local institutions that provide savings opportunities. Not only does the FPA enrich our profession through quality programming and a whole host of resources, but we are also afforded discounts are establishments we often frequent (ie Holiday/Exxon/Mobil, FedEx/UPS, Staples and many more!) Members can take advantage of savings on purchases, but they can also receive discounts made available through Junxure, Money Guide Pro, Cambridge Alliance- just to name a few. Check out members’ savings opportunities that can be achieved by clicking the following links:

Local Member Discounts
MyDiscounts - FPA Member Advantage

FPA members can access great content from Kiplinger’s Personal Finance

FPA has partnered with Kiplinger to offer FPA members an extremely cost-effective subscription article program that provides members with content to better engage and support their clients, along with a private FPA Kiplinger content store that provides members access to new resources for client marketing and educationalcontent at special FPA rates. Learn more about this terrific program today!