The Magazine for Smart Investing and Better Living - Trust Point

KEYS TO BETTER

COLLEGE SAVING

MEET YOUR TRAVEL

GOALS IN RETIREMENT

HOW TO MAKE YOUR

MONEY LAST

The Magazine for Smart Investing and Better Living

Working for You

TA ILOR ED CLIENT

ENGAGEMENT

SPECIA LIZED

EXPERTISE

ACCOUNTA BILITY

& ATTENTION

1T R U S T P O I N T I N C . C O M

elcome to the third

issue of Trust Point

Magazine. This pub-

lication is dedicated

to our clients, friends,

and individuals inter-

ested in the world of

finance, and anyone who

would like to learn more about Trust Point.

For those who might not know us, Trust

Point is an independent trust and invest-

ment management firm that provides a

full range of financial and advisory ser-

vices. We are uniquely positioned to offer

the highest level of sophistication and

professional expertise with genuine per-

sonalized service.

Trust Point’s exceptional staff—locat-

ed in La Crosse, Minneapolis, and a new

office in Eau Claire—is committed to

delivering service that demonstrates the

highest standards of integrity, objectivity,

and responsiveness. This magazine deliv-

ers valuable, educational financial content

from their perspective.

These articles represent the situations

we encounter each day, and showcase our

team’s expertise. From managing finances

in marriage (page 16) to making money last

in retirement (page 24), socially responsi-

ble investing (page 34) to building a travel

budget (page 46), we hope this publication

helps guide your financial journey. We also

hope it leaves you inspired, and reaffirms

your trust in us.

Since our founding a century ago, we

have operated by a simple philosophy: In

doing what is best for our clients, we will be

doing what is best for Trust Point.

This belief is embedded in our structure

and our business practices. From the Board

of Directors (pictured on this page) to each

employee at Trust Point, our goal is to do

what is in the best interest of our clients.

Wherever your journey takes you,

you can be certain that Trust Point

will be there as your trusted finan-

cial partner (and advocate) to ensure

your wishes are met both now and for

generations to come.

We hope you enjoy reading Trust Point

Magazine. We also invite you to visit our

website, trustpointinc.com for even more

of our research and insights. Thank you for

your continued trust and confidence in us.

Regards,

Kent C. Handel

President and CEO

From left, Trust Point board members Clara Gelatt, Mark Glendenning, Kent Handel, Daniel Gelatt, Janet Hess, Duane Ring Jr., Steven Heuslein, Matthew Binsfeld and John McHugh.

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4 // BUILDING A BRIGHTER FUTUREGuiding future generations and engaging communities

10 // RETIREMENT PLANNING YOU CAN TRUST As fiduciaries, Trust Point works in your best interest

14 // TRANSITIONING FAMILY WEALTHMolding good stewards of family wealth

16 // MARRIAGE AND MONEYHow to keep money troubles from ruining marital bliss

22 // SAVING FOR COLLEGEHow to expand family savings for future students

24 // MAKING MONEY LASTMaking the most of your nest egg in retirement

38 // BUYING A SECOND HOMEConsiderations for making your second property a smart investment

42 // SOUTH FOR THE WINTERFinancial considerations for a snowbird lifestyle

46 // DREAM. PLAN. TRAVEL!Building a budget to achieve your travel dreams in retirement

48 // RIDING OUT THE WAVESWhy it pays to avoid emotional investing after geopolitical events

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PUBLISHING PARTNER

TOUCHPOINT MEDIA INC., TOUCHPOINTMEDIA.COM505 N. Hwy 169, Suite 100, Minneapolis, MN 55441, PHONE: (763) 595-0808, E-MAIL: [email protected]

VP, MARKETING & CLIENT STRATEGY

Jessica DischSENIOR EDITOR

Jake WeyerASSOCIATE EDITOR

Tom SellwoodCREATIVE DIRECTOR

Rob JohnsonART DIRECTOR

Mike DeArmondSENIOR DESIGNER

Brandon Favre

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1628 // TAX INCENTIVES FOR CHARITABLE GIVINGTechniques to provide tax benefits from your donations

30 // INDEPENDENCE FOR SPECIAL NEEDS FAMILIES Helping disabled individuals and their families overcome financial barriers

34 // REDEFINING ‘GOOD’ INVESTMENTSAligning financial decisions with social or environmental causes


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The work of Trust Point volunteers has clearly left traces of positive impact in the lives of our students.”—Sandy Brauer, principal at North Woods International School

“


Building a Brighter Future School partnership promotes education, plus social and emotional well-being for students // by Jake Weyer

From left, Trust Point tutors Hilary Whitaker, Lydia Danielson and Nicole Vogel, with students at North Woods International School in La Crosse. Trust Point has worked with the school since 2018 to provide mentorship, friendship and support to students in need.

As any employee at Trust Point will tell you, community involve-

ment is at the core of the company’s culture.

From a riverfront restoration project to food drives to vol-

unteering at and sponsoring local events, the team is always

engaged in projects beyond financial management. One effort that has made

a significant impact during the last couple of years is a partnership with

North Woods International School in La Crosse.

The goal of the TRACES program, as it was named, is to use Trust Point

(TR) staff involvement to counteract adverse childhood experiences (ACES).

Since its launch in early 2018, the program has provided mentorship,

friendship, and support to children in kindergarten through fifth grade that

teachers have identified as being in need of additional guidance and resources.

“When you get hired at Trust Point,

one of the things that is made evident

right away is that it is good to give back

to the community that you do business

in,” says Andrew Steger, a CFP® pro-

fessional at Trust Point who helped

establish the school partnership.

“Providing our time and talents to give

back to the teachers and children at

North Woods made us realize how this

can lead to a very impactful change in

our community.”

CLOSING GAPSNorth Woods, one of the area schools

considered for the TRACES project,

ultimately accepted the partnership

after district officials and represen-

tatives from all schools agreed it was

the best fit. Nearly half of the students

there qualify for free or reduced meals

and many face barriers in their lives

because of family crisis, whether related

to finances, issues surrounding parental

health, incarceration, or addiction, or a

range of other challenges.

“The ones who have been identified

for the program are the ones who have

gaps between where they need to be

and where they are,” says

Sandy Brauer, principal

at North Woods Interna-

tional. “And our goal is to

close those gaps—to pro-

vide additional opportuni-

ties for students who are marginalized

for whatever reason. The goal is to

increase equity.”

Roughly 20 students par-

ticipate in TRACES, meet-

ing with a rotation of Trust

Point staff every Tuesday

and Thursday during hour-

long timeslots between 8

a.m. and 3 p.m. Teachers select activities

based on individual needs and to rein-

force class curriculum. Sessions range

Building a Brighter Future

Students at North Woods International

School meet with Trust Point staff twice a week

to work on a variety of teacher-specified

coursework.

6 T R U S T P O I N T

continued on pg.8

TRUST POINT further enhanced its community engagement efforts with the introduction of the Trust Point Young Profes-sionals (TPYP) group in 2018.

The program helps to instill the company’s culture in its newest and less experienced team members (all under age 35), utilizing peer mentorship, community networking

and meaningful service projects to develop participants into future leaders. The group has already made itself known in the community through efforts including packing meals at Feed My Starving Children in Eagan and volunteering at The Community Table in Eau Claire.

Hilary Whitaker, a marketing assistant at Trust Point and participant in TPYP, says the 22

LEARN. LEAD. SERVE.TRUST POINT’S YOUNG PROFESSIONALS GROUP MAKES COMMUNITY ENGAGEMENT A PRIORITY

“ Our goal is to close those gaps—to provide additional opportunities for students who are marginalized for whatever reason.”—Sandy Brauer, principal at North Woods International School

Building a Brighter Future

from playing word games to review-

ing books to working on math skills or

helping with homework assignments.

“We definitely found it extreme-

ly valuable for our kids,” says Sara

Depaolo, a Title 1 teacher and Inter-

national Baccalaureate coordinator

at North Woods International. “We

have many students with needs—

needs for a mentor, an adult who cares

about them.”

Trust Point also donated funds to

help the school with its International

Baccalaureate curriculum, providing

books and materials for each class-

room, and training for teachers. The

International Baccalaureate program

is aimed at helping students become

responsible, productive,

and compassionate glob-

al citizens.

“Without Trust Point

it would be incredibly

difficult to move forward

with our baccalaureate

curriculum and I hear all

the time from teachers

and students how valu-

able those books are,”

Brauer says.

participants are learning to be stew-ards of Trust Point’s history and mis-sion, while simultaneously developing important relationships in the com-munity. It’s important, Whitaker says, for community members to know that Trust Point is planning long-term, just as it does for its clients.

“We’re hoping to build our brand and the newer people coming in hopefully get insight into what Trust Point is, how it got its start and how to keep it going into the future,” she says.

Kelleen Nolan, an administrative as-sistant and another member of TPYP, says after jumping around from job to job for years, Trust Point’s investment in her professional growth has changed her career outlook. She isn’t just learn-ing to improve in her current role—she is also discovering how to reach future goals within the company.

“To come here and have the young professionals group, to have people actively teaching you your job and the next job that you want, it’s something that’s very special.”

Whitaker agrees, noting that after a little more than a year with the com-pany, she views Trust Point and the community it serves as a place to work and grow for many years to come.

“It’s really nice to go somewhere where you know you can grow and they actually invest in you and they want you to succeed,” she says. “It feels like family. That may sound cliché but it’s true.”


LEARN, LEAD, SERVE continued from pg.6

BEYOND EDUCATIONThough helping students with their

education is an important part of Trust

Point’s efforts, just as much attention is

paid to social needs.

Hilary Whitaker, a marketing assistant

at Trust Point, has helped students with

reading, but notes that much more time

is spent developing relationships.

“A lot of times, more often than not, I

think the kids really just want someone

to talk to,” Whitaker says. “These are

kids that are not in the best situations in

life, so it’s nice to have that one-on-one

attention with them.”

Brauer says she can see the emotional

impact in the hugs, giggles and excite-

ment of the students. Other TRACES

initiatives have included a movie day (in

a theater for older students, in school for

younger children), planting and prepar-

ing the International Garden in front of

the school, and contributing weekly to

food and clothing bags for children who

need them.

TRACES has proven so successful that

the La Crosse Public Education Founda-

tion has used it as a model to create an

Adopt-a-School program, so other area

businesses can help students in a sim-

ilar way. For its part, Trust Point plans

to continue its relationship with North

Woods International, which Brauer wel-

comes wholeheartedly.

“This provides an opportunity again

for us to grow these relationships,” Brau-

er says. “We know that the best thing

to do for children in trauma is to form

those really strong relationships with a

caring adult who is consistent and who

cares about them unconditionally and

loves them for who they are, and that

has a huge impact.”

HELPING OUT APTIV (MAY)Spruced up the courtyard at the Aptiv Foundation, which generates charitable gifts for infrastructure and services provided to people with disabilities.

WALK A MILE IN HER SHOES (MAY)Proudly sponsored Walk a Mile in Her Shoes in Anoka, part of an international men’s march (in heels) to stop rape, sexual assault, and gender violence.

SOUNDS LIKE SUMMER CONCERT (JUNE)Sponsored Volume One’s Sounds Like Summer Concert Series at Phoenix Park in Eau Claire, where local bands play each Thursday from June through August.

A GRAND EVENING ON THE BRIDGE (AUGUST)Sponsored this community event in Eau Claire, which provided the opportunity to enjoy an evening of dining and socializing on the Grand Avenue Footbridge, with food and beverages from local establishments.

THE COMMUNITY TABLE (SEPTEMBER)Volunteered on various projects to help nonprofit meal provider The Community Table in Eau Claire prepare for its 25th anniversary celebration.

FEED MY STARVING CHILDREN (DECEMBER)Volunteered at nonprofit Feed My Starving Children in Eagan, packing 152 boxes, or 32,832 meals, for children in need.

ADOPT-A-STUDENT (DECEMBER)Purchased holiday gifts for students at Trust Point’s adopted school, North Woods International in La Crosse.

Providing books and materials for North Woods’ International Baccalaureate program has helped further a curriculum aimed at helping students become responsible, productive, and compassionate global citizens.


COMMITTED TO COMMUNITY

Active participation in charities and community organizations is the norm for the Trust Point team, with employees volunteering their time in a total of roughly 90 nonprofit organizations.

Jason Munz, vice president at Trust Point’s Eau Claire office, for example, is involved with Big Brothers Big Sisters of Northwestern Wisconsin, the Children’s Museum of Eau Claire, the North Barstow/Medical Business Improvement District, and the Rotary Club of Eau Claire.

“A healthy community is a healthy business,” Munz says. “So we benefit as much from our support to the community as they do from our support.

“And I think when employees are involved in an organization that they realize has a bigger-picture mentality, then you’re going to have more productive, happier employees, and you’re going to have happier clients.”

Trust Point is also regularly involved in community initiatives throughout the year. Here’s a look at some of the ways employees gave back in the last year:


WE WERE ALWAYS

COMFORTABLE WITH

THE IDEA THAT THEY

WERE LOOKING

OUT FOR OUR

BEST INTEREST.”

– MIKE DAVY,

PRESIDENT, DAVY

ENGINEERING

Retirement Planning You Can Trust From large companies to individual plans, Trust Point’s retirement plan services team works in the best interest of its clients

Davy Engineering has been trusted since 1929 to

find solutions to complex infrastructure prob-

lems in La Crosse and the surrounding region.

The engineering consulting company does

everything from street and highway design to

water system planning to industrial develop-

ment. Founded by company president Mike Davy’s grandfather,

Davy Engineering (and its Davy Laboratories branch) is still a

family-run corporation, but it has grown from a handful of people

to roughly 50 full-time engineers, biologists and chemists.

To handle the profit sharing and retirement plans for those

employees, Davy Engineering has—for more than 60 years—

placed its trust in another local institution: Trust Point.

“That means that the staff that we’ve worked with are profes-

sional, they’re knowledgeable, and we do think that they’ve always

had the attitude that—before it was a buzzword—they understood

what a fiduciary responsibility was,” Davy says. “And we were

always comfortable with the idea that they were looking out for

our best interest rather than trying to generate fees.”

Competition for retirement planning services is fierce—Davy

knows it as he’s fielded calls from many other providers and met

with some to compare plans. But he’s always felt confident in

Trust Point for his company, and his own personal plan.

From single plans to businesses like Davy’s to companies of

more than 600 employees, Trust Point offers retirement solutions

built on real relationships and the best interests of clients.

CoreValues

by Jake Weyer


A COMPLETE SOLUTIONMichele Seidel is a compliance special-

ist at Trust Point, a part of the retire-

ment plan services team, and an expert

in 401(k) administration.

Trust Point provides what Seidel calls

an “all-inclusive solution” for 401(k)

plan sponsors (the people making the

decisions) or employers, helping them

with their investments, plan docu-

ments, record keeping, and everything

else associated with a plan. Other insti-

tutions commonly send clients to third

parties for various services, producing

numerous contacts and limiting rela-

tionship development.

“We are the all-encompassing solu-

tion for them,” Seidel says.

Typically when approached about

managing a 401(k) plan, Trust Point

will meet with the business or individ-

ual to first learn all of the background.

If someone is looking for a new plan,

what are the drawbacks with their cur-

rent provider? Will a new plan be cost

effective? Is there a better solution?

The Trust Point team then drafts a

proposal that walks through every ser-

vice provided in the bundle and how

each will be implemented. Each plan

has a designated relationship manag-

er as the primary contact, though the

whole retirement plan services team

is accessible so there’s always someone

available to answer questions.

Education is encouraged and pro-

vided at least annually for all plan par-

ticipants and one-on-one guidance is

always available, and often utilized.

For example, Seidel worked with

one business that had a terminally ill

employee who was unable to work for

his company, but his employer kept

him on so he could receive insurance

for medical bills. Unable to withdraw

money from his 401(k) because he

was technically still employed, Seidel

worked with him to set up a loan that

allowed him to borrow money from

his account.

“They appreciated the fact that we

treated him like family, much like they

do with their employees,” Seidel says.

“It was that extra step that they appreci-

ated. That he wasn’t just a number. That

he was a person facing this situation.”

LOOKING OUT FOR CLIENTSTreating clients like family isn’t just a

saying at Trust Point. As a fiduciary, the

company is ethically and legally obli-

gated to operate in a client’s best inter-

est. The company is also considered

a discretionary trustee, which means


CoreValues

it takes on as much liability with plan

sponsors as it can.

“So if we’re taking on a lot of liability,

we’re going to be very careful in what we

do to make sure we’re compliant with

everything that’s depicted in the law.”

Trust Point’s staff also takes pride

in serving clients, working under the

motto that doing what is best for clients

is doing what is best for the company.

“One of the things I love about this job

is the interaction,” says Beth Erickson,

a relationship manager at Trust Point

and manager of the Davy Engineering

account. “You get to talk to everyone

from maybe a factory worker to a CEO

and all levels in between and establish

relationships with them.”

It’s not unusual for Erickson to be

on the road for days at a time to be able

to meet face-to-face with area clients,

answer their questions, and provide the

guidance they’re looking for. Davy is in

touch with Erickson quarterly about

his business’s 401(k) and profit shar-

ing programs and knows his employees

have developed their own relationships.

“I’ve always been convinced that we

have a good relationship,” Davy says.

“That we have good service, we have

a good plan, fair fees, and we’ve never

found a need to change.”

Retirement Planning You Can Trust

Founded by Mike Davy’s grandfather in 1929, Davy Engineering today employs 50 full-time engineers, biologists and chemists. For decades, the company has relied on Trust Point to manage its retirement and profit sharing programs.

While working with clients of all sizes on 401(k) plans, Trust Point’s Michele Seidel and Beth Erickson have helped par-ticipants overcome a variety of common challenges. Here are a couple tips for anyone saving for retirement:

MAXIMIZE SAVINGS“Probably one of the biggest factors facing people right now is not being able to save enough,” Erickson says. “We aren’t on track as a nation with our retirement accounts and financial wellness scores arenot very good.”

Contributing to a 401(k) is good, but participants should talk to their financial advisor about how to maximize their contributions to ensure they have enough income to retire when they want and live comfortably.

STAY EDUCATED “Some of the struggles that we sometimes run into are when the market is up, we don’t get a lot of inquiries from plan participants,” Seidel says. “But when the market is down, we might get a lot.”

Interest in education tends to fall off during good financial times, she says, but participants should make an effort to maintain their financial education so they are prepared when times get tough. That goes for plan sponsors and employers as well.

“We put the 401(k) in place for a reason,” she says. “It’s important to utilize the sources that can help you and your employees get the most out of it.”

INVESTMENT ADVICE


Michele SeidelMBA, CRSP, Compliance Specialist Beth Erickson

Relationship Manager

CoreValues


Transitioning Family Wealth

How many times have we been told

the key to success is a good educa-

tion? Usually it was a discussion

with our parents or grandparents

telling us that it is both the journey

and the success of learning that will

get us where we want to go. The same message holds

true for families of wealth and their succession plan-

ning with the next generation.

When communicating your plan, it is important to

include education, whether formal or experiential,

to help prepare the next generation to support them-

selves and become good stewards of family wealth and

often the business that generated it. Many families

may have thought about education, but are not sure

where and when to start the process. Here are some

simple steps to follow:

HAVE A FAMILY MEETINGJust as you would plan a vacation, it is important to

begin early and communicate plans for your wealth

and share your values as well as your story with the

next generation.

Your estate plan might be your first step and that plan

will help you direct your education program. When

wealth is generated by an existing business, primary

questions include whether the business will continue

and will the next generation be involved either in the

day-to-day management or at a board or ownership

level. These decisions can be difficult if the current

owner(s) have always been involved in daily operations

and might not yet have a plan for when ownership will

transfer to the next generation.

Once a plan is established, organize a family meeting

with your advisors to communicate your individual

plan to your family.

GET TO KNOW YOUR SUCCESSORSNext there is a need to engage the younger generation

in the succession plan and ensure an appropriate

understanding of the family business—if continuing—

or of the related wealth.

Family members might have shared concerns

about the ability of the next generation to manage the

wealth. While the current generation has knowledge

of its children and grandchildren, it can be difficult

to see them as adults and be objective about their

preparedness. This is where family meetings and

advisors can offer assistance.

When families begin to consider whether the next

generation will act on a family board or work in the

business, the process can begin with a simple assess-

ment using a formal personality test. The most com-

mon is the Myers-Briggs Type Indicator (MBTI), and

another option used more in business and profession-

al development is the CliftonStrengths assessment.

These and similar tests help a family identify and

understand an individual’s strengths, tendencies and

readiness for future responsibilities.

Engaging family advisors to communicate topics

and subject matter with the next generation creates

another opportunity to determine abilities.

DEVELOP AN EDUCATION PLANIn some cases, a more developed curriculum for the

next generation is appropriate, as there might be a

larger group that needs to work together as a board

to develop its understanding of the business or

family philanthropy.

The education program can have individual

elements with one-on-one learning like the

basics of investing and personal finance, or group

sessions on the role of family philanthropy, and

responsibilities of trustees and beneficiaries. All

education should incorporate group discussions

and activities supporting communication and deci-

sion making.

Successful families should also incorporate fun

events with multi-generational sharing and learning

as part of the education program, as those times will

build relationships and develop lasting memories.

An education program for families with generational

wealth is as much about the business and finance as

it is about family values and heritage.


Developing future generations as good stewards of family business and wealth

by Christine Schmidt CFP®, Vice President, Family Office

ven the most blissful couples aren’t immune to mar-

ital challenges, and at the top of the list for many is

managing money. After marriage, financial habits that once only affect-

ed an individual suddenly impact the lives of two people and more if

children enter the picture. How money is spent, how it’s saved, financial

priorities—these things can vary widely from person to person and aren’t

always discussed before vows are exchanged.

And sometimes even the wealthiest couples can’t avoid these conflicts. In

fact, more money often leads to more marital problems. But money struggles

don’t have to be a deal-breaker in the relationship.

Communication is key for overcoming most financial woes and spouses need to

work together to develop a long-term financial plan that both can agree on. Whether

you’re about to be married or have already walked down the aisle, here are some key

considerations for that important discussion.


Finances are a common cause of frustration for couples, but there are ways to keep money from making a mess of your marriage

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by Regina SiegelAssistant Vice President

Marriage


arriage


Money Management Financial control can be one of the stickiest subjects that a married couple

will face. There are many ways a couple can manage its finances, and there

is no right or wrong answer, but it’s imperative that both individuals agree

on their level of involvement. Consider the following questions:

• Will you have joint checking and savings accounts, separate

accounts, or both?

• How will you set your budget, and where will the money

come from?

• Who will be in charge of watching your budget and making sure

you’re staying within your plan?

• Who makes the investment decisions?

Where you land on all of these questions will depend on each person’s

comfort with that part of the finances. Some people want to have complete

control and visibility for every cent that comes in and out, and some people

would prefer to have nothing to do with it.

Make sure that you have a conversation about each of the questions above, and

that you know who will be in charge of what. Poor communication, especially

about finances, can put a lot of strain on an otherwise successful marriage.

Existing Loans and DebtsThe existing debts and loans that you each owe are one of the most import-

ant aspects to consider before marriage. Most people of typical marrying

age and some that are marrying later in life will likely have one or several

of the following kinds of debt: student loans, car loans, personal loans, and

credit card debt.

Most debt belongs to the individual who originally borrowed it unless you

have a co-signer. However, while you may not legally be “on the hook” for

your partner’s debts, once you become married, each of your loan responsi-

bilities will impact your joint household, which affects you both.

Make sure that you have an open and transparent conversation about all

forms of debts in each other’s name, and what the plan is to repay it on time.

Your debt-to-income ratio as a couple could play a significant role in getting a

mortgage or other type of loan and especially in getting the best interest rates.

Family SupportThe biggest discussion in this area is proba-

bly whether to have children. Though many

factors go into that decision, from a purely

financial perspective it can cost upwards of

$300,000 to raise a child to the age of 18.

Beyond children, couples might need to

support other family members in one way or

another. Regardless, have a plan and commu-

nicate about it often. Be open and honest with

one another and be sure to listen to your part-

ner to understand their perspective.

Whether you have children or not, you

should probably discuss tax and estate plan-

ning with a financial professional to make

sure you are on the right track and can accom-

plish all of your goals.

“MORE MONEY OFTEN LEADS TO MORE MARITAL PROBLEMS. BUT MONEY

STRUGGLES DON’T HAVE TO BE A DEAL-BREAKER IN THE RELATIONSHIP.”

Marriage


Reaching Long-Term GoalsMarriage is fundamentally a partnership between

you and your significant other. To make it a suc-

cessful partnership, you need to make sure that

the two of you are on the same page regarding your

financial goals.

Are you both individually and collectively on

track to retire comfortably? If not, how will you

plan to get back on track? We’ve already discussed

debt, but it should be a primary goal to make debt

payments manageable and have a good plan toward

paying it off.

As you begin to build wealth, you should also con-

sider what your long-term plans are for investing

that money. Create common goals and determine

what kind of investment will not only get you there

but also one where you are both comfortable with

the risk level. It’s important you and your partner

agree on the direction you’re working toward.

Mine, Yours, Ours

Power Play

Though it might seem beneficial to evenly divide bills and allocate the extra money for spending to each spouse, it can actually build resentment over individual spending. It also doesn’t teach you to work together and diminishes the spending power you have as a couple.

Using money to get your way in a marriage will only lead to major conflict. This usually occurs when one spouse makes significantly more income than the other, comes from a wealthy family, or when one is temporarily unemployed. Regardless, one spouse dictating how money is spent can be a recipe for disaster. Reaching a mutual understanding is key.


Prenuptial AgreementWe saved the most awkward topic for last. While in

the moment it seems as though your relationship

will last forever, the stark reality is that somewhere

between 40 percent and 50 percent of marriages in

the U.S. end in divorce, according to the American

Psychological Association.

Without an agreement in place to dictate how assets

are to be defined and divided, a breakup can lead to

significant legal disputes around your current and

future finances. Especially in cases where one indi-

vidual is bringing significant financial assets to the

table, it might make sense to put a prenuptial agree-

ment in place to ensure that there is a fair financial

settlement in the event that the relationship doesn’t

work out in the long run. If you’re afraid to have this

conversation when things are going well, think about

how difficult it will be if things are going poorly.

Here to HelpGetting married is a significant life event that should

bring joy, comfort and happiness. But it also brings

with it a host of financial decisions that are import-

ant to consider. Take heed, use these tips, and money

matters won’t have to come between you and your

happily ever after.

And remember, Trust Point can help. Whatever

stage of life you are in, we take the time to listen to

your values and customize a plan that is just right

for you. For more on topics like this, please visit our

research and insights page at trustpointinc.com.

When the Marriage Ends

Going through a divorce or losing a spouse is never easy. The process can be messy, stressful, and frustrating.

After things have settled and you start getting back into a routine, you still have to deal with handling your finances on your own. Historically, this challenge more commonly affects women. According to a report from global wealth management firm UBS, women are living longer than their husbands, yet 56 percent of women leave financial and investing decisions to their husbands. And regardless of the circumstances, eight out of every 10 women will eventually be solely responsible for handling their own finances.

At Trust Point, we work alongside you to help you make the right financial and investing decisions and to make sure we continue to meet your financial objectives and feel secure in your future. Here are our top tips if you find yourself in sole control of your finances, maybe for the first time:

Get started right away, but wait to make big decisions.It’s natural to be stressed out at the thought of trying to manage your day-to-day life after a significant life event. The key to staying in control is being assertive and confident when it comes to managing your finances. To do this, take an inventory of your assets and know what your cash flow needs are so that you have a better understanding of your situation. You may feel pressured and rushed to start making financial decisions. Slow down. Take your time. When it comes to these decisions, the best practice is to think through all of them.

Find a trusted financial advocate.One way to alleviate the pressure you feel is to recognize that this isn’t something you need to go through on your own. Don’t try and get through it solely off of advice from friends and family.

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Trust Point advisors are experts when it comes to situations like this. There are a lot of details that are easy to overlook when it comes to getting your finances in order after a marriage ends, such as closing joint accounts and opening new ones, changing beneficiaries on insurance policies or wills, creating a new estate plan, and more.

Create a budget and stick to it.If you had any joint accounts or were liberal in terms of spending one another’s money during your marriage, then you need to learn to budget with the money that you make. If you don’t have much experience with budgeting, here are three things to keep in mind when creating your first budget:

1] Identify why you want to create a budget. In this case, it is to be able to find financial freedom while learning to adjust to a single income household.

2] Do a deep dive into current spending habits. What are you spending the most money on per week? What is necessary spending, and what are expenses that you can try and cut back on?

3] Determine your financial goals. Do you still want to retire at a certain age, or assist your kids in getting through college? Create some measurable goals that will motivate you to stick to your budget.

Financial planning and budgeting may seem intimidating at first, but most people find out that the process is actually quite enjoyable, as it gives them a new sense of control over their wealth.

Invest wisely. Investing your money is a great way to gain more financial freedom.

If you’re sitting on extra cash in your account after a financial settlement following your divorce, it’s smart to hang onto it for the short term until you’ve adjusted to your new lifestyle. But at some point, you may want to invest your money to help preserve and increase your wealth to help reach the financial goals that you’ve created.

When it comes to smart investing, you need to construct the right portfolio that takes into consideration how much money you will need to support your lifestyle, as well as the amount of risk you’re comfortable with. At Trust Point, our investment professionals can help mitigate various risks, including market risk, interest rate risk, inflation risk, and more.

Investing can be intimidating for some, but at Trust Point we will customize your plan and educate you along the way to ensure your feel confident in knowing where you stand and what you need to do to reach your goals.

With the cost of college on the rise year

after year, continuing education can

present a huge challenge for families.

The 2018-2019 average annual tuition

and fee prices for in-state students at

public four-year colleges range from

$5,400 to more than $16,500, according

to The College Board, a nonprofit organization aimed at helping

students succeed in higher education. Those costs can easily double

for out-of-state students and rise even higher for those attending

private institutions.

For families anticipating a college education for their children,

there’s no question that smart saving—and saving early—is import-

ant. Erica Rytilahti, assistant vice president of wealth management

at Trust Point, helps families plan for future education every day.

“Tuition costs have gone up much higher over the last 10 years

than inflation rates, so there’s definitely a need,” Rytilahti says.

“There are still opportunities out there for scholarships and grants

and student loans, but there’s a lot of news about how students are

graduating with very high debt loads and family members want to

try to alleviate that.”

And when she speaks of family, she means more than just parents.

She’s found that more grandparents and other family members,

even friends, want to chip in. One way to do that, she advises, is

through a 529 plan.


How to expand family saving

for future college students

by Jake Weyer

$AVING FOR COLLEGE

BottomLineB


How it WorksA 529 plan can be created at any time, and is set up for one

specific beneficiary. The account owner can be the grandpar-

ent, parent, or even the beneficiary. Once established, anyone

can contribute to the account—parents, grandparents, aunts,

uncles, or friends. And if plans change, the beneficiary can, too,

whether it’s another child or an adult pursuing a degree, as long

as they are an eligible family member of the current beneficiary.

To avoid federal gift tax consequences, annual contributions

to 529 plans are capped at $15,000 for each contributor ($30,000

jointly for couples), though a larger one-time contri-

bution of up to $75,000 can be made and prorated

over five years, helping investors to get a head start.

“And obviously the sooner you start the better,

so that contributions and earnings can com-

pound,” Rytilahti says. “But certainly there are

benefits even if you start later in the child’s life.”

New to 529 plans in the last year is the ability to

use dollars for elementary and private school tui-

tion as well, though those expenses are capped at $10,000 a year.

Withdrawals for college expenses do not have a limit and can be

made anytime.

Balance limits do exist for 529 plans and vary from state to

state. For 2019, the maximum balance is $425,000 in Minnesota

and $488,000 in Wisconsin.

The BenefitsThe federal and state tax benefits are perhaps the best part

of a 529 plan.

It is similar to an IRA in that the assets can be invested and

grow tax free, Rytilahti says. And as long as contributions are

used for qualified educational expenses—tuition, books, room

and board, technology, etc.—withdrawals are also tax free.

It’s important to note that if a withdrawal is made for

non-education reasons, it will come with a 10 percent penalty

tax and incur income tax as well. If a beneficiary does not use

all of the plan’s funds, they can always be put toward another

beneficiary’s education.

A 529 plan can also be used to reduce your taxable income,

since you may be able to use contributions as a deduction on

your state tax return depending on your individual tax situa-

tion. Minnesotans can claim up to a $1,500 deduction ($3,000

per married couple filling jointly) against state income tax or

a credit equal to 50 percent (but no greater than $500) of the

contributions made. In Wisconsin, up to $3,280 per benefi-

ciary per year is deductible.

If someone makes a contribution between $15,000 and

$75,000, the ability to prorate that lump sum over five years

provides relief from potentially substantial gift taxes as well.

Deciding What’s BestThough 529 plans are excellent college savings tools, Rytilahti

notes that every family is different and Trust Point can work

with anyone to determine the best path to accom-

plish their goals.

For example, she has worked with grandpar-

ents who pay tuition directly to a school, which is

another nice way to help students while avoiding

federal gift taxes. She has also advised families to

work with their attorney to establish irrevocable

trusts for education, and helped others who used

savings bonds for college expenses.

And though early saving is best, Rytilahti says families should

act on any opportunity to save, regardless of the timeframe.

“It’s never too late to start,” she says. “Even if you didn’t start

when the child was born, even if they’re in their teens, any-

thing you can get into an account to start earning money and

possibly get a tax deduction will help.”

“THE SOONER

YOU START THE

BETTER, SO THAT

CONTRIBUTIONS

AND EARNINGS

CAN COMPOUND.”

Understanding how to withdraw from your nest egg for stable retirement // by Jake Weyer

BottomLineB

Making Money Last


25T R U S T P O I N T I N C . C O M 25T R U S T P O I N T I N C . C O M

or all the joy and

freedom that retire-

ment can bring, it also

often arrives with a

little anxiety.

S u d d e n l y t h e p a y -

checks stop and it’s time

to rely on your hard-earned

nest egg for daily income.

Will you be able to withdraw

enough to live out your retire-

ment dreams without running out of

money? Dustin Cunningham, a CFP®

professional and regional account

executive at Trust Point, is well versed

in addressing this question.

“Usually the biggest question that

retirees have or the hardest part for

them is what they’re actually going to

spend in retirement,” Cunningham says.

“Figuring out what they’re going to need

to live on to accomplish their goals.”

The answer is different for everyone,

of course, but the steps taken to arrive

there are the same. Cunningham walks

us through the process:

CONSIDER GOALS AND RESOURCES“First we want to find out what your

goals are, what your retirement plans

are, and what you want to spend,” Cun-

ningham says.

Calculating your annual pre-retire-

ment expenses can help, but it’s import-

ant to consider lifestyle changes. Some

people want to travel, some change

their living situations, or take up a new

hobby—lifestyle changes come with

expense changes.

Other considerations include whether

you want to give to charity or leave a leg-

acy for your children or others. If that’s

not the case and you want to use all of

your funds during your lifetime, one

can have a more significant draw rate.

As you are determining your retirement

goals and budget, it is important to con-

sider all of the financial aspects of the

life you want to live.

Trust Point offers a questionnaire to

help start this dialogue, but one-on-one

or family conversations with an advisor

can be a big help.

“There are unknown factors such

as health issues and sickness that can

change the latter end of withdrawals,

but we want to get to know you, get to

know your goals and values,” Cunning-

ham says.

And regardless of your spending plans

in retirement, Cunningham advises

building up six to 12 months worth of

savings before retirement to account for

potential market shifts.

“Then you don’t have to draw down

on your assets in a correcting market,”

he says.

Trust Point will also help to evalu-

ate every asset, from social security to

pension income to investment port-

folios. Are the portfolios taxable, tax

deferred, or tax free? It is important

to understand the tax implications of

where to draw assets from as certain

account types may have tax advantages

or disadvantages. A well thought-out

decumulation strategy can help reduce

taxes in retirement and ensure a more

sustainable distribution pattern.

f It’s been said that

the single biggest mistake investors make is not running a retirement calculator. Trust Point’s retirement calculator allows you to calculate the potential retirement savings for you and/or for you and your spouse combined.

Features include allowing you to estimate how much money you’ll need in retirement, your rate of return during and after retirement, your retirement savings and contributions, your company match, and more. To use the retirement calculator, login to your account at trustpointinc.com and choose “Plan” from the toolbar at the top of your account dashboard.

Run a Retirement Calculator

USE BENCHMARKSOne of the best-known strategies

for withdrawing from retirement

accounts—from 401(k)s to IRAs—is

the 4 percent rule.

Developed by financial advisor Wil-

liam Bengen in the 1990s, the rule

essentially states that starting retire-

ment with a 4 percent withdrawal

rate and adjusting for inflation should

extend the life of a portfolio for more

than 30 years. Of course that assumes

you have saved enough (saving 25 times

your annual expenses is another widely

accepted rule).

“I wouldn’t say that it’s the golden

rule for everyone to follow verbatim

because everybody’s goals are unique

to them,” Cunningham says of the 4

percent rule. “But it is definitely a

benchmark to start with.”

To maintain a 4 percent distribu-

tion rate, Cunningham suggests a

balanced portfolio of 50 to 60 per-

cent stocks and the balance in bonds,

though that can change over time as

interest rates normalize or increase. If

there is a low interest rate period, equi-

ties may be more important than bonds

to keep up with growth and distribution

rates, and in a high interest rate period,

bonds become more attractive, he says.

The first few years of retirement can

involve some trial and error as retirees

adjust to their new life and get a better

handle on their monthly and annual bud-

gets. Cunningham says he tries to stay

conservative during this time—keeping

the withdrawal rate near 4 percent—as

to not overstate projections. New retir-

ees tend to be on the same page.

“More often than not I find that retir-

ees are more cautious in their spending

habits,” Cunningham says. “They are

adjusting to not having that monthly

paycheck so they tend to put off some

bigger purchases, such as another car.”

But after getting beyond those ini-

tial adjustments, the “go-go” phase of

retirement in which a retiree is most

active tends to begin. That can lead to

adjustments.

“It’s never set it and forget it,” Cun-

ningham says. “We are actively manag-

ing the portfolio and distribution rate

and communicating with clients.”

MANAGE INCOMEAnother common question Cunning-

ham fields from retirees is how to get

paid. After years of scheduling life—

everything from grocery shopping to

date night to large purchases—around

a paycheck schedule, that schedule is

gone. But it doesn’t have to be.

Trust Point can work with you to

receive distributions monthly, quar-

terly, annually—whatever works, as

long as it also works best for the plan

and doesn’t impact the sustainabil-

ity of resources, or their potential

for growth. With a careful balance

between spending and portfolio

management, it is possible to make

money in retirement.

“If you manage toward a 4 percent

distribution rate and you have a portfo-

lio with an expected rate of return of 6

percent, you can maintain or grow that

principal,” Cunningham says. “Obvi-

ously we want to keep up with inflation,

so those dollars continue to purchase

the same amount of goods today as they

do 10–15 years from now.”

He says it’s also important to be

mindful of long-term investing. There

will be periods of positive returns and

periods of negative returns. As fiducia-

ries, Trust Point advisors work in your

best interest.

“Don’t let emotions kick in during vol-

atile markets,” Cunningham says. “Stay

the course that’s in line with your long-

term objectives and goals.”


“DON’T LET EMOTIONS KICK IN DURING

VOLATILE MARKETS. STAY THE COURSE

THAT’S IN LINE WITH YOUR LONG-TERM

OBJECTIVES AND GOALS.”

Making Money Last


When to Take Social SecuritySocial Security benefits can be claimed as soon as age 62 or as late as age 70, but if you take Social Security before your full retirement age, your benefits will be reduced. For example, if you were born between January 2, 1943 and January 1, 1955, the following Social Security benefit payout is created:

The good news for many early retirees, Cunningham says, is that a later withdrawal is preferable to avoid being pushed into a higher tax bracket.

“So it makes sense sometimes for those clients to wait until closer to age 70 to receive social security and draw down their qualified balances between retirement age and 70,” he says. “There is definitely some tax strategy when considering when to draw from Social Security.”

Social Security is a key consideration when developing any Trust Point client’s retirement plan and whether taken early or late, the funds will be used for the greatest benefit.

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of your full benefit amount






BottomLineB


Taxpayers began to see the

impact of the 2017 Tax Cuts

and Jobs Act (TCJA) when

they filed their 2018 federal income

tax returns.

The TCJA made major changes,

including increasing the amount of the

standard deduction, removing personal

exemptions, dropping income tax rates

and limiting the amount of state and

local income tax (SALT) that an item-

izing taxpayer can deduct to $10,000.

These changes may limit the tax

incentives for charitable giving for

many taxpayers who no longer item-

ize. Let’s take a look at three techniques

that provide a tax benefit to support a

person’s desire to give charitably.

BUNCHING CHARITABLE CONTRIBUTIONSA technique that is seeing renewed inter-

est is bunching charitable contributions

every other year or even less frequently.

In the year that you bunch your charita-

ble contributions, you would plan that

your total itemized deductions, includ-

ing charitable contributions, exceed the

standard deduction. In other years, you

would take the standard deduction and

not make any charitable contributions.

This technique works well from an

income tax planning standpoint, but

may make it difficult for the charities

you support to budget and maintain

appropriate cash flow each year. Addi-

tionally, this technique requires that

you create a monitoring system for

yourself to track the years you plan to

itemize and match that to the years that

you make your charitable gifts.

DONOR ADVISED FUNDSAnother version of bunching is to use

a donor-advised fund (DAF) offered by

your local community foundation or

other providers. Using the DAF meth-

od, you would contribute the equivalent

amount of money of your normal chari-

table giving over a number of years and

instruct the fund to spread that amount

over a period of years to specific char-

ities. You would itemize deductions in

the year that you use the DAF and use

the standard deduction in other years.

The advantage of this approach over

bunching is that your selected charities

continue to receive monies each year.

Rather than you making a direct contri-

bution, the DAF makes the annual dis-

tribution on your behalf. See tax benefit

illustration for tax savings impact.

For those who are charitably inclined,

these techniques can assist you in gain-

ing an income tax benefit. Contact your

Trust Point advisor to learn more about

what options are best for you.

CHARITABLE IRA DISTRIBUTIONSCharitable IRA distributions actually

predate the TCJA, becoming a perma-

Three techniques to provide tax benefit from your donations

By Mark Chamberlain & Brenda Stuhr JD, CPA, Senior Vice President / CPA, CTFA, Vice President

Tax Incentives for Charitable Giving

29T R U S T P O I N T I N C . C O M 29T R U S T P O I N T I N C . C O M

nent part of federal tax law on Decem-

ber 12, 2015. If a taxpayer meets the

requirements, this is an excellent way

to receive a tax benefit for those who

are charitably inclined, regardless of

whether they itemize.

The regulations allow an IRA hold-

er to make a distribution from their

IRA directly to a qualified charitable

organization.

Requirements include:

• The IRA holder must be age 70 1/2 or

older when the charitable IRA distri-

bution is processed.

• The charitable IRA distribution must

be distributed directly from the IRA

by the custodian/trustee to the IRA

holder’s charity of choice.

• The maximum annual charitable IRA

distribution (in total) is $100,000.

• In the case of a married couple, if

both spouses meet the requirements

for a charitable IRA distribution, they

can each use the technique, which

increases the maximum allowed char-

itable IRA distribution to $200,000

for the household.

Benefits of charitable IRA

distributions include:

• The distribution is not federally tax-

able (Note: Both WI and MN have also

adopted charitable IRA distributions;

for residents of those states, the dis-

tribution is also not state taxable).

• The distribution counts toward the

IRA holder’s required minimum dis-

tribution (RMD).

• Distributing all or part of your

RMD as a charitable IRA distribu-

tion reduces your adjusted gross

income (AGI).

- AGI is used to determine social

security taxability; lowering AGI

may lead to reduced taxable social

security benefits.

- AGI is also used to determine

Medicare premiums; lowering

AGI may lead to reduced Medicare

premiums.


Real Estate Taxes

State Income Taxes

Mortgage Interest

Charitable Giving

Charitable IRA Distributions

The illustrations below assume the following: A couple uses the married filing jointly (MFJ) status; one IRA holder is over 70½; the couple wishes to donate, on average, $5,000 per year to charity.

Bunching or Using a Donor Advised Fund

Tax Advantage = $1,980

$24K STANDARD DEDUCTION

YEAR 1 YEAR 2 YEAR 3

6K

4K

8K

15K

No Charitable IRA Distributions, Bunching or

Donor Advised Funds

YEAR 1 YEAR 2 YEAR 3

6K

4K

8K

5K

Tax Advantage = $0

$24K STANDARD DEDUCTION

Tax Benefits

Tax advantage over bunching

or using a donor advised fund =

$1,320

No charitable planning =

$0

Tax advantage over no bunching or use of

a donor advised fund = $3,300


BottomLineB

FAMILIES OF

LOVED ONES WITH

DISABILITIES CAN

USE A SPECIAL NEEDS

TRUST TO ENHANCE

THE INDIVIDUAL’S

QUALITY OF LIFE.

Independence for Special Needs Families


amilies of disabled individuals face unique financial challenges,

especially if the individual receives public assistance.

A special needs trust enhances a disabled individual’s quality of

life and allows the individual to receive needs-based government

benefits, such as Medicaid and Supplemental Security Income

(SSI). Here’s an overview of the two types of special needs trusts,

how they differ, and what they can provide.

GETTING STARTEDA first-party Special Needs Trust is funded with assets owned

outright by a disabled beneficiary that may be received from an

inheritance, personal injury settlement or a medical malprac-

tice settlement. This type of Special Needs Trust must include

a provision that any assets remaining at the beneficiary’s death

are first to be used to pay the state Medicaid agency for benefits

received. A third-party Special Needs Trust, also referred to as a

Supplemental Needs Trust, is funded with assets that belonged

to someone other than the disabled individual. The trust grantor,

or creator, of a third-party Special Needs Trust can direct how

the assets are distributed after the disabled beneficiary’s death.

Special and Supplemental Needs Trusts (collectively SNTs) differ

from other trusts in that they supplement benefits already provided

by government programs. The assets in the SNT are not considered

an available asset when qualifying for government benefits.

A SNT must name either an individual person or a profession-

al fiduciary, such as Trust Point, as the trustee. SNTs are gov-

erned by complex rules and laws. It is critical that the trustee be

familiar with fiduciary duties, public benefits laws, investment

standards, and trust accounting before accepting a trusteeship.

A trustee’s improper administration of a SNT might jeopardize

the beneficiary’s eligibility for government benefits.

SNTs are designed to supplement, and not replace, the support

provided by public benefits. Qualification for public benefits,

such as SSI and Medicaid, depends on the beneficiary’s income

and assets. Therefore, improper trust distributions will be con-

sidered income to the beneficiary and benefits may be denied.

FSpecial needs trusts can help disabled individuals and their families overcome common financial barriers

By Julie Westbrock & Peter Hendricks JD, Director of Business Development / JD, Relationship Manager


The trustee has the discretion to make distributions for

expenses that promote the beneficiary’s independence, such

as higher quality medical equipment, dental care, therapy,

nursing or in-home care or a private room in a care center,

home furnishings, education, vehicles, trips and recreational

items that cannot be obtained through public benefits. The

trust might also pay for a home modification or the purchase

of a specially adapted residence. The trust also pays for trust-

ee fees, legal expenses and taxes.

The trustee makes recurring and one-time distributions

directly to third-party vendors for expenses and services. The

trustee cannot make distributions directly to the beneficiary,

as doing so might attribute unearned income to the beneficia-

ry and affect needs-based benefits.

A professional fiduciary with SNT administration experi-

ence is often the best choice as trustee. Professional trust-

ees help to ensure proper administration and distributions,

preserving eligibility for benefits and allowing the family to

focus on the care and support of the disabled individual rather

than administrative tasks.

ADMINISTRATOR-MANAGED PREPAID CARDSFor beneficiaries who live semi-independently, there is often

a request to receive funds directly from the trust to make

independent purchases. The Social Security Administra-

tion now recognizes and allows a SNT beneficiary to use an

administrator-managed prepaid card, such as a True Link™

card. The True Link card gives the beneficiary access to trust

funds based on restrictions set by the trustee.

The SNT trustee can customize a True Link card to block

access to cash, restrict certain purchases, and control where

the card can be used. Because the trustee is the owner of the

card account, qualified disbursements are not considered

unearned income to the beneficiary, again preserving the

beneficiary’s eligibility for public benefits.

The trustee can activate the card, transfer, disburse, and mon-

itor funds online. The trustee can prohibit the use of the card for

ATM and bank withdrawals, as well as cash back at merchants.

The trustee can also set restrictions so the card cannot be used

for food or shelter, but can be used for gas, clothes, and pharma-

ceutical purchases that are not paid by government benefits.

The trustee has the power to limit the type of business or loca-

tion where the card can be used and to set transaction limits by

spending categories or particular retailers.

SPECIAL NEEDS TRUSTS

1Annual Statistical Report on the Social Security Disability Insurance Program, 2013

Acheiving a Better Life Experience (ABLE)Understanding the ABLE Act

The ABLE Act, signed into law on December 19, 2014, gives individuals with disabilities the oppor-tunity to establish tax-deferred savings accounts to maintain their independence, pursue their dreams and contribute to their communites. ABLE Plans fall under Section 529 of the Internal Revenue Code.

Protects current disability and healthcare benefits

Qualified expenses under the ABLE Act include:

Earnings on ABLE plan contributions (made out of after-tax dollars) would be tax-free as long as the funds are used for quali-fied expenses.

EDUCATION HOUSING TRANSPORTATION

ASSISTIVETECHNOLOGY

EMPLOYMENTTRAINING & SUPPORT

HEALTH, PREVENTION & WELLNESS

FINANCIALMANAGEMENT

ADMINISTRATIVESERVICES

FUNERAL & BURIALEXPENSES

In general , ABLE plan funds would not affect eligil ity for Supplemen-tal Security Income (SSI), Medicaid and other feder-al means tested benefits. Currently, individuals with more than $2,000 in ass-ests are not eligible for SSI.

TAXFREE

SSI/MEDICAID

ELIGIBILITY


The True Link card is customized to each beneficiary’s spe-

cific needs. The beneficiary can achieve a sense of indepen-

dence by making purchases as needed, and will have quicker

access to funds. After an email or phone call request from a

beneficiary, the trustee can add funds to the card online and,

within minutes, the beneficiary can use it at the approved

vendor location.

ABLE ACCOUNTSMeans-tested public benefits, such as Medicaid and SSI,

require maximum asset limits to determine eligibility.

The maximum asset limit for many single disabled individ-

uals to receive Medicaid benefits is $3,000 in Minnesota but

$2,000 in Wisconsin and the limit for SSI is $2,000. (Medicaid

is a federal benefit but each state administers the program with

slightly different rules.) Therefore, the total amount of assets

an individual can have must be below those limits to qualify

for the benefit. Disabled and special needs individuals who are

able to work and earn income often find it difficult to sustain

meaningful employment because of these low asset limits. A

federal law enacted in 2014 now allows disabled individuals

to create and contribute to a tax-advantaged savings account.

The ABLE (Achieving a Better Life Experience) Act of 2014

gives disabled individuals the opportunity to create and own

an ABLE account. To be eligible for an ABLE account, the

beneficiary must meet the Social Security Administration’s

definition of “disabled” before the age of 26. The account ben-

eficiary is the owner and the account growth is not subject

to income tax. An ABLE account can be used for any expens-

es incurred related to living with a disability and expenses

intended to improve the individual’s quality of life. Funds

remaining in the ABLE account at death are first used to pay

back a claim to the state for Medicaid benefits provided.

Funds in the ABLE account up to $100,000 are excluded

from the SSI resource limit to qualify for these benefits. The

ABLE account balance is not an asset for determining Medicaid

eligibility. An employed ABLE account owner can contribute

earnings to the account and still remain under the asset limits

required by Medicaid and SSI. Unlike a SNT, the total annual

contribution limit to each ABLE account is $15,000 for 2019.

As a professional trustee, Trust Point works together

with attorneys who are experienced in estate planning and

Medicaid planning to provide you the peace of mind knowing

your loved ones are taken care of.

For more information on the ABLE Act, investment management, or trust services, please contact Trust Point at 800.658.9474 or visit us online at trustpointinc.com.

You are eligible for an ABLE Plan if you are disabled before age 26. Proof of disability includes:

Receiving Social Security

Disability Insurance (SSDI)

Receiving SSI Receiving a certification of

disability under rules that the IRS will write

Number of people who receive both SSDI and SSI benefits1.

1.4 Million

IRS certifiedSSISSDI

or or

Who can have an ABLE plan?

ABLE plan amount that would trigger a sus-pension in SSI cash benefits while maintaining an individual’s SSI eligibility.

100,000

Estimated number of Americans who will be eligible for an ABLE account, according to

the National Disability Institute.

5.8Million

Amount each family member and friends can contribute annually into an ABLE plan and

not pay taxes (gift tax exclusion). $14k

Setting up an ABLE Plan

Each state is responsible for establishing and operating an ABLE program.

States began accepting ABLE plan applica-tions at the end of 2015.


SOCIALLY RESPONSIBLE INVESTING ALIGNS YOUR FINANCIAL DECISIONS WITH SOCIAL OR ENVIRONMENTAL CAUSES

BottomLineB


by Brandon Hellenbrand CFA, Senior Investment Analyst

ocial investing has a proud and storied history. It

goes all the way back to the 18th century, when

Quakers refused to invest in anything involved

with the slave trade. For most of the 19th and 20th

centuries, concepts of improving human equality

dominated the social investment space.

In the late ’80s and early ’90s, social investing

concepts began to focus on a wider spectrum

of issues, such as environment, social issues,

and governance (ESG). Today’s approach is no longer limited to

exclusions, as analysis of ESG factors are regularly integrated into

wider financial analysis.

The approach one takes to incorporate socially responsible

investing into their investment portfolio can vary depending on

the goals of the investor. This can be achieved by at least one of

these common approaches: using exclusions, integrating ESG fac-

tors into the investment process, or embracing impact investing.

Here’s an overview of each:

Exclusions: The original way to engage in socially responsible

investing was to simply avoid investing in companies involved in

activities that the investor is trying to avoid. A common invest-

ment strategy involves excluding “sin” stocks, such as alcohol,

tobacco, weapons, and gambling. These controversial activities

have evolved over time with some now including coal mining,

carbon, sugar and others.

Redefining ‘Good’

Investments

S

Exclusion screening can always be

customized to the preferences of the

investor. Compared with the other

two approaches, it is seen as the

most clear-cut.

Integration: This is a more mod-

ern approach that began at the onset

of the ESG revolution. The approach,

in theory, would say that companies

that follow the best practices of ESG

will actually experience better finan-

cial returns and are more likely to

succeed over the long term.

There is plenty of academic

research that focuses on singular

issues that conclude superior per-

formance is achieved by companies

that, for example, have a gender-di-

versified board and executive team,

have competitive pay for employees,

or take steps to avoid environmental

wastes or disasters, thus avoiding

costly lawsuits and cleanup.

I m p a c t I nv es t i n g : T h i s

approach is focused on making

investments that have a meaningful

impact on the environment or soci-

ety. Examples include investing in

companies involved in clean ener-

gy production or food processors

focused on improving nutritional

standards. The key components of

impact investing include generating

a positive return with measurable

and transparent financial, social

and environmental benefits, and the

impact must be deliberate and inten-

tional by the investor.

It’s also common to see this

approach used for bonds as there is

a growing market for “green bonds,”

debt issued to fund a project that is

determined to provide a positive

impact on the environment or soci-

ety. An example would include debt

issued to build wind turbines to

power a community or business.

How does an investor determine

which method is best for them?

Generally speaking, if investors

have specific criteria they want to

avoid, they can most easily achieve

this using the exclusion method. For

investors looking to have their money

invested in companies that best fol-

low their beliefs and desires, an ESG

integration strategy will work the best.

Lastly, investors that want to make an

immediate impact on a region, sec-

tor or specific cause would focus on

impact investing.

It is also possible to incorporate

parts of all three methods into a port-

folio—just ask your Trust Point advi-

sor and they will help you determine

which route is best.


>> REDEFINING ‘GOOD’ INVESTMENTS

Companies in the top 25th percentile for gender diversity on their executive teams are

21% more likely to experience

above-average profits. Source: McKinsey & Company’s

2018 Delivering Through Diversity report

Did You Know?


Trust Point offers various versions of socially responsible investing

portfolios to meet specific client needs. Our open architecture approach

to portfolio constructions allows for flexibility while maintaining the

fundamental characteristics of our investment philosophy.

We offer two methods of socially responsible investing, both of which incorporate

aspects of all three approaches.

The first option consists of a globally diversified portfolio of socially responsible low

cost open-end mutual funds and Exchange Traded Funds (ETFs). This approach is

consistent with Trust Point’s core non-ESG investment offerings.

The second approach leverages the expertise of an industry leader in ESG investing,

allowing us to build custom portfolios that meet specific exclusion, integration and/or

impact needs by owning individual stocks.

The trend towards investing beyond returns is here to stay as more investors want

to use their wallets to make the world a better place or simply want to express their

viewpoints or beliefs (non-investment goals) in their portfolios.

CORE OFFERING: One of

the key services that all of

our clients receive is asset

allocation, or making sure their

investment portfolio is diversified between

stocks and bonds so that the expected

risk and return of the portfolio meets their

needs. We use this same asset allocation

philosophy to build a diversified portfolio

of ESG indicated funds.

Through our third-party partnerships

and rigorous due diligence, we are able

to identify investment options that

incorporate some of the three social

investing approaches into low cost funds.

The allocation of these various ESG funds

provides us with a diversified portfolio

that not only meets clients’ risk and return

goals, but also aligns the portfolio with the

most commonly recognized ESG factors.

CUSTOM OFFERING*: Understanding our clients’

goals and values is key to

successfully building their

investment portfolio. Our rules-based

investment system/process allows us to

build custom portfolios that meet very

specific client needs. With the ability

to exclude individual stocks or entire

subsets of the market that violate various

environmental, social, governance or faith-

based guidelines, these portfolios only

hold the companies that meet very specific

guidelines, while maintaining our asset

allocation philosophy.

TRUST POINT’S APPROACH

*Limitations apply

Buying a Second Home

Key considerations for making your second

property a smart investment // by Matt Krumrie


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ing

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EL

• L

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e

From up-north cabins to warm-weather retreats, a second property can provide years of

enjoyment and, potentially, a source of income.

J


ennifer Wersal and her husband enjoyed

traveling to Delray Beach, Florida, so

much they decided to buy a second home

in the southeast coastal town about 50

miles north of Miami.

Located four miles off the coast, the single fami-

ly home was in a dream location. Wersal, a realtor

with the Minnesota Real Estate Team and RE/MAX

Advantage Plus in Blaine, Minnesota, worked with her

husband to fully research the property and location

before making the purchase.

“We traveled to South Florida many times and

knew this is where we wanted to be,” Wersal says.

“Sand, sunshine, and fun.”

Many Midwesterners have simi-

lar aspirations of buying property in

warmer climates. Others dream of

purchasing a lake home, something

TJ Simon, a broker and owner of

Wolff & Simon Real Estate in Park

Rapids, Minnesota, has helped sev-

eral clients achieve. Regardless of the

reason, purchasing a second home

can come with many benefits, but it is

also a serious financial commitment.

Wersal and Simon ask anyone inter-

ested in another property to consider

the following:

PROPERTY TAXES & INSURANCEUnderstanding housing markets

in different locations and states is

important. For example, the housing

market in Florida is very different

than the housing market in Minnesota, Wersal says.

Delray Beach is in Palm Beach County, Florida.

Taxes in Palm Beach County are about 33 percent

higher than those in Anoka County, Minnesota.

Because of the threat of hurricanes, homeowners

insurance in Florida was 60 percent higher than the

cost of homeowners insurance for Wersal’s Min-

nesota property. Higher property taxes and home-

owners insurance can quickly add several hundred

dollars per month to one’s mortgage.

RENTAL RESTRICTIONS“Florida is littered with homeowner associations

that have extensive rules created to protect and

upkeep the communities,” Wersal says. “If you’re

planning to purchase a second home with the inten-

tion of renting it out during the months you are not

there it is important to review the association doc-

uments well.”

Some associations will also not allow for nightly or

weekly rentals and some don’t include rental at all.

According to a 2017 report from the

National Association of Realtors, of

vacation properties purchased in 2016:

21% were townhomes

22% were condominiums

36% were beachfront

21% were lakefront

$200K was the median

sales price

Your Own Private

Getaway

“If your plan is to use platforms such as Airbnb or VRBO

this will be important,” Wersal says.

As VRBO and Airbnb have grown in popularity, cities across

the country—including those in the Minnesota and Wiscon-

sin lakes regions—have implemented their own rental ordi-

nances. All vary greatly.

And remember, homeowners associations also charge

monthly fees, which can range from a few hundred dollars

per month to upward of $1,000, Wersal says.

COUNTY, CITY & SHORELAND ORDINANCESWant to buy a lake home or cabin? Make sure you fully under-

stand what you can do within the property once purchased,

Simon says. Ordinances and regulations vary greatly from

township to city, to lake.

“Make sure what you want to do with the property can be

done within the ordinances of the area,” Simon says.

MAINTENANCE & UPKEEPIf you’re not going to be at the property year round, who will

manage upkeep? Exterior maintenance is often part of your

homeowners association fees. If you are in a single family

home, like Wersal, the homeowner is responsible for upkeep.

Added Wersal, “If you find a location you are able to rent,

who will clean and turn it over to the next guests for you?”

LOOK BEYOND MORTGAGE & TAXESYou also have to furnish the second home and account for

utility services and any associated problems with those ser-

vices. Those costs are a constant and will generally increase

over time. Be sure you factor in all related costs before making

the purchase.

FIND THE RIGHT TIMINGEveryone has good intentions. Wersal and her husband liked

Florida so much they moved there for five years while rent-

ing out their Minnesota property. But life got more compli-

cated once they had kids. Finding the time to travel back to

visit family in Minnesota and check on their rental proper-

ty became a challenge, so they ended up selling the Florida

house—though they’re not giving up on their dream.

“Take into consideration the cost to travel to your second

home and how often you will be able to enjoy it during the

year,” Wersal says. “We hope to purchase again in the future

in and around the same location, but something smaller, with

maintenance included versus a single family home.”


caption here

“Make sure what you want to do with the property can be done within the ordinances of the area.” — TJ Simon, broker and owner

of Wolff & Simon Real Estate

Vacation home rental is popular

throughout the country, but if

renting is your plan, make sure you fully

understand the regulations before

buying.

South for


by Tom Sellwood

Key financial considerations for a

snowbird lifestyleO

ur Midwest winter was a good reminder of why so many

from the region escape to the South for the winter.

Wisconsin and Minnesota can be incredible states to

live in during the warm months, but lose their appeal

for many once the snow flies (and flies, and flies) and

the cold snaps begin. Beaches, golfing, and perpetual

warmth are some of the main attractions of top snow-

bird destinations such as Florida, California, and Arizona.

But warmer weather isn’t the only reason for this migration. Brian

Koopman, a CFP® professional and senior vice president at Trust Point, says

that tax benefits also play a major role for snowbirds heading to Florida or

Texas, which have no state personal income tax.

Living WellL

r the Winter

T R U S T P O I N T I N C . C O M 43

“They start going for the weather and then at some point

they realize if they stayed for another six to eight weeks, they

could become residents and possibly avoid state income

taxes,” Koopman says.

For anyone interested in the snowbird lifestyle, Koopman

shares a few recommendations:

Establishing ResidencyTo skirt the personal income tax in states like Wisconsin (up

to 7.65 percent for the highest earners) and Minnesota (up to

9.85 percent), snowbirds need to establish residency in a no

income tax state, such as Florida or Texas (although Alaska,

Nevada, South Dakota, and Wash-

ington are also options). Spending

at least 183 days in one of these

states is the first step in estab-

lishing residency. Then you must

obtain a driver’s license, register

your vehicle, and register to vote in

that state. Koopman cautions that

each state has its own requirements, so consulting with your

tax professional is a must.

With that much time dedicated to living in another state,

Koopman says, snowbirds need access to health care across

To enjoy warmer weather and

lower taxes, many snowbirds establish residency in states with no income tax,

such as Florida or Texas.

state lines, as well as making sure their

northern home is adequately prepared

for winter. Preparation may include

snow removal or check-ins from neigh-

bors, family, or friends.

Renting vs. BuyingWhile some snowbirds rent real estate

for their winter residence, others

prefer to buy. If buying, the savings

from avoiding income taxes must be

weighed against the initial investment

and upkeep costs of owning property,

Koopman says.

“If you buy a half a million dollar prop-

erty in Florida, you have half a million

dollars invested in addition to the car-

rying costs. You’re going to have home-

owners insurance, which will likely

include hurricane insurance, homeown-

er association fees and other expenses,”

Koopman says. “You might have fixed

costs of $15,000–$20,000 per year, in

addition to the $500,000 investment.

For $20,000 you can rent a nice place for

two or three months affording you the

flexibility of heading to warmer weath-

er without the initial cash outlay for the

purchase of a property.”

In addition to the financials are life-

style considerations. Would you enjoy

returning to the same location each

winter? Or is experiencing a different

location each year a better fit?

“I have clients that’ll spend some time in

Florida one year, and then the following year

they’re going to rent a place in Arizona, and

the following year it’ll be California.”

Florida: No personal state income tax

Texas: No personal state income tax

Arizona: 4.54% on income more than $155,159/individual or $310,317/joint; 2.59% on income less than $10,346/individual or $20,690/joint

California: 13.3% on income more than $1 million/individual or $1,145,960/joint; 1% on income less than $8,544/individual or $17,088/joint

Hawaii: 8.25% on income more than $96,000/individual or married couples filing separately or $48,000/joint and surviving spouses; 1.4% on income less than $2,400/individual or married couples filing separately or $4,800/joint

Source: Kiplinger


SNOWBIRD DESTINATIONS WITH THE HIGHEST TAX RATES

SNOWBIRD DESTINATIONS WITH THE LOWEST TAX RATES

Living WellL

“We’re seeing more of a shift from

taking up residency in a different

state to providing flexibility during

retirement and going different plac-

es,” Koopman says. “I have clients

that’ll spend some time in Flori-

da one year, and then the following

year they’re going to rent a place in

Arizona, and the following year it’ll

be California.”

Attention to IncomeSnowbirding for just a couple months

out of the year without establishing

residency in another state is essential-

ly just a long vacation, Koopman says.

Whether you return to the same loca-

tion each winter or explore new desti-

nations, there aren’t tax implications if

you’re not earning income in the state

where you snowbird.

“Investment income, such as interest,

dividend and capital gains, along with

pension and social security income is

taxed based on your state of residency,”

Koopman said.

Where’s Your Flock?As for Koopman and his wife, snow-

birding may be in their future, most

likely to Florida. Whether they’ll buy

property or rent is a decision yet to

come. With five children who will likely

raise their own families in the Midwest,

Koopman heavily weighs family in the

decision of when, and how long, to be

away during the winter.

“A big thing that I would personally

think about, and I talk to my clients

about, is where does your family live?

Where are your kids and grandkids?

What stage of life are they in? It’s hard

to be an active grandparent if you’re

trying to take up residency, say, in Flor-

ida,” Koopman says.

Much like the Canadian goose, some-

times it’s about the flock. So whatever

your reasons are for snowbirding—

weather, taxes, adventure—take a close

look at the financials, and your family,

before flying south.


BY THE NUMBERS

Sources: 1SmartAsset, 2Minnesota Public Radio, 3U.S. Climate Data, 4WalletHub

84,600 25,640 24 1026More retirees moved to Florida than left in 20181

Estimated number of adults age 50 or older and not working who

moved from Minnesota to Arizona from 2007

to 20162

Average high temperature in °F

in Minneapolis in January3

Percentage below average

U.S. cost of living in Texas4

Average snowfall in inches in

Madison, WI in January3

Whether you’re dreaming of cruising the

Panama Canal, riding a train through

the Canadian Rockies or visiting Victoria

Falls in Zambia, it’s never too early to begin plan-

ning—and saving.

According to a recent study by the Transamer-

ica Center for Retirement Studies, travel is a top

retirement dream for baby boomers, Gen X’ers and

millennials alike. But only 58 percent of individu-

als surveyed feel “very or somewhat confident” that

their current financial strategy will enable them to

achieve their goals.

“Something that is often overlooked is a travel

budget,” says Regina Siegel, assistant vice presi-

dent at Trust Point. “People often consider cate-

gories such as restaurants, arts and entertainment,

bills and regular activities as part of their annual

budget, but many of the retired clients that I work

with enjoy traveling regularly and it is important

to include that in the budget as well.”

Siegel has helped her clients achieve their goals

for travel in retirement. She says to start by mak-

ing a list of your travel dreams. Do you want to visit

out-of-state family every year, or are you looking at

an extended getaway in another country? Is it a solo

trip or will it involve your whole family? What is your

mode of transportation and what are your plans for

food and entertainment? Also important—do you

have enough time set aside for volunteering and other

activities that you enjoy on the trips you want to take?

Trust Point advisors will sit down with clients to

go through all of this and put everything into practi-

cal figures. They will evaluate assets and resources

to develop different investment strategies, making

sure cash flow is available when it’s needed.

“We evaluate what they can afford, starting with the

end in mind, what their dreams are and then help our

clients reach them,” Siegel says. “If they’ve dreamed of

going on an African safari that’s going to cost $40,000

or $50,000, then we set up a plan to ensure that they

can get there in the timeframe that they’re looking at.”

Sometimes that means creating a fund that auto-

matically sets money aside for travel. Other times,

assets are reallocated or travel plans are tweaked.

Siegel says seemingly unattainable trips are often

possible with the right planning—and early saving.

Dream. Plan.


“WHEN I KNOW

WHAT YOUR HOPES

AND DREAMS ARE,

IT HELPS ME WORK

EVEN HARDER

FOR YOU.”

If travel is on your retirement itinerary, be sure you’re planning for it financially

by Melinda NelsonTravel!


<Viking River Cruises Enjoy a mix of active and cultural experiences along the Rhine or Danube Rivers without having to pack and unpack your suitcase every day.

Luxury Train Trips Take a breathtaking train ride through the highlands of Scotland, the Andes in South America, the Canadian Rockies and other magnificent places.

Photographic African Safaris Watch zebras, gazelles and wildebeest migrate across the Serengeti and Masai Mara and other spectacular experiences.

Insight Trips Explore India, Africa, South America and other developing countries while supporting a nonprofit to create positive impact.

What’s Your Dream Trip?

Cruises, such as one through the Middle Rhine River Valley as pictured here, are a great way to spend time in retirement. But all trips come at a cost and require careful budgeting.

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She recently met with one couple that

wanted to do some home remodeling, pur-

chase a new car, and also wanted to take a trip

across the world to New Zealand. She enlist-

ed the assistance of Trust Point’s Financial

Planning team in order to put together a

presentation that summarized what impact

these individual purchases would have on the

couple’s long-term goals as well as the best

timeline for making the purchases.

“We were able to make the process less

stressful for them, spreading purchases

out a bit so they feel much better about the

whole process and are able to have an even

nicer vacation as a result,” Siegel says.

Trust Point’s advisors will also work with

entire families on multi-generational trav-

el planning, as group vacations are popular

in retirement, Siegel says. Regardless of

whether you want to cruise the world, or

road trip it to the in-laws’ home in Florida

every year, you can do it with some careful

planning and guidance.

“When I know what your hopes and dreams

are, it helps me work even harder for you,”

Siegel says. “Because I want to attain them

with you. I feel like I’m achieving a goal myself,

and have personal satisfaction when I see a cli-

ent who didn’t think they’d be able to make it

work watch their dreams come to fruition.”


SOME ARGUE THAT THE

W O R L D H A S N E V E R

BEEN SO UNCERTAIN.

The Brexit fiasco in the U.K.,

the government shutdown

over a border wall in the U.S.,

and the trade war with China

are recent examples of geo-

political risks that have been

important sources of anxiety

among investors.

If political uncertainty is

potentially much higher than

in previous decades, inves-

tors are raising an important

question: should they worry?

The answer might be quite

complex because the diverse

nature of geopolitical risks

imply that different events

around the globe will never

lead to the same results. But

when looking at the histori-

cal data, it is clear that major

geopolitical events for the

most part have only had short

lasting effects on markets.

Often, these market effects

can be attributed not only to

the events themselves, but

investors’ interpretation and

reaction to them.

At Trust Point, we like to

think of markets as a still

lake and geopolitical events

as a rock. When a rock is

dropped into a still lake, it

sends ripples throughout the

surface. After a short period

of time, however, the lake

returns to its natural state.

It is the same with mar-

kets. Once a major geopolit-

ical event happens, the rip-

ples can be seen for a short

period of time, often leading

to quick decreases in asset

prices. However, after some

time has passed, the markets

calm down and refocus on

the true fundamentals that

drive them.

Geopolitical risks can move

markets in the short term, but

their importance to markets

over the long run is generally

greatly overstated.

The table above illustrates

that point. Although the

markets experience down-

turns in times of war, terror-

ist attacks, and other major

geopolitical events, these

effects are nothing but rip-

ples in the water and should

not be concerning for long-

term investors.

In conclusion, the next time

we are hit by a big geopolitical

event, think about the rock

and the lake and don’t let your

emotions (or the media) influ-

ence your thinking. It is time

in the market that matters,

not timing the market. The

lake eventually returns to its

natural state. It always does!

Living WellL

Like a rock dropped in a still lake, geopolitical risks only make temporary ripples in the market

By Yan ArsenaultCFA®, CAIA®, Vice President of Investments

Riding Out the Waves

EVENT DATE MAX S&P 500 DECLINE 12 MOS. LATER

GULF WAR AUG 2, 1990 -19.9% (07/16/90–10/11/90) +10.2%

9/11 TERRORIST SEP 11, 2001 -23.1% (06/12/01–09/21/01) -16.8% ATTACKS

LONDON ATTACK JUL 7, 2005 -2.1% (06/17/05–10/06/05) +5.6%

U.S. DEBT CEILING AUG 2, 2011 -19.2% (05/02/11–10/03/11) +8.8%

U.S. FISCAL CRISIS JAN 1, 2013 -2.4% (10/04/12–12/31/12) +29.6%

GOV’T SHUTDOWN OCT 1, 2013 -4.1% (09/18/13–10/08/13) +14.8% & DEBT CEILING

PARIS TERRORIST NOV 13, 2015 -13.3% (11/03/15–02/11/16) +7.0% ATTACKS

BREXIT JUN 23, 2016 -5.6% (06/08/16–06/27/16) +15.4%

AVG. +9.3%

—Sitting Bull

“Let us put our minds together and see what life we can make for our children.”

The articles in this magazine are written for educational purposes only. The information contained herein is not, nor is it intended to be, legal, financial, or tax advice. Legal, financial, and tax advice is dependent upon the specific facts and circumstances of each unique situation. The information contained in this magazine should not replace the advice of competent legal counsel licensed in your state, a qualified financial planner or a tax practitioner licensed in your state.

EAU CLAIRE | LA CROSSE | MINNEAPOLIS

TRUSTPOINTINC.COM | 800-658-9474

7 S. DEWEY STREET, EAU CLAIRE, WI 54701

230 FRONT STREET N., LA CROSSE, WI 54601

43 MAIN STREET S.E., SUITE 214, MINNEAPOLIS, MN 55414

The Magazine for Smart Investing and Better Living - Trust Point

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