FIC Blog

We believe in – and live by – a philosophy of excellence.

Average is not good enough … Our goal at Family Investment Center is excellence. We find excellent investment products and supervise an excellent service package. We maintain a library of excellent research materials and financial planning resources. We also demand top safety and security for our clients.

We won’t settle for average. We continually seek top managers or securities and meld them into superior custom portfolios. Each palette of investments is carefully tailored to personal or family goals. We enlist excellent managers, research, resources, and effort for our clients. Don’t settle for average. You deserve excellence.

Please search our blog posts for answers to common investment questions, and we look forward to sharing our knowledge and experience with you first-hand.

Investment Advice is Actually Applied Portfolio Science

 

Practical Steps Toward Solid Goals With the Right Investment Advice

 

Investing isn’t about guessing at stocks and bonds or simply selecting which bonds might have the highest interest rates. To the contrary: managers looking over large portfolios, such as pension plans, university foundations and charitable endowments utilize applied portfolio science in a deliberate way, and it’s investment advice you can use in your own planning.

In a practical sense, these large portfolio advisors are looking more at the forest and less at the trees. You can use this philosophy as you look at your 401(k) or IRA investments. If investing has never appealed to you, it should be mentioned that it can actually be fun. Surely you know some people who enjoy the challenge of it. However, be warned – if you’re getting a thrill out of investing, you might be looking at all the trees and have no eye on the forest.

Your winnings on a hot stock might be a thrill, but how many losses did it take to get there? And did you just break even? Results matter, and these aren’t the results you want. If you’ve made a decision that has a potential swing in your eventual portfolio of $100,000, $50,000 up or $50,000 down, what would you do with the $50,000 extra? Buy a better car? Add a cruise or two to your vacation calendar? Upgrade your housing option?

What if the portfolio suffers the $50,000 down? What will you give up? Vacations? Drive an older or cheaper car? Medical insurance? Prescriptions? Rent? You can’t be focused simply on making money – you have to have a plan for long-term results that will set you up for the future when your career ends. This might require some behavioral changes that put less focus on toys, such as bigger homes and faster cars.

Fortunately, you have measurements all along your investment journey to assist you. Here are some practical solutions you need to consider as you plan your strategy:

  • Use a goal-based system for finance and investing. What is the upside and downside of achieving those goals?
  • Internalize that reward or penalty for each financial goal. Often, the penalty is far more powerful than the reward.
  • Don’t impose artificial schedules on something that can’t be scheduled. Investing works, but the cycles and time required are irregular. The stock market, especially, grows in fits and starts.
  • Forget the “get rich quick” stuff. The hot stock tip or lottery ticket are long shots. They aren’t a practical solution for reaching your goals.
  • Find a good fiduciary advisor to help. Not next week or next month, or “when I get some money.” Today. You surely fall into one of two categories: you know what you need, and a professional can help you get better, or you don’t know what you need, which is an even stronger case for getting help.

At Family Investment Center, we bring the investment advice that is customized to fit each individual situation. Come talk to us in our commission-free, jargon-free setting and we’ll help you see that “Money is freedom, and freedom is fun.”

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Off to a Late Start? Planning for Retirement Starts Today

Planning for Retirement Later in Life

 

It’s no secret – many Americans aren’t financially ready for life after a career. If you are 40 or older and unprepared for retirement, what steps can you take to start planning for retirement now?

Take Advantage of “Catch Up” Opportunities

If you are 50 or older, you are allowed to make “catch up” contributions to your retirement accounts. For example, if you have a 401(k), you can contribute an extra $6,000 per year to it. Younger investors are held to the $18,000 annual contribution limit.

If you have an IRA, you’re held to $5,500 annual contribution limit, then when you’re 50 or older, you can put in an extra $1,000 per year. That might not seem like a lot of extra money, but if you make those extra contributions over the 15-year period before you retire (assuming you retire at 65), you will be able to increase your retirement nest egg substantially.

Make Approximations for the Future

Good retirement strategies are based on goals. In order to establish goals, you’ll need to crunch some numbers, which means you have to approximate how much money you’ll need in retirement to cover all your expenses. Keep in mind many people will live ten to 15 years longer than they anticipate.

Once you know how much you will need to live comfortably, you can start adjusting your investment strategy accordingly. This might require some adjustments to the way you are currently living, i.e. making cuts in expenditures so you’ll have more money to put toward investments.

Put the Hammer Down

To use an automotive term for rapidly accelerating, this is exactly what you need to do with your investment accounts if you are 40-plus and haven’t started saving for retirement. You need to do everything you can to max-out your retirement accounts, such as your employer-sponsored plan and IRA.

You may have a lot of ground to cover in a short amount of time. Make cuts where necessary, such as vacations or new cars or buying a new house, and save vigorously.

Adjust Plans as Needed

If planning for retirement has been put on the back burner for you, for whatever reason,  it doesn’t mean all is lost. If your original idea of retirement was one of fun and relaxation, you might have to consider working part-time in “retirement.” This income will help cover the shortfalls that your investments won’t cover while still allowing you to live a lifestyle that fits your comfort level.

Also, if your idea of retirement was to begin at age 65, you might consider keeping that full-time job for a few more years. This extends the life of your investments, meaning you won’t dip into them as soon as you had planned, giving you more assurances for covering costs when you do finally hang up your career for good.

At Family Investment Center, we can help you navigate these complex waters. Don’t be intimidated by the process of planning for retirement. Let us help you make crucial decisions now that will help you later.

 

Here’s a little more food for thought: November 2017 is Millionaire’s Month at Family Investment Center. Why are millionaires wealthy? How do they think? What do they do (or not do) that you can apply to your own life? Is there a secret? Read more on our website or listen to Money is Freedom on SoundCloud or iTunes for a special four-part series.

 

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Is Investing for Women More Stressful?

Take a Different Approach to Investing for Women

 

Are Americans on the right track with a strategy for adequate retirement savings? A report by MassMutual would put the answer at a resounding “no.” The report found that 72 percent of people overall agreed they aren’t prepared for retirement. But what about women? Is investing for women any different than it is for men?  Do women feel they are as unprepared financially for retirement as men do?

The answer is “yes,” as the report found that women are three times more likely to say they can’t save for retirement. Women are also more likely than men to say that financial concerns are a cause of stress in their life, limiting how they function in the world and receive medical care. Not surprisingly, it can also be the source of friction in relationships.

The report did find that women are more likely than men to seek employer-sponsored programs to help them feel more confident about their finances. However, when it comes to Social Security counseling, men are more apt to seek that out than women. That doesn’t mean women are less concerned about their Social Security and talk of cuts to that program, as the report found that only 33 percent of men were concerned compared to 52 percent of women.

What are some steps women can take now toward a financially secure retirement? Here are some keys for starting:

·         Workplace Retirement
If your workplace offers a retirement plan, sign up for it. Your contributions could help reduce your income taxes, and it’s often money that you don’t miss because it is directly deposited to the account from your payroll.

·         Pursue More Education
You will gain more confidence and conquer reservations or outright fear of investing if you’re more financially literate.  Consider talking to an advisor that cuts out financial jargon and explains things simply.

·         Avoid Emotions
It’s been said before – emotions and investing don’t mix. Bad decisions are almost always made on a “gut feeling” that is brought on by an emotional outburst.

·         Stay the Course
Investing shouldn’t be a short-term strategy. Only people looking to “play the market” think of it that way. The market will rise and fall, sometimes sharply in the short term.  Stick to a long-term plan and diversify your portfolio to boost your return potential.


If the process of going to a financial advisor intimidates you, just remember that we work with people in every stage of their investment strategy, from young investors just starting out in their careers to those who are well into their retirement. We work with people who are quite literate in finances and investing and with people whose knowledge goes no further than a checking account.

At Family Investment Center, we can help both men and women with an investment strategy that is personalized for their unique needs. Come in today and let’s chat about your plans for the future. Here’s another note of interest:  November 2017 is Millionaire’s Month at Family Investment Center. Why are millionaires rich? How do they think? What do they do (or not do) that you can apply to your own life? Is there a secret? Read more on our website or listen to Money is Freedom on SoundCloud or iTunes for a special four-part series.

 

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What Makes Our Investment Advisors Unique?

3 Things You Need to Hear an Investment Advisor Say

 

Dan Danford, CEO and founder of Family Investment Center, came to the industry “by accident.” While working in the trust department of a bank, Danford was in charge of pension and profit sharing plans. He found that he was proficient at explaining investing to people that helped them better understand the process.

He parlayed that talent by creating Family Investment Center, bucking the trend in the industry by establishing a fee-only structure of payment. As a fiduciary, Danford and his team are solely focused on the best interests of their clients.

Danford is featured in a video on Investopedia where he explains how the Family Investment Center approach is unique in the industry. He also offers insights into how the team thinks about investing. Read on for a summary of these insights.

1. About Family Investment Center: You get a whole team

“People who walk in our door don’t get assigned to a particular advisor and work with that advisor. Instead, our team helps every single client. Each and every one of us sees all the transactions for all our clients every day. Each and every one of us has access to notes and files. That way, no matter who you are or what your situation is, you aren’t dependent on the whims of one person.”

2. Investing Values: Practical insights

“I favor the ones that have been shown to work. When someone comes to me and they ask about investing, one of the first things I want to know is what their situation is so I can compare them in my mind to people I’ve worked with in the past. Then I can draw upon my experience and ask, ‘What has worked for those people and what is likely to work for these people?’”

3. Advice Most Frequently Given: Be mindful

“What I suggest to people is that they are mindful of what they do financially. If they’ll just give it some thought ahead of time, they’ll make wise buying decisions, and those pay off in the long term.”

For more information about how Family Investment Center works for our clients, contact us today and schedule a visit. November 2017 is Millionaire’s Month at Family Investment Center. Why are millionaires rich? How do they think? What do they do (or not do) that you can apply to your own life? Is there a secret? Read more on our website or listen to Money is Freedom on SoundCloudor iTunes for a special four-part series.

 

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Planning for Retirement as a Small Business Owner

Planning For Retirement Requires Focus on Diversification

 

Are you a small business owner who has avoided planning for retirement? If so, you’re one of a third of respondents to a survey from Manta that said they do not have a plan in place for their retirement. Among those, 37 percent said they don’t have enough money to save for retirement. But, what’s really happening?

A number of small business owners say they’re not planning for retirement because they simply don’t make enough to open a retirement account. However, there really isn’t such a thing as “too little” to begin saving. The truth is, many small business owners are actually reinvesting in their own company instead of focusing on a retirement account. While this seems at first glance as a responsible action, it really puts the owner at risk.

Almost 20 percent of those surveyed by Manta said they’ve taken what retirement accounts they had and sunk them into their business. Doing this means the business owner is losing money due to taxes, penalties, and tax-deferred potential growth. It’s a risk that shows the owner has really invested in the growth of the business, but it comes at a high cost.

Of the survey’s respondents, 20 percent also said they don’t have retirement accounts because they plan to sell their business before retiring. However, what if the timing isn’t right? What about those business owners who had a long-term plan to retire in 2009? They are likely still working today, trying to recoup what they lost. The fact is, nobody really knows what the market will bring, so your best-laid plans can fall victim to unforeseen circumstances.

As a small business owner, here are a few important steps for you to take toward a solid retirement strategy:

·         Invest in a self-employed retirement plan, such as an individual 401(k), a SEP-IRA, or a SIMPLE IRA.

·         Create a plan for leaving the company. A succession plan can keep your business afloat in your absence, offering you a stable income.

·         Planning for retirement should include setting a tentative retirement date. Evaluate your lifestyle and talk to your investment advisor about how you can make a smooth exit that allows you to live comfortably in retirement.


Planning for retirement isn’t easy, especially when you’re passionate about your business and you want to see it succeed after you leave, or if you want to get what you feel it is worth when it’s time to sell. At Family Investment Center, we can help you navigate all the various decisions that have to be made. Contact us today and let’s begin planning for your retirement.

 

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