FPA of MN Newsletter – May 2017

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FPA in the Community - Tandem

Submitted by Seth Tenpenny - Financial Education Committee

Tandem (formerly known as Tapestry Family Resource Center) is a not-for-profit located in south Minneapolis. Tandem’s mission is to serve women (who are often single parents) in crisis. Tandem seeks to achieve its mission through services and outreach such as classes that focus on parenting and relationships, personal development, employment readiness and vocational training. Tandem also provides its clientele with resources that include material needs (care packages and operation of a thrift store) and provides help with permanent housing and rental assistance.

FPA MN was approached by three years ago with a request to supplement Tandem’s course offerings with focused learning on improving financial capabilities and empowering better financial decisions. The Financial Education committee was happy to begin working with Tandem. The initial format included four, weekly 1-hour sessions that focused on specific financial topics (e.g. budgeting, debt). After completion of these sessions, Tandem’s clients were provided with the opportunity to meet one-on-one with a financial planner. The Financial Education committee has continuously sought feedback from Tandem and its clientele in order to achieve the most effective outreach possible. As a result, the format has evolved into a 2-part workshop. The first session focuses on conversations with Tandem clients on thoughts and feelings about money and experiences with money. The conversation then shifts to identifying sources of money coming in, spending habits and what can happen when there is more month than money. This first session concludes with a discussion on the pros and cons of decisions that are made to bridge the gap between month and money. The second session is an open Q&A for class attendees. Questions and subsequent conversations are often centered on budgeting, credit and debt management and basic banking products and services. We make sure to take the last 30-minutes of this second session to learn about community based resources class participants have utilized or are currently utilizing. Once the class has shared community based resources with one another, we introduce and provide a brief overview of FPA partner organizations such as United Way, Prepare and Prosper, Lutheran Social Services and Family Means that may provide additional resources for Tandem clients.

I was once asked by a member of Tandem’s staff why I wanted to work with Tandem clients, who are often at, or near, a crisis situation. Like many of Tandem’s clients, I grew up in a single parent household for a good portion of my childhood. While I never experienced the financial hardships that many of Tandem’s clients face, I did experience a mother who worked off-shifts and sometimes multiple jobs in order to provide for her family. Despite this focus on work, there was a strong emphasis on education and giving back. I have been fortunate to learn a thing or two about financial capability. This base level of knowledge combined with a desire to give back to my community is why I volunteer through FPA MN and enjoy working with organizations such as Tandem.

FPA of MN 2017 Annual GOLF and BOCCE BALL OUTING - August 7

Registration OPEN
18th Annual FPA of MN Golf & Bocce Ball Tournament
Monday, August 7th · Midland Hills Golf Club - Roseville, MN

It’s never too early to start thinking about golf! Networking with other financial and business professionals from around the state of Minnesota has never been more fun!

The unique Scramble format opens the tournament up to golfers of all abilities. For all of the non-golfers out there, there will also be a Bocce Ball tournament!

Situated on 160 acres of rolling terrain, the golf course at Midland Hills Country Club seems spacious in this urban setting. The variety of beautiful trees located in and around provides a barrier for the course from neighboring areas, giving the golfer a great feeling of serenity.

Our Charity Pick This Year: Homeward Bound. Since 1973, Homeward Bound has provided quality and innovative services to support children and adults with disabilities in leading more fulfilling lives. Last year’s golf event raised $5188 for Can DO Canines. Help us raise even more for the 2017 charity, Homeward Bound!

Bring a friend or bring your staff, just don’t bring the rain. Gather your foresome and register today!

Montgomery Scholarship Winners Announced

We are excited to announce the recipients of this year’s Montgomery Scholarship: Amber Miller and John Koenig!

Amber Miller's long-term goal is to be your top, go-to female financial life planner specializing in goal setting, transition planning and education. She is currently studying for her CFP certification and volunteers with the FPA of MN Education committee, educating our next generations to ensure that today’s students become tomorrow’s financially astute adults. Amber is primarily interested in helping clients discover and achieve their goals, be that a life-long vacation dream, saving for retirement or college for your children. She joined the Planning Center in early 2015 and has found a community of like-minded professionals – supporting each other in a common quest to help their client’s find and live their best lives.

When not at work, Amber is usually on the water rowing single training for local and national regattas. She also runs a half-marathon most years, CrossFit, hiking the Superior Hiking Trail, and has even tried her hand at the likes of the Tough Mudder Obstacle Course.

John Koenig joined Heritage Wealth Architects in July of 2015. Prior to that he worked at a wealth management firm in Iowa City while completing a BBA in Finance from the Tippie College of Business at the University of Iowa.

Through Minnesota State University Mankato, John completed the education requirements this past winter and sat for the March 2017 CFP® certification exam – he recently found out that he passed the exam! John hopes to earn the CFP® marks in the early fall of 2017 when he fulfills the needed experience requirements.

Two $1,000 scholarships are awarded each year to students pursuing their CERTIFIED FINANCIAL PLANNER™ certification who are admitted to a program administered by an accredited college or university registered with the Certified Financial Planner Board of Standards, Inc.

Old and New News

Submitted by Keith Loveland - Professional Issues Committee

OLD NEWS. The previous definition of a fiduciary was the four decades‐old five‐part test for determining functional fiduciary status under ERISA. A fiduciary was defined as a person who does not have discretionary authority over plan assets and who, for compensation

  1. Renders advice as to the value of securities or other property;
  2. On a regular basis;
  3. Pursuant to a mutual agreement;
  4. The advice serves as the primary basis for investment decisions; and
  5. The advice is individualized.

All five prongs of the test had to be met to be deemed an investment fiduciary.

The final rule removed the “regular” and “primary basis” prongs (nos. 2 and 4) from the definition and thereby expanded the advisory activities and persons subject to the fiduciary definition. Persons who represent themselves as ERISA fiduciaries and who provide investment advice for compensation are also held to the fiduciary standard under ERISA.

NEW NEWS. The U.S. Department of Labor has delayed the applicability date of their ‘fiduciary’ rule from April 10th to June 9, 2017. From June 9, 2017 to January 1, 2018, anyone wishing to use the BICE, the Class Exemption for Principal Transactions or Prohibited Transaction Exemption 84-24, need only comply with the Impartial Conduct Standards (“best interest” standard of care, reasonable compensation and not making any materially misleading statements). Compliance with all other conditions of these exemptions, including written disclosures and representations, are waived until January 1, 2018. [Have you ever wondered why “Best Interest” has quotes around those words?]

OLD NEWS. As the state’s consumer protection agency, the Minnesota Department of Commerce has proposed legislation to collaborate with the state’s financial institutions and professionals to help protect vulnerable and older adults against financial abuse.

The Minnesota Safe Seniors Financial Protection Act closely follows a model act approved by the member states of the North American Securities Administrators Association (NASAA), the association which has Commerce Commissioner Mike Rothman as President.

NEW NEWS. The SEC has approved the adoption of new FINRA Rule 2165 (Financial Exploitation of Specified Adults) to permit member firms to place temporary holds on disbursements of funds and securities from the accounts of specified adults where there is a reasonable belief of financial exploitation of these customers. Effective date February 5, 2018.

OLD AND NEW NEWS. The Minnesota Department of Commerce, the SEC, and FINRA have ALL identified cybersecurity programs as ‘top priorities’ for broker-dealer and investment adviser registrants for several years. Cybersecurity programs must become an action item and top priority for all of us, in my opinion. The risks are simply too great to ignore.

Let your voice be heard on issues that matter!

FPA is proud to be the voice for practitioners and all CFP® professionals. The FPA Member Advocacy Council (MAC) is seeking input from FPA members on regulatory and certifying body activities, processes and initiatives. Working in cooperation with those bodies, the MAC is a conduit between these organizations and FPA members to provide them with valuable input. If you have an opinion you want to share with the MAC, please send it via email to FPAMAC@OneFPA.org.

FPA has the research you need to run a more successful practice

If you haven’t checked out the original research offered by the FPA Research and Practice Institute™, you’re missing out! Over the past few years FPA has conducted research on everything from business growth strategies and cybersecurity to effective client communication and adviser compensation. This is your opportunity to access great research and action-packed whitepapers to make improvements to your business. Check out these valuable resources today!

Now is the Time to Recognize Exemplary Financial Planners!

FPA is seeking nominations for two prestigious awards. The P. Kemp Fain, Jr., Award honors individuals for their significant contributions to the profession. The Heart of Financial Planning Award recognizes those contributing and giving back to the financial planning community and public through financial planning. Submissions are due June 1. Nominate deserving colleagues today!

Registration open for 4th Annual FPA Advocacy Day in Washington, DC!

Are you passionate about financial planning? Do you want to help educate federal policymakers about the profession and the important role financial planners play in the lives of their clients? If so, register now to take part in the 4th Annual FPA Advocacy Day in Washington, D.C. on June 21. This is your time to meet with those who have influence over your profession. Register today and also take part in a special half-day symposium on succeeding under a fiduciary standard!

Would you like to give back to those serving in the military?

As a provider in the network of financial professionals working for Zeiders Enterprises, Inc. you can do just that. You can share your knowledge with those who are currently serving in the military in all areas of personal finance. As part of the team of providers you may work assignments that fit your current career; whether that is the occasional weekend event to longer term assignments lasting a year or longer. Go to www.zeiders.com then “Join Us” and search “Personal Financial Counselor” openings.