Category

Investments

Brimley earns AIF designation

Investment advisor representative Jonathan Brimley of Brimley & Frisch Wealth Management, a part of Savage and Associates, achieved his AIF® (Accredited Investment Fiduciary) designation from the Center for Fiduciary Studies. This certifies that Brimley has reached expert fiduciary care standards (a fiduciary acts on behalf of an individual or more to manage assets) – and how to apply those standards in their investment management practices. Earning this professional certification involves participating in a rigorous training program, passing a comprehensive exam, satisfying experience requirements, and agreeing to abide by the Center’s code-of-ethics and conduct standards.

Jonathan and his family

“Jonathan always talks about putting his clients first, and this designation is another great example of his unwavering dedication toward those he serves,” stated Russ Karban, vice president and managing executive, Savage and Associates. “For those in the Findlay area, and surrounding communities, are in very good hands with Jonathan as their advisor. It’s no wonder his practice continues to grow each year through so many pleased clients.”

Brimley specializes in comprehensive goal-based planning for his clients, largely in the Findlay, Ohio market, striving to give them increased confidence and maintainable wealth. To learn more visit: https://www.facebook.com/BrimleyFrischWealth/

Is history repeating itself? Market declines continue.

Is history repeating itself? Are we in the midst of another Great Recession?

The last three weeks have been intense in the stock market. On Thursday, March 12 and Monday, March 16, we’ve seen drastic declines. It’s difficult to see the silver lining in the market when the headlines are just as terrifying as the unknown of our investment returns. We haven’t seen the markets act in this manner since 2008-09.

Are we repeating history, and at the start of a recession? The short answer: no. Let’s talk about why …

To begin, I don’t think I could write a comparison better than the one USA TODAY published last week: https://www.usatoday.com/story/money/2020/03/11/recession-heres-how-coronavirus-crises-different-2008/5012228002/

If you read their article and still want my perspective, read on!

As financial advisors, we look to different measurements to gain insight as to what the future of our economy and the market may hold. Without boring you with an economics lesson, I would like to give an overview of just two of them: gross domestic product (GDP) and the consumer price index (CPI).

With respect to our country’s GDP, consumer spending is its key driver. If we look at how the stock market ended in 2018, we were down about 20 percent. Therefore, it must mean a recession followed, right? Fortunately for everyone, that was not the case as we saw tremendous returns in 2019.

So how did the stock market get it wrong? We knew the noise of daily news was causing concerns of trade wars and a government shutdown to investors. In times of uncertainty, volatility increases. Despite the everyday investor seeing significant losses in their investment accounts, Christmas-time consumer spending was up 19 percent from the previous year! This shows us that drastic changes in the market did not translate to drastic changes in consumer behavior. Our country’s current GDP is more than 2 percent. Until we hit GDP of 1 percent, I am confident with our country’s growth.

Another key factor is understanding the CPI. If you look at the chart below from the Bureau of Labor Statistics, you can see that once the CPI reaches 4 percent, a recession is quickly on the horizon. The CPI is currently in the mid to low twos. We haven’t reached the threshold and we shouldn’t assume the coronavirus is a catalyst for a recession.


*Source: Bureau of Labor Statistics

Health care providers, scientists, and the leaders of our communities are working diligently on preventative measures and access to care for the well-being of all. There is not a country more well equipped than America. Hysteria, uncertainty, and volatility will pass. It always does, and once that happens, our country’s strong economic fundamentals will be restored just like they always do.

If you gain one takeaway from this: stay the course. What if in December 2018, you decided to get out of the market for fear of the negative markets to continue? You would have missed out on the positive returns that followed. While this uncertainty is uncomfortable, please stay safe and please choose to be hopeful.

About Megan:
Megan Rightnowar got into the financial services business almost five years ago to help individuals and families create a plan for financial freedom. She believes that money doesn’t have to control your life and she helps people live that out.  As an extension of her love for educating clients, she enjoys writing blog posts covering a myriad of financial topics. Megan also teaches finance and personal planning for pharmacy students at the University of Toledo.

*Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results.

Securities and investment services offered through Royal Alliance Associates, Inc. (RAA), member FINRA/SIPC. RAA is separately owned and other entities and/or marketing names, products or services referenced here are independent of RAA.

The coronavirus and its impact on financial markets

Photo of Chinese Man in surgical mask

As a financial advisor, a big part of my role is to educate clients on the stock market. My job doesn’t end at picking investments for my clients but to openly communicate during times of intense media headlines and market volatility. Whether it’s trade wars, a negative fourth quarter in 2018, an election year, or the current coronavirus panic, I like to make sure my clients hear from me not only when we have regularly scheduled review meetings but when their account(s) are being affected.

Yesterday I sent an email to my clients, and I thought it would be valuable to turn that email into a post that others can gain insight. The subject matter: coronavirus. But from the standpoint of its overall impact on the stock market.

As you may be aware, there has been a growing number of cases throughout China, Italy, Iran, Japan and South Korea. Consequently, the global market has experienced increased volatility. It’s no coincidence – the stock market tends to react when a widespread illness breaks out. Two days ago, February 24, 2020, the S&P 500 declined about 3.5 percent, making it the worst day in about two years.

Regardless, if your reaction to the previous paragraph was “YIKES!”, this does not come as a big shock to the financial industry. Business has been slowing overseas with products/services that come out of the affected countries. I am also going to take a wild guess that you haven’t booked your dream trip to Italy in the past few weeks. The global economy is dipping and the market is reflective of that.

We do not know how long the coronavirus will continue to spread and dominate the headlines. Likewise, predicting the end of this current market volatility is equally challenging. As a silver lining though, we can see in the chart created by Dow Jones Market Data (below) that epidemics have historically not impacted the market for a significant length of time. I think you will find relief that only one of the previous 12 epidemics resulted in negative percent changes of the S&P over a six and 12 month period.

In closing, when it comes to the obstacles we are facing in the market, I’m not fretting and it is my hope that you aren’t either. Focusing on long-term objectives when it comes to investment accounts helps provide clarity in times of uncertainty. In the meantime, I’m praying for effective treatment and prevention and I hope you’ll join me.

Savage’s Frisch earns ChFC® designation

Curtis FrischCongratulations to Savage’s own Curtis Frisch, CFP®, for earning yet another professional designation. He achieved his ChFC® (Chartered Financial Consultant) designation from The American College of Financial Services – the leader in financial services education.

Estate, special needs clients, divorce, business succession, behavioral finance and financial plan development are all part of the preparation for this designation, which prepares an advisor to assist clients on a highly diverse set of financial matters.

Frisch is an owner of Brimley & Frisch Wealth Management – a part of Savage. Their company focuses efforts on individuals and businesses in the Findlay, Ohio market.

Frisch’s niche in the industry is spending necessary, focused time on comprehensive financial plans that analyze cash flow, risk management, investments, taxes, employee benefits, retirement planning, estate planning and education planning.

To learn more visit: https://www.facebook.com/BrimleyFrischWealth/

 

An advisor’s four-part strategy to saving

Megan Rightnowar

Now that we are more than one month into the new decade, let’s revisit the goals that you made: going vegan, hitting the gym, attending church, sticking to your budget, etc.  As we are “adulting,” one New Year’s resolution question I got bombarded with was, “Megan, where do I put the money I am going to start saving?”

I thought this would be a good time to share the specifics of what my husband and fellow financial advisor Nick and I do for our personal finances.  Let’s dive into our four-part strategy!

Megan working with a customer.Annual Review
We sit down once a year for an annual review of our budget. Yup, that’s it.  That’s how often I recommend that my clients review theirs, too.  Money does not have to control your life, and I believe that revisiting your budget once a year is sufficient if you do it right.

Expenses
We get our pumpkin cream cold brews from Starbucks and pull out our budget sheet (see below).  We use this to outline our recurring expenses, including our mortgage, groceries (aka, takeout … your girl can’t cook!), Pure Barre, our sweetest employee, Kerigan, etc.  We then determine if there are any expenses we can eliminate, such as the gym across the street that I have not gone to once. (WHOOPS!) Next, we estimate expenses that do not occur monthly but know will happen throughout the year like hair appointments.  Lastly, we dedicate 10 percent of our income to our church and other charities – SO many people and organizations doing awesome things in our community!

Savings
Now it’s time to add our savings to the mix.  We set aside $416.67 a month to our savings account so that each year our savings grows by $5,000.  We max out our Roth IRAs and Health Savings Accounts (HSA) with monthly contributions to each.  We then put money toward our non-retirement investment account and our LIRPs (Life Insurance Retirement Plan).  As business owners, we must factor in savings for taxes each month too – shoutout to all the 1099 business owners out there!

(Fun!) Income
At the bottom of the budget sheet, we include our take-home pay and then subtract our expenses and savings.  Drum roll please (with my calculator) … we have our discretionary income, aka our FUN money!  Sometimes we may only have $20 left and other times it may be $2,000.  This is my, “Girl, get that dress!” money.  Some months my closet is growing while other months I ask to borrow a dress from a friend (you know who you are!).  Because we have done the hard part first, we have no regrets, and can truly enjoy the money we have earned.

Now that you know our process, let’s get back to you.  Take a deep breath and start your own budget sheet.  Make a commitment to saving so you can have some FUN!  Need help with the savings piece?  Holla at your girl.

Monthly Budget WorksheetSecurities and investment advisory services offered through Royal Alliance Associates, Inc. (RAA), member FINRA/SIPC. RAA is separately owned and other entities and/or marketing names, products or services referenced here are independent of RAA.

What the CFP® Credentials Mean to You

Advisors with CFP credentials

Working with the right investment advisor representative can be critical to accomplishing your overall financial goals. Finding a financial planner with training and competency is essential; so, too, is identifying someone with the demonstrated ability to apply that knowledge to real-life financial planning situations.

Administered by the CFP Board, the CFP® certification process helps the public discern financial planners who have met rigorous professional standards. No wonder the requirements to use the Certified Financial PlannerTM and CFP® designations require so much hard work.

Certification involves a two-part education requirement. First, advisors must complete college-level financial planning coursework approved by the CFP Board. Second, certified planners must also possess a bachelor’s degree or higher from an accredited college or university.

After meeting the education requirements, advisors are eligible to take the CFP® Certification Examination. The comprehensive six-hour exam assesses a financial planner’s ability to apply coursework to on-the-job situations.

Because CFP® credentials indicate an advisor’s ability to provide financial planning services, certification requires up to 6,000 hours of professional financial-planning-related experience. Advisors may acquire the necessary experience through various roles, activities, and professional settings.

Finally, CFP® professionals must agree to adhere to high ethical and professional standards—and to provide personal financial planning in each client’s best interest.

Finding the right financial planner can be difficult. CFP® credentials can be a good indication of a planner’s commitment to high professional standards and ethical behavior.

Savage associates who have pursued and earned CFP® certification are Dan Finkel, John Campbell, Russ Karban, and Curtis Frisch. You can learn more about each by clicking on his photo below.

Headshot Photo of Dan Finkel

Dan Finkel

Headshot Photo of John Campbell

John Campbell

Headshot Photo of Russ Karban

Russ Karban

Curtis Frisch

Curtis Frisch

Investment Advice from Warren Buffett

By: Sean E. Savage, Professional Wealth Management

 

“As a financial advisor, I believe my clients need someone who understands how to build wealth and has applied it to their own life.”

 

Several years ago Alice Schroeder, the author of The Snowball: Warren Buffett and the Business of Life called me. The purpose of her call was to recommend her literary agent to my wife Carolyn and I. I was sitting in my car when I answered her call and Alice began to espouse the tremendous virtues of her literary agent. I was not listening to anything she said about her literary agent. What was running through my mind while she spoke is that I am speaking with a highly accomplished professional who had personally spent thousands of hours with Warren Buffett, the greatest investor of our time. Of course,as soon as I had a chance to speak, I asked numerous questions about Warren Buffett and none about her literary agent. I have read so many books about Warren Buffett and writings from Mr. Buffett that I considered it an absolute privilege to speak with Alice. Warren had given Alice incredible access to him for a prolonged period of time and she wrote an extraordinary book which captured Warren Buffett well. How does a story about Warren Buffett apply to you and your investments?

2016 has arrived in the market with a bear’s roar globally and I am reminded of a couple of golden nuggets of advice from Warren Buffett which are worth repeating at this time.

Occasional outbreaks of those two super-contagious diseases, fear and greed, will forever occur in the investment community. The timing of these epidemics is equally unpredictable, both as to duration and degree. Therefore we never try to anticipate the arrival or departure of either. We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.

- Warren Buffett

The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient to patient people.

- Warren Buffett

Fear seems to be ruling the day in the markets, but this fear will eventually come to pass. I believe you should avoid allowing fear or impatience to drive investment decisions. Instead, make investment decisions which are rationally based with your long term objectives in mind.

Sean E. Savage, CLU, ChFC, AIF is a financial advisor with clients in 23 states. Sean developed the Sean E. Savage Wealth Management Process™. Minimum portfolio size for new clients is $500,000. You may reach Sean at 419‐725‐7272 or at Sean.Savage@SavageAndAssociates.com

Font Resize
Contrast