CAPTRUST | VESTED Summer 2016

SUMMER 2016

Make Sure Your Credit Score Shines23

Building a Second ActDown on the Farm9

PLUS

A Smarter Future for Seniors

When Your Aging Parents Need Estate Planning

The Inelegant Narrative

Donor-Advised Funds: Charitable Giving Made Easy

“Unity is strength�...�when

there is teamwork and

collaboration, wonderful

things can be achieved.”

–�Mattie Stepanek

At CAPTRUST, we believe we have a profound responsibility to share our success with those less fortunate than us. One way we do that is through the activities of the CAPCommunity Foundation, our in-house, employee-run charitable foundation. Its mission is to enrich the lives of children in communities we serve. The foundation, a registered 501(c)(3) charity, was formally organized in 2007 to provide our employees with opportunities to participate as a group in community outreach e� orts and to o� er their time, passion, and fi nancial support as a way to give back.

We invite you to like the CAPCommunity Foundation on Facebook.

www.captrustadvisors.com919.870.6822 | toll free: 800.216.06454208 Six Forks Road, Suite 1700 | Raleigh, NC 27609

“Unity is strength�...�when

there is teamwork and

collaboration, wonderful

things can be achieved.”

–�Mattie Stepanek

At CAPTRUST, we believe we have a profound responsibility to share our success with those less fortunate than us. One way we do that is through the activities of the CAPCommunity Foundation, our in-house, employee-run charitable foundation. Its mission is to enrich the lives of children in communities we serve. The foundation, a registered 501(c)(3) charity, was formally organized in 2007 to provide our employees with opportunities to participate as a group in community outreach e� orts and to o� er their time, passion, and fi nancial support as a way to give back.

We invite you to like the CAPCommunity Foundation on Facebook.


Summer is upon us in full force. And whether you enjoy the beach, the moun-tains, traveling to foreign locales, or stay-ing close to home, I hope you are planning a few vacation days soon. We would be honored if you carried this summer issue of VESTED along with you to read during a quiet morning or a� ernoon in the shade.

Our summer 2016 cover features Andrew and Liz Crush as this issue’s Second Act heroes. � eir plan to buy land for a home in the Virginia countryside turned into Spring House Farm, a successful, ecolog-ically friendly family farm that capitalizes on the growing popularity of farm-to-table and community supported agriculture.

� is issue’s columns and features cover a variety of topics, including:

• How advances in technology will make it easier to age in place and stay connected; • Understanding how credit scores are derived and how to avoid common credit pitfalls; • Tai chi as a way to stay active and reduce stress; and • Donor-advised funds, a convenient and � exible way to build a legacy.

You will notice a slight theme in this issue: eldercare issues. We have synced up this issue’s Expert Angle and Money Talks col-umns as we delve into estate planning for seniors. Guest writer and eldercare attorney Michael Kemmy makes a case for proac-tively engaging aging parents on the topic, while VESTED columnist Kathleen Burns Kingsbury chimes in on how to start this sensitive conversation.

And � nally, CAPTRUST Chief Investment O� cer Eric Freedman details his thinking on the capital markets in his latest install-ment of Investment Strategy.

As always, our primary aim with VESTED is to provide you with timely, relevant, and ac-tionable ideas and recommendations. Please help us by sending your thoughts, reactions, and story ideas to us at [email protected].

CEO Fielding Miller shares the latest company happenings with CAPTRUST colleagues at the fi rm’s most recent quarterly Synergy meeting.

All the best,

J. FIELDING MILLERCAPTRUST Chief Executive O� cer

Volume 2, Issue 2 | Summer 2016

800.216.0645 | www.captrustadvisors.com4208 Six Forks Road, Suite 1700

Raleigh, NC 27609

PUBLISHER & EDITOR IN CHIEF

J. Fielding MillerChief Executive Offi cer

Azul PhotographyRaleigh, NC

Classic GraphicsMorrisville, NC

WITH THE ASSISTANCE OF

EDITORIAL ADVISORY BOARD

Jeremy AltfederClient Relationship

Manager

Rush BentonSenior Director, Strategic Wealth

Hugh (Trae) ColeFinancial Advisor

Ellen CrowleyVice President,

Financial Advisor

Nick DeCensoManager,

Wealth Strategy

Karen DeniseSenior Manager,

Wealth Operations

Mike GraySenior Vice President,

Financial Advisor

Land HiteSenior Vice President,

Financial Advisor

Aaron J. MorrisVice President,

Financial Advisor

Mark PaccioneDirector, Investment

Research

Teri ParkerVice President, Financial Advisor

ART DIRECTION & MARKETING

Jennifer LiebelManager, Marketing

Jennifer MastrapasquaSenior Manager, Marketing

Greg MiddletonDirector, Marketing

Colby WarrenManager, Marketing

Jessica RoseArt Director, Marketing

John CurrySenior Director,

Marketing

Eric FreedmanChief Investment

Offi cer

EDITORS

1

234 9 28

nanci hellmich

Nanci Hellmich, an award-winning multimedia reporter, covered per-sonal � nance, retirement, nutrition, health, and other topics for USA TODAY for more than 30 years. She now enjoys writing for AARP, Encore.org, and other companies and organizations. She has been named one of the top 10 national online in� uencers on weight loss and nutrition. Nanci has appeared on both local and national television, including NBC’s TODAY Show.

eric freedman

Eric Freedman is CAPTRUST’s chief investment o� cer and is a member of the � rm’s executive and operating committees. He has an undergraduate economics degree from Colgate University and re-ceived a Master of Business Admin-istration from the Wharton School of the University of Pennsylvania. Eric is chairman of the Diocese of Raleigh Investment Committee and serves on the boards of the Ronald McDonald House of Chap-el Hill and Monday Life.

johncurry

As senior director of marketing, John Curry is responsible for all areas of strategic marketing and branding for CAPTRUST. In the industry since 1986, Curry has served in senior management roles with � rms such as ProShares and AllianceBernstein and has experience in areas of strategic marketing, including product development and design, market research, branding, and sales campaign management.

kathleen burns kingsbury

Kathleen Burns Kingsbury is a faculty member of the Certi� ed Private Wealth Advisor® program o� ered by the Investment Man-agement Consultants Association, an adjunct lecturer at Bentley University, a Certi� ed Professional Co-Active Coach®, and founder of the KBK Wealth Connection. She is a wealth psychology expert and author of How to Give Financial Advice to Women and How to Give Financial Advice to Couples.

2 Summer | 2016

234 9 28

nanci hellmich

Nanci Hellmich, an award-winning multimedia reporter, covered per-sonal � nance, retirement, nutrition, health, and other topics for USA TODAY for more than 30 years. She now enjoys writing for AARP, Encore.org, and other companies and organizations. She has been named one of the top 10 national online in� uencers on weight loss and nutrition. Nanci has appeared on both local and national television, including NBC’s TODAY Show.

eric freedman

Eric Freedman is CAPTRUST’s chief investment o� cer and is a member of the � rm’s executive and operating committees. He has an undergraduate economics degree from Colgate University and re-ceived a Master of Business Admin-istration from the Wharton School of the University of Pennsylvania. Eric is chairman of the Diocese of Raleigh Investment Committee and serves on the boards of the Ronald McDonald House of Chap-el Hill and Monday Life.

johncurry

As senior director of marketing, John Curry is responsible for all areas of strategic marketing and branding for CAPTRUST. In the industry since 1986, Curry has served in senior management roles with � rms such as ProShares and AllianceBernstein and has experience in areas of strategic marketing, including product development and design, market research, branding, and sales campaign management.

kathleen burns kingsbury

Kathleen Burns Kingsbury is a faculty member of the Certi� ed Private Wealth Advisor® program o� ered by the Investment Man-agement Consultants Association, an adjunct lecturer at Bentley University, a Certi� ed Professional Co-Active Coach®, and founder of the KBK Wealth Connection. She is a wealth psychology expert and author of How to Give Financial Advice to Women and How to Give Financial Advice to Couples.

2 Summer | 2016

15 PASSION PURSUITSTai Chi for Balancing Mind, Body, and Lifeby Nanci Hellmich

19 GLEANINGS

20 EXPERT ANGLEWhen Your Aging Parents Need Estate Planningby Michael Kemmy

33 MARKET REWIND

34 MONEY TALKSEldercare Planning: Five Tips for Starting the Conversationby Kathleen Burns Kingsbury

37 CLIENT CONVERSATIONS

40 LASTING LEGACYDonor-Advised Funds: Charitable Giving Made Easyby John Curry

42 CAPTRUST HAPPENINGS

Features Columns

constantine von hoffman

Constantine von Ho� man is a business and � nancial writer. For the past 25 years, he has worked for CBS News, Inc. Magazine, and � e Boston Herald, among other news outlets. His writing has appeared in many publications, including the Harvard Business Review, Sierra Magazine, and � e Boston Globe.

michaelkemmy

Michael Kemmy is a partner at Conrad Trosch & Kemmy, P.A. in Charlotte, North Carolina. He is the head of the � rm’s estate planning, probate, and elder law department and is the � rst member of the Mecklenburg Bar to be board certi� ed by the North Carolina Bar as an Elder Law Specialist. Kemmy has been practicing law for more than 30 years. He is a frequent lecturer and has published on estate planning and elder care issues.

kim painter

Kim Painter is a freelance writer specializing in health and lifestyle issues. She was a USA TODAY sta� er for many years and has continued to con-tribute to the newspaper for many additional years as a reporter, columnist, and blogger. She lives in McLean, Virginia, where she practices what she preaches: wearing sunscreen, eating broccoli, and getting at least 10,000 steps a day.

4 A SMARTER FUTURE FOR SENIORSby Kim Painter

9 BUILDING A SECOND ACT Down on the Farmby Constantine von Hoffman

23 MAKE SURE YOUR CREDIT SCORE SHINESby Nanci Hellmich

28 THE INELEGANT NARRATIVEby Eric Freedman

All publication rights reserved. None of the material in this publication may be reproduced in any form without the express written permission of CAPTRUST: 919.870.6822. ©2016 CAPTRUST Financial Advisors. � e opinions expressed in this report are subject to change without notice. � is material has been prepared or is distributed solely for informational purposes and is not a solicitation or an o� er to buy any security or instrument or to participate in any trading strategy. CAPTRUST does not render legal, accounting, or tax advice. If you require such advice, you should contact the appropriate legal, accounting, or tax advisor. � e information and statistics in this report are from sources believed to be reliable but are not warranted by CAPTRUST Financial Advisors to be accurate or complete. Performance data depicts historical performance and is not meant to predict future results.

3

by kim painter

A SMARTER FUTURE FOR SENIORS

So, at 54, he’s an enthusiastic early adopter of the smart home. His Florida home is out-� tted with cameras outside and all manner of sensors and connected devices inside. When he’s traveling, he can use an app on his phone to see what the front door camera sees. If someone rings the bell, he can answer it, with his voice seeming to come from inside.

� e same AT&T system controls the home’s heating and cooling systems, raises and lowers the window shades, and is capable of detecting a � ood. Bradwell’s lawn is smart too: it knows when it needs to sprinkle itself.

As chief innovation o� cer for AARP, the advocacy group for older adults, Terry Bradwell feels duty bound to try all the high-tech stu� marketed to seniors these days.

4 Summer | 2016

by kim painter

A SMARTER FUTURE FOR SENIORS

So, at 54, he’s an enthusiastic early adopter of the smart home. His Florida home is out-� tted with cameras outside and all manner of sensors and connected devices inside. When he’s traveling, he can use an app on his phone to see what the front door camera sees. If someone rings the bell, he can answer it, with his voice seeming to come from inside.

� e same AT&T system controls the home’s heating and cooling systems, raises and lowers the window shades, and is capable of detecting a � ood. Bradwell’s lawn is smart too: it knows when it needs to sprinkle itself.

As chief innovation o� cer for AARP, the advocacy group for older adults, Terry Bradwell feels duty bound to try all the high-tech stu� marketed to seniors these days.

4 Summer | 2016

Continued on page 6

And that’s just the big stu� . Bradwell also has a sensor on his keys that beeps when he searches for it on his phone. He has Amazon’s Echo, a voice-controlled internet hub and speaker that can do everything from play music to order an Uber ride or a pizza. And he’s tested Sen.se Mother, a set of motion sensors you can put on your pill containers or water bottles (to track their use) — or even in a willing spouse’s pocket (so you get a text when she walks in the door).

Right now, Bradwell admits that a lot of this technology is more complicated to set up and use than many older adults might like.

But make no mistake, he and other experts say: if your dream is to age in place — to stay safe, healthy, secure, and connected to the world, without moving out of your home — technology is going to be your friend.

“Increasingly, these things are going to become not just cool and nice to have, but really impera-tive,” Bradwell says. � ey are also going to become easier to use and even more connected to one another, he says.

And it’s not just old-er homeowners who will demand all this connectivity, says Laurie Orlov, founder of Aging in Place Technology Watch. “Everybody wants seniors to be able to stay in their homes.” � e best technologies will be win-wins for those seniors, their families, their healthcare providers, their insurers, and society at large, she says.

Here are some of the areas in which the experts say technology will make the biggest di� erences …

Health If you are counting steps with a Fitbit, tracking your diet with a smartphone app, or commu-nicating with your doctor’s o� ce online, you have some inkling of the power of technology to support your health. But that’s just a taste of what’s to come. Imagine a wristband that detects dehydration, shoe inserts that detect an unsteady gait, or a toilet that tests your urine. All are real products in various stages of development.

Many people already use devices that remind them to take medications via a text, email, or voice alert. Some devices dispense the correct pills on schedule. Forget to take a pill anyway? A family member may get an alert as well.

“Increasingly, these things are going to become not just cool and nice to have, but really imperative.”

Terry BradwellChief Innovation O� cer, AARP

5

And many healthcare consumers have already been introduced to telemedicine — electronic interactions with doctors, nurses, and other providers. Rural heart failure patients are attending group counseling sessions via video conferencing. Patients taking blood-thinning drugs are testing their blood at home, sending the results through a specialized device, and getting a call if their dose needs adjusting. Diabetes patients are getting diet and exercise advice through personalized text messages.

Such interactions will only increase as an aging population makes ever greater demands on the medical system, says David Lindeman, director of the Center for Technology and Aging at the Public Health Institute in Oakland, California.

And remote care does not have to mean re-duced care, he says: “You could be in the same room and seeing someone only once a week. Or using technology, you might see them every day,” he says. “� at could be equally or more powerful.”

In an ideal world, these technologies will reduce the time we all spend driving to and waiting for appointments — and keep us out of hospitals and nursing homes.

Safety and Security“I had a neighbor who died last year and was not found for a month,” Orlov says. “� at is everyone’s nightmare.” But, she says, it’s a

Continued from page 5

Sen.se Mother is a “family of incredibly smart sensors that you can set to monitor whatever you care about,” including tracking household activities, temperature, sleep, and personal habits and routines.

nightmare that should become less common as more of us wire up our lives. When our home motion sensors fail to detect us moving around as usual, someone is going to be alerted. Likewise, a � re or a gas or water leak will set o� alarms not only in our homes, but on our loved ones’ smartphones.

And when we’ve fallen and we can’t get up? � e medical alert system that made that phrase famous in the 1980s — the Life Alert pen-dant — is still sold, but it has a lot of competition. Several companies now make pendants and wrist bands that summon help at the touch of a button, detect falls in or outside the home, and allow caregivers to track wearers via GPS.

Still, so-called personal emergency response systems have a persistent image problem, says Jean Anne Booth, an engineer based in Austin, Texas. For many people, “that big help button is socially stigmatiz-

ing,” she says. Her own mother, an 82-year-old retired model, refused to wear one, she says. “So I called her up and said what if I could make you a watch that looks good?”

Booth, 54, and her mother, who lives in California, have been trying out Booth’s in-vention, the UnaliWear™ Kanega watch. One potential selling point: the watch talks and responds to voice commands. � e user can call for help, get medication reminders, and

ask for directions. � e watch also o� ers directions home if the wearer is wandering o� in an unfamiliar direction, a feature that might be welcomed by someone in the early stages of dementia.

Of course, many of us already carry around a lifesaving commu-nications device. It’s called a smartphone. At least one company, GreatCall, o� ers simpli� ed smartphones as well as basic alert devices.

“You could be in the same room and seeing someone only once a week. Or using technology,

you might see them every day.”

David LindemanDirector, Center for Technology and Aging at the Public Health Institute

© Sen.se

© Sen.se

6 Summer | 2016

And many healthcare consumers have already been introduced to telemedicine — electronic interactions with doctors, nurses, and other providers. Rural heart failure patients are attending group counseling sessions via video conferencing. Patients taking blood-thinning drugs are testing their blood at home, sending the results through a specialized device, and getting a call if their dose needs adjusting. Diabetes patients are getting diet and exercise advice through personalized text messages.

Such interactions will only increase as an aging population makes ever greater demands on the medical system, says David Lindeman, director of the Center for Technology and Aging at the Public Health Institute in Oakland, California.

And remote care does not have to mean re-duced care, he says: “You could be in the same room and seeing someone only once a week. Or using technology, you might see them every day,” he says. “� at could be equally or more powerful.”

In an ideal world, these technologies will reduce the time we all spend driving to and waiting for appointments — and keep us out of hospitals and nursing homes.

Safety and Security“I had a neighbor who died last year and was not found for a month,” Orlov says. “� at is everyone’s nightmare.” But, she says, it’s a


Sen.se Mother is a “family of incredibly smart sensors that you can set to monitor whatever you care about,” including tracking household activities, temperature, sleep, and personal habits and routines.

nightmare that should become less common as more of us wire up our lives. When our home motion sensors fail to detect us moving around as usual, someone is going to be alerted. Likewise, a � re or a gas or water leak will set o� alarms not only in our homes, but on our loved ones’ smartphones.

And when we’ve fallen and we can’t get up? � e medical alert system that made that phrase famous in the 1980s — the Life Alert pen-dant — is still sold, but it has a lot of competition. Several companies now make pendants and wrist bands that summon help at the touch of a button, detect falls in or outside the home, and allow caregivers to track wearers via GPS.

Still, so-called personal emergency response systems have a persistent image problem, says Jean Anne Booth, an engineer based in Austin, Texas. For many people, “that big help button is socially stigmatiz-

ing,” she says. Her own mother, an 82-year-old retired model, refused to wear one, she says. “So I called her up and said what if I could make you a watch that looks good?”

Booth, 54, and her mother, who lives in California, have been trying out Booth’s in-vention, the UnaliWear™ Kanega watch. One potential selling point: the watch talks and responds to voice commands. � e user can call for help, get medication reminders, and

ask for directions. � e watch also o� ers directions home if the wearer is wandering o� in an unfamiliar direction, a feature that might be welcomed by someone in the early stages of dementia.

Of course, many of us already carry around a lifesaving commu-nications device. It’s called a smartphone. At least one company, GreatCall, o� ers simpli� ed smartphones as well as basic alert devices.

“You could be in the same room and seeing someone only once a week. Or using technology,

you might see them every day.”

David LindemanDirector, Center for Technology and Aging at the Public Health Institute

© Sen.se

© Sen.se

6 Summer | 2016

Continued on page 8

The UnaliWear™ Kanega (left) is a stylish, voice-controlled smart watch that can provide emergency assistance, fall detection, directions, and medica-tion reminders.

GreatCall’s Splash (right) is “a mobile urgent response device” that pro-vides GPS tracking, access to doc-tors, nurses and emergency services, and fall detection.

Transportation � e future will be about self-driving cars, at least according to Alphabet (formerly Google), the company in the vanguard of that technology. But when that future will arrive — whether it’s � ve or � � y years from now — remains a matter of debate. Not in dispute is the fact that many people lose their independence when they stop driving.

Orlov, for one, is skeptical that baby boomers (now ages 52 to 70) will be clamoring for cars they cannot steer and accelerate any time soon. “� ese are people who love driving cars,” she says, and are still buying plenty of them. She points to industry reports showing people over age 50 buy more and fancier cars than younger people.

� e good news is that the technologies that make self-driving cars thinkable, including automatic braking and other crash-avoidance systems, are making driving safer for younger and older humans alike, Orlov says.

And for those who can no longer drive safely? App-based services such as Uber and Ly� are making a major e� ort to market their ride services to seniors. In New York City, a Ly� pilot program ferries seniors to medical appointments but does not require the use of a smartphone — still a barrier to some older adults. Both companies and some of their smaller competitors o� er additional services for people who need special assistance.

ConnectionPeople need people. “� e data is very clear that reduced contact with friends and family leads to depression and to an increase in mortality and (illness),” Lindeman says.

And, as any grandmother with a Facebook account knows, it can be rewarding to connect with friends and family online. But not everyone is connected. As of 2014, most adults over age 65 did not have smart-phones or tablets, most were not using social media, and 41 percent were not online at all, according to the Pew Research Center. � ere were big di� erences, though, by income, with 90 percent of those with household incomes above $75,000 going online. And there were tell-ing di� erences by age. Nearly 75 percent of 65- to 69-year-olds were using the internet versus just 37 percent of those over age 85.

� at connectivity gap has inspired the launch of simpli� ed devices aimed at the oldest adults. For the past two years, Joan Schissel, 84, of Ossian, Iowa, has been using one, a tablet computer called the grandPad®. It comes preloaded with easy-to-use apps for voice and video calls, email, photo sharing, games, and music. Family mem-bers get smartphone companion apps to stay in touch. Schissel, who had never used a computer, says she uses the tablet every day. She communicates with and looks at photos from many of her 10 children, 21 grandchildren, and 17 great grandchildren. “� ere’s nothing to it,” she says. “Just press a button or a picture and you get whatever you want.” (Full disclosure: One of Schissel’s sons-in-law is the co-founder of grandPad.)

© UnaliWear™

© GreatCall

7

But in the future, not all connections will be with fellow humans. Robots and virtual assistants — such as Apple’s Siri — will be con� g-ured to assist older adults at home. Even pets will go robotic. Some nursing homes already o� er residents cuddle time with a $6,000 robotic seal named Paro. And Hasbro has just introduced Joy for All, a $100 robotic cat for seniors.

Potential Downsides OK, you might ask, but what’s lost when our parents or we are le� alone with robot cats and digital nurses? And what about privacy? A� er all, much of the emerging technology involves some kind of monitoring. “Intuitively, most people don’t like to feel that they are being watched or monitored,” says the AARP’s Bradwell. Concerns about privacy and the human touch need to be part of any conversation about po-tential bene� ts, he says.

When the right conversations happen, the results can be surprising says Katy Fike, co-founder of Aging 2.0, an orga-nization that connects tech start-ups with senior consumers and the senior care industry. She recently tested some sensors in the home of her 80-something parents during several weeks when her dad was home alone. � ey had agreed that a sensor on the cabinet where he keeps his co� ee would send her a signal when he was up for the day. “What happened was that suddenly, my dad thought of opening that

cabinet as a way to say ‘hi,’” she says. “Sometimes he would walk by the cabinet and open it just to say ‘hi’ to me in the middle of the day.”

A little reciprocity also goes a long way, Fike says. While she routinely tracks her parents’ whereabouts with a feature on her iPhone, they track her too, she says. “My dad gets a kick out of seeing where I am each day.” While Fike says she can’t imagine a family in which such interactions replace phone calls and visits, “technology is not going to change a good daughter into a bad daughter or a bad daughter into a good daughter.”

Rita Libla, 80, of Yuba City, California, says the GreatCall emergen-cy alert pendant she wears, whether she’s at home or out driving, is

tracked by her grown children and that’s � ne with her. “To me it’s a comfortable feeling. It’s not an invasion of privacy. I just think it’s a good thing that they know where I’m at.”

Of course, we are not just worried about what we are sharing with our families. We worry about what we might inadvertently share with the world. In a fully wired life, “those sen-

sors are always on, and you are trusting what is happening with all of that data,” Bradwell says. But, he says, the reality is that we are exposing ourselves to some risk every time we swipe a credit card or turn on a smartphone. “Your location is being tracked all the time, and you have to consider what the value is to you,” he says. Over time, he predicts, we will worry less about the downside.


grandPad® (left) is a “simple, smart, and secure tablet for seniors” that allows them to make phone and video calls, send voice emails, check the weather, play games, and view family photos.

Joy for All Companion Pet cats (above) from Hasbro have fur that looks and feels real (available in three colors), vibrate and purr when petted, and respond to hugging and motion.

“What happened was that suddenly, my dad thought of opening that cabinet as a way to say ‘hi,’” she says. “Sometimes he

would walk by the cabinet and open it just to say ‘hi’ to me in the middle of the day.”

Katy FikeCo-founder, Aging 2.0

© grandPad®

© Hasbro.com

8 Summer | 2016

But in the future, not all connections will be with fellow humans. Robots and virtual assistants — such as Apple’s Siri — will be con� g-ured to assist older adults at home. Even pets will go robotic. Some nursing homes already o� er residents cuddle time with a $6,000 robotic seal named Paro. And Hasbro has just introduced Joy for All, a $100 robotic cat for seniors.

Potential Downsides OK, you might ask, but what’s lost when our parents or we are le� alone with robot cats and digital nurses? And what about privacy? A� er all, much of the emerging technology involves some kind of monitoring. “Intuitively, most people don’t like to feel that they are being watched or monitored,” says the AARP’s Bradwell. Concerns about privacy and the human touch need to be part of any conversation about po-tential bene� ts, he says.

When the right conversations happen, the results can be surprising says Katy Fike, co-founder of Aging 2.0, an orga-nization that connects tech start-ups with senior consumers and the senior care industry. She recently tested some sensors in the home of her 80-something parents during several weeks when her dad was home alone. � ey had agreed that a sensor on the cabinet where he keeps his co� ee would send her a signal when he was up for the day. “What happened was that suddenly, my dad thought of opening that

cabinet as a way to say ‘hi,’” she says. “Sometimes he would walk by the cabinet and open it just to say ‘hi’ to me in the middle of the day.”

A little reciprocity also goes a long way, Fike says. While she routinely tracks her parents’ whereabouts with a feature on her iPhone, they track her too, she says. “My dad gets a kick out of seeing where I am each day.” While Fike says she can’t imagine a family in which such interactions replace phone calls and visits, “technology is not going to change a good daughter into a bad daughter or a bad daughter into a good daughter.”

Rita Libla, 80, of Yuba City, California, says the GreatCall emergen-cy alert pendant she wears, whether she’s at home or out driving, is

tracked by her grown children and that’s � ne with her. “To me it’s a comfortable feeling. It’s not an invasion of privacy. I just think it’s a good thing that they know where I’m at.”

Of course, we are not just worried about what we are sharing with our families. We worry about what we might inadvertently share with the world. In a fully wired life, “those sen-

sors are always on, and you are trusting what is happening with all of that data,” Bradwell says. But, he says, the reality is that we are exposing ourselves to some risk every time we swipe a credit card or turn on a smartphone. “Your location is being tracked all the time, and you have to consider what the value is to you,” he says. Over time, he predicts, we will worry less about the downside.


grandPad® (left) is a “simple, smart, and secure tablet for seniors” that allows them to make phone and video calls, send voice emails, check the weather, play games, and view family photos.

Joy for All Companion Pet cats (above) from Hasbro have fur that looks and feels real (available in three colors), vibrate and purr when petted, and respond to hugging and motion.

“What happened was that suddenly, my dad thought of opening that cabinet as a way to say ‘hi,’” she says. “Sometimes he

would walk by the cabinet and open it just to say ‘hi’ to me in the middle of the day.”

Katy FikeCo-founder, Aging 2.0

© grandPad®

© Hasbro.com

8 Summer | 2016

� irteen years ago Crush, 40, bought a house and 10 acres of land in the small northern Virginia town of Lovettsville, where he works as a paramedic. Working for the � re department meant 24 hours on and then 48 hours o� , which le� him with a lot of time on his hands. Crush is not someone familiar with the idea of sitting still, so he was always busy with a lot of what he calls hobbies. Because he and his wife Liz weren’t very happy with the quality of meat they found in nearby stores, one of those hobbies became raising chickens and goats. � e chickens weren’t too hard, but the goats were having a rough go of it.

“We were grazing a bunch of land with the goats, and we started having problems with copperheads and some rattlesnakes,” he says.

by constantine von hoffman

BUILDING A SECOND ACT

Inspiration comes in the strangest forms sometimes. For Andrew Crush it was in the form of a pig and some poisonous snakes.

Down on the Farm

Continued on page 10

9

Like most of us, Crush had never had to get rid of snakes before. He quickly discovered they aren’t like other pests: Not only are they deadly, they’re persistent too. You can’t just lay out some traps or poison or call in an exterminator. A� er talking to the Virginia Department of Game and Fish and nearby animal control o� cials, he also found out no one else knew how to get rid of them either.

“� en I ran into this old timer named Grady Parker who I’d grown up knowing,” he says. “He told me that a hog would solve our snake problems. I didn’t really understand how that was relevant to it. So he said, in a real North Carolina drawl, ‘Snakes to a hog is like cupcakes to a fat kid.’”

Crush didn’t believe Parker at � rst, and who can blame him. In a � ght between a pig and a rattlesnake—whose venom can kill a person—most of us would pick the snake. We’d be wrong. Turns out the only


SPRING HOUSE FARM

Spring House Farm consists of several owned and

leased properties in Loudoun County, Virginia, totaling

more than 400 acres. Its mission is to operate a sustain-

able and ecologically friendly farm dedicated to provid-

ing the fi nest foods that its earth can naturally produce.

The farm is family run because Andrew and Liz believe

in teaching their children what hard work, determina-

tion, and creativity can do for them and their family.

The Crushes’ Spring House Farm raises a multitude of

products that include pasture-raised and forest-fi nished

pork, grass-fed beef, meat goats, rabbits, and honey.

Of the three varieties of pork Spring House o� ers,

the Ossabaw receives the most attention due to its

unique fl avor stemming from its appetite for acorns.

The Ossabaw pig received its name from Ossabaw

Island, Georgia.

In addition to these e� orts, the Crushes maintain a

blog of articles and recipes related to their farm-to-ta-

ble e� orts and community supported agriculture pro-

grams. They also partner with a French-trained master

chef, butcher, and charcutier from Baltimore’s Four

Seasons Hotel and host regular classes in whole-ani-

mal butchery for foodies and restaurateurs at a butch-

er shop located on the Spring House Farm property.

www.springhouse.farm

twitter.com/SpringHouseFarm

www.facebook.com/SpringHouseFarmVA

10 Summer | 2016

Like most of us, Crush had never had to get rid of snakes before. He quickly discovered they aren’t like other pests: Not only are they deadly, they’re persistent too. You can’t just lay out some traps or poison or call in an exterminator. A� er talking to the Virginia Department of Game and Fish and nearby animal control o� cials, he also found out no one else knew how to get rid of them either.

“� en I ran into this old timer named Grady Parker who I’d grown up knowing,” he says. “He told me that a hog would solve our snake problems. I didn’t really understand how that was relevant to it. So he said, in a real North Carolina drawl, ‘Snakes to a hog is like cupcakes to a fat kid.’”

Crush didn’t believe Parker at � rst, and who can blame him. In a � ght between a pig and a rattlesnake—whose venom can kill a person—most of us would pick the snake. We’d be wrong. Turns out the only


SPRING HOUSE FARM

Spring House Farm consists of several owned and

leased properties in Loudoun County, Virginia, totaling

more than 400 acres. Its mission is to operate a sustain-

able and ecologically friendly farm dedicated to provid-

ing the fi nest foods that its earth can naturally produce.

The farm is family run because Andrew and Liz believe

in teaching their children what hard work, determina-

tion, and creativity can do for them and their family.

The Crushes’ Spring House Farm raises a multitude of

products that include pasture-raised and forest-fi nished

pork, grass-fed beef, meat goats, rabbits, and honey.

Of the three varieties of pork Spring House o� ers,

the Ossabaw receives the most attention due to its

unique fl avor stemming from its appetite for acorns.

The Ossabaw pig received its name from Ossabaw

Island, Georgia.

In addition to these e� orts, the Crushes maintain a

blog of articles and recipes related to their farm-to-ta-

ble e� orts and community supported agriculture pro-

grams. They also partner with a French-trained master

chef, butcher, and charcutier from Baltimore’s Four

Seasons Hotel and host regular classes in whole-ani-

mal butchery for foodies and restaurateurs at a butch-

er shop located on the Spring House Farm property.

www.springhouse.farm

twitter.com/SpringHouseFarm

www.facebook.com/SpringHouseFarmVA

10 Summer | 2016

place a snake can bite a pig and do it any harm is in what would be its armpit, if pigs had arms. Everywhere else the fatty tissue prevents the venom from getting into the blood stream. So Crush got himself a pig, and it went to town on the snakes just as Parker said it would.

With the snakes gone, the couple now had a pig they could either keep for no real reason or use to save a lot of money on their grocery bills. In the fall, they butchered it and immediately saw pork like none they had ever seen before. It had a lot more fat than what you would get in a grocery store package, and it wasn’t white; it was a deep pink color. � ey cooked up some pork chops and the � avor was incredible. � at wasn’t just their opinion either. � eir friend Jason Lage, chef at Market Table Bistro, a farm-to-table restaurant in Lovettsville, tried a couple of pork chops and immediately ordered two pigs for next year.

What made this pork so di� erent than what is sometimes called “the other white meat”? First is the pig’s breed. � e Hampshire is a

heritage breed, not one of the newer breeds designed for high-inten-sity pig farming, so the color and fattiness is just what you’d � nd on an old-fashioned pig. � e other thing that made it di� erent was what it was fed, and that doesn’t mean the snakes, which were a minor part of its diet. � e area the pig grazed in is heavily wooded and has a lot of oak and chestnut trees, so it ate acorns and other natural forage. Supermarket pork, by contrast, is fed corn and soya, which don’t add � avor to the meat.

A� er doing some research, Crush found out his pig ate the same things the renowned black Iberian pigs of Spain and Portugal eat. � e cured meat from those pigs is called jamón ibérico. It is to ham as Kobe beef is to ground chuck and can sell for more than $100 per pound.


11

Crush knew he had something special here, and he and his wife Liz wanted to make the most of it. � ey founded Spring House Farm in 2004 to sell their pork and meat from other livestock. � anks to his chef friend they knew about selling to restaurants. Even as Andrew worked on expand-ing those sales, he knew that alone wasn’t going to be enough. At � rst he thought about selling via farmers’ markets, like many small farms do.

However his job at the � re department only gives him two weekends o� a month, and farmers’ markets require a big time commitment. � ey also can be risky in terms of sales; a rain storm can mean no customers and no sales.

“We’d spend two days on the farm and three days on the road go-ing all over the place trying to sell the di� erent products, and it just wasn’t paying o� ,” he says. “Way too much in fuel and way too much time away from the farm trying to get these items sold.”

� at’s why he got involved in community supported agriculture (CSA). With CSAs, consumers sign up for a season and pay a set amount each week in return for a certain amount of meat, poultry, eggs, produce, or vegetables from a local farmer. At � rst, he saw it just as a way to grow his customer base, but he soon realized it could help him in other ways as well. While restaurants are still the Crushes’ main target customers, selling to them is “a balancing act of � rst having enough animals and then having enough customers,” he says. He has to raise enough animals so that he can deliver to them consistently.

“But if a restaurant backs out or if we had ramped up production and did not have a customer, then we’d have product and we had to do something with it,” he says. “In other words we’d have to either eat it or � nd another outlet to be able to move that stu� .” � e CSA is that other outlet.



Crush knew he had something special here, and he and his wife Liz wanted to make the most of it. They founded Spring House Farm in 2004 to sell their pork and meat from other livestock.

12 Summer | 2016

Crush knew he had something special here, and he and his wife Liz wanted to make the most of it. � ey founded Spring House Farm in 2004 to sell their pork and meat from other livestock. � anks to his chef friend they knew about selling to restaurants. Even as Andrew worked on expand-ing those sales, he knew that alone wasn’t going to be enough. At � rst he thought about selling via farmers’ markets, like many small farms do.

However his job at the � re department only gives him two weekends o� a month, and farmers’ markets require a big time commitment. � ey also can be risky in terms of sales; a rain storm can mean no customers and no sales.

“We’d spend two days on the farm and three days on the road go-ing all over the place trying to sell the di� erent products, and it just wasn’t paying o� ,” he says. “Way too much in fuel and way too much time away from the farm trying to get these items sold.”

� at’s why he got involved in community supported agriculture (CSA). With CSAs, consumers sign up for a season and pay a set amount each week in return for a certain amount of meat, poultry, eggs, produce, or vegetables from a local farmer. At � rst, he saw it just as a way to grow his customer base, but he soon realized it could help him in other ways as well. While restaurants are still the Crushes’ main target customers, selling to them is “a balancing act of � rst having enough animals and then having enough customers,” he says. He has to raise enough animals so that he can deliver to them consistently.

“But if a restaurant backs out or if we had ramped up production and did not have a customer, then we’d have product and we had to do something with it,” he says. “In other words we’d have to either eat it or � nd another outlet to be able to move that stu� .” � e CSA is that other outlet.



Crush knew he had something special here, and he and his wife Liz wanted to make the most of it. They founded Spring House Farm in 2004 to sell their pork and meat from other livestock.

12 Summer | 2016

WINNING AWARDS

Andrew Crush of Spring House Farm was recognized as

one of America’s Best Young Farmers and Ranchers for

2016 by DTN/The Progressive Farmer at its annual con-

ference and awards ceremony in December. Crush was

specifi cally recognized for his deep commitment to his

production practices, for bringing rare meats to fi ne din-

ing, for knowledge of his market, and for his direct-to-con-

sumer engagement and approach.

In its sixth year, this annual award distinguishes fi ve farm-

ers or ranchers who are among the best of their gener-

ation. Recipients of this award are recognized for their

ability to embrace the future of agriculture and develop

the technical and managerial skills to build their own suc-

cessful businesses.

DTN/The Progressive Farmer, founded in 1886, is the

leading agricultural information services provider to the

North American corn, soybean, and cattle complex.

13

Even a� er 12 years, Spring House Farm is still very much a work in progress. Cash � ow is the biggest problem. To that end, Andrew and Liz hope to open a butcher shop. � ey are also considering if they should bring in investors.

“It’s constantly a battle with us � nancially,” he says. “You do well for a while and get a couple good customers, and then you end up with a three-foot snow storm or a broken machine or something like that. We’re getting there, but it always seems like it takes longer than you hoped.”

Crush has no intention of giving up his job with the � re department, but he knows it won’t last forever. “By the time I’m 55 years old, I will probably not feel much like riding a � re truck,” he says. “When I’m at that age, I need to have an additional nest egg, and this business is going to be my nest egg.” To that end, he puts all the money he makes from the farm back into it.

His time as a paramedic has de� nitely shaped his view of the future—he knows nothing is certain, and you have to expect bad things to happen.

“� ere’s risk in everything you do,” he says. “I’ve seen people that live to be a 100 years old, and I’ve seen people that, driving down the road at 25 years old, get hit by debris and die. You never truly know what’s going to happen. But one thing that I learned in the � re department very early on is that there are a lot of things you can’t control, and things are going to go bad. To me it’s not really about if it went bad, it’s how can you recover.”


“When I’m at that age, I need to have an additional nest egg, and this business is going to be my nest egg.”

Andrew CrushOwner, Spring House Farm

For additional photos of Spring House Farm and past Second Act articles, please visit the

Resources section at captrustadvisors.com.

14 Summer | 2016

Even a� er 12 years, Spring House Farm is still very much a work in progress. Cash � ow is the biggest problem. To that end, Andrew and Liz hope to open a butcher shop. � ey are also considering if they should bring in investors.

“It’s constantly a battle with us � nancially,” he says. “You do well for a while and get a couple good customers, and then you end up with a three-foot snow storm or a broken machine or something like that. We’re getting there, but it always seems like it takes longer than you hoped.”

Crush has no intention of giving up his job with the � re department, but he knows it won’t last forever. “By the time I’m 55 years old, I will probably not feel much like riding a � re truck,” he says. “When I’m at that age, I need to have an additional nest egg, and this business is going to be my nest egg.” To that end, he puts all the money he makes from the farm back into it.

His time as a paramedic has de� nitely shaped his view of the future—he knows nothing is certain, and you have to expect bad things to happen.

“� ere’s risk in everything you do,” he says. “I’ve seen people that live to be a 100 years old, and I’ve seen people that, driving down the road at 25 years old, get hit by debris and die. You never truly know what’s going to happen. But one thing that I learned in the � re department very early on is that there are a lot of things you can’t control, and things are going to go bad. To me it’s not really about if it went bad, it’s how can you recover.”


“When I’m at that age, I need to have an additional nest egg, and this business is going to be my nest egg.”

Andrew CrushOwner, Spring House Farm

For additional photos of Spring House Farm and past Second Act articles, please visit the

Resources section at captrustadvisors.com.

14 Summer | 2016

Research shows tai chi can lead to improvements in the heart, bones, joints, nerves, muscles, immune system, and mind, says Harvard as-sistant professor Peter M. Wayne, PhD. Wayne is co-author of � e Harvard Medical School Guide to Tai Chi, along with Mark L. Fuerst. “It’s gaining traction with many people today because of its potential bene� ts to physical and mental health,” says Wayne. Tai chi has long been considered “meditation in motion,” and now some are calling it “medication in motion.”

Veteran exercisers have come to appreciate it. Jean Du� y, a CAPTRUST � nancial advisor in West Des Moines, Iowa, works out with gusto, whether it’s playing basketball, doing aerobics, or walking. A few years

ago she and her husband, Brad Ulrichson, bought several tai chi DVDs and started doing the workouts in their � nished basement.

“Normally, you think exercise has to be fast to get a workout, but tai chi has slow, methodical movements to enhance your muscle control and balance. I’d de� nitely say it helped with my balance, and I get a good workout,” she says.

Du� y found it was relaxing and stress relieving, so she thinks it would be a perfect activity for 10-minute breaks in the o� ce: “It gets you moving and your muscles working without making you sweat.”


TAI CHI FOR BALANCING BODY, MIND, AND LIFEby nanci hellmich

iStock.com/Mawardibahar

Tai chi, a mind-body program that combines ancient Chinese martial arts moves with meditation, is shaping up to be a modern-day prescription for better health. The gentle, graceful exercises increase balance, fl exibility, range of motion, strength, and mobility, while reducing stress and improving mood.

15

Learning the rhythmic moves can be a bit daunting. Beryl Ball, a CAPTRUST � nancial advisor in Richmond, Virginia, took tai chi with a good instructor at a local community center several years ago. “I enjoyed trying the movements,” she says, “but I don’t think they’re easy. Sometimes doing things that are slow is more demanding of your muscles than doing things that are fast.”

She found the classes a little too slow-moving, so she went back to faster-paced Zumba classes. Still, Ball may try it again. She thinks the tai chi movements and the breathing “are wonderful for you.”

Tai chi is a good addition to other exercise routines, says Richard Cotton, an exercise physiologist and national director of certi� cation for the American College of Sports Medicine. “You can always take an exercise walk and li� weights, but there is something gained with tai chi that is not available with other exercises,” he says.

It helps reduce stress and promote relaxation because, when you do it, you need to be present and not fretting about the troubles of the world, he says: “For people who are under a lot of stress, the move-

ments can help them relax and focus. It’s a way to center themselves and get their life back.”

People can build aerobic capacity and strength with tai chi, so they have an easier time doing

other physical activities, says Wayne, research director at the Osher Center for Integrative

Medicine, jointly based at Harvard Medical School and Brigham and Women’s Hospital in Boston. “We call it a gateway exercise because a� er people start doing tai chi, they become more toned and con� dent and are more likely to do other exercise.”

� e movements are low impact and low stress on the body, but high in bene� ts, adds Li Li, a research professor in the School of Health and Kinesiology at Georgia Southern University in Statesboro, Georgia. “We don’t follow the philosophy of ‘no pain, no gain.’ Tai chi doesn’t cause any pain but provides lots of gain.”

Li does tai chi himself and studies its health bene� ts. His research publications show that the exercises can improve gait and balance in people who have peripheral neuropathy, a condition characterized by damage to sensory nerves in the feet and legs that o� en causes burn-ing sensations, numbness, and pain.


“I enjoyed trying the movements, but I don’t think they’re easy. Sometimes doing things that are slow is more demanding of your muscles than doing things that are fast.”

Beryl BallVice President, Financial Advisor

16 Summer | 2016

Learning the rhythmic moves can be a bit daunting. Beryl Ball, a CAPTRUST � nancial advisor in Richmond, Virginia, took tai chi with a good instructor at a local community center several years ago. “I enjoyed trying the movements,” she says, “but I don’t think they’re easy. Sometimes doing things that are slow is more demanding of your muscles than doing things that are fast.”

She found the classes a little too slow-moving, so she went back to faster-paced Zumba classes. Still, Ball may try it again. She thinks the tai chi movements and the breathing “are wonderful for you.”

Tai chi is a good addition to other exercise routines, says Richard Cotton, an exercise physiologist and national director of certi� cation for the American College of Sports Medicine. “You can always take an exercise walk and li� weights, but there is something gained with tai chi that is not available with other exercises,” he says.

It helps reduce stress and promote relaxation because, when you do it, you need to be present and not fretting about the troubles of the world, he says: “For people who are under a lot of stress, the move-

ments can help them relax and focus. It’s a way to center themselves and get their life back.”

People can build aerobic capacity and strength with tai chi, so they have an easier time doing

other physical activities, says Wayne, research director at the Osher Center for Integrative

Medicine, jointly based at Harvard Medical School and Brigham and Women’s Hospital in Boston. “We call it a gateway exercise because a� er people start doing tai chi, they become more toned and con� dent and are more likely to do other exercise.”

� e movements are low impact and low stress on the body, but high in bene� ts, adds Li Li, a research professor in the School of Health and Kinesiology at Georgia Southern University in Statesboro, Georgia. “We don’t follow the philosophy of ‘no pain, no gain.’ Tai chi doesn’t cause any pain but provides lots of gain.”

Li does tai chi himself and studies its health bene� ts. His research publications show that the exercises can improve gait and balance in people who have peripheral neuropathy, a condition characterized by damage to sensory nerves in the feet and legs that o� en causes burn-ing sensations, numbness, and pain.


“I enjoyed trying the movements, but I don’t think they’re easy. Sometimes doing things that are slow is more demanding of your muscles than doing things that are fast.”

Beryl BallVice President, Financial Advisor

16 Summer | 2016

� e other potential health bene� ts are wide ranging. � ere are more than 1,200 peer-reviewed scienti� c studies of tai chi, Wayne says. He says research indicates that it:

• Improves balance and reduces falls in older healthy adults, as well as adults with chronic balance problems related to Parkinson’s disease or stroke.

• Reduces pain and increases mobility of people su� ering from knee osteoarthritis and lower back pain.

• Can help manage blood pressure and cholesterol.

• Helps people with chronic heart failure have a better quality of life. In other words, they have an easier time performing activities of daily living.

• Makes it easier to exercise and breathe for patients with chronic obstructive pulmonary disease (COPD).

• O� ers symptom relief for people with � bromyalgia, a disorder characterized by widespread musculoskeletal pain accompanied by fatigue, sleep, memory, and mood issues.

Tai chi may also improve cognitive function, since many studies sug-gest that learning new motor skills, especially ones requiring focused attention, leads to cognitive changes in adults, Wayne says.

Most people who practice tai chi do it in large part for a greater peace of mind, which comes from being mindful and focused during the exercise, says Wayne, who is also a tai chi instructor. He begins his classes by having people stand in a circle and inviting them to be aware of what’s going on in their bodies at that moment. He tells them to allow themselves to fully arrive in the present.


Tai Chi Terms Explained

Tai chi derives its name from the concept of yin and yang, also known as the tai chi symbol. Yin and yang is a central concept in traditional Chinese medicine, philosophy, and science, and it is one of the deepest pillars of Chinese cul-

ture. The yin-yang symbol illustrates two complemen-tary polar opposites that create a dynamic, balanced,

and interdependent whole.

Tai chi training embodies this yin-yang concept at many levels. At the most obvious physical level,

tai chi is an exercise that aims to strengthen, stretch, balance, coordinate, and integrate the left

and right halves of the body, the upper and lower halves of the body, and the extremities of the body with the inside or core.

At a more subtle level, tai chi integrates body and mind. Body movements are coordinated with rhythmic, conscious breathing and multiple cognitive and emotional compo-nents, including focused attention, heightened self-aware-ness, visualization, imagery, and intention.

Successful yin-yang integration in tai chi is reflected in the seamless connection of graceful movements, with one flowing into another, as well as a sense of focus, calmness, and peacefulness.

The character for Qi is different from the “chi” in tai chi. Qi refers to vital energy, information, breath, or spirit.

Qi is the first part of a diverse set of mind-body practices called qigong. Broadly speaking, qigong translates as the cul-tivation and mastery of qi. Some styles of qigong are oriented more toward health and spirituality, in which you sit and do breathing and meditative exercises. Other styles are more vigorous and are designed to enhance your martial art skills. Most people think of tai chi as a form of qigong because it cultivates, moves, and helps manage qi.

iStock.com/btrenkel 17

A� er a minute or two of standing, he has his class begin with the simplest movement, tai chi pouring, which is shi� ing the body from side to side with awareness. From there the routine may include movements with names such as “wave hands like clouds” and “grasp the spar-row’s tail.”

� ere are di� erent tai chi styles, including the Chen, Yang, Wu, Hao, and Sun. Each style contains di� erent choreographed routines with movements and postures, but all share com-mon principles, Wayne says.

Some of the tai chi classes and videos o� ered today “are a type of fusion of classic tai chi and other exercise forms,” Cotton says. “You don’t need to subscribe to or learn much about tai chi’s roots in Chinese philosophy to enjoy its health bene� ts, but these concepts can help make sense of its approach.”

If you are thinking about try-ing it, Cotton suggests � nding a good instructor who will teach you a beginning level of the traditional moves and forms. “� ere are di� erent levels, but it doesn’t have to be impossibly complex. � ere are beginner levels.” Beginner videos may work too, but it’s al-ways good to learn the proper form from an instructor and then have your move-ments checked, he says.

“It’s never too late to try tai chi,” says Wayne. His research studies often include people who are in their 70s, 80s, and 90s. Tai chi not only provides people with physical activity and peace of mind, but “it’s also a great way to meet and spend time with others commit-ted to taking care of their own health.” iStock.com/MalcolmB2


“You don’t need to subscribe to or learn much about tai chi’s roots in Chinese

philosophy to enjoy its health benefi ts, but these concepts can help make

sense of its approach.”

Richard CottonExercise Physiologist,

National Director of Certifi cation, American College of Sports Medicine

18 Summer | 2016

A� er a minute or two of standing, he has his class begin with the simplest movement, tai chi pouring, which is shi� ing the body from side to side with awareness. From there the routine may include movements with names such as “wave hands like clouds” and “grasp the spar-row’s tail.”

� ere are di� erent tai chi styles, including the Chen, Yang, Wu, Hao, and Sun. Each style contains di� erent choreographed routines with movements and postures, but all share com-mon principles, Wayne says.

Some of the tai chi classes and videos o� ered today “are a type of fusion of classic tai chi and other exercise forms,” Cotton says. “You don’t need to subscribe to or learn much about tai chi’s roots in Chinese philosophy to enjoy its health bene� ts, but these concepts can help make sense of its approach.”

If you are thinking about try-ing it, Cotton suggests � nding a good instructor who will teach you a beginning level of the traditional moves and forms. “� ere are di� erent levels, but it doesn’t have to be impossibly complex. � ere are beginner levels.” Beginner videos may work too, but it’s al-ways good to learn the proper form from an instructor and then have your move-ments checked, he says.

“It’s never too late to try tai chi,” says Wayne. His research studies often include people who are in their 70s, 80s, and 90s. Tai chi not only provides people with physical activity and peace of mind, but “it’s also a great way to meet and spend time with others commit-ted to taking care of their own health.” iStock.com/MalcolmB2


“You don’t need to subscribe to or learn much about tai chi’s roots in Chinese

philosophy to enjoy its health benefi ts, but these concepts can help make

sense of its approach.”

Richard CottonExercise Physiologist,

National Director of Certifi cation, American College of Sports Medicine

18 Summer | 2016

TALK TO YOUR DOCTOR. While tai chi is a gentle form of exercise, if you have a health condition, talk with your healthcare provider before get-ting started.

CONSIDER WATCHING A TAI CHI CLASS OR A VIDEO. Starting tai chi can be a bit intimidating for a beginner. Visit and observe a nearby class fi rst to get a better sense of what to expect. Or check out a beginner video to get familiar with the movements.

You can fi nd dozens of beginner tai chi videos on iTunes or as DVDs on Amazon. But, while videos can give you a taste of what to expect, you’ll want to take a class to ensure you are doing the movements safely and correctly.

SELECT A CLASS AND INSTRUCTOR YOU ARE COMFORTABLE WITH. It’s important to fi nd a class and instructor you can identify with. Some instructors choose forms that accentuate the roots of tai chi, centered around martial arts, whereas others focus on health benefi ts. Some forms are long strings of movements, while others are more ab-breviated and focus on meditation and breathing. Ask a trusted source—such as your healthcare provider or a nearby hospital—to recommend a tai chi instructor. Find out about the training and experience of any instructor you are considering.

WEAR LOOSE CLOTHES. Tai chi is all about movement. You will want to wear loose clothes so that you have full range of movement. You may or may not want to wear shoes, but if you do, they should be light, thin, and prevent slippage.

PRACTICE, PRACTICE, PRACTICE. Most beginning tai chi programs and interventions tested in medical research last at least 12 weeks and include instruction once or twice a week and practice at home. By the end of that time, you should know whether you enjoy tai chi, and you may already notice positive physical and psycho-logical changes. Like any other physical skill, tai chi takes practice, so give it ample time to take root.

TAI CHI | TIPS FOR GETTING STARTED

TO LEARN MORE• The Harvard Medical School Guide to Tai Chi: 12 Weeks to a Healthy Body, Strong Heart, and Sharp Mind by Peter M. Wayne, PhD, and Mark L. Fuerst• Tai Chi for Beginners, www.beginnerstaichi.com• Tai Chi for Health Institute, taichiforhealthinstitute.org• Tai Chi Health, taichihealth.com

19

Emily and Brad are a married couple in their late 40s with a couple of teenage children. Emily’s parents, Joe and Sarah, are in their 70s and have three adult children, Emily and two sons. Emily is the oldest, and she lives in the same town as her parents. Her brothers both live out of town. Joe and Sarah have always been independent and have not shared their fi nancial information with their children. Recently, Joe has missed paying a few bills�—�something uncharacteristic of him�—�and he has started showing other signs of dementia. Sarah is in fair health, but Joe has always handled their fi nances.

by michael kemmyElder Law SpecialistConrad Trosch & Kemmy, P.A.

WHEN YOUR AGING PARENTS NEED ESTATE PLANNING

Emily has become concerned about her parents’ future as she realizes she will be the one taking care of them when they can no longer care for themselves. She suspects that, if they have wills and powers of attorney, they were done many years ago. She is worried about what would happen to her mother if her father has to go into a nursing home. She’s not sure what to do, but one of her friends suggested that she talk to an attorney.

20 Summer | 2016

Emily and Brad are a married couple in their late 40s with a couple of teenage children. Emily’s parents, Joe and Sarah, are in their 70s and have three adult children, Emily and two sons. Emily is the oldest, and she lives in the same town as her parents. Her brothers both live out of town. Joe and Sarah have always been independent and have not shared their fi nancial information with their children. Recently, Joe has missed paying a few bills�—�something uncharacteristic of him�—�and he has started showing other signs of dementia. Sarah is in fair health, but Joe has always handled their fi nances.

by michael kemmyElder Law SpecialistConrad Trosch & Kemmy, P.A.

WHEN YOUR AGING PARENTS NEED ESTATE PLANNING

Emily has become concerned about her parents’ future as she realizes she will be the one taking care of them when they can no longer care for themselves. She suspects that, if they have wills and powers of attorney, they were done many years ago. She is worried about what would happen to her mother if her father has to go into a nursing home. She’s not sure what to do, but one of her friends suggested that she talk to an attorney.

20 Summer | 2016

All Too Familiar� is is an all-too-familiar scenario in my position as a practitioner of elder law. I can’t tell you how many times a month I get a desperate phone call from an adult child saying “Dad has dementia, and I need a power of attorney.” Usually the dementia has progressed to the point that Dad no longer has the mental competence to sign a power of attorney, a will, or any other legal document.

At that point, it’s too late for a power of attorney to be the solution to Dad’s failing capacity. He may need a legal guardian, which involves a costly and public court proceeding. Given Dad’s dementia, this client needs to act soon if he is going to be able to make an e� ective plan to address his parents’ needs and concerns.

Of course, it doesn’t have to be this way. With estate and � nancial planning — as with many problems that arise in life — there are two options: advance planning and crisis planning. It should come as no surprise that your par-ents will likely achieve a better outcome for themselves with advance planning.

If you are concerned about the state of your parents’ estate planning — or simply want to get ahead of the curve — one of the most important roles you have could be helping them understand that they should seek pro-fessional advice.

Starting the ConversationAs people age, their � nancial situations change, as do their goals, preferences, and outlooks.

Too o� en, however, they do not update their � nancial or estate plans to match the current situation. So, even if your parents are hesitant to discuss the details of their � nancial and estate plans with you, you can suggest that they talk con� dentially with � nancial and legal pro-fessionals who can guide them through the process of updating their documents.

Be wary of listening to advice given by well-meaning friends and relatives. Planning for elders is very fact speci� c, so what may have worked for someone else may not be right for your parents. You should also be aware that laws in these cases vary widely from state to state. A professional will ask questions and bring up

issues that you or your parents may not have thought about — or perhaps were uncomfortable discuss-ing — but that need to be addressed.

Gather InformationYour parents should gather the pertinent legal and � nancial information their planners will need to create a plan that’s right for them. Ask them if they want you to help them put this infor-mation together. � ey will need to iden-tify and locate their existing estate planning documents, if they have any. � ey will need a list of their assets, includ-ing values and how each asset is titled (his, hers, or joint). Each parent should also itemize the source and amount of his or her monthly income.

Your parents should also gather medical in-formation, such as current medications, names of doc-tors and other healthcare providers, and health insur-ance information. � is information will be important in the future to you and your siblings, as well as any other caretakers or legal professionals.

Estate and Asset Protection PlanningOrdinary estate planning is important for everyone. It’s even more important for the elderly. � ese are � ve essential estate planning documents that each of your parents should have. � ey are:

• Last will and testament. Very simply, a will is a legal document that directs how your property will be distributed a� er you die. In your will, you designate a person you trust to manage the distribution of your assets. You can also create a trust in your will for the bene� t of your spouse or children. If you do not have a will, the state will determine how your estate is distributed.

I can’t tell you how many times in a month I get a desperate

phone call from an adult child saying “Dad has dementia, and I

need a power of attorney.”


21

• Durable power of attorney. A durable power of attorney gives someone else the authority to act on your behalf and make legal and � nancial decisions should you become incapacitated.

• Healthcare power of attorney. � is document, also known as a healthcare proxy, enables you to designate a person to make medical decisions on your behalf in the event you become unable to make them yourself.

• Living will. A living will, sometimes called an advance healthcare directive, speci� es your wishes for end-of-life care in writing. It can address such issues as whether you want to be resuscitated if your breathing or heartbeat stops, or whether you want to be kept alive through arti� cial respiration or feeding.

• HIPAA authorization. A federal law called the Health Insurance Portability and Accountability Act (HIPAA) sets strict rules on who can look at your medical records or receive your medical and health information. A HIPAA authorization allows you to name

a person to receive your medical information from your healthcare providers or your health insurance company.

� ese basic documents will allow your parents to state how they want their assets to be distributed upon death, who will be in charge of administering their estates,

who will make � nancial and medical decisions for them when they are not able to make their own decisions, and what their end-of-life medical choices are.

Beyond estate planning, depending on your parents’ wishes and their � nancial situation, asset protection planning may be appropriate for them. An elder law

attorney can give them advice and make suggestions for protecting their assets in the event one or both of them need to go to a nursing home. Without advance

planning, your parents may have to pay their own way in the nursing home until their assets are nearly exhausted. At that point, they could apply for Medicaid bene� ts.

While there is some protection for a spouse who is still living at home, life could become very di� cult for that parent if most of their other assets were used up. � is can be a sensitive and scary topic to discuss with them because no one wants to go to a nursing home. However, because our population is aging and we are living longer, more people do, in fact, end up living in nursing homes. Asset protection planning can’t change that, but it may be able to make life more bearable for the parent living at home. Remember, advance planning is much more e� ective than crisis planning.


Beyond estate planning, depending on your parents’ wishes and their fi nancial situation, asset protection planning may be appropriate for them.

22 Summer | 2016

• Durable power of attorney. A durable power of attorney gives someone else the authority to act on your behalf and make legal and � nancial decisions should you become incapacitated.

• Healthcare power of attorney. � is document, also known as a healthcare proxy, enables you to designate a person to make medical decisions on your behalf in the event you become unable to make them yourself.

• Living will. A living will, sometimes called an advance healthcare directive, speci� es your wishes for end-of-life care in writing. It can address such issues as whether you want to be resuscitated if your breathing or heartbeat stops, or whether you want to be kept alive through arti� cial respiration or feeding.

• HIPAA authorization. A federal law called the Health Insurance Portability and Accountability Act (HIPAA) sets strict rules on who can look at your medical records or receive your medical and health information. A HIPAA authorization allows you to name

a person to receive your medical information from your healthcare providers or your health insurance company.

� ese basic documents will allow your parents to state how they want their assets to be distributed upon death, who will be in charge of administering their estates,

who will make � nancial and medical decisions for them when they are not able to make their own decisions, and what their end-of-life medical choices are.

Beyond estate planning, depending on your parents’ wishes and their � nancial situation, asset protection planning may be appropriate for them. An elder law

attorney can give them advice and make suggestions for protecting their assets in the event one or both of them need to go to a nursing home. Without advance

planning, your parents may have to pay their own way in the nursing home until their assets are nearly exhausted. At that point, they could apply for Medicaid bene� ts.

While there is some protection for a spouse who is still living at home, life could become very di� cult for that parent if most of their other assets were used up. � is can be a sensitive and scary topic to discuss with them because no one wants to go to a nursing home. However, because our population is aging and we are living longer, more people do, in fact, end up living in nursing homes. Asset protection planning can’t change that, but it may be able to make life more bearable for the parent living at home. Remember, advance planning is much more e� ective than crisis planning.


Beyond estate planning, depending on your parents’ wishes and their fi nancial situation, asset protection planning may be appropriate for them.

22 Summer | 2016

You may have worked hard for a golden credit score, but it can get tarnished in unexpected ways. Financial experts have seen this happen to clients across the country.

Trae Cole, a CAPTRUST � nancial advisor in Raleigh, North Carolina, has a client whose divorced mother ended up deeply in debt a� er her husband spent a lot of money at the end of their marriage. She was 70 years old and retired, and she needed to go back to work to restore her credit score so she could rent or buy a home. She consulted with a credit counselor to � gure out how to do it.

Once your credit is blemished, you have to work hard to get it back, Cole says. Even if you pay o� your debt, it takes time for those negative items to come o� the credit report.


by nanci hellmich

Make Sure Your Credit Score

Trae ColeVice President, Financial Advisor

“Once your credit is blemished, you have to work hard to get it back. Even if you pay o�

your debt, it takes time for those negative items to come o� the credit report.”

23

James Valmonte, a CAPTRUST financial advisor in Riverside, California, has a few clients who co-signed loans with adult children or other family members. When the other parties failed to fulfill their obligations, his clients’ credit scores dropped. They ended up making payments or paying off the loans, while also resolving their own credit issues. “Credit scores matter,” says Valmonte, “and can impact many aspects of clients’ financial lives.”

Everybody should care about their credit report and their credit score, says Bruce McClary, a spokesman for the nonprofit National Foundation for Credit Counseling. But only about a third of people reviewed both their credit reports and credit scores during the past year, according to a 2015 survey of 2,017 adults conducted for the counseling group. Among those who got their credit scores, about a third did so as part of managing

their personal finances; a third did it out of curiosity, and a fourth did so because they were considering a major purchase, or apartment rent-al, or were applying for credit or insurance.

McClary advises people to go to AnnualCreditReport.com to get a free copy of their credit reports from each of the credit reporting companies: Equifax, Experian, and TransUnion. You can get them every 12 months or stagger them, and you should immediately dispute any errors you find with the appropriate credit agency, he says.

Checking your credit reports regularly can help you catch problems that need your immediate attention, such as identity theft, credit fraud, or credit card accounts that you thought were closed but actu-ally weren’t, McClary says. “If someone hijacked a credit card account that you thought you had closed, he or she could have a field day using that account and charging it up to the max without you even knowing

it. This kind of activity would be like a boat an-chor bringing your credit score down to

the basement.”


James ValmonteVice President, Financial Advisor

“Credit scores matter and can impact many aspects of clients’ fi nancial lives.”

24 Summer | 2016

James Valmonte, a CAPTRUST financial advisor in Riverside, California, has a few clients who co-signed loans with adult children or other family members. When the other parties failed to fulfill their obligations, his clients’ credit scores dropped. They ended up making payments or paying off the loans, while also resolving their own credit issues. “Credit scores matter,” says Valmonte, “and can impact many aspects of clients’ financial lives.”

Everybody should care about their credit report and their credit score, says Bruce McClary, a spokesman for the nonprofit National Foundation for Credit Counseling. But only about a third of people reviewed both their credit reports and credit scores during the past year, according to a 2015 survey of 2,017 adults conducted for the counseling group. Among those who got their credit scores, about a third did so as part of managing

their personal finances; a third did it out of curiosity, and a fourth did so because they were considering a major purchase, or apartment rent-al, or were applying for credit or insurance.

McClary advises people to go to AnnualCreditReport.com to get a free copy of their credit reports from each of the credit reporting companies: Equifax, Experian, and TransUnion. You can get them every 12 months or stagger them, and you should immediately dispute any errors you find with the appropriate credit agency, he says.

Checking your credit reports regularly can help you catch problems that need your immediate attention, such as identity theft, credit fraud, or credit card accounts that you thought were closed but actu-ally weren’t, McClary says. “If someone hijacked a credit card account that you thought you had closed, he or she could have a field day using that account and charging it up to the max without you even knowing

it. This kind of activity would be like a boat an-chor bringing your credit score down to

the basement.”


James ValmonteVice President, Financial Advisor

“Credit scores matter and can impact many aspects of clients’ fi nancial lives.”

24 Summer | 2016


Staying on Top of Your Credit Report� ere are plenty of reasons to make sure you have a good record. Mortgage companies, banks, credit card issuers, auto lenders, credit unions, and � nance companies look into your credit reports when you apply for loans and other credit. � ey are trying to determine if you qualify for a loan, how much you can borrow, and an appropriate interest rate. Potential lenders and others want to know how you manage your � nancial responsibilities to those you owe money, McClary says. � e reports and scores help them make a risk assessment if they are considering extending you a line of credit. An a� ordable interest rate is something everyone should strive for, he says: “Even if you get a loan and plan to power-pay the heck out of it, if there is a period of time where you had to drop back and rely on the minimum payments, that low interest rate is going to make a di� erence.”

Access to your credit report isn’t limited to creditors. � ere are others who have an interest in what’s reported, including rental property management, debt collectors, insurance pro-viders, and even potential employers.

The information in the credit report determines your credit score. Agencies charge a fee for their credit scores, but there are ways to get your credit scores for free. In fact, many credit card companies offer free access to your credit scores as a benefit. In some cases, they will provide it to you on your monthly billing statement, McClary says.

The commonly used FICO Scores, created by the Fair Isaac Corporation, range from 300 to 850. Exactly how FICO and others, such as VantageScore, calculate credit scores is proprietary information, McClary says. The folks who do this don’t want to make their math public. That’s giving away the secret sauce.

But, for consumers, the bottom line is this: The higher your credit score, the more likely it is that you’ll get the best rates for mortgages, car loans, and credit cards, he says.

“Even if you get a loan and plan to power-pay the heck out of it, if there is a period of time where you

had to drop back and rely on the minimum payments, that low interest rate is going to make a di� erence.”

Bruce McClarySpokesman, National Foundation

for Credit Counseling

25

An Inside Look at Your FICO® ScoreFICO calculates its scores from information in your credit report, which is grouped into the fi ve categories listed below. The score considers both positive and negative information on your credit report.

The score also includes public record and collection items. These events are considered quite serious, al-though older items and items with small amounts will count less than recent items or those with larger amounts. Negative factors include bankruptcies, which will stay on your credit report for seven to ten years, depending on the type, as will foreclosures, lawsuits, wage attachments, liens, and judgments.

Source: http://www.myfi co.com/CreditEducation/WhatsInYourScore.aspx

Owing money on credit accounts doesn’t necessarily mean you’re a high-risk borrower with a low FICO Score. But, when a high percentage of a person’s available credit has been used, this can show that a person is overextended and is more likely to miss or make late payments.

FICO Scores consider your mix of credit cards, retail accounts, installment loans, fi nance company accounts, and mortgage loans.

Research shows that opening several new credit accounts in a short period of time represents greater risk. This is especially true for people who don’t have a long credit history.

35%

30%

10%

10%

YOUR PAYMENT HISTORY

AMOUNTS OWED

In general, a longer credit history increases your FICO Scores. However, even people who haven’t been using credit long may have high FICO Scores, depending on how the rest of the credit report looks.

15%LENGTH OF CREDIT HISTORY

NEW CREDIT

CREDIT MIX IN USE

The fi rst thing any lender wants to know is whether you’ve paid past credit accounts on time. This is one of the most important factors in a FICO credit score. Account types include credit cards, retail accounts, installment loans, fi nance company accounts, and mortgage loans.

If you have two or more 30-day-late payments on your credit report at the same time, expect your score to take a hit for 12 to 24 months, says mortgage broker David Damaré: “Any late payment will increase the cost of borrowing in the near term. And the higher your credit score, the bigger the drop.”

However, having no late payments in your credit report doesn’t mean you’ll get a perfect score. Your payment history is just one piece of information used in calculating your FICO Score.

26 Summer | 2016

An Inside Look at Your FICO® ScoreFICO calculates its scores from information in your credit report, which is grouped into the fi ve categories listed below. The score considers both positive and negative information on your credit report.

The score also includes public record and collection items. These events are considered quite serious, al-though older items and items with small amounts will count less than recent items or those with larger amounts. Negative factors include bankruptcies, which will stay on your credit report for seven to ten years, depending on the type, as will foreclosures, lawsuits, wage attachments, liens, and judgments.

Source: http://www.myfi co.com/CreditEducation/WhatsInYourScore.aspx

Owing money on credit accounts doesn’t necessarily mean you’re a high-risk borrower with a low FICO Score. But, when a high percentage of a person’s available credit has been used, this can show that a person is overextended and is more likely to miss or make late payments.

FICO Scores consider your mix of credit cards, retail accounts, installment loans, fi nance company accounts, and mortgage loans.

Research shows that opening several new credit accounts in a short period of time represents greater risk. This is especially true for people who don’t have a long credit history.

35%

30%

10%

10%

YOUR PAYMENT HISTORY

AMOUNTS OWED

In general, a longer credit history increases your FICO Scores. However, even people who haven’t been using credit long may have high FICO Scores, depending on how the rest of the credit report looks.

15%LENGTH OF CREDIT HISTORY

NEW CREDIT

CREDIT MIX IN USE

The fi rst thing any lender wants to know is whether you’ve paid past credit accounts on time. This is one of the most important factors in a FICO credit score. Account types include credit cards, retail accounts, installment loans, fi nance company accounts, and mortgage loans.

If you have two or more 30-day-late payments on your credit report at the same time, expect your score to take a hit for 12 to 24 months, says mortgage broker David Damaré: “Any late payment will increase the cost of borrowing in the near term. And the higher your credit score, the bigger the drop.”

However, having no late payments in your credit report doesn’t mean you’ll get a perfect score. Your payment history is just one piece of information used in calculating your FICO Score.

26 Summer | 2016

Recovering From Credit IssuesDavid Damaré, a licensed mortgage broker in Raleigh, North Carolina, has worked with several wealthy clients who were preparing to � nance homes, but when they pulled their credit reports, they were surprised that they did not have the highest credit scores and couldn’t qualify for the lowest interest rates. � e reason: � ey had unknowingly missed a bill. In one case, the husband didn’t know his wife had opened a new retail credit card, so he didn’t pay the bill. When they discovered the missed payment on their credit reports, they paid it immediately. “Otherwise, they had excellent credit, so a� er several months their scores recovered,” he says.

Teri Parker, a CAPTRUST advisor in Riverside, California, had two clients with excellent credit histories who bought investment properties before 2007—at the peak of the real estate market. � en the great recession hit, and property values tanked. � ey ended up selling their properties at signi� cant losses in short sales. � at lowered their credit scores, which meant that they didn’t qualify to re� nance their homes. Instead, they carried mortgages with interest rates that were about 3 percent higher than the current rates, she says.

These are people who have always paid their mortgages, credit cards, and other debts on time, she says. “It has taken them years to repair their credit histories.”

It often takes time to fix a credit score, according to myFICO.com. For instance, paying off a collection ac-count will not remove it from your credit report. It will stay on your report for seven years.

McClary has a friend whose score tanked when he was in the mid-dle of a divorce, and some bills didn’t get paid. Credit scores can take a nosedive during a divorce when one partner stops paying his or her portion of shared debts, McClary says. “It’s a perfect storm. You’ve got lack of communication, animosity, and a situation where some things may be done out of spite.” His friend has worked to improve his finances. “I went golfing with him a few weeks ago, and he told me how close to perfect his credit score was.”

McClary doesn’t want his gol� ng buddy to get too wrapped up in having a perfect score: “In my 17-plus years working in the � nancial � eld, speaking with thousands of people and experts, I have yet to speak to someone with an 850, but I know they are out there.”

It often takes time to fi x a credit score, according to myFICO.com. For

instance, paying o� a collection account will not remove it from your credit report. It will

stay on your report for seven years.


27

Explanations tidy up our lives. Assigning labels organizes everything from our garages to our computer fi les. Explanations provide justifi cation, assign credit or blame, and help compartmentalize what causes certain events to occur.

When Jordan Spieth � nished his � rst nine holes at Augusta National on April 10, he held a � ve-stroke lead. He bogeyed the next two holes. � e second came on the hardest hole on the golf course, so the result seemed justi� ed. But when Spieth, a profes-sional golfer with two major championships under his belt, hit two shots into fabled Rae’s Creek on the par-three 12th hole, TV broadcasters, social media, patrons at Augusta, and living rooms around the globe sought explanations. A� er watching Spieth hit his second golf ball into the water, a dumbfounded three-time Masters-champion-turned-broadcaster Nick Faldo struggled to explain what he was witnessing, saying “[Spieth] turns and walks to the 10th tee … and we can hardly get our superlatives to mark this man’s incredible achievement, and then he goes bogey, bogey, and we don’t know what.”

by eric freedman

THE IN ELEGANT

NARRATIVE

“Buddy, it seems like we’re collapsing.”Jordan Spieth, Professional Golfer

Said to caddie Michael Greller following a 12th-hole quadruple bogey that cost Spieth the 2016 Masters Tournament lead

28 Summer | 2016

Explanations tidy up our lives. Assigning labels organizes everything from our garages to our computer fi les. Explanations provide justifi cation, assign credit or blame, and help compartmentalize what causes certain events to occur.

When Jordan Spieth � nished his � rst nine holes at Augusta National on April 10, he held a � ve-stroke lead. He bogeyed the next two holes. � e second came on the hardest hole on the golf course, so the result seemed justi� ed. But when Spieth, a profes-sional golfer with two major championships under his belt, hit two shots into fabled Rae’s Creek on the par-three 12th hole, TV broadcasters, social media, patrons at Augusta, and living rooms around the globe sought explanations. A� er watching Spieth hit his second golf ball into the water, a dumbfounded three-time Masters-champion-turned-broadcaster Nick Faldo struggled to explain what he was witnessing, saying “[Spieth] turns and walks to the 10th tee … and we can hardly get our superlatives to mark this man’s incredible achievement, and then he goes bogey, bogey, and we don’t know what.”

by eric freedman

THE IN ELEGANT

NARRATIVE

“Buddy, it seems like we’re collapsing.”Jordan Spieth, Professional Golfer

Said to caddie Michael Greller following a 12th-hole quadruple bogey that cost Spieth the 2016 Masters Tournament lead

28 Summer | 2016

Two of our kids play competitive golf, and I know from being a spec-tator and occasional caddie that many variables can a� ect a golf shot. Some are external to the golfer (e.g., temperature, wind, moisture, and elevation). Others are caused by the golfer (e.g., shot strategy, swing speed, club path, heart rate, and commitment to the shot). � is cursory list only scratches the surface of what can impact results, but these variables interact with the laws of physics to produce outcomes, whether birdie, bogey, or the dreaded “other.” Even players them-selves may not know de� nitively what causes an outcome.

Investment outcomes are also subject to these two con� icting forces: variable interaction and the need for explanatory narratives. Factors impacting a given asset class’s performance are nearly in� nite. Take emerging market stocks, for example. A simplistic narrative that you may � nd in the headline of a popular publication may read some-thing like “Emerging Market Stocks Decline on Currency Concerns.” While the headline satis� es our need for an explanation, it likely over-simpli� es the cause. Emerging market stocks span many geographies, so a singular cause is unlikely. � e reason currencies moved is also

uncertain. � ey, too, are subject to interacting variables that a simple headline cannot capture. In a world of shortened attention spans and bite-sized content, we may be oversimplifying at the expense of true causal understanding.

In this Investment Strategy, we will explore what actually is — with little time spent on how we got here. So, � rst, let’s get the “how” out of the way.

We have contended for several years that central banks’ desire to restrain borrowing costs to stoke economic activity and consumer spending has been a key market driver. We have shown the relation-ship between the U.S. equity market and the Federal Reserve’s bal-ance sheet. We have also detailed how signi� cant the Federal Reserve and other central banks have been in certain bond markets in which they are making purchases.

Irrespective of whether you accept this narrative, price trumps all. Comparable to the popular golf phrase “there are no pictures on scorecards,” market values re� ect all the variables that surround them. Let’s � rst take a look at the bond market.

“The narrative fallacy addresses our limited ability to look at sequences of facts without weaving an explanation into them, or, equivalently, forcing a logical link, an arrow of relationship upon them. Explanations bind facts together. They make them all the more easily remembered; they help them all make more sense.”

Nassim Nicholas TalebMathematician, Philosopher, and Author


29

As you can see in Figure One, we have plotted current 10-year government bond yields from major economies and their ranges since the end of 2012 — almost three and a half years of data. Government bonds are considered the safest of yields, since they have lower credit risk than companies; governments have the power to tax whereas companies do not. � ey tend to be the start-ing point for many borrowing rates, like mortgage rates, so when central banks want to stimulate the economy, bond buying is a perceived e� ective tool.

Most importantly, government bonds are the cornerstone of modern � nance. � ey are the building blocks for all other asset prices, with U.S. Treasury bonds crowned as the vaunted risk-free rate. � e U.S. gov-ernment’s payment to creditors is a near certainty since the U.S. has both taxation powers and the world’s strongest military. Asset prices move up in risk and expected return based on what government bonds, speci� cally those issued by the U.S., yield.

Two things stand out from Figure One. First, in and of themselves, global bond yields are extremely low. Lending to the U.S. govern-ment for 1.85 percent per annum for 10 years seems low. But that 1.85 percent appears juicy relative to Germany (0.15 percent) or the negative rates in Japan and Switzerland. Second, interest rates are either at or very close to their lowest levels, despite several years of economic healing since the � nancial crisis. Again, irrespective of the narrative be-hind how they arrived there, global interest rates are at historically low levels.

Analyzing global stock market scorecards is a little trickier. Major stock market indexes provide some information, but the best scorecard is corporate earnings. Stocks rep-resent a claim on a company’s bottom line, and equity markets re� ect what investors

Source: Bloomberg, data as of 5.31.2016

4.5%

4.0%

3.5%

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0%

-0.5%

Japan

0.92%

-0.14%

SouthKorea

3.74%

1.76%

United Kingdom

3.07%

1.30%

Switzerland

1.22%

-0.48%

UnitedStates

3.03%

1.63%

CURRENT

HIGH

LOW

Germany

2.04%

0.07%

Australia

4.43%

2.23%

Figure One: High, Low, and Current 10-Year Government Bond Yields(since 2012)


2.30%

0.15%

1.80%

-0.38%

1.44%

1.85%

-0.13%

30 Summer | 2016

As you can see in Figure One, we have plotted current 10-year government bond yields from major economies and their ranges since the end of 2012 — almost three and a half years of data. Government bonds are considered the safest of yields, since they have lower credit risk than companies; governments have the power to tax whereas companies do not. � ey tend to be the start-ing point for many borrowing rates, like mortgage rates, so when central banks want to stimulate the economy, bond buying is a perceived e� ective tool.

Most importantly, government bonds are the cornerstone of modern � nance. � ey are the building blocks for all other asset prices, with U.S. Treasury bonds crowned as the vaunted risk-free rate. � e U.S. gov-ernment’s payment to creditors is a near certainty since the U.S. has both taxation powers and the world’s strongest military. Asset prices move up in risk and expected return based on what government bonds, speci� cally those issued by the U.S., yield.

Two things stand out from Figure One. First, in and of themselves, global bond yields are extremely low. Lending to the U.S. govern-ment for 1.85 percent per annum for 10 years seems low. But that 1.85 percent appears juicy relative to Germany (0.15 percent) or the negative rates in Japan and Switzerland. Second, interest rates are either at or very close to their lowest levels, despite several years of economic healing since the � nancial crisis. Again, irrespective of the narrative be-hind how they arrived there, global interest rates are at historically low levels.

Analyzing global stock market scorecards is a little trickier. Major stock market indexes provide some information, but the best scorecard is corporate earnings. Stocks rep-resent a claim on a company’s bottom line, and equity markets re� ect what investors

Source: Bloomberg, data as of 5.31.2016

4.5%

4.0%

3.5%

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0%

-0.5%

Japan

0.92%

-0.14%

SouthKorea

3.74%

1.76%

United Kingdom

3.07%

1.30%

Switzerland

1.22%

-0.48%

UnitedStates

3.03%

1.63%

CURRENT

HIGH

LOW

Germany

2.04%

0.07%

Australia

4.43%

2.23%

Figure One: High, Low, and Current 10-Year Government Bond Yields(since 2012)


2.30%

0.15%

1.80%

-0.38%

1.44%

1.85%

-0.13%

30 Summer | 2016

Source: Bloomberg

Figure Two: Actual Earnings March 2000–May 2016 (in Dollars)


Earnings forecasts are just like expectations on the fi rst tee: I think I

may shoot a 75 today, but I will know for sure only after I

play all 18 holes.

are willing to pay for those earnings. To be sure, stock prices can � uctuate (think of extremes during the dot-com era), but earnings are earnings. While many use forecast numbers, they represent expected earnings — not what will actually be post-ed. Earnings forecasts are just like expectations on the � rst tee: I think I may shoot a 75 today, but I will know for sure only a� er I play all 18 holes.

Figure Two shows actual earnings by month for four major equity indexes since March 2000, more than 16 years of data. � e S&P 500 represents U.S. stocks, the MSCI EAFE index rep-resents developed market international stocks (mainly Europe, the UK, and Japan), the MSCI EM Index represents emerging mar-ket equities, and the MSCI World is a proxy for all global stock markets.

We see three key conclusions from this � gure. First, earnings tend to trend in the same direction, emphasizing an interconnected global economy. Second, the only region that has reclaimed earn-ings levels achieved before the � nancial crisis is the U.S. Finally, earnings for all four indexes have been trending lower, not higher. Emerging and international developed markets show the steepest decline since their post-� nancial-crisis peaks. Note that for the U.S. equity market, dating back to the March 2009 equity market lows, the S&P 500 has rallied 232 percent over the past 87 months. Since 1928, bull markets have averaged 57 months in length and 165 percent in total return, so this equity market move has been bigger and longer than all but two others: the post-World War II period from 1949 to 1956 and 1990 to 2000, which ended with the dot-com bubble burst.

$120

$100

$80

$60

$40

$20

$0

$160

$140

$120

$100

$80

$60

$40

$20

$02000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20132010 20142011 20152012 2016

Developed International (left)

Emerging International (right)

MSCI World (right)

S&P 500 (right)

31

in the high yield bond market. Attractive investment options exist, but we remain steadfast. Given low bond yields, investors must ratchet down their return expectations.

I have never had the pleasure of meeting Jordan Spieth, but as a golf parent and occasional caddie, I remain impressed with his poise and sportsmanship following that Sunday’s events. When asked about what happened, Spieth pro-vided his own narrative, highlighting that he “just put a bad swing on it at the wrong time” and had a “lapse in concen-tration.” His willingness to speak with

reporters immediately a� er the round, stay for the awards presen-tation, and give additional interviews provides a clinic in honesty, forthrightness, and dignity. � e outcome was not what the old soul that is Jordan Spieth wanted, but his post-round character sets an example for all narratives; we can only hope to follow his lead.

To that end, while we wish the current capital market setting were more robust, we remain in an inelegant world with low expected returns. Nonetheless, we are seeing opportunities and working hard to � nd more, paying attention to risks and fees.

Setting aside the narratives for how we got here, markets reflect bond yields at all-time lows, stagnant or falling earnings, and at least one major market in a lengthy bull market with few pullbacks along the way. This is not the best setup for investors already frustrated by low returns over the past three years. I wish I could provide a more elegant synop-sis, but looking at the scorecard offered by bond yields and earnings, the cur-rent challenging investment milieu is the inelegant truth.

While we continue to forecast a low-re-turn environment, we do see some positives in the charts shown, particularly with respect to global equities. Japan’s demographic challenges will be hard to combat, but European and emerging market earnings have considerable room for improvement. In other words, companies’ better days are likely ahead of them, not behind them.

We respect the chance for a recession in coming years, but expect that the same central banks that have driven asset prices will remain accommodative. A� er several years of concerns about emerging markets, we are starting to see evidence of structural improvement. We also note that energy market disruption has led to opportunity


I have never had the pleasure of meeting Jordan Spieth, but

as a golf parent and occasional caddie, I remain impressed with

his poise and sportsmanship following that Sunday’s events.

32 Summer | 2016

in the high yield bond market. Attractive investment options exist, but we remain steadfast. Given low bond yields, investors must ratchet down their return expectations.

I have never had the pleasure of meeting Jordan Spieth, but as a golf parent and occasional caddie, I remain impressed with his poise and sportsmanship following that Sunday’s events. When asked about what happened, Spieth pro-vided his own narrative, highlighting that he “just put a bad swing on it at the wrong time” and had a “lapse in concen-tration.” His willingness to speak with

reporters immediately a� er the round, stay for the awards presen-tation, and give additional interviews provides a clinic in honesty, forthrightness, and dignity. � e outcome was not what the old soul that is Jordan Spieth wanted, but his post-round character sets an example for all narratives; we can only hope to follow his lead.

To that end, while we wish the current capital market setting were more robust, we remain in an inelegant world with low expected returns. Nonetheless, we are seeing opportunities and working hard to � nd more, paying attention to risks and fees.

Setting aside the narratives for how we got here, markets reflect bond yields at all-time lows, stagnant or falling earnings, and at least one major market in a lengthy bull market with few pullbacks along the way. This is not the best setup for investors already frustrated by low returns over the past three years. I wish I could provide a more elegant synop-sis, but looking at the scorecard offered by bond yields and earnings, the cur-rent challenging investment milieu is the inelegant truth.

While we continue to forecast a low-re-turn environment, we do see some positives in the charts shown, particularly with respect to global equities. Japan’s demographic challenges will be hard to combat, but European and emerging market earnings have considerable room for improvement. In other words, companies’ better days are likely ahead of them, not behind them.

We respect the chance for a recession in coming years, but expect that the same central banks that have driven asset prices will remain accommodative. A� er several years of concerns about emerging markets, we are starting to see evidence of structural improvement. We also note that energy market disruption has led to opportunity


I have never had the pleasure of meeting Jordan Spieth, but

as a golf parent and occasional caddie, I remain impressed with

his poise and sportsmanship following that Sunday’s events.

32 Summer | 2016

THE MARKETS SO FAR THIS YEARDespite a volatile start to 2016, nearly all asset classes are in positive territory.

U.S. stocks have posted three consecutive monthly gains and are now up modestly for the year, driven by stabilizing oil prices and tepid but better than expected economic growth data. Mid-cap stocks are leading the way, followed by large- and small-cap stocks.

International stocks have also recovered from sharp declines in January and February. Emerging markets stocks have posted gains driven by commodity price rebounds and a weaker U.S. dollar. Meanwhile, international developed market stocks are still negative for the year despite ongoing economic stimulus programs in Europe and Japan.

Defying the predictions of many investors, bonds have kept pace with stocks so far this year as interest rates hover at historically low levels.

In a sharp contrast to 2015, broad diversifi cation, including exposure to commodities and real estate, has helped investors in 2016. Commodities, last year’s worst performing asset class, is this year’s best; recoveries in oil and industrial metals prices have helped broad commodity indexes bounce back after four years of negative returns. Public real estate, last year’s best performing asset class, continues to perform well in 2016, benefi ting from solid demand and low interest rates.

MARKET INDEX PERFORMANCE (as of 5.31.2016)

Asset class returns are represented by the following indexes: U.S. large-cap stocks (S&P 500 Index), international stocks (MSCI EAFE Index), emerging market stocks (MSCI Emerging Markets Index), U.S. bonds (Barclays U.S. Aggregate Bond Index), commodities (Bloomberg Commodity Index), and real estate (Dow Jones U.S. Real Estate Index).

U.S. Stocks

1.4%

3.6%

2.1%

Real Estate

5.8%

International Stocks

-0.2% -0.8%

U.S. Bonds

0.6%

3.5%

-24.7%

8.6%

Commodities

Emerging Market Stocks

-14.8%

2.3%

2015

YTD 2016

Accommodative central banks remain the primary capital market driver. The U.S. Federal Reserve recently suggested that it may raise interest rates in the coming months if U.S. economic data continues to improve. Nevertheless, we expect future interest rate increases to be very gradual and well telegraphed. Central banks in Europe and Japan remain highly accommodative and could announce further actions to promote economic growth in the coming months if sluggishness persists. Investors should expect markets to remain skittish, and while we and others predict a low-return environment, we continue to see several areas where patient investors can earn solid returns.

LOOKING FORWARD

33

� ese two diverse perspectives might have fueled a � ght over how to handle mom’s care. But my parents had the foresight to give us the gi� of not having to decide. By the time mom had Alzheimer’s and was dying of colon cancer, the family knew what she wanted. She wanted to stay at home as long as possible and forgo any drastic medical treatments that might prolong her life. � is was comforting in a weird way. Knowing what my mother wanted, I didn’t have to wonder if we were doing the right thing. � e course was set, and the family’s job was to follow it.

By 2050, the number of people age 85 and older will triple, and 50 percent of them will experience some form of cognitive impairment.1,2 Even those who don’t develop dementia are likely to need support as they slow down and lose mobility. � erefore, it makes sense to plan for and talk to your family about your care preferences as you age.

by kathleen burns kingsbury

As we walked out of the hospital, my sister turned to her kids and said, “Please take care of me at home if I get as sick as your grandmother.” I turned to my husband and said, “Just put me in a nursing home and go on with your life.”

ELDERCARE PLANNING: FIVE TIPS FOR STARTING

THE CONVERSATION

34 Summer | 2016

� ese two diverse perspectives might have fueled a � ght over how to handle mom’s care. But my parents had the foresight to give us the gi� of not having to decide. By the time mom had Alzheimer’s and was dying of colon cancer, the family knew what she wanted. She wanted to stay at home as long as possible and forgo any drastic medical treatments that might prolong her life. � is was comforting in a weird way. Knowing what my mother wanted, I didn’t have to wonder if we were doing the right thing. � e course was set, and the family’s job was to follow it.

By 2050, the number of people age 85 and older will triple, and 50 percent of them will experience some form of cognitive impairment.1,2 Even those who don’t develop dementia are likely to need support as they slow down and lose mobility. � erefore, it makes sense to plan for and talk to your family about your care preferences as you age.

by kathleen burns kingsbury

As we walked out of the hospital, my sister turned to her kids and said, “Please take care of me at home if I get as sick as your grandmother.” I turned to my husband and said, “Just put me in a nursing home and go on with your life.”

ELDERCARE PLANNING: FIVE TIPS FOR STARTING

THE CONVERSATION

34 Summer | 2016

Discussing end-of-life issues is uncomfortable for most of us. But it is a necessary conversation for many reasons. � e best time to engage in this dialogue with your family is when you are healthy and the days where you will need support seem far away. While your motivation may be lower now, when a crisis is not looming, the advantage is that you can be proactive, not reactive.


Do some soul searching. What is important to you as you age? Is it being cared for at home—or being cared for in a way that preserves your dignity and safety? Is it important that your caregiver is a family member or simply someone trustworthy who becomes an important part of the family? What values do you want to honor in your elder years?

Take some time to re� ect on these questions before communicating your wishes to your family. By doing so, you will be better able to articulate your wishes and your rationale for each one.

Don’t procrastinate.Just ask Jennifer. Her family wanted to plan, but her father insisted that he “would never need a nurse or help.” When he had complications during a surgical procedure, the family scrambled to make decisions and get him the care he needed. “It would have been much better had his pride not interfered and he let us help ahead of time,” Jennifer says now.

Our mortality and inevitable physical decline are topics that we naturally want to avoid. It is tempting to think optimistically or ignore the reality of our humanness, but it o� en leaves the ones we care for most in a stressful position.

Fight the urge to procrastinate. Instead, open up the dialogue with your partner and your children. While uncomfortable at � rst, these money talks can make a family stronger.

Know your options.Being knowledgeable about the options available to you and your family can ease anxiety. From a legal perspective, you should have a durable power of attorney, a healthcare proxy, and a living will at a minimum. When discussing your wishes with your family, review the purpose of each document and where these papers will be kept. � ey should be easily accessible during an emergency. (For more legal tips, refer to the Expert Angle column on page 20.)

Also, discuss the medical and housing options available should you become mentally or physically impaired. Today, there are many choices, including home health care, assisted living facilities, rehabil-itation units, day care programs, and nursing homes. Talking about these options and communicating your preferences will ease your loved ones’ minds if the time comes to implement the plan.

1

2

3

WHAT IS THE BEST WAY TO BEGIN THIS PROCESS? Here are fi ve tips to get you started.

35

Don’t ask for promises. It is easy to agree to keep a parent, partner, or sibling out of a nursing home when you are distant from the situation. But it may not be in anyone’s best interest in the long run. Avoid asking family members to make promises of this type. Instead, talk about what is under-neath your request. For example, consider your motivations if you want them to promise to keep you at home. Is it fear of abandonment and a belief that you won’t be abandoned if you’re at home? If so, communicate how you feel. “I am concerned that, as I age, I will be forgotten about. While I would prefer to stay at home, I know that it may not make sense at the time. Just know that it is most important to me that people visit me as I age.”

Expect and respect di� erences. � e beauty of a family is that it consists of individuals with diverse personalities, view-points, and generations. While you share a history together, it is unrealistic to think you will agree on every decision when it comes to caring for an elderly parent or impaired family member. Expect and respect di� erences. Don’t waste time trying to convince others to agree with you. Instead, focus on trying to understand each other.

If the conversation gets heated, take a time-out and agree to reconvene at a later time and date. Some families � nd that working with a professional helps the process. � is person can be an ad-visor, estate planning attorney, or family wealth consultant. As a neutral party, this professional facilitates the discus-sion, mediates di� erences, and keeps the dialogue moving forward.

As one client stated, “Having Gary, the estate attorney, in the room with us, changed the tone and outcome of the conversation. I learned more about my parents and my siblings in 45 minutes than I had in 45 years. It really was a good decision.”

Eldercare planning is not a one-time conversation. It is an ongoing dialogue. While it may be challenging to begin the discussion, families who take the risk o� en � nd great comfort in having shared their thoughts and feelings with each other before it was too late.

4

5

While you share a history together, it

is unrealistic to think you will agree on

every decision when it comes to caring

for an elderly parent or impaired family

member. Expect and respect di� erences.


Sources1 Bahrampour, Tara, “Promise you’ll never put me in a nursing home,” The Washington Post, February 25, 2016.2 Alzheimer’s Association, alz.org.

36 Summer | 2016

Don’t ask for promises. It is easy to agree to keep a parent, partner, or sibling out of a nursing home when you are distant from the situation. But it may not be in anyone’s best interest in the long run. Avoid asking family members to make promises of this type. Instead, talk about what is under-neath your request. For example, consider your motivations if you want them to promise to keep you at home. Is it fear of abandonment and a belief that you won’t be abandoned if you’re at home? If so, communicate how you feel. “I am concerned that, as I age, I will be forgotten about. While I would prefer to stay at home, I know that it may not make sense at the time. Just know that it is most important to me that people visit me as I age.”

Expect and respect di� erences. � e beauty of a family is that it consists of individuals with diverse personalities, view-points, and generations. While you share a history together, it is unrealistic to think you will agree on every decision when it comes to caring for an elderly parent or impaired family member. Expect and respect di� erences. Don’t waste time trying to convince others to agree with you. Instead, focus on trying to understand each other.

If the conversation gets heated, take a time-out and agree to reconvene at a later time and date. Some families � nd that working with a professional helps the process. � is person can be an ad-visor, estate planning attorney, or family wealth consultant. As a neutral party, this professional facilitates the discus-sion, mediates di� erences, and keeps the dialogue moving forward.

As one client stated, “Having Gary, the estate attorney, in the room with us, changed the tone and outcome of the conversation. I learned more about my parents and my siblings in 45 minutes than I had in 45 years. It really was a good decision.”

Eldercare planning is not a one-time conversation. It is an ongoing dialogue. While it may be challenging to begin the discussion, families who take the risk o� en � nd great comfort in having shared their thoughts and feelings with each other before it was too late.

4

5

While you share a history together, it

is unrealistic to think you will agree on

every decision when it comes to caring

for an elderly parent or impaired family

member. Expect and respect di� erences.


Sources1 Bahrampour, Tara, “Promise you’ll never put me in a nursing home,” The Washington Post, February 25, 2016.2 Alzheimer’s Association, alz.org.

36 Summer | 2016

READER Q�&�AIn this issue, we address reader questions about new regulations from the Department of Labor a� ecting fi nancial advisors, gifting via qualifi ed charitable distributions, and stock market behavior in election years.

I have been hearing about a new “confl ict of interest rule” that will a� ect fi nancial advisors.

Can you explain what that’s about?

On April 6, the U.S. Department of Labor released the � nal version of its long-awaited regulation intended to eliminate con� icts of interest for those in the � nancial services

industry who advise on retirement assets. � is 1,100-page set of regulations — known as the con� ict of interest rule or � duciary rule — requires anyone advising on retire-ment assets in an employer-sponsored retirement plan or individual retirement account (IRA) to acknowledge � duciary status and act exclusively in their cli-ents’ best interests. � is is important in two ways:

• Retirement plans such as 401(k)s and pensions have long been covered by � duciary standards laid out in the Employee Retirement Income Security Act of 1974 — better known as ERISA. � is new regulation dramatically increases the number of accounts and assets covered with the extension of these same � duciary standards to IRA accounts.

• Fiduciary standards are a higher level of care than the suitability standards that brokers have historically been required to uphold. Fiduciary standards require advisors to put their clients’ interests � rst when it comes to fees and investment choices and to act with the care, skill, prudence, and diligence that a prudent person would exercise based on their clients’ circumstances.

� e � duciary rule will be disruptive for advisors with business models dependent on high fees and commissions as they adapt and seek to comply with the new requirements. Nonetheless, we believe this new regulation will bene� t a great many investors as their advisors will now be legally and ethically required to work in their best interests. Hopefully, this will foster great-er trust and con� dence in the advice they receive over time and drive better outcomes for American savers.

As a CAPTRUST client, you need to know that we have always adhered to � duciary standards. We are proponents of this new regulation. We feel it is a validation of our business model and is the right way to do business. Working in our clients’ best interests has always been — and will continue to be — at the heart of what we do.

37

Are qualifi ed charitable deductions still available for individual retirement accounts?

Yes. At the end of 2015, lawmakers approved a permanent measure allowing individ-uals to make quali� ed charitable deductions (QCDs) from their individual retirement

accounts (IRAs).

� is strategy allows an IRA owner over age 70½ to make a charitable contribution directly from his or her IRA. A QCD can come from a SEP or SIMPLE IRA but not from an em-ployer-sponsored retirement plan, such as a 401(k) or 403(b). � e distribution must be sent directly from the IRA to a charity that is eligible to receive tax-deductible contributions under Internal Revenue Service rules. � e amount of the QCD is excluded from the IRA accountholder’s adjusted gross income (AGI) and can satisfy all or part of his or her account’s required minimum distribution (RMD).

Lowering (or not increasing) AGI is bene� cial in that a taxpayer may:

• Avoid the loss of exemptions, phaseouts, credits, and deductions due to AGI limits;

• Avoid the alternative minimum tax (AMT);

• Avoid increases in premiums for Medicare Parts B and D; and

• Receive a tax bene� t — even if he or she takes a standard deduction.

QCDs can also o� er tax advantages. A QCD can be a more tax-e� cient way to make a charitable contribution of cash than taking an IRA distribution and then making a charitable contribution since, in the latter case, the income and the deduction o� en don’t o� set completely.

It is important to note that a charitable gi� of appreciated securities from a taxable account may be more tax e� cient than making a QCD. And QCDs can’t be made to donor-advised funds, private foundations, or charitable gi� annuities. However, IRA owners over age 70½ — and who are charitably inclined — may want to consult their � nancial and tax advisors about the po-tential tax advantages of a QCD.

38 Summer | 2016

Are qualifi ed charitable deductions still available for individual retirement accounts?

Yes. At the end of 2015, lawmakers approved a permanent measure allowing individ-uals to make quali� ed charitable deductions (QCDs) from their individual retirement

accounts (IRAs).

� is strategy allows an IRA owner over age 70½ to make a charitable contribution directly from his or her IRA. A QCD can come from a SEP or SIMPLE IRA but not from an em-ployer-sponsored retirement plan, such as a 401(k) or 403(b). � e distribution must be sent directly from the IRA to a charity that is eligible to receive tax-deductible contributions under Internal Revenue Service rules. � e amount of the QCD is excluded from the IRA accountholder’s adjusted gross income (AGI) and can satisfy all or part of his or her account’s required minimum distribution (RMD).

Lowering (or not increasing) AGI is bene� cial in that a taxpayer may:

• Avoid the loss of exemptions, phaseouts, credits, and deductions due to AGI limits;

• Avoid the alternative minimum tax (AMT);

• Avoid increases in premiums for Medicare Parts B and D; and

• Receive a tax bene� t — even if he or she takes a standard deduction.

QCDs can also o� er tax advantages. A QCD can be a more tax-e� cient way to make a charitable contribution of cash than taking an IRA distribution and then making a charitable contribution since, in the latter case, the income and the deduction o� en don’t o� set completely.

It is important to note that a charitable gi� of appreciated securities from a taxable account may be more tax e� cient than making a QCD. And QCDs can’t be made to donor-advised funds, private foundations, or charitable gi� annuities. However, IRA owners over age 70½ — and who are charitably inclined — may want to consult their � nancial and tax advisors about the po-tential tax advantages of a QCD.

38 Summer | 2016

How have presidential elections historically a� ected the stock market?

Not surprisingly, researchers have studied the question of how markets have per-formed during election years from a variety of angles, looking for patterns and action-

able trading strategies. � eir results have been mixed. To answer this question for ourselves, we looked at how the S&P 500 Index, a broad measure of stock market performance, behaved during each presidential administration going back to 1945, the year Truman assumed the presidency — with a speci� c focus on election years.

We found that the average annualized return of the S&P 500 during Democratic presidencies was 9.7 percent — compared to 6.7 percent for Republican presi-dencies. Since stock market returns over the long term are driven by underlying economic growth, this disparity may be partially explained by the 3.7 percent gross domestic product growth during Democratic presidential administrations versus 2.6 percent during Republican administrations.

Meanwhile, the average return for the S&P 500 during election years has been 9.9 percent, although 2016 is more unusual since it is the last year of a two-term president’s administration. While this has only occurred � ve times since World War II — a very small data set — the average S&P 500 return for the eighth year of a president’s term has been a loss of 2.1 percent. Some researchers suggest that presidents in their � nal years are seen as less predictable. Others suggest that the markets simply dislike the uncertainty of open races.

Regardless, it is important to note that stock market returns are the function of myriad eco-nomic variables and global in� uences — not just U.S. presidential elections — so you should be cautious about drawing conclusions. And, of course, the past performance of the S&P 500 Index is not an indicator of future performance of the stock market or any speci� c security.

39

If you have a question for the VESTED team, we’d love to hear from you and see if we can help. Please send your questions

to us at [email protected].

Barry and Eugenia Frank of Greensboro, North Carolina, were interested in a simple way to accumulate assets that could fund community college scholarships and grants for medical research.

by john curry

DONOR-ADVISED FUNDS: CHARITABLE GIVING MADE EASY

While familiar with private and community foundations, they sought the convenience and simplicity of a donor-advised fund (DAF) to implement their planning. Barry believed the � exibility of its use and future funding was attractive. “I am very positive as to how this turned out,” he says.

A donor-advised fund is an easy-to-open, low-cost, and � exible ac-count for charitable giving that is a popular alternative to creating a private foundation. Donors can contribute all types of assets to it, including cash, stocks, mutual funds, real estate, and business interests. � ey receive an immediate tax deduction for their irrevo-cable donation. When donors are ready, they can o� er guidance or advise the DAF administrator on how the money should be used for grants to support their favorite Internal Revenue Service-quali� ed public charities.

“� is is a great tool that is simple and e� cient in both implementa-tion and operation,” says Mike Gray, the Franks’ CAPTRUST � nan-cial advisor in Raleigh, North Carolina.

Nick DeCenso, CAPTRUST’s manager of wealth strategy, says more clients should consider using DAFs for charitable giving. � ere are so many positives, he says. “You get to start your own charitable ac-count. You get a tax break, and the money can be invested until you’re ready to gi� it, which may be years down the road.”

Anybody who gives to charity on a consistent basis should con-sider a donor-advised fund, says Brian Deacy, national fundraising manager for Fidelity Charitable, which o� ers the nation’s largest DAF program. An account can be opened with them with as lit-tle as $5,000. � ere are many other DAF administrators that o� er these accounts, including Schwab Charitable, Vanguard Charitable, National Philanthropic Trust, the National Christian Foundation, and community foundations.

Interest in these accounts is skyrocketing. Contributions hit an all-time high of $19.7 billion in 2014, according to the 2015 DAF report from National Philanthropic Trust. � ere were 238,293 accounts in 2014, with an average account balance of $296,701, the report found.

Donor-advised funds are easier to create and require less money to start and operate than private foundations, Gray says. It takes a lot of legal work to create a foundation. You have to � le tax returns each year, and there are minimum payouts that you have to make each year, he says. “You probably don’t want to make the e� ort required for a private foundation unless you are going to put a million dollars or more into it.”

Donating appreciated securities is considered one of the best ways to fund a DAF. It makes sense in terms of “tax economics,” Gray says. For instance, say you made a $50,000 investment in a stock, and now

40 Summer | 2016

Barry and Eugenia Frank of Greensboro, North Carolina, were interested in a simple way to accumulate assets that could fund community college scholarships and grants for medical research.

by john curry

DONOR-ADVISED FUNDS: CHARITABLE GIVING MADE EASY

While familiar with private and community foundations, they sought the convenience and simplicity of a donor-advised fund (DAF) to implement their planning. Barry believed the � exibility of its use and future funding was attractive. “I am very positive as to how this turned out,” he says.

A donor-advised fund is an easy-to-open, low-cost, and � exible ac-count for charitable giving that is a popular alternative to creating a private foundation. Donors can contribute all types of assets to it, including cash, stocks, mutual funds, real estate, and business interests. � ey receive an immediate tax deduction for their irrevo-cable donation. When donors are ready, they can o� er guidance or advise the DAF administrator on how the money should be used for grants to support their favorite Internal Revenue Service-quali� ed public charities.

“� is is a great tool that is simple and e� cient in both implementa-tion and operation,” says Mike Gray, the Franks’ CAPTRUST � nan-cial advisor in Raleigh, North Carolina.

Nick DeCenso, CAPTRUST’s manager of wealth strategy, says more clients should consider using DAFs for charitable giving. � ere are so many positives, he says. “You get to start your own charitable ac-count. You get a tax break, and the money can be invested until you’re ready to gi� it, which may be years down the road.”

Anybody who gives to charity on a consistent basis should con-sider a donor-advised fund, says Brian Deacy, national fundraising manager for Fidelity Charitable, which o� ers the nation’s largest DAF program. An account can be opened with them with as lit-tle as $5,000. � ere are many other DAF administrators that o� er these accounts, including Schwab Charitable, Vanguard Charitable, National Philanthropic Trust, the National Christian Foundation, and community foundations.

Interest in these accounts is skyrocketing. Contributions hit an all-time high of $19.7 billion in 2014, according to the 2015 DAF report from National Philanthropic Trust. � ere were 238,293 accounts in 2014, with an average account balance of $296,701, the report found.

Donor-advised funds are easier to create and require less money to start and operate than private foundations, Gray says. It takes a lot of legal work to create a foundation. You have to � le tax returns each year, and there are minimum payouts that you have to make each year, he says. “You probably don’t want to make the e� ort required for a private foundation unless you are going to put a million dollars or more into it.”

Donating appreciated securities is considered one of the best ways to fund a DAF. It makes sense in terms of “tax economics,” Gray says. For instance, say you made a $50,000 investment in a stock, and now

40 Summer | 2016

it’s worth $200,000. If you put the stock in a donor-advised fund, you get an immediate tax break, and you avoid paying taxes on the capital gains. “It’s much smarter than selling the appreciated stock, paying taxes on it, and then giving the cash that’s le� away to a charity.”

Once the stock is in the account, you can sell it and invest it in a more diversi� ed manner. You don’t have all your eggs in one basket, and your new investment can grow tax free, he says.

If you donate cash to a DAF, you’re generally eligible for an income tax deduction up to 50 percent of your adjusted gross income (AGI), according to � delitycharitable.org. If you have long-term appreciated assets — such as stocks, bonds, or real estate — you generally won’t have to pay capital gains, and you can take an income-tax deduction in the amount of the full fair market value, up to 30 percent of your AGI. � ese are higher tax deductions than you would get for similar contributions to a foundation.

� e majority of contributions to donor-advised funds with Fidelity Charitable are made in capital assets, such as publicly traded securi-ties, shares in private business interests, and real estate, which many

nonpro� ts � nd costly, time consuming, or even nearly impossible to accept. “Somebody even gave a percentage of their ownership in a thoroughbred horse,” Deacy says.

Eileen Heisman, president and chief executive o� cer of National Philanthropic Trust, says unusual or

complex assets, such as real estate, art, coins, and an-tiques, comprise a large share

of some donors’ wealth. “Many large DAF sponsors have the resources and

experience to help donors e� ciently convert these assets into mission-crit-ical � nancial support for charities in

the U.S. — and even around the world.”

For some people, DAFs have become a family a� air. “We have a lot of families who sit down together and decide which charities they are going to support,” says Alanna Linden,

“Many large DAF sponsors have the resources and experience to help donors e� ciently convert these assets into mission-critical fi nancial support for charities in the U.S.—and even around the world.”

Eileen HeismanPresident and Chief Executive O� ce,

National Philanthropic Trust

president of the National Christian Foundation Raleigh. � en, the parents have their children help them make the grants online.

Some have incorporated DAFs into their Christmas traditions. One family has each child select a charity he or she wants to give $500 to. � en, on Christmas morning they explain why they chose that charity, she says.

Philip M. Savage IV, an estate planning attorney at Gresham Savage in Riverside and San Bernardino counties, California, and chairman of the board for the local community foundation, o� en works with his clients to set up DAFs as part of their estate planning. You can set up the funds so you and your spouse will be the advisors, and if one of you passes away the other will be the advisor. A� er you both are gone, your kids can be the advisors. It can help instill the culture of philanthropy in your kids, he says.

Establishing a DAF with a community foundation allows you to give to the local charities you are passionate about, such as a homeless shelter, a library, educational causes, a symphony, or botanical gar-dens, he says.

Clients who are interested in a DAF should work with their � nancial advisor to choose the right provider, DeCenso says. “Donor-advised funds can be a powerful tool for the charitably inclined. Most people are surprised to learn the bene� ts, and many wonder why they didn’t use them earlier.”

41

CEO of the YearCAPTRUST CEO and Co-founder Fielding Miller was recognized by the Triangle Business Journal in its 2016 CEO of the Year Awards. � e class of 2016 was selected by peers and evaluated based upon the nominees’ likely impact on the region’s success in years to come. � is award comes as CAPTRUST reaches the end of its initial 10-year stra-tegic plan, a period that has witnessed the � rm’s extraordinary growth.

An excerpt from the announcement said “Fielding is a one-of-a-kind leader. He’s both humble and a strong motivator who isn’t afraid to challenge colleagues to do their best to help us live up to the compa-ny mission.” As CEO, Fielding continues to lead corporate strategy, ensuring that CAPTRUST continues to innovate and remains com-petitively positioned.

Excellence Award WinnersDaniel Dysinger and Lauren Palsgrove were recognized by their peers and the organization as recipients of the CAPTRUST

Excellence Award. � eir contributions to the organization are visible in their attitude and performance, which positively impacts our clients and the company’s culture.

As a member of the information technolo-gy department, Daniel distinguished him-self by improving connectivity between offices, addressing issues and efficiently solving problems, and implementing solutions with a broad and positive impact across the organization.

Lauren (pictured above, le� ) is involved in numerous projects in the performance reporting group and always has an eye out for ways to improve processes, save time, and enhance the accuracy of CAPTRUST’s reporting functionality.

Charlotte’s Top Financial PlannersCAPTRUST was recognized as the largest � nancial planning � rm in the Charlotte area in the May 6 issue of the Charlotte Business Journal. � is annual ranking included nearly 40 contenders and was determined based on local client assets. CAPTRUST’s Charlotte of-� ce edged out Wells Fargo Advisors and Morgan Stanley with $15.8 billion of local client assets under advisement. CAPTRUST also topped the list of fee-only � nancial planners in the Charlotte market.

Summerlin Named PartnerIn March, Senior Vice President and Financial Advisor Danny Summerlin (pictured above, right) was named CAPTRUST’s newest advisor share-holder partner in recognition of his exemplary record of serving the needs of his clients and his contribution to the success of the � rm.

Danny joined CAPTRUST in 2006 and now provides advisory ser-vices to more than 80 clients representing nearly $175 million in personal and retirement assets. Prior to joining the � rm, he served as a relationship manager for individual and institutional investors at Franklin Street Partners and has worked in the industry since 1995. Danny received a Bachelor of Arts degree in industrial relations and political science from the University of North Carolina and a Master of Business Administration from the Kenan-Flagler Business School. He holds a Certi� ed Financial Analyst (CFA®) professional designation.

RECOGNIZING COLLEAGUES

Daniel Dysinger

42 Summer | 2016

CEO of the YearCAPTRUST CEO and Co-founder Fielding Miller was recognized by the Triangle Business Journal in its 2016 CEO of the Year Awards. � e class of 2016 was selected by peers and evaluated based upon the nominees’ likely impact on the region’s success in years to come. � is award comes as CAPTRUST reaches the end of its initial 10-year stra-tegic plan, a period that has witnessed the � rm’s extraordinary growth.

An excerpt from the announcement said “Fielding is a one-of-a-kind leader. He’s both humble and a strong motivator who isn’t afraid to challenge colleagues to do their best to help us live up to the compa-ny mission.” As CEO, Fielding continues to lead corporate strategy, ensuring that CAPTRUST continues to innovate and remains com-petitively positioned.

Excellence Award WinnersDaniel Dysinger and Lauren Palsgrove were recognized by their peers and the organization as recipients of the CAPTRUST

Excellence Award. � eir contributions to the organization are visible in their attitude and performance, which positively impacts our clients and the company’s culture.

As a member of the information technolo-gy department, Daniel distinguished him-self by improving connectivity between offices, addressing issues and efficiently solving problems, and implementing solutions with a broad and positive impact across the organization.

Lauren (pictured above, le� ) is involved in numerous projects in the performance reporting group and always has an eye out for ways to improve processes, save time, and enhance the accuracy of CAPTRUST’s reporting functionality.

Charlotte’s Top Financial PlannersCAPTRUST was recognized as the largest � nancial planning � rm in the Charlotte area in the May 6 issue of the Charlotte Business Journal. � is annual ranking included nearly 40 contenders and was determined based on local client assets. CAPTRUST’s Charlotte of-� ce edged out Wells Fargo Advisors and Morgan Stanley with $15.8 billion of local client assets under advisement. CAPTRUST also topped the list of fee-only � nancial planners in the Charlotte market.

Summerlin Named PartnerIn March, Senior Vice President and Financial Advisor Danny Summerlin (pictured above, right) was named CAPTRUST’s newest advisor share-holder partner in recognition of his exemplary record of serving the needs of his clients and his contribution to the success of the � rm.

Danny joined CAPTRUST in 2006 and now provides advisory ser-vices to more than 80 clients representing nearly $175 million in personal and retirement assets. Prior to joining the � rm, he served as a relationship manager for individual and institutional investors at Franklin Street Partners and has worked in the industry since 1995. Danny received a Bachelor of Arts degree in industrial relations and political science from the University of North Carolina and a Master of Business Administration from the Kenan-Flagler Business School. He holds a Certi� ed Financial Analyst (CFA®) professional designation.

RECOGNIZING COLLEAGUES

Daniel Dysinger

42 Summer | 2016

CAPTRUST is consistently involved as a subject matter expert at local, regional, and national events on topics that are important to our clients and our industry.

ECU Business Leadership ConferenceFinancial Advisor Kevin Monroe (pictured le� ) spoke to more than 1,500 business students at East Carolina University’s annual Business Leadership Conference on the topic of helping professional athletes understand the bene� ts of budgeting, saving, and investing properly. Held in April, this conference helps to prepare students for the reali-ties of the business world in a professional conference and network-ing environment.

The Estate Planning Tool BoxIn May, the Heritage Society of the Northampton Community College Foundation hosted a breakfast meeting titled “� e Estate Planning Tool Box: Do You Have What You Need?” At the meeting, CAPTRUST Senior Director Chris Gray provided his insights and experience on the proper use of wills and powers of attorney, estate taxes, bene� ciary issues, and a number of related topics.

The Investment Institute’s Spring ForumCAPTRUST Chief Investment O� cer Eric Freedman was a featured panelist on international markets during � e Investment Institute’s Spring Forum in May. � e Investment Institute is a membership as-sociation committed to providing an environment for senior invest-ment decision makers to discuss the latest developments and trends in the � nancial marketplace.

INDUSTRY INVOLVEMENT

Shareholders’ Meeting On March 18, CAPTRUST hosted its annual shareholders’ meeting, where the � rm’s employee-owners received updates on corporate initiatives, company performance, and strategic planning topics from CEO Fielding Miller and COO Ben Goldstein. � e event, held at the Carolina Inn in Chapel Hill, North Carolina, provides employees from all ranks of the � rm an opportunity to interact.

43

Erica Blomgren Erica joined CAPTRUST as a vice president and � nancial advisor in the � rm’s Raleigh headquarters o� ce. As an institutional advi-sor, she is responsible for providing retirement plan advisory services to corporate � duciaries. Prior to joining the � rm, Erica worked on the investment research teams at ShearLink Capital and JAT Capital, and has worked in

the industry since 2008. She earned a Bachelor of Science degree in business administration from the University of North Carolina at Wilmington.

Chris Garner Chris joined CAPTRUST’s Doylestown, Pennsylvania, o� ce as a vice president and � nancial advisor responsible for providing retirement plan advisory services to corporate � duciaries. Prior to joining CAPTRUST, Chris served as vice president and senior business development o� cer at PNC Institutional Investments. He has worked in the industry

since 1992 and earned a bachelor’s degree in business administration from Adelphi University.

Joey Goodspeed Joey joined CAPTRUST as a vice president and � nancial advisor. He is an institutional advisor located in Chicago and provides retirement plan advisory services to corporate � duciaries. Joey served as retirement plan consultant at ADP prior to joining CAPTRUST. He earned a bachelor’s degree in business management from the University of Notre Dame.

Tyler Gupton Tyler joined CAPTRUST as a vice president and � nancial advisor and is responsible for providing retirement plan advisory services to corporate � duciaries. He is located in the � rm’s Raleigh headquarters. Previously, Tyler served as regional consultant at Goldman Sachs. He has worked in the industry since 2010. Tyler earned a bachelor’s degree in urban and region-

al planning from East Carolina University and holds the designation of Chartered Retirement Planning Specialist (CRPS®).

John Sandmann John joined CAPTRUST’s Dallas, Texas, o� ce as a vice president and � nancial advisor. He is responsible for providing retirement plan advisory services to corporate � duciaries and comprehensive wealth management services to high-net-worth investors, private foundations, corporate executives, and business owners. John served as a � nancial advisor at Edward

Jones prior to joining CAPTRUST and has worked in the industry since 1985. He earned an associate’s degree from Joliet Junior College and a Bachelor of Arts in liberal arts with a concentration in account-ing from Governors State University.

Chris Winters Chris joined CAPTRUST as a vice president and � nancial advisor and is responsible for pro-viding retirement plan advisory services to cor-porate � duciaries. Prior to joining CAPTRUST, Chris served as a leasing representative at EDENS Realty. He earned a Bachelor of Arts in economics from Wake Forest University.

CAPTRUST GROWTHIn the fi rst half of 2016, CAPTRUST added signifi cant talent and resources to the organization in the form of two key home o� ce hires and six fi nancial advisors in four locations.

44 Summer | 2016

Erica Blomgren Erica joined CAPTRUST as a vice president and � nancial advisor in the � rm’s Raleigh headquarters o� ce. As an institutional advi-sor, she is responsible for providing retirement plan advisory services to corporate � duciaries. Prior to joining the � rm, Erica worked on the investment research teams at ShearLink Capital and JAT Capital, and has worked in

the industry since 2008. She earned a Bachelor of Science degree in business administration from the University of North Carolina at Wilmington.

Chris Garner Chris joined CAPTRUST’s Doylestown, Pennsylvania, o� ce as a vice president and � nancial advisor responsible for providing retirement plan advisory services to corporate � duciaries. Prior to joining CAPTRUST, Chris served as vice president and senior business development o� cer at PNC Institutional Investments. He has worked in the industry

since 1992 and earned a bachelor’s degree in business administration from Adelphi University.

Joey Goodspeed Joey joined CAPTRUST as a vice president and � nancial advisor. He is an institutional advisor located in Chicago and provides retirement plan advisory services to corporate � duciaries. Joey served as retirement plan consultant at ADP prior to joining CAPTRUST. He earned a bachelor’s degree in business management from the University of Notre Dame.

Tyler Gupton Tyler joined CAPTRUST as a vice president and � nancial advisor and is responsible for providing retirement plan advisory services to corporate � duciaries. He is located in the � rm’s Raleigh headquarters. Previously, Tyler served as regional consultant at Goldman Sachs. He has worked in the industry since 2010. Tyler earned a bachelor’s degree in urban and region-

al planning from East Carolina University and holds the designation of Chartered Retirement Planning Specialist (CRPS®).

John Sandmann John joined CAPTRUST’s Dallas, Texas, o� ce as a vice president and � nancial advisor. He is responsible for providing retirement plan advisory services to corporate � duciaries and comprehensive wealth management services to high-net-worth investors, private foundations, corporate executives, and business owners. John served as a � nancial advisor at Edward

Jones prior to joining CAPTRUST and has worked in the industry since 1985. He earned an associate’s degree from Joliet Junior College and a Bachelor of Arts in liberal arts with a concentration in account-ing from Governors State University.

Chris Winters Chris joined CAPTRUST as a vice president and � nancial advisor and is responsible for pro-viding retirement plan advisory services to cor-porate � duciaries. Prior to joining CAPTRUST, Chris served as a leasing representative at EDENS Realty. He earned a Bachelor of Arts in economics from Wake Forest University.

CAPTRUST GROWTHIn the fi rst half of 2016, CAPTRUST added signifi cant talent and resources to the organization in the form of two key home o� ce hires and six fi nancial advisors in four locations.

44 Summer | 2016

Lorna Hern With more than 30 years of industry experi-ence, Lorna joined CAPTRUST as a manager responsible for overseeing wealth management client service and the professionals responsible for those e� orts. Prior to joining CAPTRUST, she served as an assistant regional director and vice president at Cambridge Investment Research and performed similar functions at

First Citizens Investor Services. Lorna attended Western Kentucky University and Sawyer Business College.

Jon Meyer Jon joined CAPTRUST as chief technology o� cer responsible for leading the � rm’s infor-mation technology team. His role is to ensure e� ective and secure technology operations, to manage the development and support of pro-prietary applications, and to implement strate-gies that position the � rm for sustained growth. Prior to joining CAPTRUST, Jon served as a

managing consultant at Greenway Solutions and has worked in the industry since 1990. He received a Bachelor of Arts degree in public policy studies from Duke University.

CAPTRUST GROWTH(continued)

Charity of Choice � e CAPCommunity Foundation announced in February that � e Children’s Home of Easton is 2016’s charity of choice.

� e Children’s Home of Easton serves at-risk children with ther-apeutic, campus, and community-based programs for dealing with abuse, neglect, and other traumatic experiences. It is a pri-vate, nonpro� t orga-nization situated in Easton, Pennsylvania, that provides long-term care through professional sta� who guide, support, and encourage children to believe in their own self-worth and reach their full potential. � e Home, which has been serving its community since 1885, is a fa-vorite local cause of CAPTRUST’s Bethlehem o� ce.

As an organization, CAPTRUST employees have divided into fundraising teams with the collective goal of surpassing last year’s total donation amount. To learn more about � e Children’s Home of Easton, please visit thechildrenshome.org.

(above) CAPTRUST colleagues volunteer at a fundraising booth during the second annual Midtown Music Fest in Raleigh’s North Hills.

(left) CAPTRUST cycling enthusiasts participate in the annual Bike for Hope fundraiser focused on mental illness detection and treatment.

GIVING BACK

45

We believe an investment advisory fi rm is only as strong as the people who create the advice.

CAPTRUST was built on the belief that investors are best served by

fi nancial advisors motivated to focus exclusively on their clients’ best

interests. Our commitment to independence and transparency has enabled

us to grow from the entrepreneurial vision of our founders to one of the

largest independent investment advisory fi rms in the country.

• Financial and estate planning

• Retirement and education funding

• Investment consulting services

• Discretionary investment management

• Portfolio performance analysis


WEALTH MANAGEMENT SERVICES OFFICE LOCATIONS

• Akron, OH

• Atlanta, GA

• Bethlehem, PA

• Birmingham, AL

• Charlotte, NC

• Columbia, MO

• Dallas, TX

• Dayton, OH

• Des Moines, IA

• Detroit, MI

• Greenwich, CT

• Houston, TX

• Los Angeles, CA

• Minneapolis, MN

• New York, NY

• Orlando, FL

• Philadelphia, PA

• Port Washington, NY

• Raleigh, NC

• Richmond, VA

• Riverside, CA

• Santa Barbara, CA

— Land HiteSenior Vice President,

Financial Advisor

“I talk with families about their goals. My job is to help them plan, make them think, and put them in touch with people to help.”

Documents

CAPTRUST | VESTED Summer 2016