Archive by Author

Increase Your Stimulus Payment by 14% (Legally)

KrogerWith most taxable money market vehicles yielding under 3%, I have my eyes out for safe and painless opportunities to earn a higher yield.  Also, the IRS has begun sending the economic stimulus payments via direct deposit this month enabling taxpayers to take advantage of incentives with extra cash flow.

One national grocery company, The Kroger Company, has announced an incentive for all of its customers to receive an additional 10% bonus amount when exchanging tax refunds or stimulus payments into gift cards.

The Kroger Co. (NYSE: KR) said today that beginning May 2, 2008, customers can receive free groceries through a gift card program available exclusively in Kroger stores. The program allows Kroger customers to exchange their tax refund or economic stimulus checks for a Kroger gift card with an extra $30.00, $60.00 or $120.00 added to it. Gift card amounts correspond to the payment amounts outlined by the Internal Revenue Service for the federal economic stimulus program.

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How is Inflation Affecting Your Clients?

InflationI encountered a unique resource on the New York Times website over the weekend.  They created a graphical representation of the most recent CPI data provided by the Bureau of Labor and Statistics.  The graphic provides a simple interface to determine which categories exhibit high inflation versus those where prices are deflating.

Follow the link to the New York Times inflation graphic.  Hover your mouse pointer over any of the sections of the chart to see detailed information about that category.

It’s fairly clear to see which categories are placing pressure on clients’ cash flow: gasoline, oil (heating and automotive), and basic food staples.  Whether or not advisers place much faith in the BLS data is one thing, but the graphic is a great concrete way to illustrate how inflation affects clients’ cash flow.

Succession Registry Review

hsMy firm is seeking to hire a new employee, so I have assisted in sending out notices through my various networks to find qualified candidates. One individual recommended that I use the services of the Succession Registry, a relatively new resource first mentioned in the October 2007 edition of Inside Information published by Bob Veres.

Succession Registry is an online career website where Rainmakers, aka employers, can post available positions that can be searched by Wellsprings, aka prospective employees. The service is free for Rainmakers and costs $9.95 per month for Wellsprings. Many have commented that the nominal fee for job seekers increases the quality of the candidates that contact employers regarding open positions, and I agree that it likely succeeds in doing so (Note that Craigslist has done the opposite where employers must pay a $25 fee to post an ad to cut down on the work-from-home advertisements).

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Investment News Highlights Blogs

RSSDavis Janowski over at Investment News highlighted a few blogs in the financial adviser service space in his weekly column, Tech Bits. He identified a new blog called Money Bytes authored by Edmond J. Walters, CEO and Founder of eMoney Advisor, Inc. I had the opportunity to speak with Mr. Walters about eMoney at an FPA annual conference and I’m happy to see the product doing well in the adviser marketplace.

The first thing I did was hop over to Money Bytes and try to add an RSS feed to my Google Reader. Oops, no feed exists for the Money Bytes blog. Also conspicuously missing is the ability to leave comments on blog posts. Hmm. Does this really qualify as a “blog” in the Web 2.0 sense, or is it simply a standard advertising page supplied with weekly commentary?

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Improve Your Paperless Document Searches

OCRFinancial advisers create large volumes of data due to the comprehensive nature of the financial planning process. Portions of the material generated include documents that can easily be searched, such as Word documents of financial plans, Excel worksheets with calculations, and email correspondence with clients and allied professionals.

There are also many types of documents that advisers do not generate, such as third party brokerage statements and insurance policies supplied by a client during the data-gathering process. Adviser firms are adopting paperless office practices in increasing numbers to reduce the amount of paper stored for all of these documents. However, paperless versions of these third party documents pose a problem to advisers as they cannot quickly be searched for information critical to the comprehensive financial plan.

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FPA and AARP’s Guide to Working With Older Clients

FPA & AARPThis morning when I arrived at work I received a notification from the Financial Planning Association® (FPA®) regarding a new publication for its members. The booklet is titled A Financial Professional’s Guide to Working with Older Clients and is filled with quite a bit of information that nearly all financial professionals will find useful.

As an active member of the FPA and also a volunteer with AARP (see my former posts about working with Tax-Aide), I am pleased to see the collaboration between these two organizations. I can say with certainty that most CFP Board-registered education programs do not prepare students for the unique challenges of working with these diverse clients.

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Tools to Schedule Collaboration

When Is GoodAs a busy financial planning professional, I send out many requests for meetings, conference calls, and other events throughout each week.  Some are fairly easy to schedule, such as one-on-one time with a co-worker, but every so often there are times where I need to send a request to numerous individuals and make a futile attempt to work around their own busy schedules.

Fortunately, I have been able to avoid sending out a flurry of emails to attempt to schedule an event as I have come across two unique web utilities.  I have been using Doodle for a while and recently discovered When Is Good through a recent Lifehacker post.

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TWR Reports and Your Portfolio Management Software

camsDuring the production of our quarterly reports earlier this month, I discovered an interesting property of our portfolio management software (PMS), dbCAMS+. The reports delivered to clients include a variety of information including a report showing the time weighted rate of return (TWR) for asset classes and the portfolio as a whole.

TWR Primer

Essentially a TWR report eliminates the effect of cash flows into and out of an investment and simply identifies the return of the underlying asset. Since cash flow is negated, TWR has become a useful measure when comparing investment managers’ performance, as they cannot control the inflow and outflow of cash within their managed assets.

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FPA Increases Membership Dues, Adds Member Segments

FPAThe Financial Planning Association (FPA®) Board of Directors recently approved changes to its membership structure, most notable of which is an increase of up to $100 in membership dues. The changes become effective on June 1, 2008.

Currently there are two main categories of FPA membership; Individual members and Institutional members. The Individual member category includes three segments:

  1. Financial Planner Members (CFP® certificants or former IAFP members)
  2. Members (individuals demonstrating a professional interest in financial planning)
  3. Students (individuals enrolled in a CFP Board-registered program)

Dues for the individual members currently range from $145/year for Students to $295/year for Members and Financial Planning Members.

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Done with Quarterly Reports; How About You?

pie chartI have invested many months in an attempt to make the production of quarterly reports much more of a turn-key process in my firm.  I am happy to say that by lunchtime on April 2nd, I finished all the quarterly reports and associated workpapers that will be provided to the planners and, ultimately, to our clients.  (Update, April 3: Well, I discovered errors within the reports, but they are due to a custom plugin to our Portfolio Management Software, dbCAMS.  So for all intents and purposes, they are done, but I’ve had to go through additional steps to circumvent the plugin errors.)

This all started when I was first interviewing with the firm.  Part of the negotiation process included a provision that I was not able to take vacation during the first two weeks of the month that followed the end of a quarter.  The quarterly production cycle and associated work with fee calculations generated a lot of work and anxiety.  Therefore, the owners requested that the Operations Manager be present in the office while this work was completed.

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