Board of Directors
Mark McCandless, CFP®, CPA
Molly Balunek, CFP®
Patrick Hanratty, CFP®, CPA/PFS
Kevin Kroskey, CFP®
Mary Farrell, CFP®
Mario Gigante, CFP®, CPA, AIFA®
Ken Paull, CFP®
Pamela Sandy, CFPzzr
Bill Russo, CFP®
|Upcoming Program Dates|
No programming held
September 16, 2010
Topic: "Speaking of Ethics"
Valley View, OH
Patrick Kuhse's personal journey, from successful stockbroker with a loving family and home in the suburbs of San Diego, to the jungles of Costa Rica as an international fugitive, to incarceration in two countries and back again. After spending four years in prison, he now devotes himself to speaking to audiences worldwide about the importance of ethical behavior.
October 18, 2010
7:30 a.m. - 5 p.m.
Premier speaker and author of ten books and CD program for financial services professionals
Blaine F. Aikin, AIFA, CFA, CFP®
President & CEO
Investment Advisor Magazine
Mark Ballenger, JD
Attorney for the Ohio Dept. of Commerce/Division of Securities
For more information or to register online
November 18, 2010
The State of the Profession
2 - 6 p.m.
Thanks to Our Sponsors|
Charles Schwab Institutional
Fidelity Institutional Wealth Services
Franklin Templeton Investments
Long Term Care Financial Partners
Ohio Tuition Trust
SS&G Financial Services
Tri-C Corporate College
The Other Half of the World|
|by Bob Veres E-Column|
I've been reading through one of the best
investment research reports I've ever seen, which makes me wonder if most
client portfolios aren't living in the past. The report was created by FPA/NEO member, Margie Carpenter, who some of you
may remember as one of my key assistants when I was editor of
Carpenter points out that what we call the Asian emerging markets (defined with
some precision in the report, but you probably know who they are) make up half
the world's population, made up 40% of the world's economic growth over the
last 20 years, and are projected to make up 60% of the world's total economic
growth over the next five.
Now here's the kicker. Because
none of these economies are represented in the MSCI/BARRA EAFE index (which
only includes developed countries), and because they are inexplicably
underrepresented in the emerging markets indices, most client portfolios have
5% or less exposure. That's
right; chances are your clients are about 5% exposed to economies that make up
half the world's population, that are expected to constitute at least half the
world's overall economic growth over the next five years and (the report notes)
already makes up 21% of the world's overall market cap.
What to do? There are a lot of different ways to
approach this issue, and different options--different funds and ETFs, different
indices, different potential weightings, and the report examines many of them
in considerable detail. I became a
lot smarter about economies that I've never paid much attention to before. The report includes a spreadsheet that
highlights a variety of recommended investment options, gives them scores and
rankings based on costs, turnover and volatility (as well, of course, as
performance), and notes over- and under-weighting issues.
Unfortunately, I can't just GIVE you
this report as part of the overall Inside Information service; it was completed
as part of a fairly significant contract project. But I DID manage to convince Ms. Carpenter to make the full
package of analysis available at a reasonable price ($499.95), and then
convinced her to offer a $50 discount to Inside Information readers. If you're interested, you can go to the
Inside Information web site click here to go to the Inside Information web site,
and either click on the
link toward the middle of the right side of the page, or click on the
"tools" part of the navigation bar along the top. As you finish your order, put the
coupon code: "B232" in the coupon code field, to get the $50
discount, and you should be able to have the report sent to you immediately
after the order. (If, for some
reason, it does NOT immediately come back to you via e-mail, please let me
I'm now scouting for other
products/services/analyses that I think might significantly enhance our ability
to invest and harvest the opportunities that are out there, and plan to highlight
them and negotiate discounts where I can. As always, thanks for listening. And have a great week. Best, Bob Veres Inside Information
FPA/NEO September 2010 Newsletter|
by Mark McCandless, CFP®, CPA
"Time to Act!"
arrival of September and the beginning of the fall season, many people turn
their attention to football at the pro, college and high school levels.
Washington seems to already be in the spirit as the political footballs are
being tossed with renewed enthusiasm. The problem is that the issues facing us
as Americans and as financial planners can no longer be "punted" to the next
generation. Major issues such as
our budget deficit, the national debt, Social Security and Medicare must be
addressed now. We can no longer talk about leaving a massive debt to our
grandchildren. There are no more timeouts. These problems will not wait that
planners there are two ways we can deal with these issues. First, we can help
our clients plan for the potential effects the "solutions" to these problems
may have on them (i.e. cutting social benefits, increasing taxes, etc.) through
our pro-active advice. To help you in this regard, our Chapter has provided
programs addressing the areas estate planning, income tax planning, insurance and
investment advice as well as discussions with experienced local practitioners
to help you improve the quality of service and value you bring to your clients.
We will offer more of these types of programs and we will also explore the
impact of financial reform on your business as well as on our clients' lives in
the upcoming year.
Second we can try to become a part of the solution. How? Get involved
in our Chapter, particularly in the Governmental
Relations effort. You can be involved in our committee as we attempt to
contact legislators to help them understand financial planning. Now we have a
major issue that has progressed to the point where individual members can have
a voice. Sec 919C of the Dodd-Frank financial reform bill provides for the
In general (a) The Comptroller General of the United States shall
conduct a study to evaluate-
the effectiveness of State and Federal regulations to protect investors and
other consumers from individuals who hold themselves out as financial planners
through the use of misleading titles, designations, or marketing materials;
current State and Federal oversight structure and regulations for financial
legal or regulatory gaps in the regulation of financial planners and other
individuals who provide or offer to provide financial planning services to
CONSIDERATIONS.-In conducting the study required under subsection (a), the
Comptroller General shall consider-
the role of financial planners in providing advice regarding the management of
financial resources, including investment planning, income tax planning,
education planning, retirement planning, estate planning, and risk management;
important for us to make comments to the Comptroller General about the
fiduciary standard and how it relates to the issues addressed above. Since this bill has only recently
passed and there is time before their study is complete, our Governmental
Relations committee will strategize about the best way for you to get your
voice heard. In addition, at our November "State of the Profession" meeting,
one our panelists will be Dave Barry, who handles government relations for FPA
National. He will provide insights about financial reform as well as how we as
a group can have a positive impact on decisions made in Washington.
We have many
positive things happening in our Chapter as you will see from the other
articles in this month's newsletter. I hope you will take the time to review
the articles and take advantage of the opportunities presented. While we
sometimes feel we have been "sacked" by the politicians and "penalized" by
their actions, the game is not over. As we enter the 4th quarter, we
can still call our own plays and make our own decisions. They may change the
rules during a timeout, but every time we take the field (or in our case
perhaps, turn on our computer) we have a chance to make a positive difference
in the lives of our clients and in the effectiveness of our profession.
I hope you
all have a great month and I promise this is the last time I will use a
football analogy in my President's letter!
September 16th FPA/NEO
Program to feature Patrick Kuhse's
"Ethics" presentation - 2 CE
Date: Thursday, September 16, 2010
Time: 8:00 - 11:00 a.m.
Cost: $75 FPA Members / $100 Non-members
Click here to register online
Speaker: Patrick Kuhse
Invited back by popular demand, Patrick Kuhse will again present 2 hour Ethics CE for CFPs.
Upbeat, outgoing, cheerful and modest, Patrick Kuhse would not appear to be a man with a horrible and horribly painful past.
This will be one ethics program you will not forget. Join us on September 16th for this riveting presentation.
Thanks to our September sponsor: CoreFocal
(Article below written by James T. Guzowski, CFP®, CPA of CoreFocal)
|Pro Bono - Three exciting ways to participate|
School is starting up again and so is our initiative with Junior Achievement. We all understand the importance of financial literacy, and especially with kids. Volunteering to teach through JA is an easy way for us as financial planners to make a lasting and important impact in our community. We are currently seeking volunteers to participate in the JA program in one of our local schools.
time commitment to teach the 5-week program: About 1.5 hours per week for 5
weeks, plus one hour orientation.
If you are not sure you can commit to that much time, no problem. We
can help pair you with another FPA volunteer to split the classes.
you are interested, or would like more information, contact fellow FPA member
and acting JA liaison, Adrienne Love: Adrienne_Love@KeyBank.com or call Adrienne at 440.995-2119.
Akron Beacon Journal Call-in
planning another round of free call-in's with the Akron Beacon
Journal. As part of our Financial Planning Week's events,
the FPANEO will be teaming up with the ABJ and Credit Counseling
to offer two call-ins: Wednesday, October 13 from 6pm-8pm and Saturday,
October 16 from 10am-1pm. They will both be held at the
As a wrap
up to the event last year, Betty Lyn Fisher, the reporter for the ABJ's
financial column, wrote a detailed article that highlighted each of the
FPA members who volunteered. If you want to join us as a volunteer for
this year, better act fast. There are a limited number of slots
available. Call or email Adrienne Love at 440.995-2119, Adrienne_Love@KeyBank.com.
Movie Night Encore
come out and see the free showing of the movie, IOUSA, during Financial
Planning Week last year? If not, you missed out on one of the most
impactful public events the FPANEO has ever hosted. The review of our
country's current financial debt crisis was well told and eye-opening.
There's been quite a demand to offer the movie again. So, we're gong to
do it this October, but this time, with two showings: Cedar Lee on
the east side, and Capital Theater on the west. Invite
your office associates and clients. It's a great event to invite
prospects to. Bring your friends and family-it's free! Keep a watch
out for a notice on the exact dates, but it will be sometime during the first
week of October.
Robert A. Valente, CFP®, AEP
William R. Hawke, CFP®
J. Michael Faehner, CFP®
Ashok Shendure, MS, MBA, CFP®, CEBS
Harlan G. Storey, CFP®, J.D., AIFA
Stanley Oda, CFP®
Thomas G. Sheiman, CFP®
Charles J. Randazzo
Yeshwaht K. Tamaskar
Joseph P. Yesko, CFP®
Roger R. Rachel, CFP®
Donald W. James CFP®, CPA/PFS
Daniel F. Miltner, CFP®
Jess W. Hurst, II, CFP®
Theodore s. Dumas
Vicki a. Kline, CFP®, CPA, PFS
Larry F. Mihevic, CFP
Walter E. Moore, CFP®
David M. Taucher, ®
Joseph E. Recchia, CPA, CFP®
Michael V. Sergi, Jr., CFP®, CRPC
Mark A. Mihalik, CFP®
Emily N. Shacklett, CPA, PFS
Johathan D. Torrens, CFP®
Ann M. Iglai, CFP®, CRPC
Timothy P. Marcinek
Michael C. Brady, CFP®
Randall L. Bliss, CFP®
Matthew S. Olver, CFP®
Linda M. Olejko, CFP®
Richard S. Martin, CFP®
Nathan R. Gist, CFP®
Patrick T. Hanratty, CPA, PFS
Keven P. Prather
Michael J. Nedreski, RFC
Bonnie L. Cook Villari, CFP®
Lisa Cochran, CFP®
Michael F. Cleary, CFP®
Kristen L. Moran, CLU
Daniel L. Bonder, CFP®
Douglas B. Robinson, CFP®
Randall K. Young, CFP®
Matthew R. Loger, CPF®
Daniel J. Lauletta, CFP®, ChFC, CLU, LUTCF
Debra L. Boerger, CFP®
Paul M. Scudiere, CFP®
James F. Henyey, CFP®
Marianne Grega, CFP®
Six things you should know about...."The
What is it?
Over the last several years, the availability of fast,
low-cost broadband, combined with significantly reduced storage costs, has made
it easier and more economical to have access to larger and more powerful
applications and services via the Internet. As a result, developers and software providers have
responded by making available infrastructure, software applications and even
workflow processes available via the Internet. Simply put, "The Cloud" is accessing computer infrastructure
and/or software applications by connecting directly to the Internet via a web
browser (Internet Explorer, Firefox, Chrome, etc.). Access can be from a PC or laptop computer or from a mobile
phone or other tablet device.
What are its characteristics?
In general, cloud computing customers do not own the
physical infrastructure. This
avoids a sometimes significant capital expenditure by allowing the user to more
or less pay "rent" for the usage of the infrastructure and/or software. Providers will either charge based on
consumption (storage, bandwidth), or a subscription (per company, per user, or
per module) basis, or a combination of both. Maintenance of the infrastructure and software is the
responsibility of the provider.
Users can generally terminate the contract at any time (thereby avoiding
up-front investment risk and uncertainty) and the services are often covered by
"service level agreements" ("SLAs") that outline performance guarantees, costs
and financial penalties for service shortfalls.
What's out there, in The Cloud?
There are two basic components to The Cloud: "infrastructure as a service," and
"software as a service," otherwise referred to as "SaaS."
Infrastructure as a service
is the availability, usually for a monthly charge, of raw computing power
and/or storage from a third party.
It is also known as a "hosted server." Basically, your server is owned and maintained by a third
party, and is located not in the computer room at your office, but at an
offsite location. All users
connect directly via the Internet.
Software as a service, or "SaaS" is
an application hosted on a remote server and accessed through the Internet. More on SaaS, below.
What are the key benefits of The Cloud?
Agility for users
improves by being able to rapidly and inexpensively move to newly-available
Device and location independence
enables users to access systems or software using a web browser regardless of
their location or what device they are using (e.g., PC, laptop, mobile phone,
tablet device). As infrastructure is off-site (provided by a third-party) and
accessed via the Internet. Users
can connect from anywhere.
Security is often as good
as or better than under traditional systems, in part because providers are able
to devote resources to solving security issues that many customers cannot
Cost, whereby capital
expenditures are converted to operational expenditures. Put another way, fixed costs are now
variable costs, which will rise and fall based on usage, number of employees,
Maintenance - cloud computing
applications are easier to maintain, since they don't have to be installed on
each user's computer. They are easier to support and to improve since the
changes reach the end users instantly.
What exactly is "software as a service"
SaaS, sometimes referred to as "software on demand," is
software that is deployed over the Internet. With SaaS, a provider licenses an application to
customers as a service on
demand, through a subscription or a "pay-as-you-go" model.
Business professionals generally associate the term SaaS
with business software, and as a possibly lower-cost way for businesses to use
software as needed rather than license all devices with all applications.
What are some examples of SaaS
applications or web sites?
Investment management and reporting software
(AdventOnDemand, Schwab PortfolioServices)
Tax software (Ultra Tax, ProSystem fx, FastTax)
On-line payroll providers (Paychex, ADP)
Customer relationship management software
Internet email providers (Gmail, Hotmail, Yahoo
Web site hosting services (GoDaddy, Google)
On-line meeting/presentations (GoToMeeting,
Furthermore, Google is making a significant investment in
a suite of web-based applications (Gmail, Google Talk, Google Calendar, Google
Docs and Google Sites) under the moniker "Google Apps" that permit a user to
have access to all the applications, and also permits for on-line collaboration
on documents and spreadsheets for a modest monthly fee. Furthermore, third-party developers are
creating various applications to run on the Google Apps platform, and are
available much like purchasing applications for an Iphone or Blackberry device.
At CoreFocal we utilize SaaS in providing income tax
preparation, accounting and accounts payable processing services for our
clients. As an example, our tax preparation service provided to CPAs,
investment advisors and wealth managers enables us to prepare tax returns on
their behalf without the need for us to visit their office to perform our work
or pick up their tax files. Our SaaS also provides us and our clients a secure document
management and workflow system so that not only is the process "green" but all
users know the exact status of every tax return at any time. Also, because the CoreFocal
system is Internet-based all users can work wherever and whenever they like.
About the author: James T. Guzowski, CFP®, CPA is a
co-owner of CoreFocal, a domestic outsource provider of professional business
services, including individual and business income tax compliance, accounting
and accounts payable processing. To
learn more about CoreFocal services and how CoreFocal utilizes cloud computing
contact us at 440.348.9200 or visit us at http://www.corefocal.
Robert Morris University
Tuesday, September 21, 2010 at
Thursday, September 23, 2010 at
Fiduciary Analyst™ Program at Robert Morris University
The AIFA® program is 3-days in length and focuses on the process of
conducting fiduciary assessments. It addresses new audit requirements under the
Pension Protection Act of 2006 and enables those who attain the AIFA
designation to conduct assessments leading to Certifications against Global
Fiduciary Standards of Excellence. Instructors teach participants the four
steps that comprise the standard, the practices, and criteria necessary to
fulfill each step, and the assessment techniques to verify conformity to the
For more details or to register, email firstname.lastname@example.org or call him @ fi360:
412-221-0292, Ext 228.
Click here for more information
about the AIFA classroom program, including:
in-depth course description and program agenda
overview and learning objectives
faculty members and bios
Any person who attends an AIFA program must be a graduate from an AIFA (prior
to May of 2006), AIF, or AFIM program. For those wishing to obtain the AIFA
designation, students must meet certain educational and/or work experience
requirements. Please check your eligibility to become an AIFA designee against
Upon registration you will receive the
following in your registration package:
reading requirements that need to be completed prior to the start of the
program. The pre-work will adequately prepare participants for a
successful program experience, the quiz that will take place on day two,
and the final exam.
pre-reading and course materials: Prudent Practices handbooks for
Investment Stewards, Investment Advisors, and Investment Managers;
Self-Assessments of Fiduciary Excellence (SAFE) questionnaires for
Investment Stewards, Investment Advisors, and Investment Managers; Legal
Memoranda; and the fiduciary reference card and placemat.
details such as program agenda, directions to the training facility, and a
directory of nearby hotels
pertaining to the methodology for passing the course.
Tuition for the AIFA classroom program
includes the following products and services (group rates are available):
comprehensive desk reference manual that contains the AIFA course curriculum
and pertinent readings.
Practices for Investment Fiduciaries handbook series, associated
Self-Assessments of Fiduciary Excellence, Consultant-Assessments of
Fiduciary Excellence, and Legal Memoranda.
180 day access to the Platinum Toolkit - Student Version..
customized fi360 padfolio with Analyst notepad tailored to assist in your
SAFE and CAFE assessments.
placemat that includes The Periodic Table of Global Fiduciary Practices,
Assessment Levels, and the Management of Investment Decisions reference
Key Concepts Reference Card
Carl J. Becker
10 Emerson Lane, Suite 801-3
Bridgeville, PA 15017