EIG InTouch - static.contentres.comstatic.contentres.com/media/documents/5f859480-fce5-4cd9-9f1a-f6… · America’s favorite pastime and a solid investment portfolio. The Milwaukee

Now that spring is finally here… So is baseball season. What does

baseball have to do with investing? There are a lot similarities between America’s favorite pastime and a solid investment portfolio. The Milwaukee Brewers don’t wait until March to start developing their team for the baseball season. It is important to choose the right players in the right positions well before the baseball sea-son begins. At Ellenbecker Investment Group, we understand the importance of choosing the right investments to offer upside potential and downside protection well before any new market climate. If we wait until a market shift to build a resilient portfolio our EIG team will not maintain a competitive advan-tage. It takes preparation, vision and patience to cultivate a team of winning investments. It also takes discipline to actively monitor each player and cut a holding when it is not in alignment with the overall plan.When a baseball team is formed and there is a healthy roster of high quality and talented players it is then time to master the fundamentals of the game. Determining a game plan and strategy prior to the first pitch results in a more

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successful day at the ballpark. It is not enough to develop a process or plan for making a play off every expected hit. There is a tactical approach to con-sider as well. What have players done in the past? What are the current field conditions? How will the current cli-mate affect the landscape of the plan in place? When has a pitcher been left in a little too long? These are all questions we, at EIG, discuss with our investment strategists continually. Now that the team is formed and the play book is established how do we set the lineups and what plate appearances do we expect from our players? Every team has a lead off hitter, a few power hitters, a clean up batter and even a few struggling through a slump. When one batter is doing well sometimes we see others struggling. The important thing to understand is that each batter has a specific job to do and that if the whole roster works together a positive

News & Notes

continued on page 2

IN THIS ISSUE2 Housekeeping

for 2014 Taxes

3 You Are Here

4 Protecting Your Retirement Accounts

5 Care for the Caregiver

5 Calendar of Events

6 Personal Property: Are You Covered?

6 Your Comfort Level

7 Practice for Retirement

8 In The Best Interest of the Children

9 What’s Happening @ EIG?

9 Social Security Benefit Changes

10 CMC: Economic Update

10 The Positive Impact of Dividends

11 Ellenbecker Welcomes…

Baseball & Investing?

EIG

Exceptional planning. Extraordinary service.®

InTouchJulie Ellenbecker‑Lipsky, CFP®

Vice President and Wealth AdvisorEllenbecker Investment Group, Inc.

EIG®

Ellenbecker Investment Group

since 1996 committed to managing your financial risk 2ndQuarter2014

2

News & Notescontinued from cover page

end result may occur. Likewise, our investments have been incorporated into the portfolio for a very specific reason and when they all perform to an expected outcome the investment goals are met. The home run hitters in an investment portfolio tend to be the most aggressive. They give us the potential for growth but there is also the risk of striking out. But everyone loves a power hitter and without them the score wouldn’t run up as fast and there wouldn’t be as much to talk about after the game. Good or bad, a few power hitters on the team are a necessity. As Babe Ruth famously said “Every strike brings me closer to the next home run.” Consider the growth part of our asset allocation to be our sluggers. The moderate or balanced part of our portfolio are our base

hitters. On a baseball team there are always a group of consistent base hit batters. They sometimes lack the luster of a home run slugger but without them it would be tough to get around the bases and get home. A base hitter is a teams stabilizer. They have the ability and opportunity to outperform at any given moment but we also know they play a solid game in almost any condition. We begin to trust these players and our confidence doesn’t often waiver when they come up to the plate. Whether they are following a home run or a strikeout we are usually confident in their ability to stabilize the playing field. Lastly, there are the bench warmers. Any coach will tell you that every single player, whether on the field or not, plays a key role in the overall success of the team. The bench warmers are most closely aligned with

the fixed income part of the invest-ment portfolio. They don’t represent any big names on the marquis nor do they make good cocktail party con-versations but they are always there to assist when other players are in need or struggling. Without the bench warmers the team would be at huge risk. The fixed income part of an invest-ment portfolio is where the downside protection and stability is established.An important step to maintaining a competitive edge and a healthy in-vestment portfolio is rebalancing. The same is true for a solid baseball team. Sometimes players are traded because they have become too valuable. Some-times players don’t perform up to expectations and sometimes they get injured and need to leave the game altogether. Every year there is a new MVP. The one certainty is that monitor-

April 15th is almost upon us but if you are still in the process of

filing your 2013 return you may still have a few tax saving strategies you can take advantage of. First of all, you have until April 15th to make a $5,500 contribution ($6,500 if you are age 50 or older) to a Traditional IRA or Roth IRA provided you qualify based on your 2013 income. If you are self employed you can establish a SEP-IRA and make a contribution of up to 20% of your SE income until October 15th if you file for an extension of your return. You also have until April 15th to contribute to a Health Savings Account if you are covered under a high deductible health plan. You can make a contribu-tion of $3,250 ($4,250 if age 55 or older) if covered under a self-only plan or $6,450 ($7,450 if age 55 or older) for a family plan. Now is also a great time to start the planning process for 2014. Monitoring your itemized deductions during the year is a great way to save some time

and money in the current year. Keep track of your out-of-pocket medical ex-penses for doctors, dentists, eyeglass-es, prescriptions, co-pays and medical or long-term care premiums. You may be eligible for both an itemized deduc-tion for federal taxes and a subtraction modification for Wisconsin taxes for these items.

With the strong market over the past year you may have some capital gains in 2014. Consider donating appreciated stock rather than making a charitable contribution in cash. You will receive a charitable deduction for the fair market value on the date of the donation and will not incur tax on the capital gains.

The standard deduction for 2014 is $12,400 for joint filers and $6,200 for single with an additional $1,200 for the elderly and blind. If your itemized deductions are close to the standard deduction amount, by either accelerat-ing into 2014 or deferring into 2015 the payments of your income and real es-

House Keeping for 2014 Taxes

tate taxes and charitable contributions you could itemize deductions in one year and take the standard deduction the following year or vice versa.A little planning during the year can help you maximize tax savings. Check with your preparer to determine what is best for you.

We are always happy to assist clients meet with accountants or other professionals. Let us know if you would like help finding an accountant, or would like to use our office for meeting.

Chris RemmersController

Ellenbecker Investment Group, Inc.

SII Investments, Inc. (SII), member FINRA/SIPC and a Registered Investment Advisor, is not affiliated with Ellenbecker Investment Group, Campbell Newman Asset Management, Capital Market Consultants, or Foundations Bank. Securities and advisory services offered through SII are *not insured

by the FDIC or any other Federal Government Agency *not a deposit or other obligation of, or guaranteed by any bank or its affiliates *subject to risks including the possible loss of principal amount invested. SII does not provide tax or legal advice.

This winter has been an accumu-lation of everything I detest most

about Wisconsin winters. Freezing temperatures, pot holes, snow, thun-derstorms, black ice, salt stains every-where, being held hostage under a dark cloud of gray skies and dirty snow piles. If only I could retreat to my cozy house and let winter pass me by.I knew that was only a dream for a Sunday afternoon. I need to go to work, attend meetings, grocery shop and much more. I found myself having the same plan wherever I went. Stra-tegically parking my car where I could find it with the least difficulty. I wanted to know exactly where I had parked because I did not want to waste time out in the cold hunting for my spot. We all have been there wondering where we parked our car.Many of us spend time every day go-ing from one place to another, alone, with family or friends moving about our city with an unconscious plan as to where we are going. With very little thought we know how we are going to get there, we automatically make sure our tanks are full and our time is adequate.We have GPS tools in place to help us find our way, and news reports detail-ing the weather conditions (although rarely accurate). For some of us time means money and for others it means more time for ourselves and the ones we love. Everyone at one point has wished they had more time for some-thing they wanted to accomplish.We know for certain this winter will pass just at about the same time Uncle Sam will be stretching his hand into our pockets to collect his fair share. As much as we all resist tax time I can highlight two positive outcomes; first and foremost we know without a shadow of doubt. Spring is on it’s way and secondly, you have a forced disci-pline to collect all your important tax and investment documentation for the April 15th tax deadline.

3

This collection provides the perfect opportunity to figure out “where you are at.” I liken it to going to the mall for the first time, walking up to the Mall Directory searching for the arrow that says “You Are Here.” Helping you to determine where you are so you get to where you want to go efficiently.We spend time strategizing where we are going, how we will get there, where we park, where we want to sit, daily routines to help us be efficient and enjoy our lives. I suggest we do the same thing with our future. It is im-possible to know where you are going unless you know where you are at. For many, our planning resemble shoppers aimlessly wandering around the mall.Determining if your current investment strategy is going to get you where you want to go begins by believing that there is value in planning and making the commitment to do it. Having a strategically aligned plan should feel as comfortable as driving to and from your favorite places.When you hear a bad weather report you adjust your travel plans to accom-modate new information. Knowing how to adjust your life plan requires the same knowledge, you cannot just ignore it and hope it misses all of the bad weather.So the good news is, spring is close at hand, everything will be blossoming and growing. My challenge for you is to make certain that new growth and vitality is built into your investment portfolio. ●

You Are Here

Karen J. EllenbeckerPresident


ing the situation closely and the will-ingness to modify the team is the key to building a successful ball club.Another important steps for develop-ing a winning team is to start with a solid coaching staff. One head coach making all the decisions doesn’t really provide enough experience, insight or ability to manage the whole team. At EIG we have a team of specialists each with their own strength and speciality to assist you in whatever stage of your financial plan. Lastly, every game needs an umpire to oversee the big picture and to make the right calls. You are the umpire working in conjunction with all the coaches, managers and players. You get the final say on how the game is played but you don’t have to worry about calling the plays, hitting the balls or saving the day. Watching and understanding is the key to be com-fortable with the decisions going for-ward. Understanding the plan is more important that playing the game.As you can see, it is critically important to find the right manager to choose the winningest coaches to scout out the best players to fulfill a high quality game plan in order to run with the team to the championship.I am certainly not implying that invest-ing is only a game nor would I imply that that we manage it as such, howev-er, as a baseball fan I do believe there is a lot to learn from the game. Every year is different, we are often surprised by outcomes, history is not an indication of future performance and you’ve got to play the game if you want a chance to win. Play ball! ●

Diversification and asset allocation do not guarantee positive results. Loss, including loss of principal may result.

let us invest, ın you! TM

SII Investments, Inc. (SII), member FINRA/SIPC and a Registered Investment Advisor, is not affiliated with Ellenbecker Investment Group, Campbell Newman Asset Management, Capital Market Consultants, or Foundations Bank. Securities and advisory services offered through SII are *not insured by the FDIC or any other Federal Government Agency *not a deposit or other obligation of, or guaranteed by any bank or its affiliates *subject to risks including the possible loss of principal amount invested. SII does not provide tax or legal advice.

4

Protecting Your Reitrement Accounts For Your Family — by William J. Lyne, Lyne Law Firm, LLC

You may know that Wisconsin and Federal law protect IRA and 401K

accounts from creditors in a bank-ruptcy. This protection has provided account owners with a great deal of financial and emotional security know-ing that they would always have their retirement account available to them in the event of economic problems resulting in bankruptcy. Traditionally, account owners had the comfort of knowing that IRAs left to their children and grandchildren would be a credi-tor-protected safety net for those suc-cessive generations after the account owner had died. Unfortunately, a recent federal court decision stripped creditor protection for Wisconsin residents who are bene-ficiaries of the IRA and 401K accounts of their parents (and grandparents). However, there is hope for protecting IRAs for your beneficiaries in these very litigious times.With proper estate planning, certain trusts offering protection from credi-tors may be established to receive IRA benefits for your beneficiaries. But it is important to note that not every trust will be appropriate to receive and pro-tect IRA assets for your beneficiaries. In fact an improperly designed trust could have substantial negative tax consequences to beneficiaries. In order to qualify a trust as a benefi-ciary of an IRA certain requirements must be met under federal regulations. If those requirements are not met, the account may have to be withdrawn within five years of the account own-er’s death, rather than allowing for account distributions based on the beneficiary’s life expectancy providing greater tax deferred growth. In order

to protect IRA assets for successive generations while avoiding tax pitfalls, proper trust planning is important.There are two types of trusts specifical-ly designed to receive IRA distributions, called “conduit trusts” and “accumu-lation trusts” (sometimes these trusts are called “look-through trusts”). Look-through trusts can be very effective in protecting assets for your beneficiaries.

Conduit TrustA conduit trust is designed to allow for Required Minimum Distributions (RMD) to be made to the designated beneficiary based on his or her life ex-pectancy. Those RMD are to be chan-neled through the conduit trust to the beneficiary. The general idea is that no more than RMD will be distributed to the beneficiary. If the beneficiary has a creditor problem, the trustee of the trust may protect future RMDs from the claims of the beneficiary’s creditors through the use of spendthrift provi-sions (discussed below) in the conduit trust.

Accumulation TrustThe other type of look-through trust is an accumulation trust, in which the trustee has discretion to retain RMDs received by the trust. The trustee of an accumulation trust has discretion in determining what distributions will be made to the beneficiary. Spendthrift provisions are incorporated into these trusts as well. Accumulation trusts may be very protective of trust assets. Accu-mulation trusts may be employed by account owners with great concerns about a beneficiary’s financial situation.

Spendthrift ProvisionsSpendthrift provisions are very com-mon terms to see in trust drafting. If you have a revocable living trust, it likely contains a spendthrift provision. The idea of a spendthrift provision is to protect the assets held in trust for a beneficiary from the beneficiary should he prove to be a “spendthrift” (a person who is wasteful of money). In such a case, the trustee has legal authority to cease distributions to a spendthrift beneficiary until he has stopped being wasteful. By extension, spendthrift terms protect trust assets from the creditors of the beneficiary. Spendthrift provisions in trusts have been honored by courts for genera-tions. These provisions are effective because the beneficiary of a trust is not legal owner of the trust’s assets, rather the trust is the owner. And the trustee of the trust makes distributions to beneficiaries according to the terms of the trust as specified by the person making the trust. The combination of look-through trusts and spendthrift provisions can be very powerful and needed as a result of the Clark case noted above.As always, it is important to seek the guidance of experienced professionals when it comes to planning for your family, finances and estate. Also, the in-formation in this article is very general in nature and you should proceed with the planning discussed after having all of the benefits and possible detri-ments explained to you thoroughly. The Lyne Law Firm, LLC has offices in Brookfield and Glendale. Attorney William Lyne may be reached by phone at 414-847-6290 or by email at [email protected]. www.lyne-law.com

Calendar of EventsThere’s always something happening at EIG!

For details about upcoming events, visit ellenbecker.com or call 262‑691‑3200

April 8 @ 9amKaren on The Morning Blend on TODAY’S TMJ4

April 17 @ 1pmClient Teleconference

April 22 @ 9amKaren on The Morning Blend on TODAY’S TMJ4

May 13 @ 9amKaren on The Morning Blend on TODAY’S TMJ4

May 15 @ 1pmClient Teleconference

May 27 @ 9amKaren on The Morning Blend on TODAY’S TMJ4

June 4 — 6pm ‑ 9pmWaterfront Wednesdays on Pewaukee Beach sponsored by Ellenbecker Investment Group & Foundations Bank

June 10 @ 9amKaren on The Morning Blend on TODAY’S TMJ4


June 17 @ 9amKaren on The Morning Blend on TODAY’S TMJ4


June 19 @ 1pmClient Teleconference

June 21 — 9am ‑12pmShred Day join Ellenbecker Investment Group & Foundations Bank in our parking lot


Watch Karen Ellenbecker on The Morning Blend on TODAY’S TMJ4 the second and fourth Tuesday of each month. The Morning Blend airs 9am to 10am on weekdays.Listen to MoneySense Radio on AM 1130 WISN Saturdays at 2pm and Sundays at noon.

Exceptional planning. Extraordinary service.®

EIG

Anyone who has cared for a loved one can relate to some, if not most,

of my comments in this article. If you have not been a caregiver, take note of how you can approach this phase of life with an open heart, mind, and eyes.As in the past, this topic will be ad-dressed in a series of articles. The first of these series addresses triggers that cause stress when acting as a caregiver.Individuals may find themselves in the caregiver role with a child, spouse, par-ent, in-law, or life partner. To no surprise, the longer the need for care, the more stress it applies to relationships across the board – including family, friends, and co-workers. This stress can result in increased tendency to turn to food or drugs to get through the years, maybe even an affair – emotional or physical.There is a way to live through this journey - all while caring for yourself.When addressing this topic with col-leagues, a common theme arises: care-givers are concerned with money, inti-macy, cleanliness, and lack of concern for themselves. Once you identify your main issue in the care giving role, you can begin to make a plan for yourself.Sometimes a caregiver will have thoughts of anger:

- I feel I am waiting on him/her hand and foot.

- He/she does not move fast enough.- With all of the medical expenses,

we are running out of money.- Our house smells of body odor.- People assume they know

what I am going through.- I get angry at myself when

I take care of myself.

Care for the CaregiverIt wasn’t supposed to be like this

Jean Range, CFP® Wealth Advisor


- My best is just not enough.- He/she is not following the

doctor’s orders.- Visitors make my job more difficult.- I am mortified if people knew

what my home life was really like.- I don’t like it when I scream

at him/her in anger.During these moments of anger you may recognize four categories of thoughts:

Category 1 - Things I want to say but don’t expect a response to.Category 2 - Things I want to say but don’t because it won’t make a difference.Category 3 - Things I want to say but should only share with a friend.Category 4 - Things I really need to talk about, know about, have resolved, or make a decision about.

Caregivers typically want to provide cook-ing, cleaning and being a best friend, but find themselves responsible for finances and care as well.Take a moment to reflect on what is a trigger for you – write it down. My next article will focus on how to have an effec-tive productive conversation with your loved one, resulting in less stress and more satisfaction from being a caregiver. ●Source: The Caregiving Wife’s Handbook, written by Diana B. Denholm, PhD, LMHC

®


6

An individual’s ability to borrow money has traditionally been

based on the income level of that person along with their credit score. During the past 20 years, our country saw consumer debt levels increase substantially as banks and credit unions allowed individuals to borrow a greater percentage of their income. In addition, the credit score needed for getting a loan had also declined. The result was an elevated household debt level that became unsustainable. Most individuals experienced how difficult it is to support high debt levels in a de-clining economy, especially the one we most recently experienced.

Finding Your Comfort LevelDebt vs. Savings

Are Your Personal Contents Covered Properly? When reviewing new business

proposals with an individual one question I always ask is, “do you understand how your contents are cur-rently covered?” The response is always inevitably “yes, I have full coverage,” which is exactly the understanding that can turn a trusting insured into an irritated insured when a claim is made.Personal property coverage is more complex than customers and many agents think it is. Void of considerate explanation, you assume your contents are covered against all risks. What if I told you there were two separate ways to insure your contents, Broad/named and Special?Broad form (named perils) limits your homeowner’s policy to cover only a set list of specific perils in your insuring agreement.

The Special endorsement is the more comprehensive choice to insure your contents against all-risks unless spe-cifically excluded in the policy. Some great examples:

Accidental TV falls over and shatters, Red wine on couch, Paint bucket fallsMysterious disappearance Took ring off to wash dishes, falls into garbage and is lostPower surges Any electrical damage regardless of whether it has derived on or off premise

The list goes on and on90% of the competitors policies that I see only insure against broad form/named perils…majority are direct writers. In reality most of the indepen-

Since 2009, consumer debt levels have declined as individuals reduced their personal debt and focused on increas-ing their savings. As the economy con-tinues to improve and unemployment levels decline, it is likely that consumers will again begin to borrow more money. Hopefully, bankers will provide some guidance on the level of debt a consumer should have. Traditionally, the focus of a consumer’s debt capac-ity is the ability to make the monthly required payments. However, that is only one aspect. My opinion is that consumers should look at the amount of debt they are taking on. Consumers should focus not only on the monthly

John Hazod, President Foundations Bank

262‑691‑9400 FoundationsBank.com

Nicholas Starr Personal Lines Account Executive

The Starr Group 414‑421‑3800

Starrgroup.com

dent insurance companies include this automatically in your policy or other-wise offer it as an affordable option. I highly recommend this coverage to any property owner as the idea behind insurance is to transfer risk. Don’t cut your policy short!

required payment but also their com-fort level with the amount of aggre-gate debt that will eventually need to be paid back to all creditors. Consum-ers should maintain a proper balance of savings and personal debt that will benefit them in both good and bad economic times.

7

Pay down debt It’s likely your parents had their mortgage paid off before they retired. While that still may work for some, in many cases it may make sense to keep a mortgage. If your loan is at a low rate and you don’t plan to pass your house to your heirs, you might have a lot of equity tied up that you can’t use for spending. Paying off a mortgage may reduce the cash you have available for expenses. As we say at the office, “You can’t eat your house.”

Buy a new vehicle If you plan to replace your vehicle, do so a few years before you retire. That way you won’t have a monthly payment or need to spend money on a vehicle soon after retiring.

Save for home improvements It’s not easy while you’re working to find time to do major home improve-ments. If you plan to do them after retiring, start saving in a separate account now. That way this major expense won’t put a dent in your re-tirement income right after you retire.

Establish a HELOC A home equity line of credit can act as an emergency fund by allowing you to access the eq-uity in your home should you need it for spending. Banks like to see income from employment when you apply for a HELOC, so it makes sense to do so before you retire.

Consider your cash The rule-of-thumb while you are working is to keep up to six months worth of living expenses in your emergency fund. As you prepare to retire, you will be shifting your focus from accumulating a lump sum to creating a stream of income. Until you are comfortable knowing how your spending will work out, you may want to keep even more in cash.

When you think retirement, what does that look like to you? As

a financial advisor, one of my roles is to help clients envision and articulate what they want for the next phase of their lives. Although the answers vary, there is one common response – most people dream of having financial inde-pendence, or being able to enjoy their lifestyle without relying on a paycheck. My husband Dave and I have that same goal and are continuing to work toward it by implementing some of the items described below.

Knowing you have a financial plan in place will allow you to practice the lifestyle you envision. Here’s what you can do to prepare.

Estimate your spending Make a list of current expenses. Look at what expenses will be more or less in retirement. For example, you may plan more for travel but less for commut-ing, lunches out and/or professional clothing.

Fully fund your 401(k) The years before you retire are likely to be your highest earning years. Whatever you can do to save is going to help grow your retirement nest egg. As of 2014, the maximum you can contribute to a 401(k) is $17,500, with an additional $5,500 if you are over age 50. If you are self-employed, you may be able to contribute more, depending on the type of qualified plan and your earnings.

Practicing for Retirement Financial Planning

Budget for health insurance If you retire before you are eligible for Medicare, your choices for insurance might include COBRA, buying a policy through an exchange or buying an in-dividual policy. This can be a significant part of your monthly spending.

Spend like you’re retired Practice for retirement by living on what you ex-pect you will spend the first year. If you and your spouse both work and one plans to retire before the other, try living on one paycheck for a year. This will give you an idea of how realistic your future spending plan is. Plus, you can use the other check to add to your nest egg.

Phase out of the working world Will your employer be open to you phasing out, rather than retiring completely? If so, having the extra time will allow you to practice your retire-ment lifestyle and to keep building your savings.

Work with your advisor to:• Determine the best approach

for to taking Social Security benefits• Identify sources and amount

of income during retirement• Estimate how long you’ll be able

to afford your retirement lifestyle• Adjust your portfolio allocation

to create the income you’ll needYes, there are many things to think about, prepare for and practice. We are here to help you through this process so you can look forward to life after your paycheck. ●

Diane Byrne, CFP®Wealth Advisor


8

When Ellenbecker Investment Group, Inc. asked me to write

on a divorce-related topic for its “In Touch” Newsletter, I said yes because I saw it as an opportunity to speak out on behalf of children. As an attorney working in the family law field for a long time, I have seen far too many children suffer as a result of their par-ents not being able to agree on the way the children are to spend time with the parents once the parents separate due to divorce or breakdown of a non-marital relationship.When a parent comes to me for an ini-tial consultation, we typically deal, very early in the discussion, with the welfare of the person’s children. There is a learning curve associated with a parent becoming educated about terms such as “custody” and “physical placement”. For example, under Wisconsin law, “joint legal custody” means the con-dition under which both parties share legal custody and neither party’s legal custody rights are superior except with respect to specified decisions as set forth by the court. “Legal custody” means the right and responsibility to make major decisions concerning the child. “Physical placement” means the condition under which a party has the right to have a child physically placed with that party and has the right and responsibility to make, during that placement, routine daily decisions regarding the child’s care, consistent with major decisions made by a per-son having legal custody.

In determining legal custody and peri-ods of physical placement, the court is required to consider all facts relevant to the BEST INTERESTS OF THE CHILD.While I represent adults who claim to have the best interests of their children at heart, this is also written from my perspective as Guardian ad Litem, i.e., an attorney appointed by the court to represent the best interests of the children when parents are not able to reach agreements as to custody or placement.Mine is an ardent request of parents to work very hard to avoid conflict and litigation surrounding the welfare of their children. Certainly there are cases involving violence, addiction, abuse and other impediments to a negotiat-ed agreement . . . such cases may well need to be decided by a judge. The request I, as an advocate and Guardian ad Litem, make of a parent is to be open to becoming educated on the regimens which best serve children as the family structure changes.If only parents would hear and under-stand the following thought – that unresolved conflict between parents is extremely harmful to children. Per-haps if more individuals could grasp this concept I would stop harping on that theme every time I meet with a prospective client. I have seen far too many children suffer emotionally, academically, socially and physically as their parents wage war in the courts on and on for years, fighting over which parent is better suited to make

custodial decisions or to have the children live with him/her the greater amount of time.This asks parents to work with medi-ators, counselors, social workers, your own attorneys, child specialists, school guidance counselors and parenting coordinators to find answers which will save the children from enduring protracted legal proceedings. This asks parents to work together, when possi-ble, to communicate with one another in order to discuss concerns, to share information regarding their children and to make decisions together for the welfare of the children. This urges par-ents to do their homework to connect with professionals who work in the above-referenced roles. Parents should try to retain control over the outcome and to foster an environment in which children experience having their par-ents work together despite the end of a marriage or relationship. Judith Budny of Sengstock, Budny & Ludwig, S.C. practices primarily in the areas of family law, probate and mediation.

Judith M. BudnyAttorney at Law

Sengstock, Budny & Ludwig, S.C.414‑321‑0078

sbl‑law.org

In the Best Interest of the Children

Saturday, June 21st9:00 am‑12:00 pmEllenbecker Investment GroupN35W23877 Highfield Court, Pewaukee WI 53072



9

we listen TM

when your intuition speaks,

Social SecurityBenefit ChangesA new year provides the Social

Security Administration with a chance to change certain aspects within the Social Security system – some helpful to retirees and some that could cost retirees in the form of addi-tional taxes. With many retirees relying on their Social Security benefits for income, it is important to understand the changes that went into effect with the first of the year.

Positive changes for Retirees:Cost of Living Increase - Based on the increase in the Consumer Price Index (CPI-W), Social Security beneficiaries will receive a 1.5 percent cost of living adjustment (COLA) for 2014.Maximum Social Security Benefit - The maximum benefit for a worker retiring at full retirement age has in-creased by $109 to $2,642 per month.Retirement Earnings - Those younger than the full retirement age who still earn a wage will get a break this year. The Social Security Administration limits the amount of earned income retirees can earn and maintain their full benefits. Going over these earned income limits could cause a reduction to your Social Security benefit. For 2014, your earned income limits have been increased. If you are younger than full retirement age and receiving benefits, the amount you can earn has increased to $15,480, or $1,290 per month, without a decrease in benefits. One dollar in benefits will be withheld for every $2 in earnings above this limit. The year that you reach full retirement age, you can earn $41,400, or $3,450 per month before seeing a decrease in benefits. One dollar in benefits will be withheld for every $3 in earnings above this limit for the months prior to attaining full retirement age.

Negative changes for Retirees:Maximum Taxable Earning - While the Social Security tax rate of 6.2% hasn’t changed, the wage base that is sub-ject to the Social Security tax has. The Social Security Wage Base, which de-termines the amount of income that is subject to the Social Security taxes, has increased from $113,700 to $117,000. The Social Security tax you pay is 6.2%, unless you are self-employed, in which case you pay 12.4%. For the non-self-employed, your employer pays the other 6.2%. For those earning over $117,000 per year, a higher percentage of your income will now be subject to the Social Security Tax.Quarters of Coverage - The earnings required for each quarter of Social Security coverage has increased to $1,200, up from $1,160 in 2013. You can receive up to 4 quarters of coverage each year – full retirement benefits are available after 40 quarters of coverage. Social Security can be a key player in your financial plan, so make sure you are up to date on all of the facts that could affect your benefit. For more information, contact your advisor or visit www.ssa.gov. ●

Babies @ Work Welcome Perrie Elizabeth Schnuckel! As part of our Babies @ Work program, Perrie joins her mom Kristina Schnuckel here at EIG a couple of days a week! Proud big brother Kojo (pictured) gets to enjoy her the rest of the week.

Waterfront WednesdaysEllenbecker Investment Group teams up with Foundations Bank to spon-sor Positively Pewaukee’s Waterfront Wednesdays. Join us on Wednesday evenings from 6-9 pm at the beach this summer from June 4 - August 27 for music and fun.

2014 Gala Plans are in the works for our second annual Client Referral Appreciation Gala! Ask your advisor how to qualify for this fun & exclusive event.

And remember…we offer our Family Office conference room for clients’ use, as well as our EIG Education Center meeting space for charitiable organizations. Call our office if you are interested in reserving one of these rooms.

What’s happening?

EIG News. . .

Kristina Schnuckel, CFP®Wealth Advisor


Capital Market ConsultantsEconomic Update

from the March 2014 Economic Commentary and Capital Market Update cmarkc.comTo read the complete report and the latest economic updates, go to ellenbecker.com.

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Barry K. Mendelson, CIMA CEO, Senior Investment Analyst Capital Market Consultants, Inc.

414‑727‑7995 cmarkc.com

Dividend income has accounted for close to half of stocks’ total

return (price appreciation + dividend income) since the mid-1920s, although the contribution has varied widely by decade. During the bull market of the 1980s-1990s, capital appreciation accounted for approximately 80% of returns as stocks rallied at the same time fewer companies were paying dividends or raising them. During the decade of the 2000s, dividends provided a welcome cushion from stocks’ downward price momentum. Stocks declined by an average of 2.8% annually during that period but the total return was only -0.9% annually because of the positive impact of dividend income.

The Positive Impact of Dividends

Mary Brown, President Campbell Newman Asset Management

262‑243‑7000 campbellnewman.com

Four years into the current decade, stocks have provided strong returns that average almost 16% annually. Dividend income has accounted for approximately 35% of this return although the annual contribution levels are far from the average, with 2010 at 15%, 2011 at 100%, 2012 at 17% and 2013 at 9%. As such, we would not be surprised to see a reversion toward the mean in 2014 for dividends’ contribution to total return.SII and Campbell Newman Asset Management are separate companies.

While uneven economic perfor-mance at the start of the year

has been disappointing, the good news is that this weakness shouldn’t last. The basic strength in the eco-nomic fundamentals has remained intact. Looking beyond the first quar-ter, reduced fiscal drag, improved household, business, and government balance sheets, and an upturn in the housing market will translate into stronger growth. Moreover, better weather should shift some of the de-layed economic activity from Q1 into Q2 or Q3. Finally, Congress’ extension of the debt ceiling through March 2015 removed a significant source of polit-ical downside risk from the economic outlook over the next year. A mod-erately growing economy with low interest rates and low inflation should support further corporate profits, stock prices and eventually the labor market.

Labor Market: U.S. non-farm payrolls rose by a meager 113,000 in January. Upward revisions for the prior three months reduced the concern that the economy had slowed rapidly. Gains were led by professional and business services, leisure and hospi-tality, and wholesale. The increase in service spending in January should improve hiring in these industries. The unemployment rate dropped to 6.6%.

Inflation: Consumer prices increased by 0.1% in January driving the annu-al headline inflation rate up to 1.6% from 1.5% in December. Core inflation should remain below or around 2.0% until the end of 2014 keeping it a non-issue for the Fed. Although the FOMC will likely remain on its tapering course, the first increase in interest rates still may be at least 15-18 months away.

Housing: In January new residential housing activity dropped by 16% - the biggest percentage drop since February 2011. Construction activity was likely impacted by severe winter weather. This was the coldest January in the U.S. since 1994. This setback will prove to be temporary and activity will rebound in the months ahead.

Eurozone: The euro zone’s fragile recovery improved modestly in the final quarter of 2013. Growth remained well below the pace needed to make a dent in near record-high unem-ployment or alleviate debt burdens in Southern Europe. The euro bloc’s recovery, buoyed by gains in exports and investment which offset sluggish consumer spending, has lagged be-hind those of other big industrialized economies including the U.S., U.K., and Japan.

Outlook – End of the Winter Economic Chill: After the economy accelerated in mid-2013, we suggest-ed that growth expectations should be tempered as firms whittled down inventories that had built up quickly. Reports on international trade, pay-rolls and vehicle sales, to name a few, have all come in below expectations. While there is reluctance to put the full blame on the weather, it is undeniable that bad weather has been disruptive. The economy remained plagued by financially constrained households and cautious businesses, two persistent features of this economic recovery that is now almost five years old.



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Join Ellenbecker as we WelcomeNew Team MembersJoining our Operations Department, Lisa Dregne holds a Series 6, 63 and 65 registrations, Life & Health and Property & Casualty Licenses. She helps manage details of the many requests made on a daily basis for our clients.Prior to joining Ellenbecker Investment Group, Lisa worked for Prudential as a Financial Professional Associate in Wauwatosa, and for the Howard Company in Brookfield, Wisconsin.With a long and varied work history – from a business education teacher, small business owner, retail, receptionist, to an assistant at a marketing firm, EIG was fortunate to have Fran Hughes join us in June of 2013. Fran works diligently to maintain and organize EIG’s filing system. Fran earned her bachelor’s degree from the University of Northern Iowa.Keeping the firm’s consistent tradition of referral hiring, Michele Mayo was recommended to Ellenbecker Investment Group by an attorney who works closely with our clients. Michele earned a Chemical Engineering degree from the University of Wisconsin-Madison. Her responsibilities include updating our trademarked Asset Allocations, as well as assisting the financial advisors in preparing for their meetings.Joining Ellenbecker Investment Group in August 2013 as a Financial Planning Assistant, Sandy Miller’s holds a business degree from the University of Wisconsin Oshkosh. Her desire to meet and exceed the needs of EIG clients is demonstrated by her willingness to work tirelessly to give our clients the service that sets the Ellenbecker Investment Group apart.

Sandy MillerParaplanner

Fran HughesAdministrative Assistant

Lisa DregneClient Service Representative

Michele MayoClient Service Representative

Wendy S. PeperkornParaplanner

Jodi SchwefelDirector of Marketing

Kristina Schnuckel, CFP®Wealth Advisor

With over eighteen years of investment-related client service, Wendy S. Peperkorn’s experience in the financial world was the perfect fit for EIG. She assists with all facets of the client experience -- from updating the Asset Allocation to attending client meetings and answering client questions. Wendy earned a BBA in Finance from UW-Eau Claire, and an MBA from UW-Milwaukee prior to attaining her Series 6 and Series 63 securities registrations. She recently earned her Series 7.Jodi Schwefel joined EIG in January of 2014 as our Director of Marketing. She is responsible for leading our overall marketing function, including brand development, communications, systems/structures, and budgeting to better educate and inform our clients and prospects about EIG’s value proposition and offerings. Jodi holds a BA in Business, with an emphasis in Marketing, and has eighteen years of experience in the financial services industry.Kristina Schnuckel, CFP® joined the EIG team in June, 2013. Finding her passion in the financial services industry, Kristina graduated with honors from the University of Wisconsin-Milwaukee. Continuing on to complete her Certified Financial Planner education including Insurance Planning, Investment, Retirement, Estate and Tax Planning in 2011, she holds Series 7 and Series 63 registrations as well as her Life and Health Insurance licenses. Kristina feels that invesments are just one-piece of a much-larger puzzle, and is happy to help provide the extra service that is necessary for a secure and happy retirement to our EIG clients.

There is still time to qualify for ourCLIENT REFERRAL APPRECIATION

August 10

aboard theDuchess of the Lake

on beautiful Lake Geneva

Gala


Since 1991, listeners have counted on Karen Ellenbecker for reliable, relevant information designed to help with life’s challenges. Each week Karen shares her unique financial perspective and interviews local and global economists, lawyers, tax and real estate specialists, authors and other special guests.

Money Sense airs Saturdays at 2 p.m. & Sundays at noon Central Time on WISN AM 1130.Listenwhereveryouareonlineatnewstalk1130.com.

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