MyNorth Estate & Financial Services 2018

2018

Estate & Financial Services YOUR NORTHERN MICHIGAN GUIDE TO A SECURE FINANCIAL FUTURE

THE NEW TAX LAWS DOES ESTATE PLANNING WITH TRUSTS STILL MAKE SENSE?

WHAT TO KNOW ABOUT CHARITABLE GIVING

A supplement to 17

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PROTECT FAMILY ASSETS FOR GENERATIONS

GET AHEAD OF THE CURVE: SOCIALLY RESPONSIBLE INVESTING

Twenty, and other numbers we’re celebrating!

Successful wealth management entails numbers, and Greenleaf Trust has good ones: 20 years in business, $12 billion in assets under advisement, 125 team members, five offices, nearly 20% annualized growth in terms of new assets on an annualized basis, and over 99% client retention. But more than just numbers, wealth management is about our trusted relationships with clients, and helping them align their wants, needs and values with their financial well-being. So, thank you, dear friends and clients, for making these 20 years so rewarding. Happy Birthday to us, and many happy returns to you!

Traverse City 231.778.0050 | Bay Harbor 231.439.5016 | greenleaftrust.com

ESTATE & FINANCIAL SERVICES

NEW TAX LAWS:

What’s Ahead for the Giving Season?

George Bearup

“TAX PLANNING IS IMPORTANT BUT [TAX LAWS] ARE CONTROLLED

BY CONGRESS. THINGS CAN CHANGE.”

The only sure things in life are death and taxes. But with the ways laws morph, incomes change and deductions come and go, the amount of those taxes is as changeable as anything else. Says George Bearup of Greenleaf Trust, an independent Michiganchartered trust-only bank with offices in Kalamazoo, Birmingham, Traverse City and Petoskey: “Tax planning is important but [tax laws] are controlled by Congress. Things can change.”

Can they ever. Last year’s massive tax overhaul left people wondering how to plan for taxes. The good news? For most people, calculating their taxes will be easier than ever before, given the doubling of the standard deduction. The bad news?

Many people won’t know whether or not they’ll benefit from using the standard deductions before itemizing all of them.

Which brings us to the crux of Bearup’s concern: One of those deductions people total when itemizing is their charitable giving. How will the tax laws impact people’s giving practices?

Unless they give a very substantial amount, their donations will not benefit them come tax time. “I sit on the boards of a couple nonprofits. That [how giving is impacted] is a concern,” Bearup says.

One strategy that Bearup says he is starting to see is persons holding their giving until they can bundle it, a practice he said is called “bunching.” In other words, if someone typically donates X amount of money to their favorite charity, they might choose to not donate for four years, saving up to donate $4X—and more likely generate a deductible donation. “That strategy seems to be gaining some currency,” says Bearup.

One concern he has is how that will affect the operations of nonprofits. Rather than accruing funding on a regular repeating basis, nonprofits will have to plan for lean times and occasional windfalls—rather like the way many businesses operate in Northern Michigan, with a bountiful summer season followed by several months with much lesser income. The challenge there is that businesses know that it will even out over the course of the year, while nonprofits are looking at a years-long cycle.

Another question is if people will simply stop giving. Intentions or circumstances may change.

Another option for giving, according to Bearup, is a charitable IRA distribution. By donating to a charity from an IRA, that isn’t taxed—in effect, you get a 100 percent deduction. It just looks different.

It all goes back to Bearup’s first point: Most people won’t know where they stand tax-wise until they run their numbers both ways, itemizing and filling out the 1040EZ form.

And while these unknowns are calculated and made clear to individual donors, the region’s nonprofit organizations wait in the wings. —R.B. MyNorth ESTATE & FINANCIAL SERVICES

EFS 19

We’re bullish on the future.

Yours.

The world is changing fast.

Technology, politics, demographics—all constantly altering course.

All that change represents great opportunities.

But it also raises questions.

What will the future look like? How can you navigate it? How do you stay ahead?

At Merrill Lynch, we’ve been working hard to find answers to those questions— for our clients and for ourselves.

To meet the challenge we’ve pioneered a unique, more personal approach to investing: One that puts the interests of our clients first.

It starts by being open and transparent about what we do. We’ll explain the services you’ll get and, just as importantly, what you’ll pay for them.

It also requires a different method of investing: One that doesn’t focus first on stocks and markets, but on your life and priorities.

Through honest conversations, we’ll find out what you want your future to look like, and develop a strategy together to help make it happen.

Finally, it’s about flexibility. We’ll keep you supported by industry-leading insights, technology and resources, whenever and however you need them.

It’s just a better, more modern way to do business.

You don’t meet clients’ future goals by living in the past. So we’re staying focused on the future.

Yours.

The Simonton-Walsh-Hanosek-Mangum Wealth Management Group Rick Simonton, CFP®, CIMA®, CPWA® Senior Vice President Wealth Management Advisor Portfolio Manager 231.922.6825 • richard_simonton@ml.com Merrill Lynch 333 West Grandview Parkway Suite 300 Traverse City, MI 49684 231.922.6831 fa.ml.com/theswhmgroup

Investing involves risk including possible loss of principal.

Merrill Lynch Wealth Management makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated, a registered broker-dealer and Member SIPC, and other subsidiaries of Bank of America Corporation.

Investment products: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value The Bull Symbol and Merrill Lynch are trademarks of Bank of America Corporation.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER™ in the U.S. Investments & Wealth Institute™ (The Institute) is the owner of the certification marks CIMA® and Certified Investment Management Analyst®, CPWA® and Certified Private Wealth Advisor®. Use of CIMA®, and/or Certified Investment Management Analyst®, CPWA® and/or Certified Private Wealth Advisor® signifies that the user has successfully completed the Institute’s initial and ongoing credentialing requirements for certification. © 2018 Bank of America Corporation. All rights reserved.

ARM7C83N | AD-07-18-0282 | 471798PM-0218 | 07/2018

ESTATE & FINANCIAL SERVICES

Kathy Dixon

Eye on Your Retirement Do retirement trust IRAs still make sense? We checked in with Kathy Dixon, vice president and trust officer at Chemical Wealth Management in Traverse City for insights.

The passage of The Tax Cuts and Jobs Act legislation in late 2017 increased the estate tax exemption to $11.2 million per individual. Individuals weighing its impact may be asking themselves if estate planning, which includes trusts, still makes sense.

The answer isn’t clear-cut, says Kathy Dixon, vice president and trust officer at Chemical Wealth Management. “It’s complicated by the fact much of an individual’s wealth is often captured in tax-deferred retirement accounts. Since IRAs comprise a significant amount of financial assets for retirees, a retirement trust IRA may be a viable option.” A retirement trust IRA operates as a traditional IRA during the owner’s lifetime, but the account agreement contains trust provisions that govern how the account is managed and distributed after the owner’s death.

Dixon continues, “A retirement trust IRA can be used for the IRA’s full account value or just a portion of it.

Among the benefits are the ability to perpetuate the growth of the IRA by limiting disbursements and to control who the beneficiaries are, without worrying that those may be changed after the owner’s death.”

A retirement trust IRA qualifies for separate accounts treatment. That means

the life expectancy of each beneficiary is used to calculate the minimum required distributions for that individual. For example, says Dixon, if the total amounts were the same, the amount disbursed to a 20-year-old beneficiary would be less per month than to a 50-year-old beneficiary.

“SINCE IRAS COMPRISE A SIGNIFICANT AMOUNT OF FINANCIAL ASSETS FOR RETIREES, A RETIREMENT TRUST IRA MAY BE A VIABLE OPTION.” This type of IRA can limit beneficiary distributions to the minimum required and the IRA owner can authorize the trustee to make discretionary distributions only for the beneficiary’s general support and best interest. The goal, she says, is to preserve the maximum tax-

deferred growth of the IRA by limiting a beneficiary’s ability to accelerate distributions and deplete the funds quickly.

Designating appropriate beneficiaries for retirement accounts is an important part of the estate-planning process. A retirement trust IRA provides the ability to designate both the primary beneficiaries and contingent beneficiaries and the IRA owner can be confident the beneficiaries cannot be changed. The original owner may also say the spouse does not have rollover privileges to their own IRA to ensure the contingent beneficiaries are not changed upon the owner’s death. This is a protection if the spouse was to remarry. That protects the contingent beneficiaries from being disinherited, especially if the spouse is from a second marriage.

For those who have revocable trusts in place, says Dixon, you can also include retirement trust IRA language in the trust documents. This requires a discussion with an attorney to decide how best to do this on behalf of the estate plan and to ensure proper beneficiary forms are completed. Dixon’s best advice is to periodically reach out to trusted advisors to discuss the estate plan, any new life events, and then make adjustments as needed. —R.B.

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EFS 21

A Family Approach to Financial Advice

A Family Approach to Financial Advice A Family Approach to Financial Advice

rlyon Family Wealth Management, our sole purpose is to serve the multi-generational wealth management needs of duals and families. Our client’s expectations are unique and so is our partnership. We are a multi-advisor team ed on unique investment strategies, comprehensive financial advice and guidance through life events.

At Carlyon Family Wealth Management, our sole purpose is to serve the multi-generational wealth management needs of individuals

ients believe that Financial Planning and Management is about solving for quality of lifeunique and navigating andInvestment families.

Our client’s expectations are and so is our partnership. We are a multi-advisor team focused on unique investment Carlyon Family Wealth Management, our sole purpose is to serve the multi-generational wealth management needs of ast of aging well. It is about collaborating with aAt team of professional advisors to become educated and anticipate strategies, comprehensive financial advice and guidance through life events. s to come next in life. individuals and families. Our client’s expectations are unique and so is our partnership. We are a multi-advisor team

At Carlyon Family Wealth Management, our sole purpose is to serve thesolving multi-generational management needs of of aging Our clients believe that Financial Planning and Investment Management is about for quality ofwealth life and navigating the coast in life.

Our clients believe that Financial Planning and Investment Management is and about solving for quality life and focused onasunique investment strategies, comprehensive financial advice guidance lifeofevents. story began 40 years like our client’s lives, has transitioned and evolved overthrough time.

Combining ournavigating team of specialists ur devotion is to our clients,Our and we treat them over if they were aago, part and of our own family. the coast of aging well. It is about collaborating a team of professional advisors tofor become educated andclients. anticipate unites the disciplined perspectives and fiwith nancial expertise of two generations the benefi t of our Our clients believe that Planning and Investment Management is about solving for quality of life and navigating what’s to come next in Financial life. the coast of aging well. It is about collaborating with a team of professional advisors to become educated and anticipate Out story began overin40 years ago, and like/our client’s lives, /has transitioned and evolved over time. Combining our team what’s to come next life.

T 800.946.3650 F 866.522.8745 Carlyonfamily.com / Facebook.com/CarlyonFamilyWealthManagement of specialists unites the disciplined perspectives and financial expertise of two generations for the benefit of our clients.

13818 South West Bay Shore Drive, Traverse City, MI 49684 Out story began over 40 years ago, and like our client’s lives, has transitioned and evolved over time. Combining our team Raymond James & Associates, Inc., Member New York Stock Exchange / SIPC Our devotion to our clients, and we them as if of they a partforoftheour ownoffamily. of specialists unites theisdisciplined perspectives and treat financial expertise twowere generations benefit our clients.

focused on unique strategies, financial advice and guidance through life events. ory began over 40 years ago, and like our client’s lives, has transitioned andinvestment evolved over time.

Combiningcomprehensive our team families. client’s are advisors unique and so is oureducated partnership.

We are a multi-advisor It is expertise aboutand collaborating with a team ofclients. professional to become and anticipate what’s to cometeam next cialists unites the disciplined perspectiveswell. andindividuals financial of two generationsOur for the benefit ofexpectations our

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EFS 22

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ESTATE & FINANCIAL SERVICES

Keeping wealth the family is a “We want it toinpass easily, to stay in the family, and the noble intention, but creating to bestructure affordable future best to dofor that, is as generations.” much an art as it is science.

Trusts create a valued

5 Toolsstructure of family Cottage Protection Family trusts can last generations

At LJPR, we know that the Family beyond the lives of the original grantors Cottage is a place full of memories and for a significant number of reasons. and timeless traditions. We want each Protections from divorce, continuing the moment you spend at the cottage management andburden maintenance of to be free of the of worrying family cottages, providing beneficiaries about the cottage staying in your family. and familyyour members with stablein Whether cottage hasa been amount of for income, and or protections the family decades, you are just from long-term taxation are all beginning the traditions of owning a cottage, we will help you planto for the tremendous financial benefits longfuture of your cottage and, hopefully, term family trust stewardship. help keep it in your family for future generations to enjoy.

• Build Trust. Working closely with an 1. Revocable Living Trust: avoids investment and trust organization now probate, allows control, privacy. Very will provide significant benefits to your simple and flexible while the grantors family at a time when it’s truly needed. are alive. Requires separate tax return and accounting after death of the • Trust Funding. In order for a trust to grantors. allows step-up provide anCurrently efficient mechanism, consider in basis.

Will create ‘funding’ a revocable prospective trust during your property lifetime. tax reset.

2. Limited Liability Company (LLC): Trusteeprobate Selection.

Trustees are tasked • avoids if structured with a with initially settling a family’s estate and buy-sell and or trust.

Allows control eithergovernance preparing assets for final Requires and of cottage. distribution, orreturn. for long-term trusttax separate tax Property management. reset is prospectively avoidable.

3. for Protection. Agreement: Assets held incontract trust beyond • Operating operation family cottage. the lifetime of of the grantor can provide beneficiaries with protections from 4. Lady Bird Deed: Extremely simple divorce, bankruptcies, and other deed that allows for probate-free beneficiary-related financial problems. transfer to residual beneficiaries. Does not provide control.

• Corporate Trustee. Under many circumstances, with a life 5. Dynasty Trust:working An irrevocable professionaltrust trustee alleviatethe the insurance thatcan ‘endows’ stress involved withfamily an ailing parent or operations of the cottage. spouse concerning household Provides an income-tax andfinancial estatearrangements. tax free pool for funding the operations after the death ofcottage the Grantors.

OM

OLD MISSION INVESTMENT COMPANY OLD MISSION TRUST COMPANY 880 Munson Avenue, Suite B

4555 Investment Drive, 49686 Suite 304 Traverse City, Michigan Troy,866-587-4100 Michigan 48098 248.641.7400 www.ljpr.com www.omtrust.com www.protectthefamilycottage.com

Protecting Your family the will thank you.

Having trust in your wealth management firm Family Cottage: is a personal investment both now and in the future.

A DIFFERENT KIND OF ASSET

Leon LaBrecque, JD, CPA, CFP®, CFA, is sitting on his dock at his cottage on Torch We aren’t the oldest or the largest wealth management firm in Michigan and that’s by Lake. He’s wearing swim trunks and shades, and is doing what lots of professionals do: design.to squeeze Locally-owned, specifically structured to cater our call clients, we present trying in a littleand work while having what most of us to would “playtime” at thea small firm feel with an extensive list of capabilities. family cottage. LaBrecque is making notes on a pad, “I’m working on a succession plan for a cottage not far from mine,the rightgoals here on says LaBrecque, a practicing Our advisors embrace of Torch,” our clients and get to who’s knowbeen them and their attorney for over 30 years.

“Great grandpa bought it in 1910, and it’s been in the family fora families. It’s our intention to look at the bigger picture, since wealth extends beyond three generations.

I’m working on a plan to keep it in the family for three more generations.” financial statement and has a lasting impact on the families that we serve. Family goals Northern Michigan is filled with vacation homes, including those of LaBrecque and are a part of our discussion when creating a plan that works for you and your family his clients. LaBrecque heads the wealth management firm, LJPR, LLC. “We look at all over the longclient’s term. wealth, We believe that from your investments wealth should have planning a succession plan But that aspects of our everything to estate and taxes. involves carefully of my professional thatconsider work for and your one thingastands out,selected both forgroup many of clients andadvisors myself: we theyou cottage like afamily. family heirloom. We want it to pass easily, to stay in the family, and to be affordable for future Ourgenerations.” specialists help you and your family manage family real estate, family businesses, With more than just estate planning skills in the toolkit, LJPR looks at multiple aspects settle estates, work through philanthropic goals and administer wealth from generation of cottage protection: Efficient transfer on death of the primary owners, attention to taxes, to generation. We serve to protect assets for the benefit of long-term family wealth and an issue that LaBrecque sees frequently ignored, funding. “I’ve had many cases where administration makepreparation sure that assets that transfer are intended to ‘staybut in leave the family,’ dosadjust the family takes and adequate to legally the cottage, the kids that.with As mortgages a firm located miles from Wall Street, our business is managing wealth dled and operating expenses.

Many times, the next generationfamily can’t afford the andfinancial family members are forced to sell.” andupkeep, not selling products.

ToOld coverMission the expenses, LJPRand usesTrust, an ‘endowment model’. in“When manage funds At Investment we firmly believe a valueweproposition that for a foundation, we create an endowment, or a continuous stream of income to support involves your entire family, both now and in the future. As a combined organization the endowment’s purpose. The same principle applies to a cottage: have enough money uniquely as both an investment management firm costs.” and a As private trust set aside topositioned keep the cottage operating and to alleviate the heirs from a fee-only company, serve as usually the center of form our clients’ financial a trusted advisor, thiswe endowment takes the of quality, low risklives. and lowHaving cost investments.

Another with common issue is governance.

“I’mwith working another now,consistency where the counselor a working relationship you on and your cottage family right allows first generation died,ofleaving to the consistency three children.is The problem the oldest Family child suddenly during a period time itwhen desired and isvalued. wealth thinks it’s hers, and she, by virtue of seniority, can have it whenever she wants.

To prevent that, stewardship is about integrating the complexities of tax management, financial and we use an LLC to provide governance and control.” LaBrecque said that a typical plan might estate planning, and investment Allow us theand opportunity as your include a trust or lady-bird deed, anmanagement.

LLC to hold the cottage, some formto of serve endowment. counselor bothisnow and for your family in wave. the future.

Torch Lake beautiful despite the heat LaBrecque gestures down to the south, Can youhard imagine in to place a company that “I worked to get having this, anda Ilongstanding want my kidsrelationship and their kids enjoywith it like I have. I figure if I can theirfamily lives about can keep for what it is: a knows you,reduce your uncertainty spouse andinyour at a the timecottage, when I‘change’ wasit something your family family heirloom.” didn’t need? We certainly can.

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ESTATE & FINANCIAL SERVICES

TREND:

Socially Responsible Investments Kristi Avery

“I’M PERSONALLY EXCITED BY THE YOUNGER GENERATION WITH ENVIRONMENTAL AND SOCIAL CONCERNS IN THEIR PORTFOLIOS.”

For Kristi Avery, offering clients only traditional investment advice wasn’t enough. “Our firm [is about] incorporating socially responsible investing strategies,” she says. She is a financial advisor with her business partner, Mecky Kessler-Howell at FOR Investment Partners, which strives to help create an intentional alignment with financial investment goals and its clients, whether they are organizations, individuals or families. Values meet investments. “It’s gaining tremendous momentum,” Avery says.

Socially responsible investing—SRI for short—actually dates back centuries. English cleric and theologian John Wesley, one of the co-founders of Methodism, outlined the basic tenets of social investing in his famous sermon “The Use of Money” in 1872.

He said it was important to not harm others through business practices and to avoid industries which could harm the health of workers. Some 15 years earlier, in similar fashion, the Quakers prohibited members from participating in the slave trade; that may actually be the first example of SRI. As with the Quakers, religious motivation provided some of the best-known early applications of socially responsible investing. Investors would avoid “sinful” companies, such as those associated with products such as guns, liquor and tobacco.

That’s still often the case today, though for many it’s less a religious application and more a moral one, whether it’s applied through avoiding certain industries or companies or embracing those with environmental or social attitudes in line with their own. “We’re taking the client values and what they want and incorporating those values into their portfolio,” says Avery. “It’s a value addition to traditional [investing].”

Most of our clients are larger groups rather than simply individuals. “We specialize in foundations and trusts, but we’re really excited when we’re approached by families,” says Avery. “I’m personally excited by the younger generation with environmental and social concerns in their portfolios. People ask why I focus on this, and I say why not? If you can focus on doing good, why wouldn’t you?”

Socially responsible investing perhaps used to be seen as too difficult to delineate or not the way to maximize one’s investment.

Or even just too wacky. That’s no longer the case, according to Avery. “It’s trickling down into the mainstream,” she says. “It is a trend. It’s grown exponentially, and we’re ahead of the curve.

It’s all about authenticity.” Many of her clients are interested in investing in environmental or sustainable industries. For them, it’s more about doing good than not doing bad. “It’s the best way to serve clients and the community for generations to come.”

Avery says advances in analysis are making it easier to identify companies and industries appropriate for SRI. She cited the data analytics firm Morningstar as including more such data, making her job easier. “Previously there was a lack of tracking. In the last ten or 15 years, there’s been more focus on it,” she says. —R.B. MyNorth ESTATE & FINANCIAL SERVICES

EFS 25

ESTATE & FINANCIAL SERVICES

MODERN FAMILY A family cottage passed generation to generation is a concept that resonates in this region. So, too, with family money.

Many families agree children are free to do whatever they wish after the parents are gone. That works as long as everything goes smoothly, but if heirs, spouses and their kids start to not get along, or in the event of divorce or second marriages with stepchildren, that gets complicated.

Enter financial advisor Chris Lamb, principal partner with The Old Mission Investment and Trust Companies, and the concept of a family trust. A trust, says Lamb, provides a level of certitude for those looking to ensure that their assets continue to provide for their family long after they are gone. “They fear the lack of control,” Lamb says of those placing assets in a trust. “But at the end of the day they have a relationship with a professional trustee.” The trust continues to be managed for purposes of producing income and distributions of principal and/or interest from the trust.

Assets held in trust—either cash assets, investment assets, or real property—are insulated from a variety of complications which can and do arise in life. Once the parents/trust owners have passed away, the trust becomes irrevocable. The assets are administered for the next generation’s benefit without the next generation actually owning the trust property directly. Once the creators of the trust have passed away, the assets are administered by the trustee for the succeeding generations. The assets (and the trust) are not considered the property of the beneficiary, so the assets within the trust are protected against claims from a beneficiary’s creditor or a divorcing spouse. Since the trust is protected, it can grow for successive generations.

Here’s where it perhaps gets most interesting financially: Since assets were held in trust upon the passing of the first generation, no estate taxes will be owed when the succeeding generations pass away. Since succeeding beneficiaries don’t own the trust, there are no estate taxes upon successive deaths.

Lamb says trusts such as these can last for 100 years or more beyond the lives of the original creator, and they will continue to carry the same protections against divorce for all generations. That means there is the potential for the money to grow rather than dissipate: $5 million can turn into $50 million through multi-generational trust planning, without a dime of estate taxes being assessed in the future.

Assets within the family trust can be used for producing income, paying for college educations, medical bills and expenses, and other matters deemed necessary by the trustee. “People can go through money very quickly. This way you know it will be there when (heirs) are 50 and 80 and when it comes to the next generation,” Lamb says. —R.B.

The Jonkhoff family and caring staff are the ones you can trust and depend on... today and tomorrow.

Pictured from left to right: Dan and Peg Jonkhoff, Christy Jonkhoff-Hater and Lindsey (Jonkhoff) Rogers

Like your will, funeral pre-arrangements are a guide for your survivors and a gift of love. Nicole and Brooke would be happy to meet at your home or ours.

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Midwest Real Estate Magazine’s “Leading Lawyers”.

Midwest“Super Real Estate Magazine’s “Leading Lawyers”.“Pre-eminent Reuters Reuters “Super Lawyers”, Lawyers”, Martindale Martindale Hubbell’s Hubbell’s “Pre-eminent Law Law Firms”, Firms”, and and Midwest Midwest Real Real Estate Estate Magazine’s Magazine’s “Leading “Leading Lawyers”.

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412 SOUTH UNION 412 SOUTH UNION TRAVERSE CITY 412 SOUTH UNION 412 SOUTH UNION TRAVERSE CITY 412 412 SOUTH SOUTH UNION UNION 231-947-7900 TRAVERSE CITY TRAVERSE CITY 231-947-7900 TRAVERSE TRAVERSE CITY CITY kuhnrogers.com 231-947-7900 231-947-7900 kuhnrogers.com 231-947-7900 231-947-7900 kuhnrogers.com kuhnrogers.com kuhnrogers.com kuhnrogers.com

PLAN YOUR LEGACY GIFTS TODAY TO CHANGE LIVES FOREVER. Leave a lasting impression on the causes that are most important to you, through legacy gift planning with the Community Foundation.

HERE ARE THREE SIMPLE STEPS TO GET STARTED.

1

Talk to your family, friends and professional advisor.

2

Contact the Community Foundation.

3

Include a bequest in your will or trust.

MATCHING YOUR

PASSION WITH A PURPOSE.

GTRCF.ORG | 231.935.4066

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COVELL

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COVELL

COVELL COVELL COVELL COVELL FUNERAL HOME COVELL COVELLFUNERAL HOME COVELL COVELL COVELL FUNERAL HOME

FUNERAL HOME FUNERALCITY HOMEFUNERAL HOMEFUNERAL HOMEFUNERAL HOMEFUNERAL HOMEFUNERAL HOME FUNERAL HOMEFUNERAL HOME COVELL COVELL COVELL TRAVERSE ELK RAPIDS KINGSLEY TRAVERSE CITY TRAVERSE CITY TRAVERSE CITY ELK RAPIDS ELK RAPIDS ELK RAPIDS KINGSLEY KINGSLEY 231-263-5522 FUNERALCOVELL HOME231-946-6515 FUNERAL231-264-5666 HOME COVELL FUNERAL HOME KINGSLEY 231-946-6515 231-946-6515 231-946-6515 231-264-5666 231-264-5666 231-264-5666 231-263-5522 231-263-5522 231-263-5522 COVELL COVELL COVELL COVELL TRAVERSE CITY ELK RAPIDS KINGSLEY spacer

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KNOWLEDGEABLE RESPONSIVE PERSONAL

MEET CORTNEY. Cortney’s creative, individualized approach to estate planning prepares her clients for the unknown, skillfully guiding them to a solution they understand, and that ensures their intent and their interests are protected. The result: peace of mind.

CORTNEY S. DANBROOK 231.714.0163 | cdanbrook@darlawyers.com

ESTATE PLANNING . TRUST AND PROBATE ADMINISTRATION . COTTAGE SUCCESSION PLANNING SPECIALIZED ATTORNEYS. SPECIALIZED SOLUTIONS.

DANBROOK ADAMS RAYMOND

Cortney S. Danbrook

231.714.0157

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Lindsay J. Raymond

Traverse City

Friends support the Grand Traverse Regional Land Conservancy because they know the best way to ensure our region remains vibrant, healthy and beautiful is to protect the critical places we all love - forever.

Planning for a conservation legacy offers the satisfaction of supporting a vital cause, the excitement of knowing your gift will make a positive impact and – in many cases – substantial financial benefits to you and/ or another beneficiary through tax advantages or life income. Many arrange planned gifts to ensure their vision and annual support can last well into the future.

We will work closely with your financial advisor to design a gift planning option that will meet your personal, financial and charitable goals, all while safeguarding the region’s most special places for future generations.

For more information contact: Anthony Rupard, Director of Development p: 231-929-7911 e: arupard@gtrlc.org

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ESTATE & FINANCIAL SERVICES

FRESH PERSPECTIVES:

Things are better than you think Brian Ursu

“WHEN YOU HAVE THE WRONG VIEW NOTHING WORKS. I TRY TO EDUCATE MY CLIENTS.”

For investors and financial advisors, it’s all about the data: Looking at which industries are growing, which are shrinking, what the trends are, where the safest and best opportunities for investing are. And if you look at the data carefully enough, Brian Ursu, principal at Intentional Wealth Advisors in Traverse City, says you too will realize how well off you are, as well as how the world is a better place than we are led to believe.

That means that investment opportunities are vast, and not relegated just to the Dow and Nasdaq. “What I’m trying to do with investors is show the opportunities represented by the changes in demographics are huge,” says Ursu.

He said it used to be the case that those investing in markets outside the U.S. were labeled unpatriotic. “Now it’s a requirement. Only 30 percent of stocks in the world are in the U.S. It doesn’t make sense to limit yourself.”

Ursu is an advocate of the worldview of the late Dr. Hans Rosling, an international health expert. In Rosling’s view, the world is better off than ever before. Extreme poverty is shrinking at a rate the world has never seen, education is more widely available, and the world economy is both strong and global. The middle class is growing worldwide.

What does healthcare have to do with investing? More than you might think, according to Ursu. He is nearly as enthusiastic about Rosling’s work as Rosling was about the work and the world itself, as exemplified in his TED Talks and documentary. Ursu says seeing and absorbing both the data and empirical evidence shared by Rosling has given him a fresh and enlightened perspective about the world. We are constantly being bombarded by negative news and headlines, not to mention dis- and misinformation, and Ursu sees Rosling’s work as the vaccine against this negative narrative. (For more on Rosling, his work and his perspectives, go to gapminder.com).

Most people believe things are not particularly rosy. And from an investment perspective, having the right worldview is crucial, according to Ursu. “When you have the wrong view nothing works. I try to educate my clients,” he says.

That means not only discussing the world market, but the world itself, and all the variables at play.

Overall? Ursu says things aren’t as bad as you may think. Don’t panic. Look beyond the headlines and invest wisely—armed with the real facts. —R.B. MyNorth ESTATE & FINANCIAL SERVICES

EFS 31

RETIRE SMARTER We checked in with Jason P. Tank, CFA and owner of Front Street Wealth Management in Traverse City on the power of working longer.

The math at work behind the retirement decision really isn’t that complex. There are only a small number of levers to pull.

First is your savings rate. Second is your investment return on those savings. Third is the proportion of your retirement lifestyle that your savings won’t need to cover after factoring in your Social Security and, if you are lucky, your pension income.

And, the final lever to factor into the retirement equation is, of course, your life expectancy.

Each of the controllable retirement levers have built in sensitivities. A way to measure these sensitivities is to see how much a slight tweak on each lever might affect the level of available financial resources in retirement.

For example, you could choose to save a little more and your sustainable retirement income will obviously go up.

Or, you could work to lower the cost of your investment program—which directly boosts the investment returns you get to keep and, naturally, your retirement resources would rise.

In fact, an academic study I recently reviewed showed that a small boost of your annual savings rate by 1% more starting at age 36 might produce a 4% boost in your annual income during your retirement years. The longer you wait to increase your savings rate, the smaller your bang is for the buck.

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Now, what happens if you could also get better returns on your savings? The study showed that if you were able to boost your investment returns by 0.5% per year during your working years, your sustainable retirement income might also increase by similar 4% per year. Doing both things could boost your retirement lifestyle by closer to 8% per year. Since percentages aren’t all that easy to visualize, let’s just say this would translate into a lot of nice experiences over your retirement years.

Importantly, these basic planning moves—moderately boosting your savings rate and your investment returns—are both time-tested and largely controllable. But, what about simply working longer? How much longer would you need to keep working to equal the impact of saving 1% more of your income for your entire career and squeezing out 0.5% more return on your investments each and every year? Drumroll, please! The answer is you wouldn’t need to delay your retirement for even one full year.

So, here’s some truly intuitive advice. Be sure to save early and save often, and then, find work you enjoy, with people you enjoy, and keep at it for as long as you can.

Plan upstream towards steady income downstream

A little planning today can make all the difference tomorrow. We c distribution strategy aimed at preserving your savings and helpin Plan towards steady stream flows your retirement.

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Watts Financial Consulting Group of Wells Fargo Advisors

Call today for a complimentary portfolioJeffrey review.

Watts Watts Financial Consulting Group of Wells Fargo Advisors Watts FinancialWatts Consulting Group of Wells Fargo Financial Consulting GroupAdvisors of Wells Fargo Advisors Managing Director – Investment Officer Benjamin Watts Jeffrey Watts Watts Financial Consulting Group of Managing WellsWatts Fargo Advisors 10850 5575 Advisor Benjamin Watts Benjamin Watts Jeffrey Jeffrey Watts Director – Investment Officer E Traverse Hwy Ste Financial

Financial Advisor Financial Advisor Traverse City, MI 49684 Benjamin Watts 10850 E Traverse Hwy Ste 5575 Advisor Hwy Ste 10850 E Traverse 5575E Traverse Hwy Ste 5575 10850 Direct: (231) 946-1630 Financial Traverse City, MI 49684 Traverse City, MI 49684 Traverse City, MI 49684 231-946-1630 10850 E Traverse Hwy Ste 5575 jeffrey.watts@wellsfargoadvisors.com 231-946-1630 231-946-1630 Ben.Watts@wellsfargoadvisors.com

Traverse City, MI 49684Ben.Watts@wellsfargoadvisors.com Ben.Watts@wellsfargoadvisors.com 231-946-1630 Ben.Watts@wellsfargoadvisors.com

Investment and Insurance Products: u NOT FDIC Insured u NO Bank Guarantee u MAY Lose Value u NOT FDIC uNOT u MAY Investment and Insurance Products: Insured u NO Bank Guaranteeu NO Value u MAY Lose Value Investment and Insurance Products: FDIC Insured BankLose Guarantee Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Wells &Fargo Advisors is2016 a trade name used

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by Wells Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo Company. © Wells Fargo Clearing LLC. All rights reserved. u NO Bank Guarantee u MAY Lose Value andFargo Insurance Products: NOT Fargo &Investment Company. © 2016 Wells Clearing Services, AllFDIC rightsInsured reserved. &Fargo Company. © 2016 WellsLLC. Fargo Clearing Services, LLC. All rights reserved. u a registered broker-dealer and non-bankuaffiliate of Wells Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, Fargo & Company. © 2016 Wells Fargo Clearing Services, LLC. All rights reserved.

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Managing DirectorHwy – Investment Officer – Investment Officer Managing 10850 E Traverse Ste 5575 Director Jeffrey 10850 E Watts Traverse Hwy Ste 5575E Traverse Hwy Ste 5575 10850 Traverse City, MI 49684 Managing Director – Investment Officer Traverse(231) City, MI 49684 Traverse City, MI 49684 Direct: 946-1630 10850 E Traverse Hwy Ste 5575 Direct: (231) 946-1630 Direct: (231) 946-1630 jeffrey.watts@wellsfargoadvisors.com Traverse City, MI 49684jeffrey.watts@wellsfargoadvisors.com jeffrey.watts@wellsfargoadvisors.com Direct: (231) 946-1630 jeffrey.watts@wellsfargoadvisors.com

0318-02998 NO Bank Guarantee u MAY Lose Value 0318-02998

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0318-02998 Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of W Fargo & Company. © 2016 Wells Fargo Clearing Services, LLC. All rights reserved.

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