the Financial Planning Association
PLANNER IS PUBLISHED BY:
February 2011, Vol 12 Issue 2
FPA of Silicon Valley FPA of San Joaquin Valley FPA of the East Bay FPA of San Francisco FPA of Monterey Bay
www.FPASV.org www.FPASJV.org www.FPAEastBay.org www.FPASF.org www.FPAMontereyBay.org
Three Business Building
Technologies for 2011
by Bill Winterberg, CFP®
In the coming months, we will feature ment with strict access permissions, and
articles from guest speakers who will be documents are accessed quickly and
speaking at the 2011 FPA NorCal efficiently compared to searching paper
Conference. We are pleased to introduce filing cabinets for one elusive docu-
technology expert Bill Winterberg. For ment.
more information about Bill's presenta- But if the benefits of ERM are so
tion or the conference in general, please appealing, why are the majority of advi-
visit www.FPANorCal.org. sors still not using it? According to
Financial Planning Magazine's 2010
As this article goes to press, stock Technology Survey, nearly 70% of all
indices are at 28-month highs, total respondents are not using some form of
2010 holiday retail spending rivals that ERM. In the past, adopting electronic
of 2007's record, and December's pri- records meant that you had to access
vate-sector employment is surging to its Bill Winterberg, CFP® provides tech- information while at a computer. You
highest level on record. While many nology consulting through couldn't take the data with you unless
www.FPPad.com and is the technol-
effects of the Great Recession still linger, you printed it out and put it in your
ogy columnist for Morningstar
advisors I speak with are finished slash- Advisor. briefcase or loaded files onto a laptop.
ing operating budgets and are looking to Cont’d on pg. 3
restore growth and increase profitability in 2011. Below
I highlight three technologies gaining momentum that INSIDE
I feel will help you reach your business building goals
San Francisco Chapter ............................. 5
East Bay Chapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Go Digital San Joaquin Valley Chapter . . . . . . . . . . . . . . . . . . . . . . . 13
Now is the time to transition your business to electronic
Silicon Valley Chapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
records and document management. The advantages of
adopting electronic records management (ERM) are well Monterey Bay Chapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
known: recordkeeping is standardized for both client and Calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
business information, data is stored in a secure environ-
We would like to welcome all of the LPL
offices that joined The Network in 2010:
Bob Holstrom San Francisco
Mike Quinn San Diego
Brian Linde Sacramento
Kathy Zucchi San Francisco
Glen Bennett Washington, DC
Connie Meck Silver Spring, MD
Kathryn Carter Alexandria, VA
Kent Kuhlmann Napa
Amir Barar San Mateo
Jerry Anderson Garland, TX
Chris Giordano Los Gatos
For information on joining THE NETWORK please contact our President,
Daxs Stadjuhar or our Managing Director, Gordon Dunne at (650) 571-1934
“A Common Bond of Excellence”
Securities offered through LPL Financial, Member FINRA/SIPC, Investment Advice offered through Strategic
Wealth Advisors Group, Inc., a registered investment advisor and separate entity from LPL Financial.
FPA PLANNER FEBRUARY 2011, PAGE 2.
Three Business Building Meet Over the Web three main social networks; Twitter,
I lived in the San Francisco Bay Area Facebook, and LinkedIn.
Technologies for 2011 Change your intake forms and start
for 25 years, so I know just how hit-
Cont’d asking if your firm can connect to
or-miss Bay Area traffic can be. You
never know when you might get your client's Facebook, Twitter, and
So what has changed that makes caught behind a wreck on the Bay LinkedIn accounts. For those clients
this year the one to move to elec- Bridge while driving to a meeting, who approve, pay attention to what
tronic records? I believe the success but it's even worse if your client they post about and what activities
of the tablet computer in 2010, and happens to gets stuck on her way to they pursue.
the Apple iPad in particular, will your office. For example, one client may update
increase the rate of adoption of This year, offer your clients the her Facebook profile with pictures of
ERM by financial advisory firms of convenient option of meeting with the marathon she ran to raise money
all sizes. you using web conferencing and for a local charity. Knowing this, you
Tablet computers make it possible screen-sharing software. Free and can present what-if scenarios at your
to carry a device that provides access low-cost programs such as next meeting to evaluate charitable
to all of your firm's digital records in GoToMeeting, WebEx, and Mikogo contribution strategies, perhaps by
a simple, elegant form factor. Think allow you to share documents and making a qualified charitable distribu-
of a tablet computer as a piece of programs displayed on your com- tion from her IRA or by donating
electronic paper; instead of printing puter screen with your client over appreciated securities. Chances are
hard copies of documents from your the Internet. Clients can see whatev- your client will be very pleased that
computer for later use, copy them er is on your screen using their own your recommendations take into con-
to a tablet to take with you to your computer or even an iPad while you sideration her passion to support her
next meeting. talk over the phone. favorite charity.
Applications on tablet computers Screen-sharing software allows you
allow you to flip through pages of a to schedule client meetings without More Business Building Ideas
document just as you would with a having to take peak commute hours These are just three business building
hard copy. You can highlight, under- into consideration and choose times technologies I believe will contribute
line, and circle text on electronic that are the most convenient for your to your growth in 2011.
documents and even add notes and client. You can also use the software To learn even more, I invite you to
annotations that look like sticky for clients who do not live within a join me along with over 40 exception-
notes on paper. One significant reasonable driving distance from al speakers at this year's FPA NorCal
advantage tablet computers have your office. And for prospects, you Conference held May 31 and June 1
over printed documents is the ability can create a slide deck about your at the Palace Hotel in San Francisco.
to search for keywords throughout a firm in PowerPoint or Keynote and Register today to guarantee your spot
document, something that can't be review it in real-time with them over so you don't miss out on learning new
done with physical paper. the phone. ideas and techniques you can use to
Solutions for scanning and storing better connect with clients and build
documents have been around for Be Social your business.
years, but tablet computers have only If you want to make more meaning-
recently attracted significant atten- ful connections with your clients,
tion in the marketplace. Decreasing social networking should be one
prices and increasing features this business building technology you
year will lead to more tablets in use embrace this year. First, establish
by financial advisors, ultimately com- common-sense policies around your
pleting the third and final step in the firm's use of social networking web-
life cycle of electronic records, quick sites and get the go-ahead from
and efficient access. compliance. Then, create a profile
for you and/or your firm on the
FPA PLANNER FEBRUARY 2011, PAGE 3.
The revised delivery schedule for More information:
Regional Government Form ADV, Part 2B is as follows: www.sec.gov/rules/final/2010/ia-3129.pdf
Relations Column Existing Registered Investment SEC Approves IARD Filing Fees
by Robert Finke, CFP® Advisers. All investment advisers reg- Filing fees for advisers with less than
FPA Monterey Bay istered with the Commission as of $100 million of assets under manage-
December 31, 2010, and having a fis- ment will remain the same for next year
Greetings from your Regional cal year ending on December 31, ($40 for advisers with $25 million or less
Government Relations Representative. 2010 through April 30, 2011, have of AUM; $150 for advisers with $25-
until July 31, 2011, to begin deliver- $100 million of AUM). For advisers
The following is a list of important
ing brochure supplements to new and with over $100 million in AUM the new
items on the Government Relations
prospective clients. These advisers fee is $225. These fees will apply to all
have until September 30, 2011 to annual updating amendments filed after
SEC Extends Deadline for deliver brochure supplements to exist- January 1, 2011.
Advisers to Disclose Information ing clients. The compliance dates for More information:
on their Personnel delivering brochure supplements for sec.gov/rules/other/2010/ia-3126.pdf
On December 28, 2010, the SEC existing registered investment advis-
California to Exempt Certain
announced a four month extension ers with fiscal years ending after April
Advisers from Exams
for delivering Form ADV, Part 2B 30, 2011 remain unchanged.
In a recent interview, the California
(the "brochure supplements") to Newly-registered Investment
Commissioner of Securities Preston
advisory customers. Part 2B is the Advisers. All newly registered invest-
DuFauchard, stated that California plans
supplement to Form ADV providing ment advisers filing their applications
to exempt advisers to so-called 3(c)(7)
disclosure regarding IA reps. The for registration from January 1, 2011
funds. He is concerned that the state
SEC staff had received numerous through April 30, 2011, have until
will be taking on oversight of over 1,000
comments from advisers that, given May 1, 2011 to begin delivering
additional advisers this year and is trying
the extensive amount of new infor- brochure supplements to new and
to determine which advisers present the
mation that had to be gathered and prospective clients. These advisers have
smallest risk to the public. Because
the new systems that had to be creat- until July 1, 2011 to deliver brochure
these funds are typically marketed to
ed, the previous March timeline was supplements to existing clients. The
wealthy individuals or institutional
unrealistic. compliance dates for delivering
investors they present less of a risk. The
The compliance date for the filing brochure supplements for newly-reg-
state is still trying to decide if they will
and delivery of Form ADV, Part 2A istered investment advisers filing
extend the exemption to advisers to
(the firm "brochure") remains applications for registration after April
unchanged. 30, 2011 remain unchanged.
What Keeps You Awake at Night?
What do you worry about?
What challenges are you facing in your business?
What issues get your blood pumping?
We'd like to know so that we can ask our fellow FPA members to write interesting articles. We'd also like to hear
your complaints and compliments. We would like to provide a forum for additional interaction, so now you can
send a "letter to the editor" of The Planner at Editor@FPANorCal.org.
We believe that collaboration among our members and chapters provides numerous benefits to our members.
The Planner newsletter is published on a monthly basis thanks to the volunteer efforts of more than one dozen
FPA members from five FPA chapters in Northern California. Let us hear what you have to say!
FPA PLANNER FEBRUARY 2011, PAGE 4.
w w w. F PA S F. or g
The story of financial planning is So what are we to do? How do we go
Creating Our Own about simplifying lives, removing the about spreading the word that we have
"Reality" chaos, and putting steps in place to a the secret for people sleeping better at
by Ralph Latza successful future. There is a sacrifice night? How do we create a Malcolm
President's Column of immediate gratification for future Gladwellian "Tipping Point," where
FPA San Francisco gain. Eye-popping stories of sudden the financial planning epidemic takes
transformation are replaced with over the Bay Area?
Why is there no reality show steady, methodical progress. The tor-
about financial planning? toise wins over the hare-we all know A challenge
the story. I offer this challenge. Write up a client's
Turn on the television, and we The larger banks and investment success story (getting permission, of
find a celebration of wannabe chefs, companies are able to position their course, and removing identifying features
iron chefs, and the worst cooks in story of the "American dream," as when necessary). Put on your best story-
America. Dieters, survivors, and they have the budgets to create adver- telling hat and let your passions shine
singers are brought into our home, tising messages of mass appeal. forth. On Valentine's Day, February
where passions are only matched by Independent CFPs, on the other 14th, email your story to the following:
the ability to overcome adversity. hand, are left to struggle over a $145 Kathleen Pender, San Francisco
We cheer, we cry, we watch. annual price increase in dues, to Chronicle ("Net Worth" columnist):
America loves a good story. We love launch a $9 million drop-in-the-buck- firstname.lastname@example.org
those who rise above hard times to et campaign about the benefits of the Lynn Jimenez, KGO Radio (runs the
be the next Donald Trump or star CFP mark. (To keep this in perspec- "Your Money" segment):
quarterback. Dan Ariely, in The tive, advertising at the 2011 Super email@example.com
Upside of Irrationality, writes how Bowl will go for about $2.9 million If you can think of anyone else, please
the press and the public for a 30 second slot.) feel free to share. I cannot think of a
overly responded to the Our inability to cre- better way to show our "love" for what
plight of "Baby Jessica" ate the groundswell we do.
falling into a well, while of support for finan- If we are going to "tip" our world in a
giving only lukewarm cial planning also positive way, we need to make an effort.
attention to hundreds of extends to the profes- Whether it is by opening our offices to
thousands being brutally sion itself. Each year, an intern, buying a drink for the person
murdered in Rwanda. the average age of behind us at our local coffee shop, or
The "identifiable victim" financial planners spreading positive, individual stories of
draws the interest, espe- continues to increase, financial planning success, the way we
cially when there is an as we now sit with carry ourselves today will have a major
emotional story attached. over 60% of planners impact on our tomorrow.
We can identify with one; over age 50. Our Please feel free to share your stories and
Ralph is the President of the San thoughts with me at ralph@privateo-
we get lost in the crowd.
Francisco Chapter and a wealth pyramid, according
Recently, FPA felt the advisor with Private Ocean in to Mark Hurley, is cean.com. Life is an ocean, make a
impact of group success Marin. inverted. Normal splash!
not reaching the thresh- industries have the
old for press coverage. Our FPA most people at young ages, and the
Financial Planning Days in Oakland, numbers reduce as people age. San Francisco Chapter
Sunnyvale, and San Francisco last Financial planners, on the other hand, Executive Director
October were great stories of finan- never leave! The vast majority oper- San Francisco
cial planning volunteers reaching ates out of solo or small shops. There Marion Briggs
hundreds in our local community, is both a shortage of young talent as firstname.lastname@example.org, 877-260-3218
yet only one media person appeared. well as inadequate resources to incor- New address?
Does our story sell? Has your membership information changed?
porate those who do join.
FPA PLANNER FEBRUARY 2011, PAGE 5.
w w w. F PA S F. or g
that any law suit brought against the Where is it written that in order to
The Case against lender will have to be pursued in the get a college degree, one must look
Student Loans courts of the lender's state. The list forward to assuming debt of 25 to
by Tanya Steinhofer of issues continues unabated even 50,000+ dollars? Is that what it is like
FPA San Francisco during the current switch from the to live in a supposedly enlightened
private sector to the federal govern- society? Apparently, it is… at least in
For more than a decade, student ment as the lender of most need- this one. It is a not-very-smart,
loans have been making headlines. based student loans. Not a week myopic, unimaginative and utterly
First it was about "sweetheart" deals passes when some new controversy destructive stance that benefits no one
between colleges and certain or revelation emerges concerning not even the lenders who more often
lenders, a relationship that often student loans. Nearly every day, in than not find themselves and their
included allowing loan company the NASFAA (National Association shareholders awash up to their gun-
employees to masquerade as mem- of Student Financial Aid wales in bad paper.
bers of the college's financial aid Administrators) newsletter, there are Let's survey just a sampling of the
staff. Then we were (and still are) several items relating to the student damage:
faced with the invasion of private loan mess. Student loans have been If college is a ticket to a fair share of
lenders who, like hungry avian scav- to the college funding world what the American dream, then student
engers, circled above the dysfunc- the BP disaster is to the environment loans can be compared with the poll
tional college financial aid system of the Gulf of Mexico. They corrupt tax that kept so many people of color
looking for desperate students who the college eco system and have lin- from voting in the post Civil War
needed more aid than the colleges gering after-effects on our lives that south. Student loans discourage many
were willing or able to provide. for some lasts a generation. And in needy and economically disadvantaged
Those lenders are masters of the terms of the impact on our nation, members of society from obtaining
small print filled with legalese and the effects may linger forever. To that ticket to a better tomorrow.
hard-to-understand requirements ensure that the Gulf disaster does Imagine being an inner city parent or
and conditions. The private student not repeat itself is relatively easy. kid who faces the specter of such over-
loan market is polluted with mystery Simply ban further deep-water whelming debt as a required ingredi-
fees, arbitrary rate changes, slight- drilling. End of story. Let's consid- ent to the attainment of a college
of-hand provisions and worse yet, er the same approach to solve the degree. It is a hurdle so alien and so
certain conditions that benefit the student loan mess. Get rid of them. daunting that one simply avoids it by
lender in the event of litigation. The Stow them away in the same dusty downsizing dreams and skipping col-
latter typically includes the proviso drawer that houses Thalidomide. lege. Cont’d next page
San Francisco Chapter Partners
Redwood Mortgage Golden Gate University Junxure
Crystel Stanford Steve Hawkey Robert DeFrancis
(800) 659-6593 x215 (415) 442-6584 (866) 586-9873
email@example.com firstname.lastname@example.org email@example.com
Artisan Partners ING Allied Home Mortgage Capital Corp.
Patrick Kearns Troy Chakarun Mary Jo Lafaye
(415) 265-3561 (415) 298-8974 (415) 259-4979
firstname.lastname@example.org Troy.email@example.com Info@MaryJoLafaye.com
FPA PLANNER FEBRUARY 2011, PAGE 6.
w w w. F PA S F. or g
or reason to even attend high school, an airport for three or four years with
The Case against an institution that does a better job no possibility of getting on a plane that
Student Loans Cont’d of preparing kids for the academic will take them anywhere they may
challenges of college than anything want to go. If you want to check on
else including the real world. That the institutional effects of baby-sitting
Millions of talented young people frustration is acted out in high students who are essentially in a state
are being lost to this nation because schools across this land every minute of suspended animation for four years
of the student loan monster jealous- of every day. Discipline problems talk to any high school administrator
ly and needlessly guarding the gates interfere with the education of oth- who is still paying attention to his sur-
of higher education. ers. Vandalism and truancy, the roundings.
High schools feel the effects of stepchildren of despair and hopeless- Parents typically feel that it is their
what appears to be a financially ness, simply add to the cost of deliv- responsibility to provide a college edu-
unattainable and/or debt-ridden ering secondary education for those cation for their kids. Many see student
college career by creating a road to who really want it. For too many, loans as a sign of parental failure so in
nowhere for kids who see no future high school is like being stranded in Cont’d next page
FPA San Francisco Chapter Meeting
How to Pay for College
Dr. Paul Wrubel
February 9, 2011 Dr. Wrubel will address the college funding process and how advisors can assist their
clients. His talk will cover the types of financial aid, the forms involved, how the aid
Time: awards are determined and ways to lower college costs and preserve client assets.
Location: Dr. Wrubel is a nationally-recognized expert on college funding matters and has
City Club of San Francisco, served in a variety of roles in the education industry, including teacher, principal,
155 Sansome Street school board president and independent counselor. He also founded two education-
related non-profits, CollegeWorks and MindWorksUSA.
1.0 pending approval from the For more information:
CFP Board www.FPASF.org
$45.00 FPA members,
At the door
$65.00 for FPA members,
How to register:
Register online at
This meeting is sponsored by Junxure
*For information on future meetings please refer to the Chapter Meeting Calendar at the back of this issue.
FPA PLANNER FEBRUARY 2011, PAGE 7.
w w w. F PA S F. or g
California when the non-profit our colleges, for the economy and for
The Case against and/or public colleges in Iowa are this nation that we all cherish regard-
Student Loans Cont’d struggling to survive?" The simple less of our politics or ethnicity. If we
answer is, "They shouldn't!" The fact succeed, then we as a nation can look
is that the private sector should be forward knowing that our best days
order to avoid them, parents fool- supported by private institutions…by are yet to come.
ishly take out huge loans or invade a robust private lending option not a Dr. Paul Wrubel, a nationally-recog-
their long-term financial security by publicly-funded one. You may also nized expert on college funding, will
cashing in assets and retirement want to know that 44% of all student be presenting on this topic to FPA SF
funds to help sons and daughters to loan defaults come from private post- on February 9, 2011.
the debt-free, college-degree prom- secondary programs that comprise
ised land. In doing so, they remove only 7% of the post high school edu-
serious dollars from the economy cation marketplace.
but even worse, they may dramati- There are more reasons to elimi-
cally lower their viability as con- nate student loans than there is space
sumers in their retirement years at in this brief essay. But here's the
great cost to the economy and often issue. In our society as in most soci-
to the public coffers. eties, huge businesses emerge out of
Student loans serve as a blight on the complexity of processes. Once
the economy even if the student fully embedded, they, like cancerous
does get a college degree. By hav- growths are hard to excise and like
ing to repay student loans, a new cancer, the longer they have been in
college graduate, even an employed the body of the nation's commerce,
one, must divert significant income the more difficult they are to
to the repayment of the loans. That remove. But to take the analogy fur-
money would serve the nation's ther, if the growth is not eliminated
economy far better if it were used to whatever the cost, the patient will
buy consumer goods or to build a die. In this instance, the patient is
down-payment nest egg for a home. our colleges, our nation and our
Instead, that important consumer future as a world leader.
behavior is postponed for ten or The elimination of student loans as
more years to the eternal detriment an integral part of the student need-
of the nation's larger economy. based aid system can only be done
Moreover, from a taxpayer's stand- within the context of a larger, dra-
point, the government currently matic retooling of the entire financial
underwrites student loans for private, aid enterprise. To achieve that lofty
profit-making post-secondary institu- goal, we must think outside the
tions of every shape and size. It is a envelope. In fact, we should throw
fair question to ask, "Why should the away the envelope and start with a
taxpayer subsidize the University of clean slate and some smart people
Phoenix or Tillie's Beauty College if who have no allegiance to or connec-
the beneficiaries are the institution's tion with the current system. Only
owners or the board of directors and then do we have a chance at entering
shareholders?" "Why should taxpay- a new, smarter, more efficient, reli-
ers in Iowa subsidize the life styles able and user-friendly financial aid
and the bottom lines of private, for- world for our sons and daughters,
profit institutions in New York or for our citizens and taxpayers, for
FPA PLANNER FEBRUARY 2011, PAGE 8.
helping the chapter in many ways. will help educate our community on
Break the Record a First, we had a solid response of the importance of money manage-
Smashing Success volunteers to help out our many ment at an early age. The 2nd proj-
by David Borrelli MBA, CRPC® pro bono and community outreach ect that you will be hearing a lot
President's Column programs. These programs are about in the coming months will be
FPA East Bay always important and to get some our first annual East Bay FPA Golf
new energy flowing in this area is Tournament that will be coordinated
always helpful. We also had a large by our President Elect Chuck Bowes.
I get the pleasure of leading two number of guests attend the open- He is currently exploring courses
different teams to start off 2011. I ing meeting and we hope that and dates in the fall for our inaugu-
am riding the wave of enthusiasm many will come back for future ral tournament. We hope to raise
and excitement with the FPA and I meetings and sign up to join as we enough money to fund scholarship
get to ride the excitement and expand the membership base. and pro bono work in the communi-
energy of my daughter's 5th grade Finally, getting strong programs ty. More details to come as we nail
girls' basketball team. Both have like the SF Fed Economist sets are down the details and date.
their own unique challenges but in bar high to continue to find out- In closing I would like to remind our
the end they both will be very standing and powerful speakers members that we have a lot of great
rewarding. I mention this because from around the Bay Area that you resources and educational materials
both of these teams experienced our membership wants to see. listed on our website at
smashing success to start the 2011 In other news I wanted to let fpaeastbay.org or at the national
year. First, and more importantly everyone know that we are begin- website at FPAnet.org. We just
(lol) my daughter's basketball ning to develop our ideas for the uploaded the slides from our SF Fed
team came off a tough loss when coming months around two proj- meeting on our website so if you
we only scored 5 points ects that we will be missed the meeting or wanted a copy
in our last game of 2010 involved with in of the slide show you can download
to win our first game of 2011. First is the them from our website. The
2011 with a team record ISLP program that National website has a treasure chest
32 points! That huge Dan Gannett is full of great ideas and tools to help
increase in scoring creat- leading for our you manage and grow your business.
ed a buzz around our community out- Both of these resources are updated
team that will carry over reach program. and add just another great benefit to
for the rest of the year. ISLP is short for being involved with the chapter and
Likewise, here in the East Independent Living the national organization. I want to
Bay FPA we had our first Skills Program for thank you once again for attending
meeting of the year on young people in fos- the break the record meeting and
David Borelli is the President of
Jan 5th with The SF Fed the East Bay FPA. David has ter care and group congratulations on coming out to
Senior Economist Gary served on the board for the homes. Dan and his smash the record. Cont’d next page
Zimmerman speaking. past five years and he is a VP team of volunteers
with Oppenheimer Funds.
The Board and I had set a have already con-
target to make this our break the ducted two classes this year with a
record attendance meeting. After a total of 29 participating youths
East Bay Chapter
long and busy morning we tabu- made up of 11 in Martinez and 18 Executive Director
lated the results and sure enough in Richmond. For those that com- East Bay
we had risen to the challenge with plete the course schedule we will Krysta Patterson
a record 130 attendees. The buzz match $50 along with Mechanics EastBayFPA@gmail.com
and energy that has followed this Bank to allow the youth's to open
meeting has been outstanding. We up a checking account at the bank. New address? Has your membership
see the benefit of this meeting This is a very valuable service and it information changed?
FPA PLANNER FEBRUARY 2011, PAGE 9.
Break the Record a
Smashing Success Cont’d
Please keep that energy up and
attend on Feb 2nd to hear Nick
Horn deliver his industry
renowned presentation on How to
deliver Ritz Carlton Customer
Service to your clients. See you
Nancy Gire and East Bay's holiday toy drive.
East Bay Chapter Partners
Oppenheimer Funds Franklin Square Capital Partners MFS Investments
David Borrelli John M Sorrell Aldo Barbaglia
(925) 212-0862 (925) 858-2497 (925) 736-8622
firstname.lastname@example.org John.Sorrell@FS2Cap.com email@example.com
Shaffer Insurance Services Putnam Investments
Shaffer Insurance Services Strategic Capital
(925) 944-7100 (415) 730-3941 Roshan Weeramantry
firstname.lastname@example.org email@example.com (408) 314-7895
Redwood Mortgage Investors Franklin Templeton
Diana Mandarino JB Walker
(650) 365-5341 ext. 212 (925) 708-4672
Invesco AIM Black Rock Signet Mortgage Corporation
David Carr Jennifer Nelson Clay Selland
(415) 238-9490 (925) 948-5600 (925) 807-1500 xt.303
David.Carr@InvescoAIM.com Jennifer.Nelson@BlackRock.com firstname.lastname@example.org
Hennessy Funds Guardian Life Insurance Wells Fargo Advantage Funds
Brian Peery Brent Frisk
(800) 966-4354 Allison Lovell / Kristina Page
(415) 264-4721 (510) 932-2304
Pioneer Investments Kristina.Page@WellsFargo.com
(925) 818-2400 Hudson Walker
Scott.Martin@PioneerInvestments.com (415) 308-2522
FPA PLANNER FEBRUARY 2011, PAGE 10.
FPA East Bay Chapter Meeting
The Ritz Carlton Level of Service
Nick Horn, Lincoln Financial Advisors
Wednesday, February 2, Come to the FPA East Bay in February and learn the 11 key components to a "Ritz
2011 Carlton" Financial Planning client service model.
Nick Horn, a leader in the financial services industry for over 40 years, will speak about
Time: his personal client experiences. Most client service models are created by the planner
7:15 am for the client; this is your opportunity to hear what is important from the client's view-
point. Nick will call on his background as a coach and mentor for 200 of the most suc-
Location: cessful planners in the country as well as his own experiences with his personal finan-
Round Hill Country Club, cial planners. Take away the beginnings of a written game plan to improve or create
3169 Round Hill Rd., your client service model.
Nick Horn has been with Lincoln Financial Advisors for thirty-eight years. His Lincoln
CE Credits: career began in the Fort Wayne, Indiana Home Office. The organization that Nick and
1 Hour Ted built earned the financial services industries' highest honor of Master Agency for
eighteen consecutive years and Lincoln's highest honor of President's Trophy six times.
Over the years, Nick's unique brand of leadership has launched and nurtured hundreds
Cost: of successful financial planning careers. Nick currently serves as a consultant to
General Meeting: Lincoln's National Management Team in the areas of planner growth and productivi-
$30 FPA Members ty as well as a practice management coach.
$40 Non Members -
Advance Registration How to register:
You register for both the General Meeting and Ethics Course with check or credit card
online at: www.123signup.com/register?id=vzfzf
For more information:
For more information go to www.FPAEastBay.org or contact Krysta Patterson
This meeting is sponsored by our 2011 Gold Sponsor: John Sorrell, Franklin Square Capital Partners
*For information on future meetings please refer to the Chapter Meeting Calendar at the back of this issue.
FPA PLANNER FEBRUARY 2011, PAGE 11.
entire membership congratulates level of academic accomplishment;
East Bay Chapter them and wishes them much con- 5. They must furnish a letter of sup-
Awards $3,000 in tinued success. port from either a professor or prac-
Financial Planning ticing CFP professional.
Looking Ahead to 2011 Funds for the East Bay FPA schol-
Scholarships The FPA East Bay Chapter is commit- arships in 2010 were raised from
by Barbara Gray ted to supporting students working proceeds of raffle donations at
Career Development Co-Chair
FPA East Bay
and studying to attain the Certified monthly meetings and from the
Financial Planner designation. If you Chapter's operating budget. Thanks
or someone in your office is taking to all Chapter members who partici-
For much of 2010, FPA East Bay financial planning courses, they may pated in the raffle for your support
Chapter members continued to be eligible for an East Bay FPA of this worthy cause. If you are a
contribute to the scholarship fund. Scholarship in 2011. qualified applicant or know of some-
At our December 1st meeting, we In order to be eligible, applicants one who may be, consider the
were pleased to announce that the must meet the following qualifica- upcoming scholarship opportunity in
East Bay Chapter has selected two tions: 2011.
highly qualified and deserving 1. They must be a member of the
members as recipients of our 2010 East Bay Chapter of the Financial
financial planning scholarships. Planning Association.
Congratulations to FPA East Bay 2. They must be admitted to a pro-
members Austin Hon
and Ashley Murphy!
Both received $1,500
scholarships to support
their progress toward
the CFP mark. Austin
completed the U.C.
program in May 2010
and sat for the CFP cer-
tification exam in
November. Ashley is
currently enrolled in
the U.C. Berkeley
Extension program and
plans to take the CFP Ashley Murphy (left), FPA East Bay President Gordon Dunne (center), and Austin
exam in 2011. Austin Hon (right)
and Ashley each exceeded our gram administered by an accredit-
scholarship guidelines and we ed university or college registered
believe they will be valuable addi- with the CFP Board;
tions to the financial planning 3. They must have the intention to
community. Both intend to sup- take all required courses and a
port the FPA East Bay through review course for the CFP Board of
participation in committees and Standards certificate examination,
activities of the Chapter. Our and become a CFP designee;
4. They must demonstrate a high
FPA PLANNER FEBRUARY 2011, PAGE 12.
San Joaquin Valley
individual exemption, 55% tax rate, ($40,000,000 x 35%) without incur-
Reunited: and no portability of exemptions) ring any gift taxes.
The Estate & Gift Taxes on January 1, 2013. Despite If the same couple employs the use
by Seth P. Shapiro, JD Congress' recent spate of activity, it of a GRAT to gift interests in the same
President's Column is not inconceivable that it will fail limited partnership, they can increase
FPA San Joaquin Valley
to pass another significant tax bill in the size of their gift even further. By
the next two years. giving away interests in the property,
On December 17, 2010, President Given this uncertainty, the 2010 but retaining payments for a period of
Obama signed the 2010 Tax Relief Tax Relief Act doesn't offer much years, the value of the gift, which is
Act, reuniting the gift and estate guidance as to how to structure the value of the interest in the proper-
taxes - well - temporarily at least. estate plans, nor does it offer much ty given, is reduced by the value of the
From now until the end of 2012, the relief to individuals and couples with retained payments. By manipulating
federal estate and gift tax exemption assets in excess of the 2001 exemp- the amount retained and the number
is $5 million for an individual ($10 tion levels with respect to estate of years the couple is to receive those
million for a married cou- taxes, unless, of course, payments, they can reduce the value
ple). By some estimates, they are planning on of the gift so that the gift has or less
less than one-half of 1 making an exit in the value for tax purposes. For example
percent of people who very near future. the same couple could gift 40% of the
die in 2011 will be hit by The real benefit to limited partnership (with a real value
the estate tax given the high asset individuals of $16,000,000.00) by retaining a
size of the current and couples under the $224,000 payment per year from this
exemptions. 2010 Tax Relief Act is 40% partnership interest for 6 years.
For that small segment the increase in the gift In this scenario, the gift value of the
of the population that tax exemption to $5 40% interest is only $9,945,275.20
does have assets in excess million. With proper according to IRS tables.
of the exemption planning, such individ- This technique is really effective
amount, gifts and uals and couples can gift when the IRS applicable federal rate
bequests in excess of $5 Seth P. Shapiro, JD property worth several is low, which it is now, and when the
million will only be taxed President FPA San Joaquin Valley times the exemption assets gifted produce a rate of return
at a rate of 35% (down amount through vehicles such as on the value of the assets gifted that
from the 55% gift tax rate of 2010 grantor-retained annuity trusts is greater than that IRS rate (the cur-
and the 45% estate tax rate of 2009). (GRATs), intentionally deficient rent IRS rate is 2.4%).
The 2010 Tax Relief Act also makes grantor trusts (IDGTs), or gifts of With the current exemption level
the exemption portable - allowing interests in family owned or closely scheduled to sunset at the end of
surviving spouses to use the unused owned businesses. 2012, there may be no time like the
estate tax exemption of the spouse For example, a married couple present for those looking to transfer
who died most recently to their own could contribute property to a lim- some of their wealth to consider
without needing to use bypass trusts ited partnership valued at strategies that will take advantage of
(although bypass trusts still have the $40,000,000. Assuming they can the generous gift tax exemption cur-
advantage of sheltering appreciation obtain a 30% discount off the value rently available.
and could also be helpful in situa- of any gift due to the lack of mar-
tions where individuals want to pro- ketability of a limited partnership
tect assets from creditors or ensure interest, they could give a 35% inter-
San Joaquin Valley Chapter
children will benefit from the assets). est ($40,000,000 x 70% x 35% = Executive Director
If Congress does nothing before $9,800,000) in the partnership San Joaquin Valley
the end of 2012, however, the estate without incurring any gift tax. Erin Aquino
and gift tax laws are set to revert Effectively, this couple would have ErinAquino@hotmail.com
back to their 2001 levels ($675,000 transferred $14,000,000 in assets 209-473-4045
FPA PLANNER FEBRUARY 2011, PAGE 13.
w w w. F PA S V. or g
President's Column to several CSA events and I was California to attend the Residency
struck by the stark differences program. A few people (including my
by Bob Adams, CFP®, MBA, MSFP
FPA Silicon Valley between the CSA and FPA events. wife) called me crazy, but that is the
Both organizations' events were way the calendar and the opportuni-
well-run, but the FPA events were ties presented themselves and I am so
Last month I thanked our retiring the only ones where true best prac- glad that I participated. In March,
Board members and welcomed our tice sharing and peer mentoring was 2003 the Gulf War was underway and
new Board members and I thought going on. FPA is truly unique. 22 of the 35 registered students
this month I'd take a step back and FPA members are quite willing to decided not to fly to Residency so I
introduce myself and tell you why I share and to mentor others, regard- had often said that while FPA surely
think FPA's culture is wonderful less of whether that member has the lost money, I and my fellow 12 other
and supportive. office next door or across the coun- Residency cohort had four experi-
In 2001, I joined FPA as a student try. enced mentors all to ourselves and we
member and at the time I was In addition to passing the CFP indeed very lucky. More on
enrolled in Golden Gate exam in 2003, I participated in a Residency in a future column.
University's Masters in wonderful 6-day FPA While I was at Residency one of my
Financial Planning pro- Residency program, and mentors suggested I look into the
gram. My first FPA I also attended three FPA Retreat. I was once again fortu-
event was the old FPA conferences: nate because this was the first year
"Odyssey" conference Retreat, Far West that they had relaxed their former
in Sacramento. They Roundup and the requirement of having a minimum of
had a "Bridge the Gap" National Conference. five years in the profession. I had
track and I was fortu- Like many of you I was a been in practice for about 6 weeks
nate to meet Jim "High Tech Refugee" and I literally brought along my list of
Johnson. Jim gave me and after spending 23 my top 25 practice management
lots of encouragement years with Hewlett- questions. I got all of them answered
and a real feeling of Packard in various man- by many willing and generous experi-
c o m m u n i t y . agement positions enced planners.
Community is perhaps Bob Adams is the President of immersing myself in I think we are fortunate to be FPA
the Silicon Valley FPA. Bob has
even an over-used word served on the board for the those conferences was members and I encourage all of you
in FPA, but on the past 3 years and he is President important. I was indeed to take full advantage of your excel-
other hand I don't of Armstrong Retirement fortunate that FPA pro- lent local FPA resources: chapter
Planning in Cupertino
know of a more vided such excellent meetings, the annual NORCAL
descriptive term to define it. opportunities. As we all know, it is Conference and the Far West
I chose the firm name "Armstrong the "conversations in the halls" that Roundup.
Retirement Planning" (Armstrong are more often than not the really In December the Chapter had our
is my middle name) because I want- the most beneficial ones. This is annual holiday cash and food drive to
ed to focus on retirement planning also why I like the smaller FPA con- benefit a local community service
and investments and in 2003 I took ferences because it best enables peer agency: Cont’d next page
the training to become a "CSA - learning, both in sessions, in the hall
Certified Senior Advisor". My and "Under the Tees". Silicon Valley Chapter
motivation for taking the certifica- I opened my practice in June, Executive Director
tion was to learn more about senior 2003 and I had attended the FPA Silicon Valley
issues. I have a fee-only practice, Residency program in late March. I Marion Briggs
but I found that most of the CSA's had kind of a crazy March in that I email@example.com
were focused on selling annuities took the CFP exam on a 877-808-2699
and that wasn't my interest so in Friday/Saturday and the next New address? Has your membership
2005 I decide to drop out. I went morning I flew down to Southern information changed?
FPA PLANNER FEBRUARY 2011, PAGE 14.
w w w. F PA S V. or g
West Valley Community Services.
I'm pleased to report that we col- Need Projects Completed?
lected $1,028 and 25 pounds of
food. WVCS was very appreciative MS, MBA, PMP, CFP® and CMT®
and they sent us a nice letter thank- candidate available.
ing our membership. Former financial systems
I know that other Chapters do toy
drives and other events and I think consultant.
everyone should applaud them- Contact Mark Walsh at
selves. We all make a difference (510) 457-8742 or
Silicon Valley FPA Brown Bag Lunch Event
Note: Silicon Valley FPA Brown Bag Lunch Events require FPA membership to attend. FPA members from other
chapters are welcome to attend as well as guests of FPA members.
Options - One Tool in the Financial Planner's Toolkit
Speaker: Dave Samuels, CFP®, CLU,
Samuels is the President and founder of Corinthian Wealth Management
Date: Friday, March 18th, 2011
Time: 12:00 noon to 1:30 pm
Location: San Jose, CA (Rose Garden Area)
Options provide a means to hedge risk, as well as improve overall returns. This session will begin with a basic intro-
duction of investment stock options to ground the session. This session will focus mainly on covered calls and will
address the primary situations where a planner might find them appropriate to implement in a client's portfolio: in a
general portfolio to generate additional return, in a portfolio that is heavily weighted in one or more stocks (usually
the company that the client works for), and in a portfolio where there are significant capital gains on a stock and the
client is hesitant to sell. Examples will be reviewed, as well as a live option chain. Taxation of options gains will also
be briefly discussed.
Dave Samuels, CFP®, CLU , is the President and founder of Corinthian Wealth Management, with over 20 years of
experience in the financial services industry. Dave is a graduate of UCLA's Personal Financial Planner Program, as
well as a Certified Financial Planner® and Chartered Life Underwriter (CLU). Dave serves on the board of the
Financial Planning Association of Silicon Valley as well as the board of the Steinway Society, which promotes piano
concerts. Dave is a member of the Santa Clara County Estate Planning Council, the Society of Financial Service
Professionals, the Financial Planning Forum of Palo Alto, and the San Jose Chamber of Commerce. Dave has spo-
ken at various conferences, and has done many topic specific educational sessions to a variety of audiences.
Seating is limited. To reserve your seat, please RSVP early to Cynthia Riley at
CynJRiles@aol.com. A $10 fee will be collected at the door.
FPA PLANNER FEBRUARY 2011, PAGE 15.
w w w. F PA S V. or g
FPA Silicon Valley Chapter Meeting
2011 Economic Outlook
February 11, 2011 Mr. Matsuda will speak on what to expect for 2011 in both the US and California
Economies. Mr. Matsuda will give us his analysis for 2011, discussing a wide vari-
Time: ety of topics including the housing market and unemployment.
11:30am - 1:30pm
Location: Kei Matsuda is Director of Economic Research for Union, Bank. Mr. Matsuda
TechMart, 5201 Great monitors economic trends and developments for Union Bank management
America Parkway, Santa Clara and customers, primarily focusing on the economies of California and the
Pacific Northwest. He also tracks economic trends in Asia and the Pacific.
CE credits: Mt. Matsuda received his MBA from Stanford University and an undergradu-
1 hr CE available pending approval ate degree from the University of Tokyo.
by the CFP Board
How to register: Register now via credit card at www.fpasv.org
Early Registration For more information: www.fpasv.org
$35 members $40 non members.
At the door
$55 or members, $60 non-members
This meeting is sponsored by Stonecrest Managers
*For information on future meetings please refer to the Chapter Meeting Calendar at the back of this issue.
Silicon Valley Chapter Partners
The Dayton Law Firm Thornburg Investment Management IShares 529 Plan
Rich Dayton Dean Mesquite Vivian Tsai
408-437-7570 877-215-1330 ext.7217 (415) 670-4724
firstname.lastname@example.org email@example.com Vivian.Tsai@blackrock.com
Home Instead Senior Care Commonwealth Financial Stonecrest Managers Heffernan Insurance Group
Michelle Rogers Philip Nisonger Christina Gray Deborah McGreenery
650-691-9671 (408) 286-8483 408-557-0700, ext. 302 707-789-3068
firstname.lastname@example.org Phil@adaloninc.com Dmcgreenery@heffgroup.com
Bank of America Home Loans Redwood Mortgage
Greg Hacker Crystel Stanford
(408) 483-2225 (800) 659-6593 ext. 215
FPA PLANNER FEBRUARY 2011, PAGE 16.
This has freed me up to become not practicing in Monterey Bay. Even
President’s Column more effective in planning and client given that, I will endeavor to be pres-
by Andrea Roland, CFP® interactions. ent as many of our meetings as possi-
Monterey Bay Chapter This move made me ponder one ble and may ask you to step up to the
of the questions that seem to plague plate. See you at the Ethics meeting.
this profession – what is the best
It often feels in my life that I do model of business? Is it commission, Monterey Bay Members,
things backwards. I took my CFP® fee-based, AUM, hourly or the Save the Dates:
classes before I entered the industry retainer model? I have gone from Ethics Meeting: Need Ethics certifi-
(have you noticed that we use the the commission model to an AUM cation? Attend our Ethics Meeting on
term "industry" like there is only model. There are vociferous seg- February 17th. Contact Carol
one – like "product" means hair ments on all sides of the discussion. Murray at email@example.com for
products only?). I completed my For me it comes down to one more information.
Bachelors degree at 45, long after I thing – doing the right thing for the NorCal Conference: Scheduled for
became a CFP® and didn't major in client. The conversation should be May 31st and June 1st, this confer-
finance. I wanted to major in behav- about that and not about compen- ence is full of incredible information.
ioral finance, but was unable to do sation. Surely if planners are ethical Round Up: Scheduled for August 11-
at the undergrad level. then they will 14, this conference held on the UCSC
When planners transitioning have a client cen- campus is also packed with informa-
into financial planning often tric practice and tion and fun.
work as employees, I went out will get compen-
on my own immediately. I sated for that.
had a broker dealer who pro- The commis-
vided some training as well as sioned planner CHAPTER NEWS:
back office support, but ulti- still looks at the
mately I was a self employed needs of the Congratulations to Nick Nicholson,
contractor. And those who client and helps CFP® of Monterey who is celebrating
start out as employees often them to get to his 29th anniversary with the FPA.
strike out on their own some their financial Nick is our Energizer Bunny!!!!! Way
time down the road, but I had goals just as to go, Nick!
already done that without Andrea Roland, CFP® is with much as the
being an employee first. So Wealth Architects, LLC in hourly planner
now I have done another does.
thing backwards. In November There are going to be caveats in
2010, I made a change. every model and blind spots. We
After 12 years of being a self can, as planners, convince ourselves
employed, single person office, that our compensation model is the
commission and fee based planner, I best one but I feel that every one
became an advisor and employee at has its positive and negative points.
an RIA firm. I am happy to make As long as the client knows and
the transition to being a small (very understands how the planner is Monterey Bay Chapter
small – just myself) business owner being compensated and as long as Executive Director
to working as part of a team. I go the planner is helping the client, Monterey Bay
from making all the decisions and then surely it is a moot point. We Carol Murray
doing all the tasks to now specializ- are a developing profession and it is firstname.lastname@example.org
ing in planning and meeting with a healthy discussion to continue to 831-402-3478
clients. How cool is that? No macro have. New address? Has your membership
decisions and no micro ones either. My new position means that I am
FPA PLANNER FEBRUARY 2011, PAGE 17.
Chapter Meeting Calendar
East Bay San Francisco Silicon Valley Monterey Bay San Joaquin
2011 FPAEastBay.org FPASF.org FPASV.org FPAMonterey Valley
Wednesday, Wednesday, Friday,
February 2nd, February 9th, February 11th,
7:15am 11:30am - 1:30pm 11:30 am - 1:30 pm
FEBRUARY Round Hill CC City Club TechMart
Ritz Carlton Level of Cash-flow Planning 2011 Economic Outlook
Service Kei Matsuda, UBOC
Wednesday, Wednesday, Friday,
March 2nd, March 9th, March 11th,
7:15am 9:30am - 1:30pm 11:30 am - 1:30 pm
Round Hill CC City Club TechMart
MARCH Major Trends Affecting Incorporating Financial State of Social
Investment Markets Alternative Security: Will the Financial
Charles Blankly Investments into Client Planning Profession Step up
Portfolios (Large and to Facilitate a National
Wednesday, Tuesday, April 19th, Friday,
April 6th, 11:30am -1:30pm March 11th,
7:15am City Club 11:30 am - 1:30 pm
APRIL Round Hill CC Incorporating TechMart
TBA Philanthropy into the Credit Ratings, Bankruptcy
Family Wealth Plan
and Credit Repair
Karen Meckstroth Panelists: David Rao,
Natalie Knowlton, Hanna
For advertising opportunities, please contact
Brenda Herrington at 650-851-4414 or email@example.com
Production and Layout by Audrey McGimsey
Planner is published monthly by five Northern California chapters of the Financial Planning Association: FPA of the East Bay, FPA of
San Joaquin Valley, FPA of Silicon Valley, FPA of San Francisco and FPA of Monterey Bay. The views and opinions expressed in Planner
are not necessarily those of FPA or its members. Planner may not be reproduced without permission from the publisher. The Northern
California FPA Chapters welcome advertisements from reputable suppliers of products and services to the financial planning commu-
nity. However, Planner does not perform “due diligence” on advertisers, authors or sponsors and cannot guarantee that their offer-
ings or writings are suitable or correct.
FPA PLANNER FEBRUARY 2011, PAGE 18.
the Financial Planning Association
3130 Alpine Road,
Portola Valley, CA
Chapter Executive Directors
New address? Contact your chapter office directly at the email or phone below
East Bay San Francisco Silicon Valley San Joaquin Valley Monterey Bay
Krysta Patterson Marion Briggs Marion Briggs Erin Aquino Carol Murray
EastBayFPA@gmail.com info@FPASF.org firstname.lastname@example.org ErinAquino@hotmail.com email@example.com
925-935-9691 877-260-3218 877-808-2699 209-473-4045 831-402-3478