CAS News
Jan Brown Joins CAS
We are eager to announce the newest addition to our growing, family-focused firm: Jan Brown.
As a Client Services Associate at our Naples office, Jan will work closely with Steven Merkel and his clients: scheduling appointments, handling client requests, and preparing materials for annual client reviews and other meetings.
“I’m excited to have Jan as part of my team,” said Steven. “Our clients have already given her a warm welcome and they’re excited to work with her.”
Prior to joining CAS, Jan worked in the Columbus, OH area as a client services associate and team lead senior assistant for Manning & Napier Advisors, and as an inside sales associate with Scioto Metals and Art Iron. She earned her Bachelor’s degree in Business Administration from Ohio Dominican University.
“Jan’s experience, attention to detail and friendly personality have made her a great addition to the CAS family,” Steven added.
At Ciccarelli Advisory Services, we focus on what matters to your family because we are a family. We embrace a holistic approach to wealth management and financial planning. Our family of advisors and staff is dedicated to promoting the financial well-being of your family – today and for generations to come.
CAS Profiles – Carrie Reeves-Hillyard (New York)
Carrie joined our CAS family in November 2006 as the Records Manager at our Rochester office.
She maintains our client records, preparing files for upcoming appointments and inputting trades; assists Geral, our COO, as needed; and processes supply orders.
“I’m very proud to tell people that I work for CAS,” Carrie said. “I enjoy being part of an organization that puts so much emphasis on the importance of family and planning for generations to come.”
Carrie was born and raised in the Rochester area, where she currently lives with her husband Audie and her step-son Jesse.
Outside of the office, Carrie enjoys cooking, watching movies, listening to music, and taking road trips with her family. She always looks forward to her family’s annual fishing trip in Canada.
“The cabin is in a remote location without access to electronics,” said Carrie. “We love to fish, read, play cards, and take in the beautiful scenery!”
Create an Enduring Legacy
When you think about estate planning, you probably focus on the transfer of financial assets and personal belongings to your heirs. While the financial aspect of estate planning is critical, your estate plan should encompass more than money and tangible assets. In fact, some of the most valuable resources you possess – your insights, values and experiences – have no monetary value.
By establishing a comprehensive plan for transferring your tangible and intangible assets – and openly communicating your wishes with your loved ones – you can create an enduring legacy that will impact your family for generations.
Connect with Your Family
Your estate planning decisions will directly impact your family: what assets you leave behind, how you distribute your assets, who you chose to act as an executor, and so on. Above all, your choices will reflect your financial philosophy and core values – the crux of your legacy.
Given the deeply personal nature of these decisions, you may find it difficult to discuss end-of-life considerations with your family members. That being said, engaging in open communication with your family and loved ones is essential to ensuring a smooth transition when you pass. This is your opportunity to help your loved ones prepare for life after you are gone.
Involving your family in the estate planning process can help to prevent a myriad of future complications. By embracing a communicative approach with your family and loved ones, you can:
- Reduce estate and gift tax burdens, and avoid probate;
- Prepare your heirs to handle your bequests responsibly;
- Implement an effective strategy for addressing long-term care and retirement needs
Perhaps the most important channel of communication is between you and your spouse. If you are married, you should actively work with your spouse to reach a consensus about your personal wishes. After all, the decisions you make today could greatly impact your spouse tomorrow – and vice versa.
Leave a Lasting Legacy
Your estate plan also serves as the perfect platform for conveying your personal desires, values and wisdom to your loved ones, empowering them to achieve a lifetime of success.
By meticulously preparing and executing your estate plan, you have the opportunity to bridge past and future generations, strengthen your relationships with your beneficiaries, and preserve your personal legacy for years to come.
Our Ciccarelli Advisory Services family can help you design a plan for preserving your family’s financial future. In addition, we can facilitate open communication between you and your beneficiaries – providing you with the perfect opportunity to discuss your final wishes and enrich your legacy for generations to come.
Life with Moxie
Jill Ciccarelli Rapps was featured on the radio program Life with Moxie at 1 p.m. on Saturday.
Throughout her 30-minute interview, Jill emphasized her approach to serving our client families, offered practical tips to help you prepare for financial wellness, and shared her insight on recent market trends.
Enjoy these four highlights from Jill’s interview!
Look at the big picture
“Who cares about how much money you have if you can’t use it to build the kind of life you want for you and your family?” Jill said.
“The biggest question you have to answer is ‘What brings me the most joy in life?’”
She stressed the importance of identifying the key priorities in your life – whether it be family, travel, health or charity.
By encouraging our clients to articulate their purpose, passion and priorities, she assists families in bridging their deepest desires with their financial situation.
“Money and our day-to-day life are so inextricably linked. When we’re at the point where we’re overwhelmed, where we don’t feel comfortable with our money, often times those things are not aligned.”
Keep your finances organized and up-to-date
“Organization is a common challenge that I see. I’ve seen clients with a box full of financial papers, or clients who have all their financial information stored in their head.”
“It’s so important to help our clients take what’s in their head and document it in a way their family and loved ones can understand.”
Jill suggested the use of an online vault, where all of your key financial and estate planning documents can be housed electronically. The online vault is a secure, convenient method for sharing documents with your beneficiaries. This resource is especially valuable for clients who have children scattered across the U.S.
In addition to organizing your financial information, you should review and update all of your important documents at least once every two years – especially in the wake of a major transition.
“Whether it’s a divorce, whether a spouse has passed away, you really need to re-look at all the beneficiaries and ownerships and make sure they’re aligned well with your goals.”
Prepare your long-term health care strategy
“Health care expenses are the number one thing that can derail anyone’s financial plan.”
Based on her experience, Jill said one of the major concerns that middle-aged adults are facing today is taking care of our parents.
“Do you have a plan in place? Do your family members have a plan in place? If you don’t or you don’t know, your communication strategy has to begin.”
Due to the personal, often uncomfortable nature of discussing end-of-life issues, many people avoid having conversations about their health care plan with their spouse or children. This trend seems especially common among members of the “greatest generation”.
“People from that generation weren’t really communicative about those issues. I’ve seen people in their 80s, they need health care, and their kids don’t know what they have in place or what to do.”
Open communication between family members is a vital component of any effective health care strategy.
“Without communication, it’s like asking a neighbor to come into your house and understand your full financial picture within a couple of hours. It’s impossible!”
If you find it difficult to discuss your long-term health care strategy with your children and loved ones, a CAS advisor can facilitate a family meeting to address these priorities.
Don’t let fear prevent you from taking advantage of opportunities
“When we hear about the markets on TV and hear all the day-to-day news, we as the consumer tend to say the glass is half empty. People are scared, and are not taking advantage of opportunity.”
Jill acknowledged that the U.S. will likely experience modest economic growth over the next few years, and that higher volatility within the marketplace could become the norm.
However, she added that “the fundamentals in the U.S. have developed very nicely over eight years.”
Instead of worrying about market fluctuations or the impact of the upcoming election on your finances, Jill recommends focusing on what you can control.
“You should be sitting down with your advisor, reviewing your tax return, because there are ways that you can save on taxes…and develop a portfolio where you’re not affected by those short-term volatility levels.”
“Let’s be proactive with your portfolio, and see where we can save some dollars.”
To listen to Jill’s full interview on Life with Moxie, visit http://www.lifewithmoxie.com/october-8th-show-niff-jill-ciccarel. Jill’s portion of the interview starts at 29:42.
Josh Espinosa Earns Insurance License
We are pleased to announce that Josh Espinosa, one of our family-focused advisors, has earned his health, life and variable annuity insurance license.
Josh completed the required 60-hour course and studied for more than two months to obtain his License 215, which enhances his ability to assist clients with insurance review and analysis.
“We appreciate the effort and time Josh put forth,” said Kim Ciccarelli Kantor, President of Ciccarelli Advisory Services. “His commitment reflects our firm’s dedication to providing the highest level of service to the generations of families we serve.”
Josh joined our CAS family in February, and has more than 10 years of diversified experience in investment analysis, asset management and financial planning.
In addition to his recently acquired license, Josh holds his Series 7 and 66 securities registrations and earned his Certified Investment Management Analyst® certification, administered by Investment Management Consultants Association® and taught in conjunction with MIT Sloan School of Management.
At Ciccarelli Advisory Services, we focus on what matters to your family because we are a family. We embrace a holistic approach to wealth management and financial planning. Our family of advisors and staff is dedicated to promoting the financial well-being of your family – today and for generations to come.
2016 Third Quarter Economic Update
One hundred days after the Brexit scare – and three-quarters of a year after the most recent Fed rate hike – the markets once again confounded the instincts of nervous investors and went up instead of down. Last week, Fed Chairperson Janet Yellen told the world that the U.S. economy is healthy enough to weather a rise in interest rates, but the Fed governors met in September and declined to serve up the first rate hike since December 15. That was reassuring news to the Wall Street traders, and investors generally, helping to provide yet another quarter of positive gains in U.S. stocks.
The Wilshire 5000 Total Market Index – the broadest measure of U.S. equities – gained 4.53% for the third quarter, and is now up 8.39% for the first three quarters of the year. The comparable Russell 3000 index was up 4.40% for the quarter and is sitting on 8.18% gains so far this year.
Larger companies posted the lowest gains. The Wilshire U.S. Large Cap index was up 3.92% in the third quarter of 2016, putting it at a positive 8.01% since the beginning of January. The Russell 1000 Large-Cap index provided a 4.03% return over the past quarter, with a gain of 7.92% so far this year, while the widely-quoted S&P 500 index of large company stocks posted a gain of 3.31% in the third quarter, and is up 6.08% for the year so far.
Meanwhile, the Wilshire U.S. Mid-Cap index was up 4.35% for the quarter, and is sitting on a positive gain of 11.31% for the year. The comparable Russell Midcap Index gained 4.52% for the quarter, and is up 10.26% for the year.
Small company stocks, as measured by the Wilshire U.S. Small-Cap index, gave investors a 7.67% return during the third quarter, up 13.03% so far this year. The comparable Russell 2000 Small-Cap Index gained 9.05%, posting an 11.46% gain so far this year, while the technology-heavy NASDAQ Composite Index gained 9.67% for the quarter and is up 6.06% heading into the final quarter of 2016.
Looking abroad, the U.S. remains a haven of stability in a messy global investment scene. The broad-based EAFE index of companies in developed foreign economies gained 5.80% in dollar terms in the third quarter of the year, but is still down 0.85% for the first three-quarters of the year. In aggregate, European stocks have lost 2.67% so far in 2016. Far Eastern stocks are up just 1.73% for the year. In contrast, a basket of emerging markets stocks domiciled less developed countries, as represented by the EAFE EM index, gained 8.32% for the quarter, and are sitting on gains of 13.77% for the year so far.
Looking over the other investment categories, real estate investments, as measured by the Wilshire U.S. REIT index, were down 1.21% for the second quarter, but still enjoy a gain of 9.75% for the year. Commodities, as measured by the S&P GSCI index, lost 4.15% of their value in the third quarter, but are sitting on gains of 5.30% for the year so far.
On the bond side, the interest rate story is essentially unchanged: rates are still low, once again confounding all the experts who have been expecting significant rate rises for more than half a decade. Ten-year U.S. government bonds are currently yielding 1.59%. Three-month notes were yielding 0.27% at the end of the quarter, while 12-month bonds were paying just 0.58%. Go out to 30 years, and you can get a 2.32% annual coupon yield.
What’s keeping stock prices high while sentiment appears to be “restrained”? Nobody knows the answer, but a deeper look at the U.S. economy suggests that the economic picture isn’t nearly as gloomy as it is sometimes reported in the press. Economic growth for the second quarter has been revised upwards from 1.1% to 1.4%, due to higher corporate spending in general and especially as a result of increasing corporate investments in research and development. America’s trade deficit shrank in August. Consumer spending – which makes up more than two-thirds of U.S. economic activity – rose a robust 4.3% for the quarter, perhaps partly due to higher take-home wages this year.
Meanwhile, if someone had told you five years ago that today’s unemployment rate would be 4.9%, you would have thought they were highly optimistic. But after the economy gained 151,000 more jobs in August, unemployment remained below 5% for the third consecutive month, continuing the downward trend. At the same time, average hourly earnings for American workers have risen 2.4% so far this year.
Based on their reading of the Treasury yield curve, economists at the Federal Reserve Bank of Cleveland have pegged the chances of a recession this time next year at a low 11.25%. They predict GDP growth of 1.5% for this election year—which, while below targets, is comfortably ahead of the negative numbers that would signal an economic downturn. (In general, a steep yield curve has been a predictor of strong economic growth, while an inverted one, where short-term rates are higher than longer-term yields, are associated with a looming recession.)
On top of everything else, corporate profits have been on a long-term upswing, even if the rise has been choppy since 2008. Will this long-term trend continue? Who knows?
The U.S. returns have been so good for so long that many investors are wondering why we are bothering with foreign stocks. A recent Forbes column suggested the answer. Since 1970, foreign stocks have outperformed international stocks almost exactly 50% of the time – meaning the long trend we’ve become accustomed to could reverse itself at any time.
Nobody would dispute that the economic statistics are weak tea leaves for trying to predict the market’s next move, and it is certainly possible that the U.S. and global economy are weaker than they appear. But the slow, steady growth we’ve experienced since 2008 is showing no visible signs of ending, and it’s hard to find the usual euphoria and reckless investing that normally accompanies a market top and subsequent collapse of share prices.
At the current pace, we might look back on 2016 as another pretty good year to be invested, which is really all we ask for.
Sources:
Wilshire index data. http://www.wilshire.com/Indexes/calculator/
Russell index data: http://indexcalculator.russell.com/
S&P index data: http://www.standardandpoors.com/indices/sp-500/en/us/?indexId=spusa-500-usduf–p-us-l–
NASDAQ index data: http://quicktake.morningstar.com/Index/IndexCharts.aspx?Symbol=COMP
International indices: http://www.mscibarra.com/products/indices/international_equity_indices/performance.html
Commodities index data:
http://us.spindices.com/index-family/commodities/sp-gsci
Treasury market rates:
http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/
Aggregate corporate bond rates:
https://indices.barcap.com/show?url=Benchmark_Indices/Aggregate/Bond_Indices
http://www.bloomberg.com/markets/rates-bonds/corporate-bonds/
https://www.yahoo.com/news/yellen-defends-tougher-banking-regulations-141913276.html
http://www.bls.gov/news.release/pdf/empsit.pdf
https://www.yahoo.com/news/u-economy-less-sluggish-2nd-165152063.html
http://www.tradingeconomics.com/united-states/corporate-profits
https://www.clevelandfed.org/our-research/indicators-and-data/yield-curve-and-gdp-growth.aspx
2016 Run for the Way 5K
From left to right: Jessica Barton, Jan Brown, Logan Curti, Danielle Lynch and Kay Anderson
Five members of our CAS family participated in the third annual Run for the Way 5K on Saturday morning at North Collier Regional Park in Naples.
At 7:30 a.m., our group of walkers lined up for the 5K. Each of the participants – Jessica Barton, Jan Brown, Logan Curti, Danielle Lynch and Kay Anderson – completed the course in about 56 minutes.
Jessica, who has run several 5K races this year, organized our team and sparked our interest in the Run for the Way.
“It was by far the most fun race of the year…I’m so glad some of my CAS family joined in,” said Jessica. “They say running is not a team sport because you are only in competition with yourself. But we made it a team sport.”
The Run for the Way was Logan’s first 5K.
“We didn’t break any world records for speed, but it was fun to get some exercise and spend an enjoyable morning with the team,” said Logan. “Plus we were supporting a great cause!”
The 5K run and walk benefitted United Way of Collier County, which encompasses more than 30 local community agencies and hundreds of human services programs. These organizations serve more than 100,000 people in Collier County.
After the race, our CAS team went to Sun N Fun Lagoon to cool off and enjoy the rest of the morning under the Florida sun.
ConnectED 2016 Conference
Lynn A. Ferraina and Paul F. Ciccarelli, CFP®, ChFC®, CLU® recently attended the Advisor Group’s 2016 ConnectED conference. The annual event was hosted on September 8-11 at The Gaylord National Resort in Washington, D.C.
The conference featured more than 120 educational sessions on a range of topics reflecting the most current industry standards and best practices.
ConnectED 2016’s keynote speakers included:
- Gen. Colin Powell., former United States Secretary of State, former Chairman of the Joint Chiefs of Staff, retired Four-Star General, author and humanitarian;
- Brit Hume, journalist, senior political analyst and White House correspondent;
- Karl Rove, Republican political strategist, former Deputy Chief of Staff, author, Fox News contributor and Wall Street Journal columnist;
- Donna Brazile, Interim Chairperson of the Democratic National Committee, CNN analyst and ABC News contributor; and
- Dr. Marci Rossell, economist and past Chief Economist for CNBC.
Perks of Domiciling in the Sunshine State
By Kim Ciccarelli Kantor, CFP®, CAP®; and Jill Ciccarelli Rapps, CFP®
The sunshine, soft ocean breezes and lower taxes make Florida a popular place to live. Generally speaking, Florida domicile carries tax advantages over domicile in other states – with respect to income taxes, state estate taxes and homestead.
A person may have several residences at the same time, but in theory may be domiciled in only one place at any given time. The term “domicile” refers the place where you have your fixed, permanent home for legal purposes.
Domicile is a matter of intent that requires a serious commitment in lifestyle and the ability to break ties with your old state.
Considering Florida Domicile?
Many auditors consider five primary factors when considering domicile: home, active business involvement, time, important items and connections.
- An auditor may consider the size of your home in the old state in comparison to your state of domicile. For this reason, you should keep a record of any change of address forms.
- For a business, an auditor would determine your control, supervision and overall role in the business, as well as your pattern of activity (or non-activity, if the business is a passive investment).
- With respect to time, an important factor is the number of days spent in your old state versus the state of domicile. Your timing and duration of visits play an important role in determining your intent.
- Items that are near and dear to you should be kept in your domiciled state. Receipts and documents showing the transport of these items could be important to keep. Anything that has strong sentimental value, including family picture albums, should also be kept at your domiciled residence.
- Other associations, such as banking/investment relationships, various registrations and church affiliations, should also be maintained in your state of domicile. Be careful! Even a seemingly small affiliation with your previous state of residence could wreak havoc.
A Tax Break Paradise
Another benefit to establishing domicile in Florida is the state homestead exemption. The law largely protects your primary residence from creditors, gives you a credit against your home’s assessment (for tax purposes), and caps your property taxes to either 3% or the current rate of inflation – whichever is less.
In addition, the “portability” provision of the Florida homestead exemption allows you to move up to $500K of the “Save Our Homes” benefit from one Florida home to the next. Florida homestead may also protect your spouse’s inheritance with a life estate – or a 50% interest in lieu of the life estate – unless your spouse waives these rights.
To qualify for the homestead exemption, you must have declared Florida as your state of domicile as of January 1 of the current year. If you qualify, you can apply for the exemption and file with your county’s property appraisal office. Although the 2016 deadline for filing the exemption has passed, you can apply for 2017 exemption until March 1.
Lastly, domicile should be considered not only from a tax perspective but also from an estate planning perspective: in other words, the rights of your spouse and children upon your death. An advisor who is well-versed in the process of new domicile can provide you with a complete package of instructions and discuss planning opportunities to help you effectively implement your decision to domicile.
If you are considering a change of domicile to Florida, it is important to discuss the advantages and disadvantages with your financial advisor, CPA and attorney.
Denise Rakich Joins CAS
We are pleased to announce a new addition to our growing, family-focused firm: Denise Rakich.
As Business Coordinator at our Naples office, Denise will be play a key role in onboarding new clients, as well as performing account maintenance for our existing clients. She will also provide support for trust and estate administration.
“We are excited to welcome Denise to our CAS Team,” said Susan Hansen, Director of Administration at Ciccarelli Advisory Services. “She has a wealth of knowledge, experience and passion for the client experience. In the short time she has been with us, she has already made such a positive impact!”
Denise has more than 30 years of experience as a legal assistant, and also served as a client services manager at a local investment advisory firm. She earned her Associate’s degree in Applied Business from Bowling Green State University in Ohio.
At Ciccarelli Advisory Services, we focus on what matters to your family because we are a family. We embrace a holistic approach to wealth management and financial planning. Our family of advisors and staff is dedicated to promoting the financial well-being of your family – today and for generations to come.
