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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
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
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
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