Giving Tuesday: What It Is and Why It Matters

Contributed by: Kelsey Arvai, CFP®, MBA

Every act of generosity counts, and everyone has something to contribute toward making the world a better place. GivingTuesday was created in 2012 with one mission: to create a day that encourages people to do good. Since then, the movement has become global, inspiring millions of people to give, collaborate, and celebrate generosity. 

The biggest celebration of generosity, GivingTuesday, is celebrated annually on the last Tuesday of November. We welcome you to join the movement this GivingTuesday, every Tuesday, or every day, whether it's time, a donation, or the power of your voice in your local community. 

The Center participates in giving year-round. The Center Charitable Committee facilitates this framework for giving year-round. Our mission is to contribute time and donations to the following three areas – Financial Literacy, Community Needs (Metro Detroit), and Staff Involvement. 

In 2023, our team has donated over 102 hours and $15,020. We love helping others feel great. Below are some philanthropic efforts we have completed or plan to complete this year. Additionally, The Center offers eligible employees up to 2 days off with pay per year for engaging in organized volunteer community projects to facilitate involvement in community activities. The Center also encourages employees to make gifts to charities of their choice; each employee can request The Center to match their donation up to $100 annually. You can visit GivingTuesday.org/participate to learn more about giving time, gratitude, or support to positively affect your community and create a better tomorrow.  

2023 Events

• Capuchin

  • Center Team Members folded and displayed clothing and unloaded food boxes in Detroit.

• Gleaners’ Community Mobile Food Pantry

  • Center Team Members volunteered with Gleaners Mobile Grocery to help local seniors in our community.

• Michigan Council of Economic Education

  • The Center is delighted to co-sponsor the Michigan Council on Economic Education's 2023 Personal Finance Challenge, as it highlights the importance of making smart personal financial choices and career opportunities in the financial planning industry.

• Money Smart Week is a national campaign by the Federal Reserve Bank to encourage good financial decision-making by individuals and communities through free online education. Center for Financial Planning Inc. was excited to co-sponsor the Michigan Council on Economic Education's 2023 Personal Finance Challenge to show our support for the Money Smart Week campaign. High school students from all over Michigan were invited to compete on April 29th. Teams of 3-4 students review a personal finance case study and then provide a presentation of their financial planning advice. The competition occurs before a team of judges in person at the Macomb Intermediate School District. The winning team receives a $250 prize and will advance to a national competition.

• Greening of Detroit

  • Center Team members participated in a tree-planting event with Greening of Detroit by digging holes, planting young trees, and laying mulch. 

• Funding for the Future

  • The Center proudly supported the band Gooding through the nonprofit Funding for the Future. The event involved fun rock music, excited high schoolers, and important lessons in financial literacy. 

• Ferndale Catfé 

  • Center for Financial Planning Inc. supported the Ferndale Catfé for National Pet Month by visiting the Catfe's new location in Ferndale. We spent time in the cat room, learned about their work, and learned more about volunteering and adopting/fostering. 

• Autism Alliance of Michigan Fundraiser Walk

  • Center Team Members walked to support families affected by autism. The event at the Detroit Zoo included an autism resource fair with 50+ vendors, on-stage programming, a united community walk, and arts & crafts.

• Humble Design

  • Center Team Members will work with Humble Design to affect the lives of individuals, families, or veterans emerging from homelessness. Humble Design works to change lives and communities by custom designing and fully furnishing home interiors. 

• ALS Walk

  • Center for Financial Planning Inc. supported the march toward a treatment and, ultimately, a cure for ALS. This disease, in some manner, has affected many of our family and friends. We support the Walk to Defeat ALS and the organization's efforts to provide support groups, access to care, and advocacy. 

• Alzheimer's Walk 

  • Center for Financial Planning Inc. supported the Walk to End Alzheimer's at the Detroit Zoo. This disease, in some manner, has affected many of our family and friends. We support the Alzheimer's Association's efforts to find a cure.

• Impact100 Metro Detroit 

  • Kelsey Arvai, Jaclyn Jackson, and Kali Hassinger are all members of Impact100 Metro Detroit. Members join to award high-impact grants ($100,000) to local organizations in the tri-county area. 

• BrilliantDetroit

  • The Charitable Committee is working with BrilliantDetroit to host a drive this holiday season. BrilliantDetroit is a nonprofit dedicated to building kid success for Detroit families with children 0-8 in high-need neighborhoods to have what they need to be school-ready, healthy, and stable. 

• Baldwin Society

  • Center Team Members will help to assemble Holiday Hope Care Packages for low-income seniors.

• Fleece & Thank You Event

  • Center Team members will get into the Holiday Spirit to make blankets for the Children's Hospital.

Kelsey Arvai, CFP®, MBA is an Associate Financial Planner at Center for Financial Planning, Inc.® She facilitates back office functions for clients.

Raymond James is not affiliated with the above organizations.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Kelsey Arvai, MBA and not necessarily those of Raymond James.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.

Elements of a Roth Conversion

Contributed by: Kelsey Arvai, CFP®, MBA

We’ve just entered Autumn, and the new year is around the corner, making this the ideal time to consider a Roth Individual retirement account (IRA) conversion to save on future taxes. A Roth Conversion is a financial maneuver that allows you to convert funds from a Traditional Individual Retirement Account (IRA) or pre-tax funds into a Roth IRA or future tax-free funds. There are several important considerations and potential tax implications.

Stated another way, a Roth Conversion involves taking some or all the funds from your Traditional IRA and moving them into a Roth IRA.

Tax Impact: Before doing a Roth Conversion, it’s crucial to understand the tax implications. The amount you convert will be added to your taxable income for the year the conversion occurs. In other words, you’ll need to pay income taxes on the converted amount in the year of the conversion. It’s important to consider what tax bracket you are in. You could pay a large upfront federal and state tax bill depending on the conversion size.

Additionally, when your adjusted gross income is boosted, you might pay higher Medicare Part B and Part D premiums or lose eligibility for other tax breaks, depending on your situation.

Future Tax Benefits: The primary benefit of a Roth Conversion is that once the money is in the Roth IRA, future qualified withdrawals (including earnings) are tax-free. Tax-free withdrawals are especially advantageous if you expect your tax rate in retirement to be higher. Typically, a partial or full Roth Conversion is more attractive in lower-earning years because there could be a smaller upfront tax liability. It may be beneficial for you to lock in lower rates now before they sunset in 2026 (the highest federal income tax bracket rate may move from 37% to 39.6% unless there are changes from Congress).

Timing: It’s important to consider your financial situation and whether you have the cash on hand to pay the taxes. If you choose to pay taxes from the converted fund, you may erode the long-term benefits of the conversion. A longer investing timeline is preferred because there’s more time for tax-free growth to offset the upfront cost of the conversion. Remember the five-year rule, which requires investors to wait five years before withdrawing converted balances without incurring a 10% penalty, with the timeline starting on January 1st of the year of the conversion. Without proper planning, you could deplete your savings or trigger an IRS penalty, so working with your Financial Advisor and Tax Advisor is essential. Contact us if you have questions or want to check if this strategy is a good fit!

Kelsey Arvai, CFP®, MBA is an Associate Financial Planner at Center for Financial Planning, Inc.® She facilitates back office functions for clients.

Opinions expressed in the attached article are those of Kelsey Arvai, MBA, CFP®, and are not necessarily those of Raymond James. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc.® Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

The History of Labor Day

Contributed by: Kelsey Arvai, CFP®, MBA

We celebrate Labor Day to recognize the contribution and achievements of American workers. It unofficially marks the end of summer and is traditionally observed on the first Monday in September.

The history of Labor Day is somewhat grim. At the height of the Industrial Revolution, in the late 1800s, the average American worked 12-hour days and seven days a week to scrape together a decent living. To emphasize the dire working and living conditions, children as young as five or six worked in mills, factories, and mines across the country.

Most workers faced unsafe working conditions with insufficient access to fresh air, sanitary facilities, and break time. Because of this, labor unions first appeared in the late 18th century. Workers began organizing strikes and rallies to protest poor conditions and compel employers to renegotiate hours and pay. On September 5, 1882, 10,000 workers took unpaid time off to march from City Hall to Union Square in New York City, holding the first Labor Day parade in US history.

The “workingmen’s holiday” caught on in other industrial cities, and many states passed legislation recognizing it. Congress legalized the holiday 12 years after workers in Chicago went on strike to protest wage cuts and the firing of union representatives.

We can thank our labor leaders for the fact that we get to enjoy weekends off, a 40-hour work week, sick days, and paid time off. Thousands of Americans have marched, protested, and participated in strikes to create fairer, more equitable labor laws and workplaces – and still do today. So kick back, relax, and enjoy your long weekend!

Kelsey Arvai, CFP®, MBA is an Associate Financial Planner at Center for Financial Planning, Inc.® She facilitates back office functions for clients.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Kelsey Arvai, MBA, CFP® and not necessarily those of Raymond James.

Term vs. Permanent Life Insurance

Contributed by: Kelsey Arvai, CFP®, MBA

Life insurance serves a crucial purpose for your family and heirs, as it ensures your beneficiaries will be cared for in the event of death or another tragic event. Finding the right life insurance can seem intimidating. However, the good news is that life insurance starts with two options, term (temporary) or permanent, each with unique benefits and features. 

Term Insurance:

Term life insurance provides affordable coverage that lasts for a period of time and is typically the least expensive insurance you can buy. Most policies are designed for premiums to remain at a level rate for a set number of years, but some premiums may increase annually. If the policyholder passes away when the policy is in force, the death benefit is paid to the beneficiaries of the policyholder, typically in a tax-free lump sum.

Length of Coverage – Common term lengths include an annual renewable term, 10-year-level premium term, 15-year-level-premium term, 20-year-level premium term, and 30-year-level-premium term.

Taxability - Death benefit is tax-free with very few exceptions (business planning and transfer for value rules are pretty much the only exceptions). 

Premiums – Based on a person’s age, health, and life expectancy. 

Cash Value - Term insurance doesn’t build equity, meaning there is no cash value accumulation. Premium pays for the cost of insurance and nothing more.

Option to convert – It may be possible to turn your term life into permanent life insurance without additional evidence of insurability, depending on the insurance company. This is usually only available for a specified amount of time. 

When to consider term life insurance policy?

Term life insurance is ideal for people who would like the maximum amount of life insurance for the lowest cost. Term helps to protect your spouse, your home, and your children. Other common reasons to purchase term life insurance are income replacement, mortgage or debt protection, college funding, funding a buy-sell agreement, and key person protection for a business.

Permanent Insurance:

Permanent life insurance often doesn’t have an expiration date; as long as premiums are paid, most permanent life insurance policies will remain in force as long as the policyholder is alive. Permanent life insurance is more expensive because this policy type typically offers coverage and a cash value.

Universal Life Insurance:

“Permanent Death Benefit” product; underwritten so that the death benefit will be in force until age 90, 95, or 100. The age depends on what product you choose at the onset; many products will have the age the policy will lapse in the product title.

Premiums – Flexible premium payments that may or may not guarantee death benefit and may or may not build a cash value. It’s ideal to slightly over-fund premiums in the early years of the policy to accumulate cash value to help pay the cost of insurance later.

Cash Value – The rate of return on your cash value and any investment options vary depending on the type of Universal Life Policy you buy (guaranteed, indexed, variable, etc.).

Death Benefit Types – Option A or “Level Death Benefit,” meaning when the insured dies, is when the beneficiaries don’t get the cash value and the death benefit; they just get the death benefit. Option B or “Accumulating” cash value, depends on the policy and insurer. When the insured dies, the beneficiaries receive the cash value PLUS the death benefit. 

Other forms of universal life insurance exist; variable universal life forgoes the guaranteed crediting rate that the carrier provides, and instead, the policyholder assumes the risk on their own shoulders. This is done by allocating excess premiums to sub-accounts; in order to come out ahead, the policyholder would need to consistently outperform the crediting rate provided by the insurance carrier. These policies allow you to invest your cash value across a choice of stocks, bonds, and money market funds. 

Whole Life Insurance:

Whole Life offers coverage for the rest of your life and includes a cash value component that lets you tap into it while alive. This is typically the most expensive form of life insurance due to the cash accumulation and having to front-load the insurance cost. Given that many people do not need insurance for their entire lives, it’s crucial to consider if whole life insurance is a good fit for you. 

Death Benefit – Guaranteed Death Benefit with guaranteed premiums and cash values. Underwritten to provide a permanent death benefit and accumulate cash value. Unlike Universal Life Insurance, this policy will be in force regardless of whether the insured dies at 80 or 120.

Premiums – Level premiums guarantee a death benefit when the insured dies. You’ll pay a fixed amount monthly, quarterly, semi-annually, or annually. Single premium, you’ll pay the entire policy cost upfront. Depending on the policy and carrier, you may pay limited or modified premiums. 

Taxability - If a policyholder surrenders a contract for the cash value, they will pay ordinary income tax on the gains above their cost basis. Cost basis is defined as premiums paid minus loans or withdrawals.

There are many flexible options for the dividend or crediting rate. The most common option is to use the dividend to purchase “paid-up additions” to increase the death benefit or cash value over time without medical underwriting or increasing the premium payment. Some policies are non-participating, meaning that you won’t receive any dividends.

When to consider a permanent life insurance policy?

Permanent life policies are an expensive way to buy coverage. Depending on your goals, a different type of life insurance might better fit you. Permanent life insurance might be purchased for the following reasons: legacy planning for family or charity, estate tax planning, asset diversification, retirement income planning, and executive compensation. 

When deciding what’s right for you, it’s important to have your plan tailored to fit your and your family’s individual needs, making it crucial to consult with your financial advisor.

Kelsey Arvai, CFP®, MBA is an Associate Financial Planner at Center for Financial Planning, Inc.® She facilitates back office functions for clients.

Any opinions are those of Kelsey Arvai, MBA, CFP® and not necessarily those of Raymond James. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.

These policies have exclusions and/or limitations. The cost and availability of life insurance depend on factors such as age, health and the type and amount of insurance purchased. There are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition if a policy is surrendered prematurely, there may be surrender charges and income tax implications. Guarantees are based on the claims paying ability of the insurance company. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

Investors should carefully consider the investment objectives, risks, charges, and expenses of variable universal life sub-accounts before investing. The prospectus and summary prospectus contains this and other information about the sub-accounts. The prospectus and summary prospectus is available from your financial advisor and should be read carefully before investing.

Reconsidering Series I Savings Bonds

Contributed by: Kelsey Arvai, CFP®, MBA

In May 2022, I wrote a blog about The Basics of Series I Savings Bonds (I-bonds). At the time of my blog, inflation had been steadily increasing, making I-bonds very attractive for a brief period. With inflation starting to slow, it may be time to review this investment. Here are a few factors to consider when considering I-bonds regarding your individual financial circumstances and investment goals.

Interest rates: I-bonds are affected by changes in interest rates. If interest rates rise, the fixed rate on I bonds may become less competitive than other investment options. For example, if you bought an I-bond between May 2022 and October 2022, you would have received six months of interest at 9.62%. For the next six months (November 2022 to April 2023), you received 6.48% of interest. The new rate for your bond beginning in May 2023 is 4.3%.

The minimum holding period for an I bond is one year; however, if you cash in the bond before a five-year holding period, the previous three months of interest is surrendered. As rates have steadily declined, now is the time to consider if it is time to cash in. Ideally, you would hold the bond for three months past the one-year mark to give up the lowest interest rate, especially if you purchased an I-bond between May 2022 and October 2022. For more information, you can visit Treasury Direct on their website.

As mentioned earlier, the current composite rate of an I bond issued from May 2023 through October 2023 is 4.30%. Other short-term and low-risk investment options, such as CDs and Money Markets, are currently yielding higher returns in the 4% and 5% range. Depending on your goals, the I bond may be less attractive.

Inflation: I bonds were designed to provide protection against inflation. If inflation is expected to remain low or decrease, the variable rate of the I bond may be lower, which could make other investments more attractive. With inflation starting to slow, moving into another investment option is something to consider.

Investment goals: If you need access to your money in the near future or if you have other investment goals that require liquidity, I bonds may not be the best option. Conversely, money market funds are highly liquid near-term instruments intended to offer investors high liquidity with low risk.

Diversification: It is generally a good idea to diversify your investments to minimize risk. If you have a large portion of your portfolio invested in I bonds, you may want to consider diversifying into other asset classes.

It is important to consult with a licensed financial advisor before making any investment decisions. Our Team of CERTIFIED FINANCIAL PLANNERS™ are happy to help; reach out to us at 248-948-7900!

Kelsey Arvai, CFP®, MBA is an Associate Financial Planner at Center for Financial Planning, Inc.® She facilitates back office functions for clients.

The information contained in this letter does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Kelsey Arvai, MBA, CFP® and not necessarily those of Raymond James. Expression of opinion are as of this date and are subject to change without notice. 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, including diversification and asset allocation. Individual investor’s results will vary. Past performance does not guarantee future results. 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.

How to Make the Federal Funds Rate Work for You

Contributed by: Kelsey Arvai, CFP®, MBA

It is worth reviewing how interest rates work and how you might consider adjusting your saving, spending, and investing strategies. Please always consult your CFP® professional regarding your specific situation and what is right for you. The Federal Reserve interest rate (also known as the federal funds rate) is the interest rate at which banks and credit unions borrow from and lend to each other. It is determined by the Federal Reserve System (also known as the Federal Reserve or simply the Fed). The Fed is the central banking system of the United States, and the federal funds rate is one of the key tools for guiding US monetary policy. The federal funds rate impacts everything from annual percentage yields (APYs) you earn on your savings to the rate you pay on credit card balances.

The Fed was first created in 1913 with the enactment of the Federal Reserve Act. A series of financial panics, specifically a severe one in 1907, led to the desire for central control of the monetary system to alleviate financial crises. The Fed is composed of several layers governed by the presidentially-appointed board of governors (known as the Federal Reserve Board or FRB). Historical events such as the Great Depression and the Great Recession have led to the expansion of the roles and responsibilities of the Fed. One of the functions of the Fed is to manage the nation’s money supply through monetary policy. Three key objectives have been established by Congress for monetary policy in the Federal Reserve Act – maximizing employment, stabilizing prices (prevention of inflation or deflation), and moderating long-term rates. The Fed largely implements monetary policy by targeting the federal funds rate – typically by adjusting the rate by 0.25% or 0.5%. The way it works is when you deposit money at a bank or credit union, those deposits provide banks with the capital needed to extend loans and other forms of credit to clients. Banks are required to keep a certain percentage of their total capital in reserve to help guarantee their stability and solvency.

The current federal funds rate is between 4.50% and 4.75% as of early February (part of the effort by the central bank to control inflation and maintain a stable economy). When interest rates are rising, make sure you look for high-yield savings opportunities, pay down credit card debt, and, if you’re looking for a car or home, make sure your interest rate reflects the current rate.

If you have a credit card, the most important strategy to focus on right now is prioritizing paying it off. While changes to interest rates will not affect your current fixed-rate loans, such as your car loan or mortgage, if you carry a balance on a credit card, the rate you owe on that money will continue to rise alongside short-term rates set by the Fed. If you cannot pay down your debt quickly, consider moving your debt over to a balance transfer credit card that could ensure you will pay no interest on your balance for a number of months.

On a positive note, rising interest rates create savings opportunities. Even though interest rates on deposits tend to correlate with the rise of the fed funds rate – you will likely earn next to nothing on your regular savings account, which typically is around 0.01%. If you have accumulated a large amount of cash in the bank above your current cash needs and emergency savings (three to six months of expenses), you might consider looking to a high-yield savings account, a money-market fund, or a one year Treasury bill (T-bill). Rates have increased quite a bit lately; the one year bill is now at 5.07%, and the two year is around 4.65%. Interest on T-bills is not taxable at the state level. Not a significant impact for Michigan residents, but if you live in a high-income state such as California, these become even more attractive. Our team has identified several money markets funds offering yields of around 4.5% (more than you would typically see at the bank).

The Federal Funds Rate is important to understand as the rate changes can impact your wallet. Ultimately, it is your own habits that are the main factor in determining your financial situation. As always, if you have any questions, feel free to contact our Team at The Center; we would be happy to help!

Kelsey Arvai, CFP®, MBA is an Associate Financial Planner at Center for Financial Planning, Inc.® She facilitates back office functions for clients.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of the author and not necessarily those of Raymond James. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete the CFP Board’s initial and ongoing certification requirements.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc.® Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

An investment in a money market fund is neither insured nor guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

Investors should consider the investment objective, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other important information, is available from your Financial Advisor and should be read carefully before investing.

Financial Resolutions to Consider for 2023

Contributed by: Kelsey Arvai, MBA

As the year comes to a close, it is time to start thinking about the New Year and starting it off on the right foot. What better way to accomplish this than by improving your financial health in 2023? January is Financial Wellness Month and Wealth Mentality Month – which serves as a reminder to get our finances in order and plan out our financial strategies. It is also the perfect opportunity to check in with your Financial Advisor to ensure you are financially prepared both in the short and long term.

While planning your financial resolutions, remember to be specific about what you want and why. The key to success is being clear about your priorities and choosing a particular goal. Make sure your goals are attainable, write them down, and post them somewhere where you will be reminded of them often. You can ensure accountability by creating calendar reminders to check in on your goals throughout the year.  

For additional resources on Financial Planning tips going into the New Year, check out Sandy Adams' blog from last year. I have also provided some additional ideas below from a blog I wrote last year:  

Automate Savings & Debt Reduction

Establishing and maintaining a positive cash flow is a top-tier priority for your financial health. Automation is key to efficiency and effectiveness while working towards your financial goals. Prioritizing your savings contribution through automation helps hedge against the temptation to spend the funds elsewhere. Utilizing automatic payments for your credit card could help your credit score if the payment happens before your due date. After establishing an emergency fund through your automated savings, you might consider directing excess cash to your retirement and health savings plans.

Max Out Your 401(k) & Health Savings Account (HSA)

The beginning of the year is a great time to review your 401(k) and HSA contributions to ensure that you are maximizing your benefits and taking advantage of increased deferral limits for 2023. 401(k), 403(b), and most 457 plan limits are now up to $22,500 for elective employee deferral. The catch-up contribution limit for employees aged 50 allows for an additional savings of $7,500. Similarly, HSA contribution limits are up to $3,850 for individuals and $7,750 for family coverage, with an additional $1,000 for employees 55 for older.

It is estimated that couples retiring today will face $200,000-$300,000 of out-of-pocket medical expenses over their retirement years. Since HSAs are not "use-it-or-lose-it" accounts, and they can be spent on any expense without penalty after 65, it is advantageous to fully fund these accounts every year.

Plan for Charitable Giving

Most people wait until December to give, but we recommend not being in such a rush that you wait until the end-of-the-year deadline and lose sight of your charitable goal. The beginning of the year is a great time to develop a plan for your year ahead. Consider reading the following blog posts to help you get started by picking a charity that is fulfilling for you.

How to Pick a Charity…During a Pandemic Part 1: Important Documents

How to Pick a Charity…During a Pandemic Part 2: Commitment to the Mission

How to Pick a Charity…During a Pandemic Part 3: Resources

Invest in Your Emotional and Physical Well-Being

As you take stock of your financial health this year, carving out time for your physical health is equally paramount. There is a connection between health and wealth; each should be analyzed and reviewed professionally, at least annually.

Reach Out to Your Financial Advisor 

Working with your advisor, at least annually, can provide support to keep you on track while determining and working towards financial goals.

On behalf of all of us at The Center, we wish you a happy and healthy 2023!

Kelsey Arvai, MBA is an Associate Financial Planner at Center for Financial Planning, Inc.® She facilitates back office functions for clients.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of the Kelsey Arvai, MBA and not necessarily those of Raymond James. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Center for Financial Planning, Inc. Center for Financial Planning, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services.

Giving Tuesday: What It Is and Why It Matters

Contributed by: Kelsey Arvai, MBA

Every act of generosity counts, and everyone has something to contribute toward making the world a better place. GivingTuesday was created in 2012 with one mission; to start a day encouraging people to do good. Since then, the movement is now global, inspiring hundreds of millions of people to give, collaborate, and celebrate generosity. 

The biggest celebration of generosity, GivingTuesday, is celebrated annually on November 29th. We welcome you to join the movement this GivingTuesday, every Tuesday, or every day - whether it's time, a donation, or the power of your voice in your local community. Check out this video on Three Tax-Savvy Charitable Giving Strategies to learn more.

The Center participates in giving year-round. The Center's Charitable Committee facilitates this framework for giving year-round. Our mission is to contribute time and donations to the following three areas – Financial Literacy, Community Needs (Metro Detroit), and Staff Involvement. 

Below are some of the philanthropic works we have done or plan to do this year. Additionally, The Center offers eligible employees up to two days off with pay per year for engaging in organized volunteer community projects and facilitating involvement in community activities. The Center also encourages employees to make gifts to charities of their choice. Each employee of The Center can request The Center to match their donation up to $100 annually. You can visit Giving Tuesday’s website to learn more about how you can give time, gratitude, or support to positively impact your community and create a better tomorrow.  

Upcoming Events

• Brilliant Detroit – Tuesday, November 1st through TOMORROW, November 30th

• The Charitable Committee is working with BrilliantDetroit to host a toy drive this holiday season! To ensure the success of this drive, we’re doubling down on our efforts. If you donate a toy in the next 48hrs (today, 11/29 or tomorrow 11/30) The Center will make a financial match to your donation! See more details HERE!

• BrilliantDetroit is a nonprofit dedicated to building kid success stories for Detroit families and providing proven, year-round educational programming for students in high-need neighborhoods.

• Baldwin Society – Friday, December 9th

• Center Team Members will help to assemble Holiday Hope Care Packages for low-income seniors.

Past Events

• Gleaners Mobile Grocery - March

  • Jeanette LoPiccolo, Mallory Hunt, Logan Dimitrie, and Tim Wyman volunteered with Gleaners Mobile Grocery to help local seniors in our community.

• Battle of the Brackets – A Center Spinoff Competition - March

  • To celebrate the National Basketball Tournament this year, we set aside our favorite teams and adopted asset classes instead. You may be thinking – that sounds kooky! It is a bit. Our celebration is a mash up of education, some charitable giving, and a bit of friendly competition.

  • Here’s how it works: Our investment portfolios contain mutual funds and ETFs from various asset classes such as U.S. Large Cap Stocks and U.S. Municipal Bonds. The asset classes are our basketball teams. Nick Boguth, our trusted portfolio manager, highlighted 28 different assets classes, then each was selected by a team member and entered into our brackets. The top four winners will receive a donation to their favorite nonprofit organization.

  • To kick off our competition, our amazing team members, Nick Boguth and Jaclyn Jackson led a presentation explaining which asset classes hold the largest concentration of investment dollars and how The Center’s investment team builds client portfolios. Each team member then selected their best guess to “win”. It was a volatile few weeks! Our lucky winners included Sarah McDonell (Real Estate), Matt Chope (Global Macro), Emily Moore (Municipal Bonds), and Raya Chope (U.S. Momentum Stocks). Center for Financial Planning is donating $1,000 total to help support 4 nonprofits of their choosing. Go team!

• Greening of Detroit - April

  • Jeanette LoPiccolo, Gerri Harmer, Logan Dimitrie, and Bob Ingram participated in a tree planting event with Greening of Detroit.

•  Michigan Council of Economic Education - April

  • The Center is delighted to co-sponsor the Michigan Council on Economic Education’s 2022 Personal Finance Challenge as it highlights the importance of making smart personal financial choices and the career opportunities in the financial planning industry.

• Money Smart Week is a national campaign by the Federal Reserve Bank to encourage good financial decision making by individuals and communities through free online education. To show our support for the Money Smart Week campaign, Center for Financial Planning Inc. is excited to co-sponsor the Michigan Council on Economic Education’s 2022 Personal Finance Challenge. High school students from all over the state of Michigan are invited to compete on April 29th. Teams of 3-4 students review a personal finance case study, then provide a presentation of their financial planning advice. The competition occurs before team of judges in-person at the Macomb Intermediate School District on April 29th. The winning team receives a $250 prize and will advance to a national competition.

• Miles for Money – September

  • Center Team Members logged their miles so that a nonprofit of their choice would receive money; a healthy WIN-WIN. For each one mile walked, biked, ran, jogged, etc. The Center donated $2 up to $100 or 50 miles for the month of September.

• Humble Design – October

• Center Team Members work with Humble Design to impact the lives of individuals, families, or veterans emerging from homelessness. Humble Design works to change lives and communities by custom designing and fully furnishing home interior.

Kelsey Arvai, MBA is an Associate Financial Planner at Center for Financial Planning, Inc.® She facilitates back office functions for clients.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Kelsey Arvai, MBA and not necessarily those of Raymond James.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.

The History of Labor Day

Contributed by: Kelsey Arvai, MBA

We celebrate Labor Day to recognize the contribution and achievements of American workers. It unofficially marks the end of summer and is traditionally observed on the first Monday in September.

The history of Labor Day is somewhat grim. At the height of the Industrial Revolution, in the late 1800s, the average American worked 12-hour days and seven days a week to scrape together a decent living. To emphasize the dire working and living conditions, children as young as five or six worked in mills, factories, and mines across the country.

Most workers faced unsafe working conditions with insufficient access to fresh air, sanitary facilities, and break time. Because of this, labor unions first appeared in the late 18th century. Workers began organizing strikes and rallies to protest poor conditions and compel employers to renegotiate hours and pay. On September 5, 1882, 10,000 workers took unpaid time off to march from City Hall to Union Square in New York City, holding the first Labor Day parade in US history.

The “workingmen’s holiday” caught on in other industrial cities, and many states passed legislation recognizing it. Congress legalized the holiday 12 years after workers in Chicago went on strike to protest wage cuts and the firing of union representatives.

We can thank our labor leaders for the fact that we get to enjoy weekends off, a 40-hour work week, sick days, and paid time off. Thousands of Americans have marched, protested, and participated in strikes to create fairer, more equitable labor laws and workplaces – and still do today. So kick back, relax, and enjoy your long weekend!

Kelsey Arvai, MBA is an Associate Financial Planner at Center for Financial Planning, Inc.® She facilitates back office functions for clients.

The Basics of Series I Savings Bonds

Contributed by: Kelsey Arvai, MBA

Inflation has been steadily increasing, making Series I savings bonds (I bond), which are investments linked to inflation rates, a very attractive investment. I want to share some key points that will help you determine if it makes sense to consider adding them to your portfolio. 

I bonds are backed by the US Government and offered via Treasury Direct. I bonds earn interest based on both a fixed rate (0.0%) and a rate set twice a year based on inflation. The bonds earn interest until it reaches maturity at 30 years, or you cash it in, whichever comes first. 

Through October 2022, I bonds are earning an interest rate of 9.62%. Meaning that during the first six months that you own the bond, let's say from May 2022 through October 2022, your bond would earn interest at an annual rate of 9.62%. A new rate will be announced every six months based on your bond's fixed interest rate (0.00%) and inflation. The inflation rate is based on changes in the non-seasonally adjusted Consumer Price Index for all Urban Consumers (CPI-U) for all items, including food and energy.

I bonds are attractive but have many limitations and require a fair amount of legwork to acquire. The most significant restriction is that you can only buy $10,000 per year per person. You could also purchase $5,000 in a paper bond with your tax return if you're entitled to a return from the Federal government (although it's too late now unless you've filed an extension). 

To get started on purchasing an electronic I bond, you'd have to open an account with Treasury Direct online. Here is the website for more information.

There are some restrictions on who can own an I bond. You must have a Social Security Number and be a US citizen (whether you live in the US or abroad). You could also be a US resident or a civilian employee of the US, no matter where you live. Children under 18 are eligible for paper bonds as long as an adult buys the bonds in the child's name. Electronic bonds are available as long as a parent or other adult custodian opens a Treasury Direct Account that's linked to the adult's Treasury Direct account. If you'd like to see more about how to purchase a bond as a gift, you can watch a video here.

A few final notes to add, interest is compounded semi-annually. The bond's interest earned in the six previous months is added to the bond's principal value, creating a new principal value. Interest is then earned on the new principal. Rates can go up and down, but you must hold the bond for a minimum of one year, and if you cash out between the end of year one and year five, you could lose your prior three months of interest as a penalty. If inflation subsides, you could be staring at minimal interest rates. Zero is the lowest that the rate would go, so if we entered a period of deflation, there wouldn't be a negative interest rate. As always, consult your financial advisor before making any changes to your current portfolio.

Kelsey Arvai, MBA is an Associate Financial Planner at Center for Financial Planning, Inc.® She facilitates back office functions for clients.

The information contained in this letter does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Kelsey Arvai, MBA, and not necessarily those of Raymond James. Expression of opinion are as of this date and are subject to change without notice. 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, including diversification and asset allocation. Individual investor’s results will vary. Past performance does not guarantee future results. 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.