Are Your Employer Benefits Meeting Your Needs?

Contributed by: Robert Ingram, CFP®

Fall is upon us, but just around the corner is the 2021 Open Enrollment Period. The window to select next year’s benefits at your employer runs from Nov. 1st through Dec. 15th. In the past, you may not have given these selections much thought, but this year, the impact of COVID-19 may have you thinking about the many “What if...” situations. Like, “What happens if my family and I get sick?” or “What happens if I'm out of work for a long time?” Understanding your options helps ensure that you're taking full advantage of the insurance plans and other benefits. Here are 5 reasons you should review your benefits and coverages:

1. Do you have the right health insurance coverage?

Most employer health and wellness benefits have at least a couple of health insurance options, such as PPO or HMO plans. Today, available choices usually include a type of High Deductible Health Plan (HDHP) eligible for a Health Savings Account (HSA). With a higher deductible, you will be responsible for a greater amount of medical costs out-of-pocket before the insurance plan begins to pay (compared to a more traditional lower-deductible plan). In addition to the opportunity to contribute to an HSA, the higher deductible plans usually have lower premiums than plans with lower deductibles. However, you should focus on the total potential costs, including premiums, deductibles, co-pays, and annual out-of-pocket maximums. 

When deciding which plan makes the most sense, you would normally consider your health history and the services you might expect to use. Generally, the greater your expected medical costs each year, the more likely you benefit from a lower deductible plan. You also should consider how you want to manage your health care (are you comfortable staying within a specific network of doctors and hospitals, or do you want greater flexibility?). Some health plans, for example, will require higher co-pays for services provided outside of their direct network.

The COVID-19 pandemic has made it even more important to understand your coverage options and make decisions accordingly. Some questions to ask when evaluating insurance plans could include:

• If I get sick and need treatment, what restrictions does the plan have on services? What hospitals or outpatient facilities can I use?

• Are there any deductibles waivers for COVID-related services or office visits?

• How does prescription drug coverage handle any special treatments or therapeutics?

2. Do you need to add young adult children to your health insurance plan?

Under the Affordable Care Act, health plans that offer dependent child coverage must allow children to be covered under the parent’s family plan until they reach age 26. With the widespread disruptions in the economy, many young adults may have lost their employer coverage or face other cost-prohibitive options. 

On plans that cover dependents, you can add your child under age 26 to your plan as a dependent even if he or she:

• is not living with you

• is not financially dependent on you

• is married

• is eligible to enroll in their own insurance plan

3. Strengthen your life insurance and disability insurance protections.

Employer benefit plans offering life insurance typically provide a basic amount of coverage at no additional cost to you, such as an amount equal to your base salary. Many plans will allow you to purchase additional coverage (supplemental life insurance) up to a maximum dollar amount or a multiple of your salary, for example, up to five times your salary.  

Often there is additional spousal coverage you can purchase as well.

While the supplemental and spousal insurance has an extra cost that can increase as the employee/spouse ages, employer group insurance tends to be less costly than individual policies and can provide a good base of coverage. When considering your life insurance needs, here are some tips.

Many employers also provide a group disability insurance benefit. This can include short-term coverage (typically covering up to 90 or 180 days) and/or long-term disability (covering a specified number of years or up through a certain age such as 65). Disability benefits often cover a base percentage of income such as 50% or 60% of salary, many times at no cost with some plans offering supplemental coverage for an additional premium charge.   

As with the life insurance benefits, group disability may not completely replace your lost income, but it can provide a solid foundation of coverage that you should maximize.

4. Your retirement plan (401k, 403b, etc.) might need a tune-up.

Start with contributions to your account. 

• Are you contributing up to the maximum employer match, if offered? Take advantage of free money!

• Are you making the maximum annual contribution (elective deferral)? The basic limit was $19,500 in 2020.

• If you can save more after maximizing your elective deferrals, does your plan offer separate after-tax contributions? This could be a way to leverage additional Roth IRA conversion opportunities.

Review your investment allocation. Do you have the appropriate balance of stocks, bonds, cash, and other asset categories in your portfolio given your timeframe and tolerance for risk? After experiencing the plunging financial markets of March and the sharp rebound in the stock market through the summer, you may have concentrations in certain assets that are above or below your desired target. This could be a good time to rebalance your portfolio back to those targets.

5. Michigan’s auto insurance no-fault law changed in July.

Okay, while your auto insurance is probably not part of your employer group benefits, now would be a good time to review your auto insurance coverage along with your other benefits. 

Earlier this July, legislation went into effect here in Michigan that changed the no-fault insurance law. One of the main changes related to Personal Injury Protection (PIP) is the part covering medical bills and lost wages if you are injured in an accident. Residents can now select different levels of PIP, whereas Michigan law had previously required insurance covering unlimited medical benefits for the lifetime of the injured person. Read more about the Michigan insurance reform.

If your policy has been renewed since July 1st, you may have chosen a specific PIP level or continued a default option for unlimited coverage. Selecting a lower level of PIP can lower your premiums depending on the limit you choose. However, it's important to note that carrying a higher level of protection could still make sense for many people and could be worth the extra cost. 

Having a conversation with your insurance agent and financial advisor about the potential risks versus cost savings can help you decide if changes to your policy are appropriate. 

As always, if we can be a resource for you, please let us know. 

Robert Ingram, CFP®, is a CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® With more than 15 years of industry experience, he is a trusted source for local media outlets and frequent contributor to The Center’s “Money Centered” blog.

2 Reasons Why Your Investment Portfolio Needs Adjusting

Contributed by: Abigail Fischer

It’s historically proven, the age-old advice urging you to stick with your investment plan through thick and thin. The Center preaches this, especially during market volatility. But maybe your financial advisor has recently suggested making a change in your investment plan. How could this be? Well, there are two possible reasons: either your circumstances changed or new information emerged about the market.

1. Your circumstances changed

• Retiring in 2020 or the near future? Wow, what a way to end your career, and congratulations! There may be a case to make your portfolio more conservative so that when volatility hits, you see less downturn than you might in a more aggressive model. Read this if you’re concerned about your 401k balance fluctuation. 

• Big purchase ahead? Sticking with your investment plan is a long-term view. When you’ve set your sights on a making a big purchase soon, consider taking a portion of your portfolio to cash or a short-term fixed income fund.

• Your paycheck comes from your portfolio? Consider taking the next six months of expenses in cash or a short-term fixed-income fund so that when you hear market news, you can sleep soundly knowing your next portfolio paycheck will not be affected.

None of these apply but you’re unsure about your portfolio allocation? Read this.

2. New information about the market

• As interest rates fell in March, we saw a short-term opportunity to tactically overweight the Strategic Income portion of the Fixed Income category in some portfolio models. Generally, Strategic Income funds invest in high-yield bonds, emerging market debt, international bonds, asset, and mortgage-backed securities. This short term strategy was sought out by our Investment Committee as we aim to add value to our clients’ portfolios during market volatility. We closely tracked the Bank of America US High Yield Index Option-Adjusted Spread and set a point where we would tactically switch the allocation back to short and long term fixed income funds. Here’s one of the charts we watched:

Ice Data Indices, LLC, ICE BofA US High Yield Index Option-Adjusted Spread [BAMLH0A0HYM2], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/BAMLH0A0HYM2, August 28, 2020.

• The Investment Committee saw an opportunity in the gold market. Gold is primarily seen as a hedge against inflation risk within the US Market. As the Federal Reserve printed cash at a rapid pace in April 2020, the value of the US Dollar slipped and many investors flocked to gold as a hedging measure. Gold can also be seen as a consistent store of value during a choppy period of high unemployment and low business activity; its long-term value has steadily increased.

The fiduciary standard of seeking return while managing risk is our priority. A strong investment portfolio compliments a clear financial plan. As your circumstances change and the market gives us more information, we are committed to your personal financial goals within the financial planning process. As always, please contact your Center Financial Planner for advice on your specific situation.

Abigail Fischer is an Investment Research Associate and Investment Representative at Center for Financial Planning, Inc.® She gained invaluable knowledge as a Client Service Associate, giving her an edge as she transitions into her new role in the Investment Department.

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This market commentary is provided for information purposes only and is not a complete description of the securities, markets, or developments referred to in this material. Any opinions are those of the author and not necessarily those of Raymond James. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Past performance does not guarantee future results. Diversification and asset allocation do not ensure a profit or protect against a loss. Investing in commodities is generally considered speculative because of the significant potential for investment loss. Their markets are likely to be volatile and there may be sharp price fluctuations even during periods when prices overall are rising. Gold is subject to the special risks associated with investing in precious metals, including but not limited to: price may be subject to wide fluctuation; the market is relatively limited; the sources are concentrated in countries that have the potential for instability; and the market is unregulated.

HEROES CAMPAIGN: “HAVEN”

Contributed by: Center for Financial Planning, Inc.®

The Center’s Hero Campaign aims to spotlight local nonprofits amid the COVID-19 outbreak. Our goal is to raise awareness and support the community. This is our 4th post in the Q+A series featuring HAVEN. 

What is your nonprofit?

HAVEN is the only agency in Oakland County that provides comprehensive services to survivors of domestic violence and sexual assault. Our mission is to empower survivors, spread awareness, and prevent violence. We provide services through an innovative model that fully integrates our residential, counseling, advocacy, and educational programs under one roof. Each year, HAVEN serves about 30,000 people through a wide range of empowerment-based programs and services.

Who do you serve? 

HAVEN provides free services to survivors and their children. Although HAVEN is located within Oakland County, our services are available to survivors no matter their current residency. Approximately 35% of our residents come from Detroit.

How have the communities you serve been impacted by COVID-19? 

COVID-19 has greatly increased the lethality for many survivors. Due to the Stay Home, Stay Safe order, many survivors have been forced to quarantine with their abusers. We haven’t experienced a decrease in calls, which signifies that the survivors in our community are still in need of the critical and necessary services that we provide.

How has your nonprofit been impacted by COVID-19?

Like most organizations, HAVEN has been impacted, but the dedication of our staff and the outpouring community support has been beneficial. The majority of our staff is working remotely. Some are still meeting with clients in-person while following social distancing guidelines. We’ve transitioned many of our programs to telehealth, via phone or video conference.

What can people and businesses do to support your organization and nonprofits generally during this unique environment?

During this time community supporters can donate monetarily directly on our website. Critical need items are needed as well, such as cleaning products, masks, sanitizing wipes, hand sanitizer, Kleenex or items from our General Wish-List.

Read more blogs in this series:

1. Beyond Basics

2. MOTCC

3. Focus: HOPE

HEROES CAMPAIGN: "MOTCC"

Contributed by: Center for Financial Planning, Inc.®

The Center’s Hero Campaign aims to spotlight local nonprofits amid the COVID-19 outbreak. Our goal is to raise awareness and support the community. This is our 3rd post in the Q+A series featuring the Michigan Opera Theatre Children’s Chorus (MOTCC).

What is your nonprofit?

Michigan Opera Theatre Children’s Chorus (MOTCC) is a world-class training program that provides exceptional choral music and theatrical performance instruction in a professional environment to young people. Each season, MOTCC produces two major performances on the Detroit Opera House stage: A Winter Fantasy, the annual December showcase concert, and a full-scale opera in the spring, which is performed solely by the children’s chorus. Frequently, opportunities arise for choristers to perform with the Michigan Opera Theatre (MOT) mainstage international singers, directors, and conductors too. Many of our MOTCC alumni have gone on to prestigious conservatories and universities majoring in vocal performance or musical theater. Some have already established distinguished careers in music. 

Who do you serve? 

MOTCC offers this unique training program to 80 boys and girls with unchanged voices ages 8-16 years old from the five southeast Michigan counties, as well as Windsor, Ontario. Through our concerts and opera performances, we serve audiences of all ages throughout lower Michigan. MOTCC opera has become an annual tradition and a popular field trip for teachers wishing to introduce children to opera and live theater. What makes this experience even more significant is that all the lead roles and chorus are sung by children. Each show attracts more than 2,000 students not only from southeast Michigan but many other cities within a 100-mile radius. 

How have the communities you serve been impacted by COVID-19? 

In mid-March 2020, all rehearsals and performances of the children’s chorus had to abruptly halt due to COVID-19. This meant that not only were the individual MOTCC members impacted by the cancellation, but also the audience members who were to attend our opera The Very Last Green Thing. MOTCC received grants for tickets and buses for under-served students to attend the children’s opera free of charge. The cancellation resulted in a missed opportunity for those children. 

How has your nonprofit been impacted by COVID-19? 

Due to forced closure and social distancing, MOTCC created a 30-minute virtual opera performance of The Very Last Green Thing and presented it on MOT’s and MOTCC’s Facebook pages and websites. This project gave our choristers an opportunity to use the musical training they gained through MOTCC and the ability to express themselves artistically in a different medium. Since it was a free performance, we were not able to make up lost revenue that we would have earned in a live performance. Additionally, we had to issue refunds to our ticket holders for the canceled staged version. Currently, we are unable to announce auditions, rehearsal schedules, or commit to any production for next season due to government guidelines for public health.

What can people and businesses do to support your organization and nonprofits generally during this unique environment?

Making a donation will help MOTCC’s ability to continue to offer our music education program. With social distancing and in consideration that singers are potentially “super spreaders” of COVID-19, MOTCC may not be able to offer in-person training unless precautions through government guidelines are met. Many of these guidelines will require additional funding to provide a safe environment for our singers and staff. If we cannot have in-person contact, we will need to adapt this program for digital student engagement and distribution. The curriculum will include more individual musical instruction from our directors, conductors, and voice and dramatic instructors and require more online platforms. Your donations will subsidize the cost of this adapted program to fit government requirements for safe program delivery and keep the cost of the tuition affordable. It also supports our scholarship fund and removes the barrier for low-income families so their children may participate with full-tuition scholarships. 

MOTCC’s goals are to provide unique educational opportunities that:

• Create high-quality opera and cultural arts experiences that are accessible, affordable, and engaging for schoolchildren

• Tap the children’s creativity and imagination

• Inspire the next generation of artists, and opera and cultural arts audiences.

We appreciate all your support in helping us reach our goals!

Click to view the virtual performance of The Very Last Green Thing

Read more blogs in this series:

1. Focus: HOPE

2. Beyond Basics

3. HAVEN

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The Michigan Opera Theater Children's Chorus (MOTCC) is not affiliated with or endorsed by Raymond James. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.

HEROES CAMPAIGN: “Beyond Basics”

Contributed by: Center for Financial Planning, Inc.®

The Center’s Hero Campaign aims to spotlight local nonprofits amid the COVID-19 outbreak. Our goal is to raise awareness and support the community. This is our 2nd post in the Q+A series featuring Beyond Basics.

What is your nonprofit?

Beyond Basics is a 501(c)(3) literacy nonprofit dedicated to one-on-one reading intervention and holistic literacy enrichment programs for students and families in Metro Detroit. Our proven methods have unlocked the miracle and power of reading and opened a whole new world and future to those who need it most. We developed this model by partnering with principals and schools in Detroit since 2002, to work with children who were farthest behind to get them reading at grade level. Our holistic literacy programming also engages mentors, art and writing to help students in vulnerable communities learn to read. This intervention has transformed thousands of lives.

Illiteracy is a silent epidemic, yet America's most solvable disability. It is a crisis because it has gone unaddressed for decades, leaving thousands of children attending school each day who can’t read. The good news is there is a solution. While low literacy levels can be found at all income levels and backgrounds, poor and minority students are more likely to be affected. Beyond Basics sets up our programming in the communities that need it most. 

Who do you serve? 

Students and adults in Metro Detroit —including Detroit, Pontiac, and Taylor. We serve students of all ages (from elementary through high school). We also have recently opened at Family Literacy Center in the Durfee Innovation Society to reach those in neighboring communities that need help with literacy.

How have the communities you serve been impacted by COVID-19? And how has it impacted your nonprofit?

The pandemic has closed schools (which is where we typically saw our students), as well as causing high levels of unemployment, illness, and deaths. The students have been subject to great change during these unprecedented times.

Our nonprofit has been impacted as well. We had to convert our tutoring system into an online platform quickly, so that we could reach our students. It was crucial for us to continue to deliver literacy intervention to the students that need it most.  

What can people and businesses do to support your organization and nonprofits generally during this unique environment?

You can support our organization, and other nonprofits, financially by funding our online tutoring program and families with financial hardship.  Donate here.

Read more blogs in this series:

1. Focus: HOPE

2. MOTCC

3. HAVEN

HEROES CAMPAIGN: “Focus: HOPE”

Contributed by: Center for Financial Planning, Inc.®

The Center’s Hero Campaign aims to spotlight local nonprofits amid the COVID-19 outbreak. Our goal is to raise awareness and support the community. This is our 1st post in the Q+A series featuring Focus: HOPE.

What is your nonprofit & who do you serve? 

Focus: HOPE is a nationally renowned civil and human rights organization and a trusted member of the community for five decades. Founded in 1968 by Father William Cunningham and Eleanor Josaitis, Focus: HOPE provides an intergenerational, holistic mix of services to disrupt the effects of racism, poverty, and other forms of social injustice in southeast Michigan.

Early Learning

Focus: HOPE Early Learning aims to build a cradle to career pipeline of opportunity by providing quality early childhood education for newborn to five-year-olds through evidence-based models. More than 244 students and their families are educated and supported by our Early Learning programs.

Youth Development

Youth Development includes education, recreation, social justice, and leadership development activities for more than 250 students - including a 21st Century Community Learning Center, Excel Photography, summer camp, and Generation of Promise.

Workforce Development

With an extraordinary record of success in working with underserved and underrepresented adults in Southeast Michigan — having trained over 500 students in 2019 — we offer high-quality work readiness, pre-apprenticeship, and apprenticeship programs in a range of in-demand career fields.

Food Justice

Our Food Program provides 41,000+ low-income seniors with monthly food packages to assist with independence and healthy living while addressing basic needs. Our program also provides important infrastructure for health screenings, income support, and tax preparation for seniors and the community at large.

Advocacy, Equity & Community Empowerment

Focus: HOPE pursues leadership as an antiracism organization by advocating for systems change, and by integrating racial equity and community empowerment offerings across all program areas. Focus: HOPE serves as a one-stop hub providing financial coaching, free tax prep, utility payment assistance, on-campus DHHS access, health screenings, a clothing closet, peer support circles, and more.

How have the communities you serve been impacted by COVID-19? And how has it impacted your nonprofit?

Focus: HOPE was founded to unite the community at a critical time. We remain committed to living out our mission to overcome racism, poverty, and injustice – no matter what. Programming has evolved due to the crisis, but we’re still serving more than 42,000 community members every month. 

• Our Food for Seniors program has shifted to a contactless pickup system – staff place food boxes directly into seniors’ cars. We’re also making more home deliveries, so seniors can stay safe at home.

Early learning students are receiving virtual home visits to make sure they and their families are getting the support they need (including food and diapers), and teachers are sharing educational content students can work on at home. 

• Workforce development training has moved online too. Some classes have been able to transition to fully online instruction, and all students have access to e-learning resources and virtual support. 

Additionally, Focus: HOPE is committed to using our assets and abilities to support our community’s current needs. Special initiatives include: 

• Manufacturing face shields and masks through our 3D-printing capabilities

• Distributing cash payments to support local families’ economic stability

• Equipping our IT graduates to assist companies in adjusting to remote work

• Assisting community members navigating the unemployment process

What can people and businesses do to support your organization and nonprofits generally during this unique environment?

Even COVID-19 can’t stop our mission of intelligent and practical action to overcome racism, poverty, and injustice - and we’d be honored if you’d join us with your support.

Give

Donate to support our work with individuals and families throughout Southeast Michigan during this crisis. Give here.

Volunteer

There is a great need for volunteers to pack boxes and deliver food to seniors. We provide masks and gloves and strictly follow social distancing guidelines. Learn more and sign up here.

Start Your Fundraiser from Home!

Create a fundraising page to support our COVID-19 response efforts.

Read more blogs in this series:

1. Beyond Basics

2. MOTCC

3. HAVEN

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Raymond James is not affiliated with and does not endorse the opinions or services of Focus: HOPE. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.

COVID‐19 and Your Money: New Risks and Simple Solutions

Contributed by: Center for Financial Planning, Inc.®

Should pre‐retirees (and their advisors) take a new look at retirement income? It’s no secret that COVID‐19 has greatly impacted the world, but let’s talk specifically about its impact on retirement planning. Partner and Senior Financial Planner Nick Defenthaler, CFP®, RICP® provides valuable insight in this Q+A.

Q. Does the COVID‐19 crisis (market decline and job loss) mean retirement is more in peril than ever before? Some advisors tell clients to "work longer" to achieve their desired retirement outcome, but has that advice quickly become outdated due to job cuts?

A. Unfortunately, many retirement plans will be pushed out by the pandemic. Even in a diversified 60% stock and 40% bond portfolio, many clients were down just north of 20% around mid‐April. Thankfully, the market has recovered quite a bit since its lows in March. However, for those closely approaching retirement, this highlights the danger of the “sequence of returns risk”…aka having crummy market returns in the year or so leading up to retirement or shortly after transitioning into retirement. Working longer is still good advice, in my opinion, but what most advisors don’t communicate is that working longer doesn’t have to mean working full‐time longer. Over the past 5 years, I’ve seen an uptick with clients “phasing into retirement”, which essentially means working on a part‐time basis before stopping work completely. Most clients largely underestimate how big of a positive impact on working and earning even $15,000/yr for several years can have on the long term sustainability of their portfolio.

Q. Does the 4% withdrawal rule make sense?

A. Yes, I believe it does. Keep in mind, it’s still a very conservative distribution rate for those with a 30‐35 year retirement time horizon, especially if the client is comfortable dipping into principal. Right now, I think the biggest risk of the 4% rule is our low interest rate environment and the “sequence of returns risk” mentioned previously. However, they both can be greatly mitigated through prudent planning and investment choices in the “retirement risk zone” which I would define as 3 years leading up to retirement and 3 years post‐retirement.

Q. Should pre‐retirees be looking at guaranteed sources of income, such as annuities?

A. Annuities should be evaluated for almost all retirees. The keyword here is evaluated and not implemented. Annuities have a bad reputation by some very prominent faces you see in the media and rightfully so for a myriad of reasons. But the reality is simple, guaranteed income is proven to make human beings feel happier and more secure, especially in retirement and there are only a few ways to get it. Through the government (Social Security), pensions (which are becoming extinct), and annuities. When using annuities for clients I work with, it’s only for a portion of their overall spending goals, perhaps 10‐20% of their cash flow needs. That will not be the right fit for everyone, but it should be part of the due diligence process when evaluating the proper retirement income strategy for a client. In times like this, you won’t find too many clients who are upset that they transferred risk from their portfolio to an insurance company in the form of an annuity that offers guaranteed income.*

Q. Do you have an interesting story about a client who changed their strategy?

A. I work with a couple who recently faced a hard stop working full‐time for several reasons, one being health‐related. Their retirement income goals are a bit of a stretch considering their accumulated portfolio. Our plan was for husband and wife (both 62) to work part‐time starting this year to be eligible for health insurance and receive some income until at least 65. This would dramatically shrink their portfolio distribution rate in the early years of retirement where the “sequence of return risk” is very real. Unfortunately, both of their jobs were affected by the pandemic and the possibility of working part‐time for several years is now slim to none. The clients own their home free and clear and have no plans whatsoever to move in the future. This ultimately led them to explore a home equity conversion mortgage (HECM) which is a type of reverse mortgage insured by the Federal Housing Administration. Over the past decade, there have been dramatic improvements in how these loans are structured to protect borrowers and surviving spouses. It can be a phenomenal financial planning and retirement income tool as researched by well‐respected thought leaders in our profession such as Wade Pfau and Michael Kitces. The HECM is allowing the clients to fully retire right now and enjoy time with their grandkids. They can now step away from jobs that have been extremely stressful for them over the years. Helping them find such a solution to still achieve their goal in this environment has been extremely rewarding!

Nick Defenthaler, CFP®, RICP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® Nick specializes in tax-efficient retirement income and distribution planning for clients and serves as a trusted source for local and national media publications, including WXYZ, PBS, CNBC, MSN Money, Financial Planning Magazine and OnWallStreet.com.

*Guarantees are based on the claims paying ability of the insurance company. Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Be sure to contact a qualified professional regarding your particular situation before making any investment or withdrawal decision. This material is provided for information purposes only and is not a complete description of the securities, markets, or developments referred to in this material. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. This information is not intended as a solicitation or recommendation to buy or sell any security referred to herein. Raymond James Financial Services, Inc. does not provide advice on mortgages.

Markets Flash Fear as COVID-19 Approaches Pandemic Status

Contributed by: Raymond James

U.S. equity indices fell over 3% on continued news of the coronavirus’ spread.

As coronavirus cases continue to escalate in several new regions, like South Korea, Italy, Japan, Iran, Singapore and the United States, Raymond James Healthcare Policy Analyst Chris Meekins believes we are now in the midst of a COVID-19 pandemic. The word itself isn’t intended to cause panic, but rather to prompt increased awareness of the potential economic and health effects of this rapidly spreading virus. Meekins believes the United States now faces a 1 in 3 chance of a widespread outbreak given recent events.

Unfortunately, the illness – thought to have originated in Wuhan, an important Chinese manufacturing hub – has taken its toll on equity markets, causing disruption in several industries, including travel and energy, as well as major supply chains in India and China. Amid the trade war, supply chains generally migrated away from China to places like Vietnam, Thailand and Mexico; however, global supply chains are deep and complex, and disruptions have already led to halts in motor vehicle production in Japan and South Korea, explains Chief Economist Scott Brown. U.S. firms also face a loss of sales to the Chinese market, he notes.

In addition, oil fell on concerns over weakened Chinese demand and the risk of further demand impact outside the Asia-Pacific region. However, Raymond James energy equity research analyst Pavel Molchanov believes oil prices should recover by year’s end, overcoming the virus-related demand headwinds. The current production outage in Libya is also helping to “cancel out” some of the demand headwinds.

While volatility is likely to continue to weigh on certain sectors until the virus is contained, any pullback could be viewed as a potential buying opportunity within favored sectors as the overall fundamental backdrop remains supportive of equities, according to Chief Investment Officer Larry Adam. Opportunities to add fundamentally sound positions to your portfolio may present themselves over the near term. Your advisor will continue to monitor the news for indications of broader impacts and share any developments with you.

It’s hoped that the global response to contain the deadly respiratory disease proves effective soon and that increased public awareness will deter the spread of the virus. To learn more about how to protect yourself and your family, please visit cdc.gov for updates.

Investing involves risk, and investors may incur a profit or a loss. Sector investments are companies engaged in business related to a specific sector. They are subject to fierce competition and their products and services may be subject to rapid obsolescence. There are additional risks associated with investing in an individual sector, including limited diversification. Investing in oil involves special risks, including the potential adverse effects of state and federal regulation, and may not be suitable for all investors. All expressions of opinion reflect the judgment of the Research Department of Raymond James & Associates, Inc., and are subject to change. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. This material is being provided for information purposes only. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation.

Matthew Chope, CFP® Named to Forbes 2020 Best-in-State List

Center for Financial Planning, Inc.® is pleased to announce that Matthew Chope, CFP® has been named to Forbes 2020 list of "Best-in-State" Wealth Advisors in Michigan for the 2nd consecutive year, where he ranked 82nd in the state.

“Matt always puts his clients first,” said Josh Bitel, CFP®, an Associate Financial Planner who works closely with Matt. “Over the course of 30 years in the industry, he’s helped hundreds of clients by genuinely caring about their needs. Matt remains an outstanding example of how to build and maintain relationships through trust and honest work.”

In addition to helping individuals and families with financial planning, Matt also works with local corporations and non-profits on strategic planning and business management decisions. He oversees and manages several local endowments and is a member of the Financial Planning Association of Michigan, The Estate Planning Council of Metro Detroit, and the CFA Society Detroit.

The Forbes ranking of Best-In-State Wealth Advisors, developed by SHOOK Research, is based on an algorithm of qualitative criteria, mostly gained through telephone and in-person due diligence interviews, and quantitative data. Those advisors that are considered have a minimum of seven years of experience, and the algorithm weights factors like revenue trends, assets under management, compliance records, industry experience and those that encompass best practices in their practices and approach to working with clients. Portfolio performance is not a criteria due to varying client objectives and lack of audited data. Out of approximately 32,000 nominations, more than 4,000 advisors received the award. This ranking is not indicative of advisor's future performance, is not an endorsement, and may not be representative of individual clients' experience. Neither Raymond James nor any of its Financial Advisors or RIA firms pay a fee in exchange for this award/rating. Raymond James is not affiliated with Forbes or Shook Research, LLC.

Timothy Wyman, CFP®, JD Named to Forbes 2020 Best-in-State List

Center for Financial Planning, Inc.® is pleased to announce that Timothy Wyman, CFP®, JD has been named to Forbes 2020 list of "Best-in-State" Wealth Advisors in Michigan for the 3rd consecutive year, where he ranked 62nd in the state.

“It’s great to watch Tim in action, both in his roles as a financial planner and as a leader,” said Andrew O’Laughlin, a Client Service Manager.  “The first words that come to mind when I think of Tim are commitment, enthusiasm, decisiveness, fairness, and diligence.  Tim exudes the core values of The Center, taking phenomenal care of the clients we serve, and leading by example for the people who get to work with him every day.”

In addition to working directly with clients and helping them achieve their financial goals, Tim is the firm’s Managing Partner and a member of the Operations Committee. He is a leader in his profession, serving on the National Board of Directors for the 28,000-member Financial Planning Association. Tim is frequently asked to speak on financial planning topics by local and national media outlets.

The Forbes ranking of Best-In-State Wealth Advisors, developed by SHOOK Research, is based on an algorithm of qualitative criteria, mostly gained through telephone and in-person due diligence interviews, and quantitative data. Those advisors that are considered have a minimum of seven years of experience, and the algorithm weights factors like revenue trends, assets under management, compliance records, industry experience and those that encompass best practices in their practices and approach to working with clients. Portfolio performance is not a criteria due to varying client objectives and lack of audited data. Out of approximately 32,000 nominations, more than 4,000 advisors received the award. This ranking is not indicative of advisor's future performance, is not an endorsement, and may not be representative of individual clients' experience. Neither Raymond James nor any of its Financial Advisors or RIA firms pay a fee in exchange for this award/rating. Raymond James is not affiliated with Forbes or Shook Research, LLC.