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04 ISSUE Efficient Frontier October –December 2016 WORDS OF WISDOM Benjamin Franklin “An investment in knowledge pays the best interest” Ralph Waldo Emerson “It is one of the most beautiful compensa- tions in life that no man can sincerely try to help another without helping him- self” Abraham Lincoln “Always bear in mind that your own reso- lution to succeed is more important than any one thing” THIS ISSUE 31, 37, 39, 43 P.1 The 3 P’s P.2 Family Time P.3 Upcoming Events P.4 31, 37, 39, 43 What do the numbers 31, 37, 39 and 43 have in common? No, they are not the winning “Pick 4” loery numbers. They are the only Presidents since 1921 to see the stock market decline during their tenure in office (Herbert Hoover, Richard Nixon, Jimmy Carter, and George W Bush). Addionally, while on vacaon this summer with my family, I saw a very entertaining billboard. It had a picture of Hillary Clinton and Donald Trump on it and beside their pictures it said, “Thinking of moving to Canada if one of them wins? Contact XYZ Realty and we will help you sell your house.” My family and I got a good chuckle out of that billboard. So how are these 2 things related? They explain the elecon cycle that we find ourselves in every 4 years. I frequently hear that if candidate X gets into office the stock market is going to crash and the world will come crumbling down. However, history suggests that is highly unlikely. If you look back at the variety of Presidents we have had since 1921, you will find a wide range of polical views and policies enacted. Yet, in most cases the stock market was higher at the end of their tenure. Why? The answer is buried in the aforemenoned billboard. The realtor(s) does not care whose house they are buying/selling. Their sole purpose is to assist you in moving regardless of the reason why. Every corporaon in the world exists to assist you in exchange for a fee. Their primary concern is whether or not they will be able to connue providing you with a good or service in exchange for that fee. In most cases, that has very lile to do with who happens to be the President. As pre- viously shown, most good corporaons have shown to be very adept at growing their business, regardless of who is in office. Corporaons simply want to know the “rules of the game.” Thus, the more corporaons know about the system that they will be operang in, the beer they will per- form (stock price rises). When there is uncertain- ty/surprises we should see short term volality in the stock market (stock prices decline). However, as the uncertainty fades away, corporaons go back to trying to growing their business. Regardless of who becomes our next President, I am certain of 2 things. There will be volality in the short term and corporaons will eventually find their bearings to grow. It may be slow, but that’s why I wrote about the “mighty oxen” last quarter… Ma

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04

I S S U E

Efficient Frontier O c t o b e r – D e c e m b e r

2 0 1 6

WORDS OF WISDOM

Benjamin Franklin

“An investment in

knowledge pays the

best interest”

Ralph Waldo

Emerson

“It is one of the most beautiful compensa-tions in life that no man can sincerely try to help another without helping him-self”

Abraham Lincoln

“Always bear in mind

that your own reso-

lution to succeed is

more important than

any one thing”

THIS ISSUE

31, 37, 39, 43 P.1

The 3 P’s P.2

Family Time P.3

Upcoming Events P.4

31, 37, 39, 43 What do the numbers 31, 37, 39 and 43 have in

common? No, they are not the winning “Pick 4”

lottery numbers. They are the only Presidents

since 1921 to see the stock market decline during

their tenure in office (Herbert Hoover, Richard

Nixon, Jimmy Carter, and George W Bush).

Additionally, while on vacation this summer with

my family, I saw a very entertaining billboard. It

had a picture of Hillary Clinton and Donald Trump

on it and beside their pictures it said, “Thinking of

moving to Canada if one of them wins? Contact

XYZ Realty and we will help you sell your house.”

My family and I got a good chuckle out of that

billboard.

So how are these 2 things related? They explain

the election cycle that we find ourselves in every 4

years. I frequently hear that if candidate X gets

into office the stock market is going to crash and

the world will come crumbling down. However,

history suggests that is highly unlikely. If you look

back at the variety of Presidents we have had since

1921, you will find a wide range of political views

and policies enacted. Yet, in most cases the stock

market was higher at the end of their tenure.

Why? The answer is buried in the aforementioned

billboard. The realtor(s) does not care whose

house they are buying/selling. Their sole purpose

is to assist you in moving regardless of the reason

why.

Every corporation in the world exists to assist you

in exchange for a fee. Their primary concern is

whether or not they will be able to continue

providing you with a good or service in exchange

for that fee. In most cases, that has very little to

do with who happens to be the President. As pre-

viously shown, most good corporations have

shown to be very adept at growing their business,

regardless of who is in office. Corporations simply

want to know the “rules of the game.” Thus, the

more corporations know about the system that

they will be operating in, the better they will per-

form (stock price rises). When there is uncertain-

ty/surprises we should see short term volatility in

the stock market (stock prices decline). However,

as the uncertainty fades away, corporations go

back to trying to growing their business.

Regardless of who becomes our next President, I

am certain of 2 things. There will be volatility in

the short term and corporations will eventually

find their bearings to grow. It may be slow, but

that’s why I wrote about the “mighty oxen” last

quarter…

Matt

Page 2: Efficient Frontier 04.2016

A friend of mine recently turned me

on to a television show that revolves

around a wealthy business owner

named Marcus Lemonis. Essentially,

Marcus comes to their business, pro-

vides funding to their struggling com-

pany in exchange for an ownership

stake, and then employs his principle

of “The 3 P’s” (People, Process, and

Product). I frequently discuss the

importance of running your personal

finances as a busi-

ness would, and

after watching

several episodes

of the show, I

believe his “3 P’s”

principle is appli-

cable.

People

The people, above all else, are the

most integral to the success of your

financial goals. It is imperative that

you have intelligent individuals with

the utmost integrity on your team.

These people include your Financial

Advisor, CPA/Accountant, and Estate

Planning Attorney. I refer to them as

part of your team because that is how

they should be operating. Each per-

son on the team is handling a differ-

ent aspect of your financial future,

but all are working in unison toward

the same end. Everyone on your

team should have a vested interest in

your success.

Process

Once you have a competent team of

people, all working toward your suc-

cess, you need a thorough process.

That process is commonly referred to

as a financial plan. A process cannot

be created

until you

determine

your desired

outcomes/

goals. The

more specific

your goals

the better.

However, I have found that the fur-

ther you are from your goals, the

more difficult it is to determine the

specifics. That is why you need great

people employing a thorough process.

As you get closer to your goals, your

team will adjust the process as your

goals become more crystalized. But

what if things go wrong? The process

must be adaptable to the certainty of

uncertainty. Every family faces uncer-

tainty (Sickness, death, disability,

unemployment, etc.) and part of the

process includes protecting from

things that could seriously hamper

your ability meet your goals.

Product

Last, but certainly not least, are the

products. The products include the

types of accounts you utilize (Trust

account, ROTH IRA, Traditional IRA,

529 plan, etc.), the investment vehi-

cles (stocks, bonds, mutual funds,

options, etc.) and finally the actual

investment allocation (large cap

stocks, small cap stocks, international

stocks, municipal bonds, corporate

bonds, real estate, commodities, etc.).

The number of products available

seems infinite at times, which is why

you have a competent team employ-

ing a thorough process. That process

is what allows your team to sift

through the many options in order to

find the optimal products to meet

your goals.

Applying Marcus Lemonis’ principle of

the 3 P’s really distills down the com-

plexities of managing your finances.

Being there to see you successfully

reach your goals is the most reward-

ing aspect of my career. Thank you

for allowing me to be on your team.

People, Process, and Product

EYE ON THE NUMBERS

Stock Market Performance by President

Best Performance

When Calvin Coolidge left

office (August 2, 1923—

March 4, 1929) the DJIA

had increased approxi-

mately 230%

Worst Performance

When Herbert Hoover left

office (March 4, 1929—

March 4, 1933) the DJIA

had declined approximately

-82%

Honorable Mentions

When Bill Clinton left office

(January 20, 1993—

January 20, 2001) the DJIA

had increased approxi-

mately 228%

When Ronald Regan left

office (January 20, 1981—

January 20, 1989) the DJIA

had increased approxi-

mately 147%

When Richard Nixon left

office (January 20, 1969—

August 9, 1974) the DJIA

had declined approximately

-28%

The people, above all else, are the

most integral to the success of

your financial goals. It is impera-

tive that you have intelligent indi-

viduals with the utmost integrity

on your team.

The 3 P’s

Page 3: Efficient Frontier 04.2016

EYE ON THE NUMBERS Great Smoky Mountains Facts

Established in 1934,

Great Smoky Mountains

National Park is the larg-

est national park East of

the Rocky Mountains. It

encompasses more than

800 square miles

Clingmans Dome is the

highest point in the

Great Smoky Mountains

at 6,643 feet

No temperature above

80 degrees Farenheit

has ever been recorded

on the 6,593 foot Mount

LeConte

Ask Matt

Each quarter I will answer a

question (or maybe 2) from

you. I tend to get some great

questions from my clients on a

regular basis during our meet-

ings. I have found that the

answers to those questions

are pertinent to quite a few of

you. Don’t worry though. I will

maintain the privacy of those

asking the question as well as

any personal details. Addition-

ally, if you have a question you

would like me to address in the

practice update give me a call

or shoot me an email

Q: If we decide to move when

we retire, will we still be able

to work together?

A: YES! I simply register with the state

you moved to (assuming I’m not

already registered there). Further-

more, I utilize a variety of tools so

that we can communicate virtually

when needed. I make it a point of emphasis that

each of my clients is registered on ameriprise.com.

The reason being, regardless of where you are

living, I can send you documents that can be elec-

tronically signed through the Ameriprise system.

If you have an internet connection, I can quickly

and efficiently handle any issues that may

arise.

How do you handle our meetings? I cur-

rently utilize a system called WebEx, which

is a virtual conference system. WebEx

allows for the use of webcams so that you

can see me as though we were sitting

across the table from one another. Also,

this system provides the capability to share my comput-

er screen with you so that we can review anything re-

lated to your accounts at the same time. What if I have

information on my computer that I want to share with

you? This system has the ability to allow you to share

anything on your computer screen with me as well.

This Quarter ’s “Ask Matt”

In practically every interaction I have

with my clients we discuss our fami-

lies. In fact, it is not uncommon for

us to spend an equal amount of time

discussing how our families are doing

as your personal finances. This past

August my family and I took a trip to

the Great Smoky Mountains. We

hiked many a mile through the

Smoky Mountains without much

complaining from my children (to my

surprise!). If you haven’t hiked

through the mountains before, the

terrain can be quite rough at times

and some of the uphill parts of the

hike can be steep. Not to mention,

the higher elevations will fatigue you

more quickly than normal. In spite of

all those issues, I believe my children

did not complain because they knew,

at the end of those arduous hikes,

they would be able to enjoy some

beautiful scenery (Our personal fa-

vorites were the hikes to the water-

falls).

I truly believe that we plan for the

future so that we are in position to

create memories with our loved ones

like the one I mentioned. Planning

for the future and executing that plan

is laborious at times, but just like my

family’s hike, the payoff at the end is

more than worth the small sacrifices

made along the way.

Family Time

Page 4: Efficient Frontier 04.2016

Matthew R. LaPlant, CRPC®, AAMS

®

Financial Advisor Chartered Retirement Planning Counselor

SM

14755 North Outer Forty Drive, Suite 500 Chesterfield, MO 63017 636-534-2065 (Office)

EMAIL: [email protected] WEBSITE: ameripriseadvisors.com/matthew.r.laplant/

Upcoming Events

BBQ Cooking Class

Thursday, October 27th

, 2016

6:00 PM—8:00 PM

Arnold Stove & Fireplace

917 Arnold Commons Drive

Arnold, MO 63010

This seminar will feature Al Bowman, Competitive BBQ’er Extraordinaire,

to teach you the best way to grill steak as well as some delicious side

dishes. Let your taste buds decide how good he is!

There is no cost or obligation.

Events

I f there i s some-

th ing in par t i cu la r

tha t ca tches your

eye, p lease do not

hesi ta te to reach

out to me . I am

ant ic ipa t ing tha t a

major i t y o f the

events w i l l reach

maximum capaci t y .

Efficient Frontier Issue 04 October-December 2016

The views expressed here reflect the views of Matthew R. LaPlant as of 9/31/2016. These views may change as market or other conditions change.

Actual investments or investment decisions made by Ameriprise Financial and its affiliates, whether for its own account or on behalf of clients, will not

necessarily reflect the views expressed. This information is not intended to provide investment advice and does not account for individual investor

circumstances. Investment decisions should always be made based on an investor's specific financial needs, objectives, goals, time horizon and risk

tolerance. Past performance does not guarantee future results and no forecast should be considered a guarantee either.

Ameriprise Financial cannot guarantee future financial results.

Investment decisions should always be made based on an investor's specific financial needs, objectives, goals, time horizon and risk tolerance. Past

performance does not guarantee future results and no forecast should be considered a guarantee either.

Investment advisory services and products are made available through Ameriprise Financial Services, Inc., a registered investment adviser.

Ameriprise Financial Services, Inc., Member FINRA and SIPC.

© 2016 Ameriprise Financial, Inc., All rights reserved. 1612010ACMR1016