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.

How You Get Financial Advice Will Change in the Future

Family Investment Center’s Salmen Talks About Financial Advice and a New Rule

 

The debate around a fiduciary rule is heating up again, which means you’re going to see more about the Certified Financial Planner® (CFP) Board of Standards as its Code of Ethics and Standards of Conduct reaches new areas. Also called the fiduciary standard, it’s been widely debated since the Department of Labor created a controversial rule in 2016 that could impact financial advice given by professionals.

Richard Salmen, president of Family Investment Center, is also the 2018 Chair of the CFP® Board of Directors, which means he’s often in high demand as a source for news articles on various financial/investment topics. He was quoted recently in two articles, one in the Chicago Tribuneand the other in Barron’s.

The CFP® voted that the 80,000 CFPs in the United States would have to follow the new fiduciary rule beginning in October 2019. The current standards say that CFP®s only have to follow the fiduciary standard when offering financial planning services. However, in October of next year, they’ll have to act as fiduciaries whenever they’re giving any type of financial advice.

“This is a monumental step forward in the evolution of not just CFP® certification,” Salmen told Barron’s, “but for the profession of financial planning.”

Many investment businesses have already made sweeping changes to comply with the fiduciary rule, some brought lawsuits saying the labor department had overreached in establishing the new rule. The Securities and Exchange Commission is proposing its own fiduciary rule, which willaffect retirement and non-retirement accounts.

Despite rumblings and rumors, the CFP® board decided to take action and not leave anything to question.

“We are raising the bar even higher now with a fiduciary standard that will apply anytime a CFP® professional gives financial advice,” Salmen told the Chicago Tribune.

The debate began following a White House report (Obama Administration) outlining how conflicted advice from investment advisors costs investors billions of dollars per year. However, for those, like Family Investment Center that have always operated as fiduciaries, the new rule only solidifies the way in which they’ve always practiced their profession.

The change in administrations at the White House has caused some back and forth. The Trump administration delayed implementing the Department of Labor fiduciary rule until July 2019.

“For those who want to avoid conflicted advice from investment professionals, always ask if they are held to the fiduciary standard. Make sure there are no hidden fees or commissions to be made off products they recommend,” says Salmen.

At Family Investment Center, we’ve operated as fiduciaries since day one. Contact us today and let’s plan your future.

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Family Investment Center Team Talks About Books That Inspire Serious Thinking and Real Change: The Full List

The Family Investment Center team is talking about the books that have influenced their view of business success, or of life in general. Enjoy this list below and add a few to your personal shelf!

 

 

Richard C. Salmen, President

The Power of Full Engagement: Managing Energy, Not Time, is the Key to High Performance and Personal Renewal    - Jim Loehr and Tony Schwartz

 

Why Richard loves the book:

The central premise of the book is that energy, not time, is the fundamental currency of high performance. From the authors: “This insight has revolutionized our thinking about what drives enduring high performance. It has also prompted dramatic transformations in the way our clients manage their lives, personally and professionally. Everything they do—from interacting with colleagues and making important decisions to spending time with their families—requires energy. Obvious as this seems, we often fail to take into account the importance of energy at work and in our personal lives. Without the right quantity, quality, focus and force of energy, we are compromised in any activity we undertake.”

 

How it changed his life:

The challenge of great performance is to manage your energy more effectively in all dimensions to achieve your goals. Four key energy management principles drive this process. They lie at the heart of the change process and they are critical for building the capacity to live a productive, fully engaged life.

 

PRINCIPLE 1: Full engagement requires drawing on four separate but related sources of energy: physical, emotional, mental and spiritual.

 

PRINCIPLE 2: Because energy capacity diminishes both with overuse and with underuse, we must balance energy expenditure with intermittent energy renewal. To be fully engaged requires strength, endurance, flexibility, and resilience in all dimension. The richest, happiest and most productive lives are characterized by the ability to fully engage in the challenge at hand, but also to disengage periodically and seek renewal.

 

PRINCIPLE 3: To build capacity, we must push beyond our normal limits, training in the same systematic way that elite athletes do. Stress is not the enemy in our lives. Paradoxically, it is the key to growth. In order to build strength in a muscle we must systematically stress it, expending energy beyond normal levels. Doing so literally causes microscopic tears in the muscle fibers. At the end of a training session, functional capacity is diminished. But give the muscle twenty-four to forty-eight hours to recover and it grows stronger and better able to handle the next stimulus. While this training phenomenon has been applied largely to building physical strength, it is just as relevant to building “muscles” in every dimension of our lives—from empathy and patience to focus and creativity to integrity and commitment. What applies to the body applies equally to the other dimensions of our lives. This insight both simplifies and revolutionizes the way we approach the barriers that stand in our way.

 

PRINCIPLE 4: Positive energy rituals—highly specific routines for managing energy—are the key to full engagement and sustained high performance. Change is difficult. We are creatures of habit. Most of what we do is automatic and nonconscious. What we did yesterday is what we are likely to do today. The problem with most efforts at change is that conscious effort can’t be sustained over the long haul. Will and discipline are far more limited resources than most of us realize. If you have to think about something each time you do it, the likelihood is that you won’t keep doing it for very long. The status quo has a magnetic pull on us. The power of rituals is that they insure that we use as little conscious energy as possible where it is not absolutely necessary, leaving us free to strategically focus the energy available to us in creative, enriching ways. Look at any part of your life in which you are consistently effective, and you will find that certain habits help make that possible.

 

How it changed the way he thinks about his business:

Whenever a client tells me “I don’t have time for that.” I now know that what they are really saying is “I don’t have the energy for that.” We then need to dig deeper to understand what their real motivation is and what the real challenges are in order to help them change the financial behavior that is limiting their potential.

 

What makes a lasting impression from this book:

• Our most fundamental need as human beings is to spend and recover energy. We call this oscillation.

• The opposite of oscillation is linearity: too much energy expenditure without recovery or too much recovery without sufficient energy expenditure.

• Balancing stress and recovery is critical to high performance both individually and organizationally.

• We must sustain healthy oscillatory rhythms at all four levels of what we term the “performance pyramid”: physical, emotional, mental and spiritual.

• We build emotional, mental and spiritual capacity in precisely the same way that we build physical capacity. We must systematically expose ourselves to stress beyond our normal limits, followed by adequate recovery.

• Expanding capacity requires a willingness to endure short-term discomfort in the service of long-term reward.

 

Additional titles on Richard’s “must read” list include:
The Life-Changing Magic of Tidying Up: The Japanese Are of Decluttering and Organizing  - by Marie Kondo

 

The Science of Liability: 27 Studies to Master Charisma, Attract Friends, Captivate People, and Take Advantage of Human Psychology  - by Colin Falconer

 

Rising Strong: How the Ability to Reset Transforms the Way We Live, Love,
Parent, and Lead - by Brene’ Brown

 

The Subtle Art of Not Giving a F*ck: A Counterintuitive Approach to Live a Good Life - by Mark Manson

 

The ONE Thing: The Surprisingly Simple Trust Behind Extraordinary Results - by Gary Keller and Jay Papasan

 

Daring Greatly: How the Courage to Be Vulnerable Transforms the Way We Live, Love, Parent, and Lead – by Brene’ Brown

 

Linchpin: Are You Indispensable? - by Seth Godin

 

Mindset: The New Psychology of Success – by Carol S. Dweck

 

The Coaching Habit: Say Less, Ask More & Change the Way You Lead Forever
- by Michael Bungay Stanier

15 Secrets Successful People Know About Time Management: The Productivity Habits of 7 Billionaires, 13 Olympic Athletes, 29 Straight-A Students, and 239 Entrepreneurs

- by Kevin Kruse

 

Drive: The Surprising Truth About What Motivates Us – by Daniel H. Pink

Fierce Conversations: Achieving Success at Work and in Life One Conversation at a Time – by Susan Scott

How to Get Lucky: 13 Techniques for Discovering and Taking Advantage of Life’s Good Breaks – by Max Gunther

 

Essentialism: The Disciplined Pursuit of Less

- by Greg McKeown

 

Antifragile: Things That Gain from Disorder  by Nassim Nicholas Taleb

 

Emotional Intelligence 2.0  by Travis Bradberry, Jean Greaves

 

Get Out of Your Own Way: The 5 Keys to Surpassing Everyone’s Expectations

by Robert K. Cooper

Multipliers: How the Best Leaders Make Everyone Smarter

by Liz Wiseman; Greg McKeown

 

The Why of Work: How Great Leaders Build Abundant Organizations That Win

by David Ulrich; Wendy Ulrich; Marshall Goldsmith

 

The Rational Optimist: How Prosperity Evolves

by Matt Ridley

 

Influencer: The Power to Change Anything, First Edition

by Kerry Patterson; by Joseph Grenny; by David Maxfield; by Ron McMillan;
by Al Switzler

 

Go Put Your Strengths to Work: 6 Powerful Steps to Achieve Outstanding Performance

by Marcus Buckingham

 

What You Can Change…and What You Can’t: The Complete guide to Successful Self-Improvement  - by Martin E.P. Seligman

Outliers: The Story of Success - by Malcolm Gladwell

 

 

 

Dan Danford, CEO/Founder

 

Quiet,by Susan Cain

 

Why you love the book:

Do you get energy from being around people, or from thoughtfully recharging your personal battery? This is a fascinating discussion about introverts. American society historically rewards extroverts with big personalities. Yet, 30-40 percent of us are introverts. Interestingly, some incredibly successful and inspiring people are introverted.

 

How it changed your life:

My personality never really fit the extrovert salesperson model suggested in business school, or the typical stockbroker. I’ve overcome that in a lot of ways, but I always suspected my quiet ways reflected some sort of character flaws. It’s been amazing to discover – late in life – that those very traits are “normal” and can be helpful in business.

 

Why it changed the way you think about your business:

I suddenly realized that my ability to read, understand, write, and explain (introvert traits) are responsible for most of my business successes. The very things that seemed negative are enormously positive.

 

Fortunate Son, by John Fogerty

 

Why you love it:

I read a lot of books about rock ‘n roll and this is one of the most authentic. Fogerty chronicles his life story with some incredible insights about his life’s ups and downs.

 

How it changed your life:

There are many ways to live a creative life. Creativity brings to mind occupations like songwriters and actors, but there’s creativity in jobs from teachers to entrepreneurs. The creative process is unique to each person, but the challenges can be similar. Fogerty suffered horribly at the hands of his early manager and others he trusted (all Creedence Clearwater Revival royalties still flow to others). Still, he grew beyond all that and became one of America’s most beloved and successful performers.

 

Why it changed the way you think about your business:

It’s pretty common to encounter bad situations and people in business, but I admire John Fogerty for rising above the parasites.

 

What’s your favorite quote from the book?

One of my all-time favorite songs features John Fogerty singing “Put me in coach, I’m ready to play.” I love the lyrics and the infectious tune and you’ll hear it over the loudspeakers at ballparks all summer long. Fogerty wrote the song and played every instrument on the record. It’s a solo recording!

 

The End of Power, by Moises Naim

 

Why you love this book:

The world is changing and Naim explores how 24/7 news and social media influence the seats of traditional power. From politics to economics to social culture, power is diminished everywhere by the new order of worldwide openness.

 

Why it changed your life:

There are no secrets. You’ve heard the adage that “knowledge is power” and that has always been true. Today, it’s very hard to exercise power or earn profits by hoarding information. That knowledge leverage is gone.

 

Why/how it changed the way you think about your business:

Data about almost everything is readily available, but converting it to usable information and making it operational is where value lies.

 

What surprised you most from what you read?

There were amazing examples from around the world. For instance, I was surprised to find that institutions like churches and universities also suffer consequences from these changes.

 

Nudge, by Richard Thayer

 

Why you love the book:

Thayer won a Nobel Prize for these ideas. The traditional notion that “more is better” is turned upside down as Thayer explains that too many choices often create bad results. Most people choose better among a handful of options than a dozen. It’s counterintuitive, but you know it is true if you ever watched someone new study a Starbucks menu.

 

How it impacted your approach:

The best way to help people is to guide them in the right directions.

 

How it changed the way you think about your business:

In business, people turn to us for help. Most times, they understand and expect that we know more than they do. It’s good to offer them choices, but too many choices can paralyze them. It’s best to narrow the choices while staying prepared to go deeper. Probably better to say less and know more!

 

Is there anything in particular that made a lasting impression from this book?

Thayer explained the 401(k) dilemma first revealed to me back in the 1980s. The 401(k) premise was to offer employees choices on how to invest their retirement savings. Unfortunately, many people opted out of the plans because they were burdened by all the options. Even people who opted into the plans often made sub-optimal choices, but now we know it is better to build positive defaults (nudges).

 

 

 

Chris Steins

 

The Total Money Makeover, by Dave Ramsey

 

Why you love the book:

I was lucky enough to read this as a young adult and it has turned out to be a true blessing for my family. 

 

How it changed the way you think about business:

This book is partly responsible for me wanting to help others by joining the financial profession. 

 

Any favorite quotes from the book?

Anyone familiar with Dave Ramsey knows his famous financial sound bite: “IF YOU WILL LIVE LIKE NO ONE ELSE, LATER YOU CAN LIVE LIKE NO ONE ELSE”.

 

 


Laura Holthaus

 

48 Days to the Work You Love: Preparing for the New Normal, by Dan Miller

 

Why you love the book:

It was an excellent read after graduating from college and being unsure of which career path to take.

 

What’s your favorite quote from this book?

 “Success is never an accident. It typically starts as imagination, becomes a dream, stimulates a goal, grows into a plan of action—which then inevitably meets with opportunity. Don’t get stuck along the way.”

 

 

 

Maybe your bookstore wish list just grew by a few, or maybe you’re intrigued to know more about how the team at Family Investment Center are shaped by these ideas. Make an appointment with us to talk more about the ideas that come into play when we’re helping you create the future you want.

 

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Family Investment Center Team Talks About the Books That Inspire

Books are unique in their ability to inspire, inform and shape philosophies – all through the power of the written word. We’re entering a time of year where we can take a book to our porches and read in comfort. Consider these books for investment advice or just to get a good read for the pure enjoyment of it, each of which comes from a team member at Family Investment Center.

Dan Danford, CEO:

Nudge, by Richard Thayer

This Nobel Prize winner takes on the traditional notion that “more is better,” and turns it on its head. Thayer explains that most people choose better when they have fewer options. Ever witness a Starbucks first-timer labor over the menu? With a little guidance from a “professional,” they can be guided down the right path to something they will like. This is the same logic that can be used in guiding clients who need investment advice.

Fortunate Son, by John Fogerty

If you’re a rock and roll fan, this is a must-read. John Fogerty, the man behind Credence Clearwater Revival, has had a number of ups and a handful of downs. He chronicles them in this book. Fogerty also touches on what it means to live a creative life and how that approach can be used in things other than rock and roll.


Quiet, by Susan Cain

As much as 40% of us are introverts. While the extroverts are often the most rewarded for their outgoing and big personalities, the traits that make an introvert the way they are can also be found in successful people. Cain writes that churches are built for extroverts, as are sales and marketing models. However, introverted traits, such as a passion for reading, writing and understanding various philosophies, are responsible for the success of many people.

The End of Power, by Moises Naim

Naim explores how the 24/7 news and social media cycles influence the seats of traditional power. Power is diminished everywhere, including in politics, economics and social culture, by the new order of worldwide openness. There are no secrets anymore, which means the “knowledge leverage” as we knew it is gone. You can find data about anything, yet converting it to usable information and making it operational is where you will find value.

Richard C. Salmen, President:


The Power of Full Engagement: Managing Energy, Not Time, is the Key to High
Performance and Personal Renewal
, by Jim Loehr and Tony Schwartz

The central premise of the book is that energy, not time, is the fundamental currency of high performance. The challenge of great performance, as Schwartz and Loehr discuss in these chapters, is to manage your energy more effectively in all dimensions to achieve your goals. Four key energy management principles drive this process, and they lie at the heart of the change process and are critical for building the capacity to live a productive, fully engaged life.

Chris Steins, Investment Advisor:

 

The Total Money Makeover, by Dave Ramsey

Even young adults have read this book and used its contents to assist them in taking a healthy approach to managing money. Want to know how to lay the groundwork for a more advantageous financial lifestyle? This book can help you. Need to get out of debt? This book will offer ways to do that. Want to be better prepared for retirement? Dave Ramsey has some ideas for you.

 

Laura Holthaus, Investment Advisor and Chief Compliance Officer:

 

48 Days to the Work You Love: Preparing for the New Normal, by Dan Miller


Picking the right career can be intimidating to say the least. Dan Miller offers some insights along that subject line, but also talks about what work exactly is, how change can be challenging, finding your unique path and how the workplace continues to evolve.

 

What books are you reading this spring? At Family Investment Center, we’re no stranger to a good book, including those that address our industry and otherwise. We like to stay connected and reading is a great way to accomplish that. Need some ideas on investing? We have some book recommendations, but we can also schedule an appointment for you to come in and chat with us about your investment options.

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What Does Financial Planning Look Like When Your Employer Closes Its Doors?

Dan Danford Shares How Financial Planning is Different for Each Employee

 

When the Harley Davidson plant in Kansas City closes its doors next year, approximately 800 workers will experience a life-changing event. Financial planning is important for everyone, but when losing a job, it becomes crucial.

As Dan Danford, CEO of Family Investment Center, said in an op-ed in the Kansas City Star, the next steps these employees take will be critical.

Different ages, different number of family members, different financial needs and other aspects make each situation unique. The approach an individual takes to this situation will not be a one-size-fits-all scenario. In fact, Danford notes that it’s a mistake to follow the lead of a colleague.

“Good choices depend on thoughtful analysis of some personal issues,” Danford said.

For example, current financial status must be taken into consideration: Is the person married or single? Do they have other family income, such as a spouse who works and can take care of health insurance? Is there an emergency reserve in the bank they can count on until another job is secured? If a job isn’t immediately available, how long can they go without a steady paycheck? These are all important financial planning questions.

“Younger workers may face a big mortgage and a houseful of children,” Danford said.
“Older workers may have health limitations or fewer job prospects. Some workers nearing retirement age anyway may choose not to seek another job.”

Taking Care of Health Insurance
COBRA benefits offer a short-term solution for health insurance, but it comes at a price and it’s not very flexible. Because Harley Davidson offered good insurance, former employees will probably face a situation where their premiums will be high in comparison, which will impact the budget.

Young workers will have access to individual policies that don’t have all the bells and whistles older folks require, so they can probably save some money there. However, anyone with a spouse and children will need something more extensive, and COBRA only covers them for around 18 months.

The Retirement Plan
While it’s tempting to dip into that 401(k) plan while unemployed, it’s not recommended because the costs are high in a number of ways. As you likely already know, you’ll have to pay taxes, state and federal, on funds you withdraw. Second, when you pull money out of your 401(k), you’re negatively impacting the ability of that vehicle to build up compound interest, which sets you back months, if not years. A better choice would be to borrow money elsewhere.

Adjusting the Budget
Danford notes that it’s always tough for workers to scale back a comfortable lifestyle. However, given the fact that these employees will have had many months to prepare for this situation, they can begin gathering information.

“How much adjustment is needed?” Danford said. “Where can you adjust without disrupting your lifestyle and needs? Are there things you can do to boost your emergency fund or savings? Can you sell unused items? Empty the garage or basement, perhaps?”

Finally, Danford offers that, “trauma is likely to be short-lived. Unemployment in the United States is low and good workers are in demand everywhere. It is likely employees will find new work faster than it seems.”

For more information about financial planning for you and your family, contact Family Investment Center today.

 

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Navigating Investment Advisor Fees

In a Time of Complexities, a Fiduciary May be the Solution

 

The opaque nature of the fee structure that many investment advisors follow has prompted Jay Clayton, SEC chairman, to target the complexities in hidden fees that are bad news for investors. Fiduciaries who are fee-only are becoming a more popular option for investors who need assistance in planning out their financial future.

Clayton is looking to crack down through enforcement, but also by clarifying disclosure requirements, according to an article in Investment News. Clayton has spoken out recently about advisors who are putting money for clients into an expensive mutual fund rather than those that are low-cost. Also, he’s spoken out about a type of financial advisor who will use fund assets to pay expenses for their firm when those expenses should be covered by the firm.

There is also the issue of brokers that will mark up securities prices to give themselves a raise, and they do it in secrecy. Consumers are beginning to take notice, as they become more fluent in investment terms – and as they continue to watch market dips with apprehension.

Fiduciaries act in the best interest of the client, and they typically have less complex fee structures to prevent confusion for clients or keeping them in the dark about what they’re being charged. Commission-free fiduciaries pose far less risk of giving advice that isn’t objective. The White House under Obama put out a report that said, “Some firms incentivize advisers to steer clients into products that may have higher fees and lower returns.” This conflict of interest was estimated to cost investors $17 billion a year.

Simply put, fiduciaries are advisors who will listen to you about your fears, your goals and how you want to spend your life in retirement, then offer advice that is in your best interest. A good advisor will speak in terms that you understand, yet without talking down to you. They will charge a fee that is transparent and easy to understand.


At Family Investment Center, we’ve operated as a fiduciary since day one. Our entire team has a hands-on approach to managing clients’ accounts, which means we collaborate to ensure that every client is thoroughly covered and getting what we feel to be the best advice. Schedule an appointment with us today and find out why jargon-free, client-first service can be a straight path to confidence.

 

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