Lutz Announces 2021 Shareholder and Director Promotions

Lutz Announces 2021 Shareholder and Director Promotions

 

LUTZ BUSINESS INSIGHTS

 

Lutz announces 2021 shareholder and director promotions

Lutz, a Nebraska-based business solutions firm, recently announced its shareholder and director promotions for 2021.

SHAREHOLDER

Chris Bouchard

Chris Bouchard has been promoted to Talent Shareholder in Lutz’s Omaha office. He has been a prominent presence in the Omaha talent search market for the past 20 years and leads Lutz’s talent division. Bouchard focuses on direct-hire and temporary staffing and strategic assessment and selection of potential candidates with an emphasis on human resources, accounting, finance, and office administrative positions.

Ben Burton

Ben Burton, CPA, has been promoted to Tax Shareholder. Over the years, Ben has been a cultural leader at Lutz, active in developing our tax staff. His primary focus is providing income and state and local tax services to corporations, partnerships, and individuals. In addition, he specializes in trust and estate consulting and compliance. Burton works in Lutz’s Omaha office.

Ben Burton

Joe Donovan, CPA, has been promoted to Tax Shareholder in Lutz’s Omaha office. Joe is known for his ability to provide top-notch client service along with efficient project management and staff development. He primarily focuses his time on tax compliance, research, and consulting assistance to privately held companies in various industries, including real estate development and construction.

Jenna Grenier

Jenna Grenier, CPA, has been promoted to Tax Shareholder. She is a member of the Central Executive Committee and a key contributor to the tax operations of Central Nebraska. She focuses on providing tax and consulting services to privately held companies and their owners. Grenier works in Lutz’s Grand Island office.

Aaron Hoffman

Aaron Hoffman, CPA, has been promoted to Tax Shareholder in Lutz’s Omaha office. He is a go-to member for QuickBooks and small business accounting in addition to his strengths in serving clients and solving problems. He provides tax planning, research, compliance, and consulting services to privately held companies focusing on the real estate and construction industries.

Aaron Hoffman

John Kampfe, CPA, has been promoted to Tax Shareholder. He serves many of Lutz’s largest and most complex clients and is known for his technical expertise. His primary responsibilities include providing tax planning, research, and consulting services to privately held businesses and individuals. Kampfe works in Lutz’s Omaha office.

Julianne Kipple

Julianne Kipple, CPA, has been promoted to Healthcare Shareholder in Lutz’s Omaha office. She provides an elevated level of technical expertise to the healthcare clients she serves. Her expertise is in accounting and consulting services for healthcare facilities, including outsourced CFO services, Medicare and Medicaid reimbursement, and Medicaid Disproportionate Share Surveys (DSH).

DIRECTOR

Adam Austin

Adam Austin, CPA, has been promoted to Tax Director. He brings several years of experience to the Omaha/Lincoln tax practice. His commitment to mentoring and developing staff has proven to be invaluable. He is responsible for providing tax consulting and compliance services to individuals, partnerships, and corporations focusing on the healthcare, manufacturing, and agriculture industries. Austin works in Lutz’s Omaha office.

Clarke Beller

Clarke Beller, CPA, has been promoted to Audit Director in Lutz’s Omaha office. He has been integral in the construction practice from both a niche management and production standpoint. Clarke exemplifies the say-it-straight mentality, which both clients and team member’s respect. He specializes in providing auditing and consulting services to privately held companies and employee benefit plans with a focus on the construction industry.

Katie Byrd

Katie Byrd, CPA, has been promoted to Audit Director. She is heavily involved in several of the firm’s complex clients and does a tremendous job solving their problems. She provides assurance services to businesses focusing on the retail, service, manufacturing, nonprofit, and franchise industries. In addition, Katie assists with transaction advisory services and employee benefit plans. Byrd works in Lutz’s Omaha office.

Kirk Delperdang

Kirk Delperdang has been promoted to Healthcare Director in Lutz’s Omaha office. Kirk brings many years of experience, excellent client relationships and advanced technical knowledge to the healthcare department. He provides healthcare enrollment services to clients with a focus on Medicare providers and reimbursement analyses. In addition, he is responsible for leading Lutz’s cost report service line.

Nick Hall

Nick Hall, CFP, has been promoted to Director in Lutz Financial. He has a deep technical background in financial planning. He specializes in creating thorough, adaptive financial plans and investment management strategies for high-net-worth families. Hall works in Lutz’s Omaha office.

Sarah James

Sarah James, CPA, has been promoted to Tax Director in Lutz’s Hastings office. She is highly technical and has proven that she can take the lead and build solid relationships through her service and delivery. She is responsible for providing income tax planning, consulting and compliance for individuals and closely-held businesses.

Josh Jenkins

Josh Jenkins, CFA, has been promoted to Chief Investment Officer. He specializes in assisting clients with portfolio construction, asset allocation, and investment risk management. He is also responsible for portfolio trading, research and thought leadership as well as analytics and operational efficiency for the Firm’s Financial division. Jenkins works in Lutz’s Omaha office.

Jake Klabenes

Jake Klabenes, CPA, has been promoted to Audit Director in Lutz’s Hastings office. He specializes in audits of governmental agencies, specifically housing authorities, with additional experience in not-for-profit entities and low-income housing tax credit projects. In addition, he has been a pivotal contributor to the Central Nebraska assurance department through managing scheduling and implementing processes. 

Matt Longenecker

Matt Longenecker has been promoted to Tech Director. Throughout his six-year career at Lutz, Matt has built a reputation for solving problems no one else can. He is responsible for meeting with outsourced IT clients to develop a plan to resolve their technical issues. This includes designing a solution plan, presenting a proposal, and managing the technical support staff to implement the project. Longenecker works in Lutz’s Omaha office.

Alex Lutz

Alex Lutz has been promoted to Tech Director in Lutz’s Omaha office. He is responsible for technology and data analytics consulting, service and technical escalations, as well as building processes and procedures to improve the quality of service on the MSP helpdesk. During his 9 years at Lutz, Alex has emerged as a leader with a rare combination of technical, operational, and cultural skills. 

Steve Nebbia

Steven Nebbia, CPA, has been promoted to Consulting Director in Lutz’s Omaha office. He is responsible for providing business and analytics consulting as well as tax consulting and compliance. Steven plays a vital role in overseeing tax operations and department changes. He uncovers critical data for decision-making, including implementing automation for tax processes using Robotic Process Automation (RPA).

Jonathan Patent

Jonathan Patent, CPA, has been promoted to Tax Director in Lutz’s Lincoln office. He provides tax compliance and consulting services to clients with a focus on the construction and real-estate industries. In addition, Jonathan provides tax research and multi-state tax compliance services. Patent also plays a vital role in recruiting and staff development initiatives within the firm. 

Dan Sweeney

Dan Sweeney has been promoted to Tax Director in Lutz’s Hastings office. He is often called on as a resource when highly technical issues arise, creating challenges and opportunities for our clients. He focuses on several areas, including tax preparation and planning for individuals, businesses, and estates and trusts. His experience also includes international tax and tax research.

Ryan Wade

Ryan Wade has been promoted to Tech Director. His primary responsibility is to manage the software solutions practice, including team administration, client relationship management and consulting on CRM and ERP strategy and solutions. Ryan is also the lead on Lutz’s online client portal, Threadworks. He oversees the design, development and implementation of the software internally and externally. Wade works in Lutz’s Omaha office and is active in the Omaha community. He is currently the Chair of the Nebraska Tech Collaborative.

Chris Wagner

Chris Wagner has been promoted to Director of Retirement Plan Services in Lutz Financial. He specializes in providing company and corporate retirement plan consulting and investment advisory services. Under his direction, Lutz Financial’s retirement plan division has grown to provide consulting and investment advisory services to more than 100 companies. Wagner works in Lutz’s Omaha office.

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Can a Market Decline Be a Good Thing? + Financial market Update + 7.20.21

Can a Market Decline Be a Good Thing? + Financial market Update + 7.20.21

FINANCIAL MARKET UPDATE 7.20.2021

AUTHOR: JOSH JENKINS, CFA

STORY OF THE WEEK

CAN A MARKET DECLINE BE A GOOD THING?

The market has experienced some volatility over the last week, as concerns that the Delta coronavirus variant could impact economic growth have increased. The large-cap stocks of the S&P 500 have declined nearly 3% over the last three trading days. Cyclical ‘reopening’ stocks that were hit especially hard during the height of the pandemic have fared even worse, and the small-cap stocks of the Russell 2000 briefly hit correction territory (defined as a 10% decline) on Monday.

While inflation has generally been the prevailing worry in recent months, there is evidence to suggest those fears have taken a back seat. If inflation were driving the recent equity market moves, you would expect bond yields to be rising. This would likely occur to compensate investors for a fixed rate of interest that now delivers less purchasing power. Instead, the yield on the 10 Year Treasury bond has declined more than 0.20% over the last week. Such a move is more consistent with an expectation for a slower rate of growth.

Is this volatility a precursor to a larger drawdown? The answer, of course, is impossible to know in advance. The market opened higher and is rallying fairly strongly as of this writing. Perhaps the recent selloff was just a blip on the radar? Or perhaps stocks are beginning to buckle due to their lofty valuations. Only time will tell.

Something we do know is periodic volatility in the equity market is normal. The chart below illustrates the frequency of drawdowns for the S&P 500 going back to the 1940s. As you can see, a decline of -5% or more has occurred fairly regularly, about three times per year on average. Over halfway into the year, we have not had a pullback of this degree yet. Larger declines of more than -10% have occurred surprisingly frequently as well. Referred to as a ‘correction,’ they have historically happened about once a year. Finally, a decline of -20% or more has historically occurred every 6 to 7 years. Large declines of this magnitude are referred to as a ‘bear market’ and are often accompanied by a recession.

Sources: Capital Group, RIMES, Standard & Poor’s. Assumes 50% recovery of lost value. Length measures market high to market low.

The point of showing this chart is not to suggest that stocks are due for a pullback simply because we have not had one in a while. Rather, it is to remind investors that volatility is a normal and healthy feature of investing in the stock market. Selloffs can reset valuations, temper excessive optimism and speculation, and provide the market with a stable foundation for future growth. Taking this lesson to heart when times are good can give investors the strength to stay disciplined when they inevitably aren’t.

WEEK IN REVIEW

  • Earnings season got underway last week, with 8% of S&P 500 companies reporting results thus far. Year-over-year earnings growth was expected to be 63% as of June 30th. Blending the growth rate of companies that have reported with the estimate for companies that have not yet reported, estimated earnings growth has increased to 69.3%.
  • This week will be fairly quiet on the economic data front. On Thursday, we will get jobless claims and the Index of Leading Economic Indicators. On Friday, we will get a flash reading of manufacturing and services sector activity. Last week initial jobless claims sank to a post-pandemic low of 360,000. Retail sales, meanwhile, surprised to the upside, increasing by 0.6% MoM, vs. expectations of a -0.4% decline.
  • Bitcoin has spent most of today trading below $30,000, after falling over 50% from its mid-April peak.

ECONOMIC CALENDAR

Source: MarketWatch

HOT READS

Markets

  • It’s Official: The Covid Recession Lasted Just Two Months, the Shortest in U.S. History (CNBC)
  • Used Car Supply is Improving (Axios)
  • Meme Stocks Mired in Longest Losing Run Since Frenzy Began (Bloomberg)

Investing

  • 90% of Personal Finance is Just Spend Less than You make, Diversify, and be Patient (Morgan Housel)
  • How the Stock Market Works (Ben Carlson)
  • The 7 Best Investing Podcasts for 2021 for Serious Investors (Investor Place)

Other

  • The Rose Bowl Throws a Wrench in College Football’s Playoff Expansion Plan (SI)
  • An ‘Airbnb for Pools’ Is Making a Splash This Summer (WSJ)
  • Jeff Bezos Reaches Space on Blue Origin’s First Crewed Launch (CNBC)

MARKETS AT A GLANCE

Source: Morningstar Direct.

Source: Morningstar Direct.

Source: Treasury.gov

Source: Treasury.gov

Source: FRED Database & ICE Benchmark Administration Limited (IBA)

Source: FRED Database & ICE Benchmark Administration Limited (IBA)

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ABOUT THE AUTHOR

402.763.2967

jjenkins@lutz.us

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JOSH JENKINS, CFA + CHIEF INVESTMENT OFFICER

Josh Jenkins is the Chief Investment Officer at Lutz Financial. With 12+ years of relevant experience, he specializes in assisting clients with portfolio construction, asset allocation, and investment risk management. He is also responsible for portfolio trading, research and thought leadership as well as analytics and operational efficiency for the Firm's Financial division. He lives in Omaha, NE, with his wife Kirsten.

AREAS OF FOCUS
  • Asset Allocation
  • Portfolio Management
  • Research & Data Analytics
  • Trading System Operation & Execution
AFFILIATIONS AND CREDENTIALS
  • Chartered Financial Analyst®
  • Chartered Financial Analyst Institute, Member
  • Chartered Financial Analyst Society of Nebraska, Member
EDUCATIONAL BACKGROUND
  • BSBA, University of Nebraska, Lincoln, NE

P: 402.827.2300 | F: 402.827.2319 | E: contact@lutzfinancial.com | 13616 California Street | Suite 200 | Omaha, NE 68154

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July Retirement Plan Newsletter 2021

July Retirement Plan Newsletter 2021

 

LUTZ BUSINESS INSIGHTS

 

PUBLISHED: JULY 19, 2021

JULY RETIREMENT PLAN NEWSLETTER

BITCOIN: COMING TO A 401(K) PLAN NEAR YOU?

Our 2018 report on Bitcoin (BTC), and the conclusions therefrom, remain relevant today. In short, the prudence in adding Bitcoin to a retirement plan is questionable, at best. Please see our past Retirement Times article on BTC (link here) discussing the cryptocurrency and its supporting technology. Greater media coverage has caused BTC interest to grow exponentially, as has its meteoric rise in price.

Currency, let alone cryptocurrency, lacks intrinsic value, and does not provide dividends or income. The absence of intrinsic value, dividends, or income makes currency a less than ideal investment option because price becomes more a function of supply verses demand. Thus currencies are difficult to value and develop a long-range return forecast.  Newer currencies like BTC contain elements of speculation because their approaches, adoption and technology are unproven. This can lead to tremendous volatility (see this discussion in our previous article), making them risky options for even the most sophisticated investors. U.S. Department of Treasury Secretary Janet Yellen recently issued a warning, stating that “(BTC) is a highly speculative asset, and you know I think people should be aware it can be extremely volatile and I do worry about potential losses that investors can suffer.”

BTC had taken early root among a variety of communities. Some saw it as a means of independence from governed societies’ financial systems while others believed it to have more diverse uses such as a way for an alternative currency to reach emerging markets, an opportunity for more seamless electronic payments, and the facilitation of anonymous transactions. The anonymity use-case which has driven BTC’s adoption is in turn subject to significant sustainability risk as more federal governments and nation states look to exert more control and regulation over these currencies. In fact, this may be the only way for cryptocurrency to be adopted en masse.

When it comes to building sound retirement portfolios, investing in assets that have intrinsic value and produce dividends and income continue to be the best strategies for those looking for outcomes that are more consistent and predictable. This not only applies to defined benefit investors looking to achieve some level of return or target a certain funded status, but to participants in defined contribution plans as well. If a plan decided to add cryptocurrencies to their fund offering, most participants do not possess the knowledge or expertise to make an informed and prudent allocation to this option. This would potentially open the door to fiduciary liability on behalf of plan sponsors who are responsible for monitoring designated investment alternatives made available to participants. Furthermore, from an administrative standpoint a lot of grey area persists. The infrastructure required to custody this type of asset is something most plan administrators lack at present.

To reiterate our conclusion from our first BTC article; while the innovative technology and recent returns can make this an exciting story to follow, the fiduciary considerations, wild valuation swings and uncertainty on several fronts make it clear: in building retirement portfolios it’s best to continue to watch BTC, and cryptocurrencies in general, from the sidelines, for now.

7 WAYS TO REDUCE FIDUCIARY LIABILITY

In 2020, nearly 100 lawsuits alleging breach of fiduciary duty were filed. And with the number of 401(k) lawsuits on the rise targeting plans both large and small, sponsors are well-advised to consider taking additional measures to mitigate fiduciary risk where practicable. Here are a few to consider.

  1. Create and follow an IPS. While not an ERISA requirement, an investment policy statement (IPS) is considered a best practice according to Department of Labor (DOL) guidance. Among other things, it outlines how the organization will maintain and follow prudent processes for selecting and monitoring investments and oversee the performance of third-party providers. However, be advised that failure to follow IPS provisions can also expose an organization to increased risk, so careful crafting of IPS language is crucially important.
  2. Outsource fiduciary responsibilities. While a 3(21) fiduciary acts in an advisory capacity, plan sponsors can hire a 3(38) fiduciary to maintain full authority and discretion over investments and take on the liability for managing them on a regular basis. Sponsors, however, must still conform to ERISA standards and follow a prudent process when engaging a 3(38) fiduciary (including monitoring them on an ongoing basis).
  3. Obtain fiduciary liability insurance. This type of coverage is designed to protect companies from investment mismanagement claims and fiduciary legal liability. Such policies can protect both the organization as well as named fiduciaries, covering legal costs in the event of a 401(k) lawsuit. With the recent escalation of litigation, fiduciary liability insurance costs have also been on the rise, along with greater limitations in coverage.
  4. Document, document, document. Keep detailed records of the prudent processes your company follows, from investment selection to fee benchmarking to ongoing fiduciary education and training. This documentation can strengthen your case in the event of a lawsuit.
  5. Meet the safe harbor requirements of ERISA Section 404(c). This provision offers a “safe harbor” which if met relieves plan sponsors and fiduciaries from liability for losses arising from participant-directed investment. But to qualify, the plan must satisfy several a myriad of requirements pertaining to matters such as investment options, plan design and administration, as well as participant disclosures. Luckily the majority of these responsibilities are taken care of by top tier recordkeepers and/or third party administrators.
  6. Take advantage of QDIA protections. In Section 624 of the Pension Protection Act of 2006, the DOL established the qualified default investment alternative (QDIA) safe harbor that allows for default investments to be made on behalf of participants who fail to make investment elections. QDIAs can include a target date fund, balanced fund or professionally managed account. Other regulatory requirements must also be satisfied to enjoy safe harbor relief from fiduciary liability for QDIAs, including the use of prudent QDIA selection criteria, participant notification, and regular monitoring of investment performance.
  7. Class-action waivers and arbitration agreements. These plan document provisions require participants to undertake fiduciary breach litigation on an individual basis and prohibit the filing of legal actions in court (versus arbitration). Ideally, such clauses are included at the inception of the plan, as when added as amendments, the sponsor may have to later demonstrate that participants were made aware of the change. In cases where employees have already separated from the company, this may prove difficult.

Don’t assume your plan is too small to be vulnerable to litigation risk. Creating layers of protection based on plan design features, documentation and adherence to prudent processes, fiduciary outsourcing and insurance coverage can help mitigate fiduciary liability.

 

Sources

https://www.investmentnews.com/401k-lawsuits-explode-2020-200121

https://sponsor.fidelity.com/pspublic/pca/psw/public/library/manageplans/invest_policy_considerations.html

https://money.usnews.com/financial-advisors/articles/guide-to-fiduciary-liability-insurance

https://401kspecialistmag.com/4-key-steps-plan-sponsors-can-take-to-guard-against-401k-lawsuits/

https://www.investmentnews.com/fiduciary-liability-unclear-when-selecting-and-monitoring-default-retirement-investments-65247

TO BUNDLE OR NOT TO BUNDLE - WHAT'S BEST FOR YOUR BUSINESS IS THE QUESTION

Whether to use bundled or unbundled service providers is an important decision for your retirement plan. A fully bundled arrangement provides an easy, one-stop shop for services, while unbundling separates functions and uses a third-party administrator (TPA), distinct from the recordkeeper. While there is no right or wrong answer to this question, weighing the advantages of each option against the needs of the organization is essential.

 

The Benefits of Bundling

Convenience and simplicity.

Often less complicated than dealing with multiple vendors, bundling may be a better choice when convenience is key. Bundling offers a comprehensive all-in-one solution, which can make it a more efficient and easier-to-manage option for many businesses.

Cost-effectiveness.

Organizations can realize significant savings by bundling services when the cost of administrative and recordkeeping services is offset by management fees. But this is not always the case, so be sure to compare the “all in” costs when deciding.

Time savings.

With a bundled arrangement, you do not have to take time to research and engage multiple providers since all services are consolidated under one umbrella. And you never need to spend time figuring out who to call when you have concerns about your plan — you will have a single point of contact for all your questions.

 

The Upside of Unbundling

Greater flexibility and choice.

Bundled providers do not allow you to select experts for each service individually, while unbundling gives you the freedom to choose the ones best suited to your organization’s particular needs. A bundled provider may be strong in one area, but not perform across all services equally. While engaging vendors independently can involve a bit more work, you may find doing so well worth the time and effort.

More complex and customizable plan design.

Third-party administrators generally have a greater capacity to craft a plan tailored to meet an organization’s specific goals — one that can better adapt to changing business conditions while complying with regulatory requirements. A TPA made-to-order plan can be particularly helpful when an employer’s needs are more complex and require more sophisticated plan design features. Bundled providers, on the other hand, may use more of a boilerplate approach, resulting in a plan that doesn’t fully align with all business objectives.

Increased agility.

Even if you think the approach you have settled on is ideally suited to your needs, those needs may change over time. Or you may discover that an aspect of the overall service fails to meet expectations. With an unbundled arrangement, you can change up individual providers as needed, without having to upend your plan and start over from scratch, enabling an organization to be nimbler.

 

Decisions, Decisions

While the trend has been decidedly in favor of unbundling services in recent years, particularly among larger plans, which arrangement works best varies depending on the organization. Choose the option that provides the flexibility and customization — or ease and convenience — best suited to your situation.

 

Sources

https://www.plansponsor.com/partial-bundling-overtakes-full-bundling-retirement-plan-services/

http://www.401khelpcenter.com/401k_service_models.html#.YLDori2ZOog

PARTICIPANT CORNER: ARE YOU SABOTAGING YOUR RETIREMENT?

Saving for retirement can be intimidating, but it doesn’t have to be. Finding reasons not to contribute to your retirement plan will hurt you in the future.

Do any of these excuses sound familiar?

If you think… Then Consider…
“I don’t make enough money.” Tax Savings. Your contribution is taken out before taxes, so the amount you pay taxes on is lower.
“I’m too young to worry about it right now; time is on my side.” The magic of compounding. When you give your money more time to accumulate, the earnings on your investments – and the annual compounding of those earnings – can make a big difference in your final return.
“I’m too old, it’s too late.” It’s never too late. If you’re 50 years old or older, you can contribute a catch-up deferral of up to $6,500 for 2021.You still have time to put your money to work for you.
“Stock, bonds…it’s too confusing!” There is an easier way! Your plan may have the option to invest your money in a “pre-set” asset allocation or lifestyle model that takes into account your expected retirement date or age. It’s a “set it and forget it” approach and works well for the less sophisticated investor.
“I’ll still have my Social Security.” Don’t count on it. A dwindling workforce means fewer tax dollars down the road. In just a few years there will be two workers per every one retiree.
“I just don’t know how to get started.” Help is available. Understand how to being saving for retirement might be overwhelming, but it’s easier than you think. Contact Human Resources for an enrollment form or call our Retirement Financial Professionals, [FIRM], at [Phone] for more information.
DISCLOSURE INFORMATION

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Lutz Financial (“Lutz”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Lutz.  To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing.  Lutz is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice.  A copy of the Lutz’s current written disclosure Brochure discussing our advisory services and fees is available upon request. Please Note: If you are a Lutz client, please remember to contact Lutz, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Lutz shall continue to rely on the accuracy of information that you have provided.

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The Inflation Debate Continues + Financial Market Update + 7.13.21

The Inflation Debate Continues + Financial Market Update + 7.13.21

FINANCIAL MARKET UPDATE 7.13.2021

AUTHOR: JOSH JENKINS, CFA

STORY OF THE WEEK

THE INFLATION DEBATE CONTINUES

Inflation continues to be one of the main storylines gripping the markets in 2021. The question isn’t if we will see sharp price increases or not, as they have been spiking higher for months. Rather the debate centers on whether the increases result from transitory factors, or if they will persist. The answer may have a significant impact on the economy and the markets. The Federal Reserve has maintained a view that the elevated inflation readings will be temporary. Their reasoning relates to labor market issues, supply chain disruptions and a misleading comparison of current prices with those of the weak economy a year ago. Other economists, however, think elevated inflation is here to stay. If the latter camp is correct, the Federal Reserve may be forced to tighten monetary policy sooner than expected, which would dampen economic activity and likely pressure stock and bond prices.

This morning, the Bureau of Labor Statistics published the Consumer Price Index (CPI), a popular inflation measure, for the month of June. While economists surveyed by the Wall Street Journal were expecting a modest slowdown from the May figure, the published data came in notably higher. On a year-over-year basis, prices increased by 5.4%, which is the fastest increase since the summer of 2008 when oil pushed to $150 per barrel. Core CPI, which strips out the volatile food and energy components, increased by 4.5%, making it the fastest pace since 1991.

On the face of it, the updated data appears to support the idea that rapid inflation is here to stay. Still, some factors suggest it’s too early to begin worrying. For example, used cars and truck prices have been rising rapidly due to a chip shortage that has choked off the production of new vehicles. The price for used autos has increased by 45% over the last 12 months and accounts for roughly a third of the overall inflation figure. Additionally, significant pent-up demand for travel and other services has been unleashed as the nation’s vaccination program continues. This has put upward pressure on the price of everything from fuel to airline tickets. Finally, the ‘base effect,’ or the comparisons between current prices and those of last year when the economy had just exited widespread lockdowns, should begin to fade away as we enter the fall.

At its most recent monetary policy meeting, members of the Federal Open Market Committee (FOMC) published their updated ‘Summary of Economic Projections.’ The projections aggregate the independent view of each member. While these projections do not represent an actual consensus forecast, they still provide some information on what the committee is thinking. The inflation measure included in the projections is the Personal Consumption Expenditures (PCE), which is the Fed’s preferred gauge. As you can see in the below table, the Fed expects inflation to run above its 2% target for 2021 and then decline in subsequent years. Again, this reflects the Fed’s view that inflation will be temporary.

Source: Federalreserve.gov, released on 6/16/2021. Yellow highlight added by me.

Investors in aggregate seem to be subscribing to the Fed’s view. Market-based measures generally suggest inflation will average just above the Fed’s 2% target in the coming years(1). Other data series that previously spiked but have since declined include the M2 money supply and lumber prices. Finally, even after the CPI data was published this morning, bond yields remain more or less unchanged. Generally, you would expect yields to rise with inflation fears.

It’s impossible to know how this plays out. The Fed seems to have convinced the market that inflation pressures are temporary, or at minimum, it has the tools to tame it if it’s not. The inflation debate will likely continue to garner headlines in the coming months.

1. The 10-Year Breakeven Rate, a common market-based measure of inflation expectations was at 2.33% as of 7/12/2021, per the FRED database.

WEEK IN REVIEW

  • Earnings season gets underway this week with a few major US banks reporting results. Earnings estimates for the S&P 500 currently reflect a staggering YoY growth rate of 64%, largely due to economic weakness at this time last year. If these estimates prove to be accurate, it will be the fastest YoY growth rate since Q4 2009, when the economy was recovering from the Financial Crisis.
  • Mortgage rates have followed the 10-Year Treasury yield lower. According to Freddie Mac, the national average 30-year fixed-rate mortgage rate declined to 2.9% last week. That is the lowest level since February.
  • Economic data to watch for this week includes jobless claims, industrial production and capacity utilization on Thursday. On Friday, we will get an update on retail sales, business inventories and consumer sentiment.

ECONOMIC CALENDAR

Source: MarketWatch

HOT READS

Markets

  • ‘This feels like 1999’: Global Start-Up Funding Frenzy Fuels Fears of a Bubble (CNBC)
  • Earnings Season Starts With Sky-High Stock Prices and Sky-High Expectations (CNBC)
  • Consumer Price Index Summary (BLS)

Investing

Other

  • The Uneven Odds for Promotions With Hybrid Work (WSJ)
  • The Invisible Addiction: Is It Time To Give Up Caffeine? (The Guardian)
  • Bezos and Branson are Going to Space! Or Maybe Not (Wired)

MARKETS AT A GLANCE

Source: Morningstar Direct.

Source: Morningstar Direct.

Source: Treasury.gov

Source: Treasury.gov

Source: FRED Database & ICE Benchmark Administration Limited (IBA)

Source: FRED Database & ICE Benchmark Administration Limited (IBA)

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ABOUT THE AUTHOR

402.763.2967

jjenkins@lutz.us

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JOSH JENKINS, CFA + CHIEF INVESTMENT OFFICER

Josh Jenkins is the Chief Investment Officer at Lutz Financial. With 12+ years of relevant experience, he specializes in assisting clients with portfolio construction, asset allocation, and investment risk management. He is also responsible for portfolio trading, research and thought leadership as well as analytics and operational efficiency for the Firm's Financial division. He lives in Omaha, NE, with his wife Kirsten.

AREAS OF FOCUS
  • Asset Allocation
  • Portfolio Management
  • Research & Data Analytics
  • Trading System Operation & Execution
AFFILIATIONS AND CREDENTIALS
  • Chartered Financial Analyst®
  • Chartered Financial Analyst Institute, Member
  • Chartered Financial Analyst Society of Nebraska, Member
EDUCATIONAL BACKGROUND
  • BSBA, University of Nebraska, Lincoln, NE

P: 402.827.2300 | F: 402.827.2319 | E: contact@lutzfinancial.com | 13616 California Street | Suite 200 | Omaha, NE 68154

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Can a Market Decline Be a Good Thing? + Financial market Update + 7.20.21

Average Returns are Rare + Financial Market Update + 6.29.21

FINANCIAL MARKET UPDATE 6.29.2021

AUTHOR: JOSH JENKINS, CFA

STORY OF THE WEEK

AVERAGE RETURNS ARE RARE

Over the last century, the US stock market has been a wealth-creating machine. With an average annual return of just over 10%, a buy-and-hold investor should have seen their money double roughly every seven years. $1,000 invested at the start of 1926 and held through the end of last year would now be worth more than $10 million!¹ Unfortunately, most mortal investors don’t have a century-long investment horizon, but compounding returns are still a very powerful force, even over shorter periods.

Investing in the stock market requires the investor to assume some risk. While stocks have generally earned a 10% return over time, one should not expect to earn that consistently from one year to the next. In fact, as the chart below shows, stocks rarely earn anything near their average return during a given year.  The green band illustrates a +/- 2% band around the long-term average of 10%. In the 95 years since 1926, the annual return has only fallen within the band on six occasions! Most years oscillate between very high returns and the occasional sizable loss.

Source: Morningstar Direct. Annual returns are from January 1926 through December 2020, and are based on the IA SBBI US Large Stock TR USD Index.

The famous investor, Howard Marks, has my favorite description for this pattern:

The mood swings of the securities markets resemble the movement of a pendulum. Although the midpoint of its arc best describes the location of the pendulum “on average,” it actually spends very little of its time there. Instead, it is almost always swinging toward or away from the extremes of its arc. But whenever the pendulum is near either extreme, it is inevitable that it will move back toward the midpoint sooner or later. In fact, it is the movement toward the extreme itself that supplies the energy for the swing back.

Investment markets make the same pendulum-like swing:

  • Between greed and fear,
  • Between optimism and pessimism,
  • Between risk tolerance and risk aversion,
  • Between credence and skepticism,
  • Between faith in value in the future and insistence of concrete value in the present, and
  • Between urgency to buy and panic to sell.

This oscillation is one of the most dependable features of the investment world, and investor psychology seems to spend much more time at the extremes than it does at the “happy medium.”

Recent experience has certainly been consistent with Marks’ analogy of the pendulum in investor phycology. The S&P 500 returned over 30% in 2019, and optimism was high at the end of the year following the easing of trade tensions with China. In early 2020, the market experienced a significant drawdown as the pandemic and associated lockdowns caused panic among investors. Optimism returned fairly quickly, and the period that followed has generally been characterized as frothy, with substantial speculative activity within meme stocks, SPACs and cryptocurrencies.

It is critical for investors to understand the degree to which investor phycology can influence the market. The goal, however, isn’t to anticipate the swings in emotion in an effort to profit from them. The events that trigger the reversals are often completely unexpected. Instead, investors should simply recognize that these large swings are normal and are destined to repeat in the future. The challenge is to stick to your plan while others are being swept away in the currents of fear and greed. A difficult task to be certain. Those that are able to do this successfully put themselves in the best position to harness the wealth-creating ability of the stock market.

1. Based on the IA SBBI Large Stock TR USD Index

WEEK IN REVIEW

  • Last week new data showed that shipments of “core” non-defense capital goods excluding aircraft, a key component of business investment used to calculate GDP, increased by 0.9% in May (on pace for a 9.7% annualized rate in Q2). While this figure has slowed from the blistering growth rates upon exiting the pandemic lockdowns, it is still a very good reading.
  • On Friday, Personal Consumption Expenditures (PCE), the Fed’s preferred inflation gauge, was published. The figure showed a 3.9% YoY increase in prices, which is the fastest rate since 2008. The Core PCE figure, which strips out the volatile food and energy components, increased at a 3.4% YoY rate.
  • Economic data to be published this week includes an update on manufacturing sector activity and jobless claims on Thursday. The headliner for the week will be the Jobs report on Friday.

ECONOMIC CALENDAR

Source: MarketWatch

HOT READS

Markets

  • What Investors Can Learn From the History of Inflation (WSJ)
  • ‘Great Resignation’ Gains Steam as Return-to-Work Plans Take Effect (CNBC)
  • Home Prices Surged in April at a ‘Truly Extraordinary’ Rate, S&P Case-Shiller Says (CNBC)

Investing

Other

  • The Apple-Microsoft Tech War Reignites for a New Era (WSJ)
  • The RoboTaxi Era Will Require a Rethinking of Vehicle Safety (Axios)
  • Apple Daily’s Closure Marks a Dark New Chapter in Hong Kong (The Atlantic)

MARKETS AT A GLANCE

Source: Morningstar Direct.

Source: Morningstar Direct.

Source: Treasury.gov

Source: Treasury.gov

Source: FRED Database & ICE Benchmark Administration Limited (IBA)

Source: FRED Database & ICE Benchmark Administration Limited (IBA)

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ABOUT THE AUTHOR

402.763.2967

jjenkins@lutz.us

LINKEDIN

JOSH JENKINS, CFA + CHIEF INVESTMENT OFFICER

Josh Jenkins is the Chief Investment Officer at Lutz Financial. With 12+ years of relevant experience, he specializes in assisting clients with portfolio construction, asset allocation, and investment risk management. He is also responsible for portfolio trading, research and thought leadership as well as analytics and operational efficiency for the Firm's Financial division. He lives in Omaha, NE, with his wife Kirsten.

AREAS OF FOCUS
  • Asset Allocation
  • Portfolio Management
  • Research & Data Analytics
  • Trading System Operation & Execution
AFFILIATIONS AND CREDENTIALS
  • Chartered Financial Analyst®
  • Chartered Financial Analyst Institute, Member
  • Chartered Financial Analyst Society of Nebraska, Member
EDUCATIONAL BACKGROUND
  • BSBA, University of Nebraska, Lincoln, NE

P: 402.827.2300 | F: 402.827.2319 | E: contact@lutzfinancial.com | 13616 California Street | Suite 200 | Omaha, NE 68154

All content © 2017 Lutz Financial  | Important Disclosure Information |  Privacy Policy

FORM CRS RELATIONSHIP SUMMARY

Long-Term Care Planning 101

Long-Term Care Planning 101

 

LUTZ BUSINESS INSIGHTS

 

LONG-TERM CARE PLANNING 101

long-term care planning 101

joe hefflingeR, Director & investment adviser
PUBLISHED: JUNE 28, 2021

One of the most difficult decisions clients will make in the financial planning process is planning for long-term care (LTC). With LTC, I’m referring to the possibility that at some point, you or a family member will require some form of care to help with your daily life for an extended period of time, whether due to physical or mental limitations (or both).

The economics of LTC can be difficult to factor into a financial plan because the range of outcomes is vast. With LTC, you are also dealing with what can be an emotionally and physically draining experience for the whole family. But some of that potential family stress can be reduced, at least in part, with the proper planning.

 

What is Long Term Care?

When most people think of LTC, they typically picture a nursing home. It can also mean receiving care in an assisted living facility or a memory loss center. But increasingly, LTC also means getting the care you need while remaining in the comfort of your own home, and people are typically more open to this idea.

A need for care is usually evaluated by a doctor on your inability to perform at least two of the following six activities of daily living (ADLs) on your own:

  • bathing
  • dressing
  • eating
  • transferring (being able to walk or move yourself from a bed)
  • toileting
  • continence

Separate from ADLs, severe cognitive impairment (e.g., Alzheimer’s or other forms of dementia) can also be the triggering event for an LTC need. Other conditions that may require LTC include a head injury, stroke, cancer, Parkinson’s, heart disease and Multiple Sclerosis.

 

Will You Need It?

Unless someone has had first-hand experience with LTC, it may be difficult to assess another’s needs or understand its value. That being said, here are some credible stats on long-term care:

  • 70% of Americans over 65 will need some type of LTC during their lives[i]
  • 1 out of 7 people ages 65+ will need LTC for more than 5 years[ii]
  • 1 in 9 people in the US age 65+ have Alzheimer’s dementia and 1 in 3 people age 85+ have it.
    • People age 65+ survive an average of 4 to 8 years after diagnosis, yet some live as long as 20 years with it.
    • At age 80, 75% of people w/ Alzheimer’s live in a nursing home.
    • 1 in 3 seniors die with Alzheimer’s or another dementia, it is the 6th leading cause of death in the US.[iii]

With those types of odds, it is fairly risky to formulate your retirement plan while operating under the assumption that neither you nor your spouse will ever require any LTC. It can be insured against, self-funded or not funded, but that is a choice you will make during the planning process.

 

What Does It Cost?

If you need LTC, the cost can vary based on care setting, geographic location and the level of care required. The most widely quoted cost comparison tool in the industry is Genworth’s Annual Cost of Care Survey, which has been conducted for the past 17 years.

For the most recent survey done in 2020, Genworth contacted 57,981 providers by phone to complete 14,326 surveys of nursing homes, assisted living facilities, adult day health facilities and home care providers in all 50 states. Here is a summary of costs in 2020[iv]:

National (U.S.) Median Annual Costs

  • In-Home Care (Home Health Aide): $54,912 (up 4.35% from 2019)
  • Assisted Living Facility: $51,600 (up 6.15% from 2019)
  • Nursing Home Private Room: $105,850 (up 3.57% from 2019)

Omaha, Nebraska Median Annual Costs

  • In-Home Care (Home Health Aide): $59,488 (up 0.97% from 2019)
  • Assisted Living Facility: $54,279 (up 13.08% from 2019)
  • Nursing Home Private Room: $110,960 (up 19.69% from 2019)

It’s likely that Covid had some impact on the jump in costs over the past year. However, even just using a 3% rate of inflation going forward, the costs can quickly mount up.  Running a projection for a 65-year-old, assuming $100,000 annual costs (in today’s dollars) for five years beginning at age 85 in 2041, the 1st year annual cost was $184,151, and the 5-year total cost was $979,637.

 

What about Medicare? Medicaid?

Medicare is the federal health insurance program designed mainly for people aged 65 and up. Generally, Medicare will only provide limited LTC support and only if you are receiving physical therapy or skilled nursing services in a “Medicare-certified nursing facility” after you had a hospital stay of at least three days.

If ALL of those conditions are met, Medicare will pay your costs for up to 20 days. After that, it will pay a portion of your costs for days 21-100, and then it pays nothing from day 101 and on. Medicare will pay nothing for assisted living or adult day services, and its benefits for in-home care are limited.

Medicaid is a joint federal and state public assistance program for financing health care for those with low incomes. Medicaid is the largest public payer of LTC services in the US. It will pay for certain health services and nursing home care for people with low incomes and limited assets.

To qualify for Medicaid, you may have to spend down your assets. Eligibility can vary by state. If you do qualify, there are restrictions on the type of care you can receive and where you can receive it. Whether the government will ultimately step in at some point to provide a greater amount of LTC benefit is an unknown but relying on that possibility is a risky approach.

 

Can You Self-Insure Against this Risk?

A big part of any financial plan is a retirement cash flow analysis. This is where I load up my client’s entire financial picture into our planning software and model out a projection of where their assets are headed over time. It’s trying to answer the questions, “when can I retire?” and “how much can I comfortably spend each year in retirement?”

Perhaps the biggest wildcard in this analysis is how to factor in potential LTC costs. If the client doesn’t have LTC insurance, I model out potential LTC costs being incurred down the road to see if the client has enough assets to withstand that type of additional expense. There have been times when I’ve run this analysis for a client and adding in LTC expenses turned what was a good-looking projection into a much riskier-looking picture. So, if you are planning on self-insuring for LTC, be sure to consult with your financial advisor.

 

The Checkered Past of LTC Insurance

Any comprehensive discussion on how to properly plan for LTC expenses should include a discussion of LTC insurance. And when discussing LTC insurance, there must be an acknowledgment that things haven’t always been great.

LTC insurance has been around since the late 1970s, though it didn’t really catch on until the late 1980s. The problem was that the insurance carriers didn’t really know what they were doing at the time with respect to LTC. Unlike life insurance and long-term disability insurance, which have long track records and actuaries that have a good understanding of claim experience and probability, with LTC, they were somewhat flying blind for a period of time. They made the mistake of treating LTC similar to life insurance. They assumed a larger number of people would let their policies lapse and that fewer people would actually go on claim.

It turned out over time the opposite was true (fewer lapses and more claims), which in turn meant that the insurance carriers drastically underpriced LTC policies from the start as their claim experience and exposure were much greater than they initially projected. LTC policies did not have guaranteed premiums. This meant the insurance carriers could go to each state’s insurance commissions and request rate increases, which were often granted based on their negative claims experiences. Many people who have older LTC policies have had to deal with multiple rate increases over the years.

 

What Insurance Products are Available Today?

LTC Insurance provides a pool of benefit dollars for LTC to be used when and where it may be needed. Important terms to consider are:

  • the amount of inflation protection they provide,
  • how many years of benefit and how much benefit are provided,
  • your options on how to pay premiums (annually for life, over a set period of years, or lump sum), and
  • whether you can share your benefits with a spouse.

Also, pay particular attention to whether the policy is a reimbursement or indemnity contract. With reimbursement, you only get paid a benefit if you qualify for a claim and prove you had a related LTC expense. With indemnity, once you qualify for a claim, you get paid your benefit regardless of what expenses are incurred, and you can use the funds however you want (although you will typically pay a higher premium for this right).

Keep in mind, if you have an existing cash value life insurance policy or annuity, you could potentially do a 1035 tax-free exchange to move those funds over to an LTC policy. For those with old life policies or annuities that are unsure what to do with them, this could be a great option.

Today, the available products fall into four general categories:

1. Traditional (Stand-Alone) LTC Policies

These are the original LTC policies previously discussed. You pay in a premium, and if you need LTC, it provides a tax-free benefit. It’s “use it or lose it,” meaning if you don’t need LTC, then you are out the premiums you paid in.

The premiums typically are not guaranteed, meaning the carrier can raise your rates in the future if it can justify that to the state insurance commissions. Carriers now have a better idea of how to price these policies from the start, so they would argue that it’s less likely for a newer policy to have increased rates in the future.

On the plus side, these policies are often cheaper on a relative basis compared to some of the other options below. So, it may be a better choice for those with smaller balance sheets or less disposable income.

These policies can often qualify for the Long-Term Care Partnership Program, which is a joint federal-state policy to promote the purchase of private LTC insurance. This program allows you to disregard any LTC insurance benefits you receive from the dollar amount of assets you would otherwise have to spend down to qualify for Medicaid.

2. Asset-Based Hybrid Life/LTC Policies

These are relatively newer products that have quickly gained in popularity and have become the top-selling LTC product in the market today. These often have a fixed one-time lump-sum premium payment. However, there are now options to pay in a fixed amount over a set number of years instead. Either way, the carrier can’t increase your rates. It’s also not use it or lose it. You will use the policy in one of three ways:

  • Return of premium: If you decide in the future you want your money back, you just take back the cash you put in, usually as a tax-free return of premium; though there may be an initial period (e.g., 6 years) where you get something less than 100% of your money back (e.g., only 80%).
  • Death benefit: If you die without needing the LTC benefits, your beneficiaries get a tax-free benefit that is typically equal to or even a little greater than the premium you paid in.
  • LTC benefit: If you need LTC, the policy leverages up your premiums to provide a healthy amount of tax-free LTC benefit. For example, based on a recent illustration for a 70-year-old female, if they put in a one-time premium of $125,000, their day one LTC benefit was $305,000, but by age 85, that grows to $500,000. Down the road, the LTC benefit is over $600,000.

These asset-based policies can be a great option, particularly for someone who may otherwise already be sitting on a healthy amount of cash. In that case, it becomes an asset repositioning play. Meaning move cash from one pocket (your bank) where it’s earning low-interest today over to another pocket (the hybrid LTC policy) where it’s earning nothing but still available to you via return of premium and also providing a ton of leverage if needed for LTC. But know that you are typically paying a bit more for all that flexibility.

3. Life Insurance Policies w/ LTC Riders

These permanent life policies attach an LTC benefit to them but haven’t been as popular as the asset-based policies described above. They typically provide a higher death benefit and less LTC coverage. So, if the focus is on LTC, they may not provide as much bang for your buck. I also hear these policies pay the agent higher commissions relative to the other options, so be mindful of that as well.

4. Annuities w/ LTC Riders

These are annuities that attach an LTC benefit to it. These could be an option if medical underwriting is otherwise an issue. It could also be an avenue to use an older existing annuity with tax-deferred growth and 1035 for tax-free LTC benefits. However, I would have similar questions about whether you are getting your bang for your buck if the primary concern is LTC.

 

The Hidden Risks of Self Insuring

Even if you are fortunate enough to self-insure against the risk of LTC, that isn’t necessarily always the optimal approach. Some people may end up being very reluctant to spend down their assets later in life for LTC. While they may have ample assets to use for their own LTC, it can be human nature to want to preserve those assets for a spouse or leave for their kids’ inheritance.

This can create a lot of tension within a family as the spouse or kids may need to provide the care for the other spouse who doesn’t want to spend down their assets on help. If they had LTC insurance, on the other hand, those conversations get a lot easier if it becomes “hey, we paid into this policy, let’s collect some tax-free dollars that we are entitled to and get you a little help.”

 

Consult with Your Advisors

As you can see, evaluating how to handle LTC within a financial plan presents many challenges. There is no one size fits all answer here, so you need to think through your particular family situation and analyze all the options.

I would strongly encourage you to do so with a financial advisor and insurance agent knowledgeable on the subject to help you make an informed decision on what’s best for your family. If you have any questions, please contact us.

 

[i] U.S. Department of Health and Human Services, National Clearinghouse for Long-Term Care Information, August 2016.

[ii] Long-Term Services and Supports for Older Americans: Risks and Financing Research Brief, Judith Dey, February 2016.

[iii] 2021 Alzheimer’s Disease Facts and Figures, Alzheimer’s Association, https://www.alz.org/alzheimers-dementia/facts-figures

[iv] 2020 Genworth Cost of Care Survey, https://www.genworth.com/aging-and-you/finances/cost-of-care.html

Important Disclosure Information

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Lutz Financial), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Lutz Financial.  To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing.  Lutz Financial is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice.  A copy of the Lutz Financial’s current written disclosure statement discussing our advisory services and fees is available upon request.

ABOUT THE AUTHOR

402.827.2300

jhefflinger@lutzfinancial.com

LINKEDIN

JOE HEFFLINGER, JD, CFP®, CAP® + DIRECTOR & INVESTMENT ADVISER

Joe Hefflinger is an Investment Adviser and Director at Lutz Financial. With 15+ years of relevant experience, he specializes in comprehensive financial planning and investment advisory services for professionals, business owners, and retirees. He lives in Omaha, NE, with his wife Kim, and daughters Lily and Jolie.

AREAS OF FOCUS
  • Retirement Cash Flow Planning
  • Insurance Planning
  • Estate Planning
  • Business Owner Exit Planning
  • Charitable Planning
  • Tax Planning
AFFILIATIONS AND CREDENTIALS
  • National Association of Personal  Financial Advisors, Member
  • Financial Planning Association, Member
  • Nebraska State Bar Association, Member
  • Omaha Estate Planning Council, Member
  • CERTIFIED FINANCIAL PLANNER™
  • Chartered Advisor in Philanthropy®
EDUCATIONAL BACKGROUND
  • JD, Creighton University School of Law, Omaha, NE
  • BS in Economics, Santa Clara University, Santa Clara, CA
COMMUNITY SERVICE
  • Partnership 4 Kids - Past Board Member
  • Omaha Venture Group, Member
  • Christ the King Sports Club, Member

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