The Morrison County Record http://mcrecord.com Covering community news, sports, current events and provides advertising and information for the Morrison County, Minnesota. Tue, 04 Aug 2015 19:36:09 +0000 en-US hourly 1 Do You Fear Risk or Loss? http://mcrecord.com/2015/08/04/do-you-fear-risk-or-loss/ http://mcrecord.com/2015/08/04/do-you-fear-risk-or-loss/#comments Tue, 04 Aug 2015 19:30:27 +0000 http://mcrecord.com/?guid=ccd9f6a3218666663e0b4ddd18fbaef5 Are you afraid of losing money or just risking it? The answer can determines a big part of your success in the market over the long term. Here’s how to find out what kind of investor you are.

In the summer of 2011, the Standard & Poor’s 500 dropped some 19%, which was the most recent market correction of 15% or more. You may also remember that at the time investors weathered high unemployment and watched as Congress fumbled with a national debt crisis.

How that correction made you feel was entirely specific to your personal circumstances.

Let’s say that in 2011 you were several years into your career and had invested a total of $100,000. If ever asked what you’d do if the market dropped 19%, you replied, “Do nothing or buy more.”

Then the market did fall and you lost $19,000 – certainly a lot of money, and you didn’t feel great. You reviewed your long-term goals and found that your year-end bonus, reallocation of assets and time could make up for the loss – allowing you to remain invested and on plan.

Let’s look at another case. In 2011, you were in your late 50s and approaching retirement. You built a portfolio of $4 million, understood market cycles and even had the same confident reply as our younger investor when asked about the market potentially dropping 19%.

In the S&P drop you suffered the same percent decline, except you lost $760,000 – a decade’s worth of your savings and your planned imminent retirement. Angry at your financial advisor and the market, you sold everything and got out, taking the $760,000 loss with no chance of regaining it when the market eventually recovered.

These examples present opposite reactions to an identical investing setback. Our younger investor was risk averse (as are most investors), showing a general preference for certainty over uncertainty, yet able to weigh risk and reward.

Our retiree-to-be was loss averse. Loss aversion, more than the mere desire to reduce risk, is a terror of loss. Those with loss aversion usually feel the pain of loss more than twice as strongly as joy from an equivalent gain (aka prospect theory).

You can find yourself in a financial situation where you become loss averse if you don’t prepare. First, you must understand your own expectations and tolerance for risk. Much more than just your age or size of portfolio defines your personal risk level.

You need to answer: “How far can my portfolio fall before I make a self-defeating, emotionally-driven decision?” We now can use a tool that pinpoints your acceptable levels of risk and reward, in terms of both percentages and dollars. Based on the Nobel Prize-winning work of Daniel Kahneman (author of Thinking, Fast and Slow), our risk questionnaire asks what level of market plunge ignites your emotional response.

How it works:

  • Take a short quiz which covers yourthe portfolio size, top financial goals and what you’ll risk for potential gains. From the questionnaire, we’ll pinpoint a personal risk number.
  • We analyze your current investments to generate a risk number for your portfolio. Does your portfolio risk number match that of your acceptable level of risk? What about your 401(k) or other self-managed accounts? Your entire portfolio?
  • We then discuss with you how to better align your portfolios to match your personal tolerance. We compare your returns not only with a market benchmark, which may be irrelevant to your goals, but also to your own expectations and risk appetite.

Understanding your personal appetite for risk is a major key to keep the pain of loss aversion in check, allowing you to make smart investment choices and reach your financial goals.

Follow AdviceIQ on Twitter at @adviceiq.

Sean Condon, CFP, is a wealth advisor and financial planner with Windgate Wealth Management in Chicago. He provides financial guidance to people who are building a career and concerned about accumulating wealth for their future. His firm also works with those at or near retirement and in need a strategy for managing the transition from living on a paycheck to living off their portfolio. Additional insights on financial planning and investing can be found on the Reflections blog, here.

If you would like to know more about Sean or have questions about becoming a client of Windgate Wealth Management, send an email to sean@windgatewealth.com or call 312-669-1650.

Perritt Capital Management, Inc. is the registered investment advisor for Windgate Wealth Management accounts. Perritt Capital Management, Inc. is not responsible for any linked website’s content.

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

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Are you afraid of losing money or just risking it? The answer can determines a big part of your success in the market over the long term. Here’s how to find out what kind of investor you are.

In the summer of 2011, the Standard & Poor’s 500 dropped some 19%, which was the most recent market correction of 15% or more. You may also remember that at the time investors weathered high unemployment and watched as Congress fumbled with a national debt crisis.

How that correction made you feel was entirely specific to your personal circumstances.

Let’s say that in 2011 you were several years into your career and had invested a total of $100,000. If ever asked what you’d do if the market dropped 19%, you replied, “Do nothing or buy more.”

Then the market did fall and you lost $19,000 – certainly a lot of money, and you didn’t feel great. You reviewed your long-term goals and found that your year-end bonus, reallocation of assets and time could make up for the loss – allowing you to remain invested and on plan.

Let’s look at another case. In 2011, you were in your late 50s and approaching retirement. You built a portfolio of $4 million, understood market cycles and even had the same confident reply as our younger investor when asked about the market potentially dropping 19%.

In the S&P drop you suffered the same percent decline, except you lost $760,000 – a decade’s worth of your savings and your planned imminent retirement. Angry at your financial advisor and the market, you sold everything and got out, taking the $760,000 loss with no chance of regaining it when the market eventually recovered.

These examples present opposite reactions to an identical investing setback. Our younger investor was risk averse (as are most investors), showing a general preference for certainty over uncertainty, yet able to weigh risk and reward.

Our retiree-to-be was loss averse. Loss aversion, more than the mere desire to reduce risk, is a terror of loss. Those with loss aversion usually feel the pain of loss more than twice as strongly as joy from an equivalent gain (aka prospect theory).

You can find yourself in a financial situation where you become loss averse if you don’t prepare. First, you must understand your own expectations and tolerance for risk. Much more than just your age or size of portfolio defines your personal risk level.

You need to answer: “How far can my portfolio fall before I make a self-defeating, emotionally-driven decision?” We now can use a tool that pinpoints your acceptable levels of risk and reward, in terms of both percentages and dollars. Based on the Nobel Prize-winning work of Daniel Kahneman (author of Thinking, Fast and Slow), our risk questionnaire asks what level of market plunge ignites your emotional response.

How it works:

  • Take a short quiz which covers yourthe portfolio size, top financial goals and what you’ll risk for potential gains. From the questionnaire, we’ll pinpoint a personal risk number.
  • We analyze your current investments to generate a risk number for your portfolio. Does your portfolio risk number match that of your acceptable level of risk? What about your 401(k) or other self-managed accounts? Your entire portfolio?
  • We then discuss with you how to better align your portfolios to match your personal tolerance. We compare your returns not only with a market benchmark, which may be irrelevant to your goals, but also to your own expectations and risk appetite.

Understanding your personal appetite for risk is a major key to keep the pain of loss aversion in check, allowing you to make smart investment choices and reach your financial goals.

Follow AdviceIQ on Twitter at @adviceiq.

Sean Condon, CFP, is a wealth advisor and financial planner with Windgate Wealth Management in Chicago. He provides financial guidance to people who are building a career and concerned about accumulating wealth for their future. His firm also works with those at or near retirement and in need a strategy for managing the transition from living on a paycheck to living off their portfolio. Additional insights on financial planning and investing can be found on the Reflections blog, here.

If you would like to know more about Sean or have questions about becoming a client of Windgate Wealth Management, send an email to sean@windgatewealth.com or call 312-669-1650.

Perritt Capital Management, Inc. is the registered investment advisor for Windgate Wealth Management accounts. Perritt Capital Management, Inc. is not responsible for any linked website’s content.

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

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Langer / Van Kempen http://mcrecord.com/2015/08/04/langer-van-kempen/ http://mcrecord.com/2015/08/04/langer-van-kempen/#comments Tue, 04 Aug 2015 18:18:49 +0000 http://mcrecord.com/?p=579863 Langer / Van Kempen

Mark and Ellen Langer of Hillman are pleased to announce the engagement of their daughter, Rochelle to Jamie Van Kempen, son of Steve and Jill Van Kempen of Morris.
Rochelle graduated from Pierz Healy High School and North Dakota State University. Rochelle is employed at the US Post Office in Morris.
Jamie graduated from Morris High School and Minnesota State University-Moorhead. Jamie is employed at Riverview LLP in Morris.
Their wedding will be held on august 29, 2015.

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Finding a Bit More to Save http://mcrecord.com/2015/08/04/finding-a-bit-more-to-save/ http://mcrecord.com/2015/08/04/finding-a-bit-more-to-save/#comments Tue, 04 Aug 2015 16:30:36 +0000 http://mcrecord.com/?guid=5740bcea60c40e3d55801e2a81ae3c25 Cut a pie into 100 slices and what do you have? Barely a nibble. Seemingly an inconsequential share of anything, 1% can actually make a tremendous difference to your financial security. Even fractions of a percent added to investment returns over time can redefine your life in retirement or your net worth.

For instance, if you can increase your average annual investment return from 5% to 6%, that bump represents a fifth better return – and a substantial increase in your options for living.

Let’s assume that you saved well over your career. You’re 65 now and, in addition to your Social Security benefits, you have $500,000 that may need to last 30 years. A 5% average annual return – reduced 2.5 percentage points for projected inflation – allows you to withdraw $1,750 pre-tax each month and enjoy, considering average longevity, an excellent probability of not running out of money for the rest of your life.

Increase your average annual return to 6% (make it 3.5% after inflation) and you can increase monthly withdrawals to $2,000 while maintaining significant probability of stretching your nest egg to age 95.

Sounds great – except that adding a percentage point to your expected returns without accounting for more fluctuation in your investment outcomes is hard given today’s low yields for bonds.

For the past 30 years, many people lived well in retirement off bond-heavy portfolios. As interest rates trended down for a generation, bond returns were adequate to exceptional.

We are exiting the golden age of bonds. Now global interest rates are near all-time lows and investors find bond returns inadequate to generate enough retirement income.

Bonds saw multiple decades of weak returns years ago, but most retirees then had both shorter life expectancies and company pensions instead of an investment account. Retirees saw far less reason to squeeze a little more return out of money.

With low bond income, many investors feel compelled to seek more investment return via more money in the stock market or high-yield junk bonds that may deliver better returns and higher income only in exchange for more uncertainly and volatility. Risk of bond issuers’ default, aka credit risk, is tame right up until it isn’t – sometimes also the moment that some investors ignore issuers’ questionable credit quality while scrambling for that extra point.

So how can you walk that narrow cliff trail between risk and earning slightly more? First, focus on what you can control. Though this task obviously doesn’t include investment outcomes, you can learn much more about your exposure to risk, reasonably expected returns and how both match your goals.

A written investment policy (aka an investment policy statement) tied to your financial plan can add a guardrail to that cliff edge, minimizing your emotional and knee-jerk decisions when the market turns temporarily sour.

Another avenue of risk-free return: Lower your investing expenses. Understand the management fees of funds you own – and your alternatives. In some cases, particularly if you save via a small-employer 401(k) or 403(b) retirement plan, you might realize a full point through cost savings if you roll your money over into a less-expensive individual retirement account.

You can also just save more before you need to start living off your savings.

Working an extra year before you retire can reduce a lot of your reliance on investment outcomes. Not only will an extra 12 months of savings (and one fewer year of retirement income withdrawals) help, you also pad your imminent Social Security income – the best risk-free investment you can make.

And as always, find ways to reduce spending without reducing your quality of life. You might be surprised at how easily you can spare just a hundredth of your money.

Follow AdviceIQ on Twitter at @adviceiq.

Gary Brooks is a certified financial planner and the president of Brooks, Hughes & Jones, and a registered investment adviser in Tacoma, Wash. Find risk tolerance resources at his blog The Money Architects, where an expanded version of this piece first ran.

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

]]>
Cut a pie into 100 slices and what do you have? Barely a nibble. Seemingly an inconsequential share of anything, 1% can actually make a tremendous difference to your financial security. Even fractions of a percent added to investment returns over time can redefine your life in retirement or your net worth.

For instance, if you can increase your average annual investment return from 5% to 6%, that bump represents a fifth better return – and a substantial increase in your options for living.

Let’s assume that you saved well over your career. You’re 65 now and, in addition to your Social Security benefits, you have $500,000 that may need to last 30 years. A 5% average annual return – reduced 2.5 percentage points for projected inflation – allows you to withdraw $1,750 pre-tax each month and enjoy, considering average longevity, an excellent probability of not running out of money for the rest of your life.

Increase your average annual return to 6% (make it 3.5% after inflation) and you can increase monthly withdrawals to $2,000 while maintaining significant probability of stretching your nest egg to age 95.

Sounds great – except that adding a percentage point to your expected returns without accounting for more fluctuation in your investment outcomes is hard given today’s low yields for bonds.

For the past 30 years, many people lived well in retirement off bond-heavy portfolios. As interest rates trended down for a generation, bond returns were adequate to exceptional.

We are exiting the golden age of bonds. Now global interest rates are near all-time lows and investors find bond returns inadequate to generate enough retirement income.

Bonds saw multiple decades of weak returns years ago, but most retirees then had both shorter life expectancies and company pensions instead of an investment account. Retirees saw far less reason to squeeze a little more return out of money.

With low bond income, many investors feel compelled to seek more investment return via more money in the stock market or high-yield junk bonds that may deliver better returns and higher income only in exchange for more uncertainly and volatility. Risk of bond issuers’ default, aka credit risk, is tame right up until it isn’t – sometimes also the moment that some investors ignore issuers’ questionable credit quality while scrambling for that extra point.

So how can you walk that narrow cliff trail between risk and earning slightly more? First, focus on what you can control. Though this task obviously doesn’t include investment outcomes, you can learn much more about your exposure to risk, reasonably expected returns and how both match your goals.

A written investment policy (aka an investment policy statement) tied to your financial plan can add a guardrail to that cliff edge, minimizing your emotional and knee-jerk decisions when the market turns temporarily sour.

Another avenue of risk-free return: Lower your investing expenses. Understand the management fees of funds you own – and your alternatives. In some cases, particularly if you save via a small-employer 401(k) or 403(b) retirement plan, you might realize a full point through cost savings if you roll your money over into a less-expensive individual retirement account.

You can also just save more before you need to start living off your savings.

Working an extra year before you retire can reduce a lot of your reliance on investment outcomes. Not only will an extra 12 months of savings (and one fewer year of retirement income withdrawals) help, you also pad your imminent Social Security income – the best risk-free investment you can make.

And as always, find ways to reduce spending without reducing your quality of life. You might be surprised at how easily you can spare just a hundredth of your money.

Follow AdviceIQ on Twitter at @adviceiq.

Gary Brooks is a certified financial planner and the president of Brooks, Hughes & Jones, and a registered investment adviser in Tacoma, Wash. Find risk tolerance resources at his blog The Money Architects, where an expanded version of this piece first ran.

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

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The Dollar: Precarious? http://mcrecord.com/2015/08/04/the-dollar-precarious/ http://mcrecord.com/2015/08/04/the-dollar-precarious/#comments Tue, 04 Aug 2015 14:30:06 +0000 http://mcrecord.com/?guid=9267e5622d5fcdb9ca7c75fcd2ade706 Everything in the world seems to conspire to keep the dollar’s value aloft. But will that persist forever? Of course not.

The dollar traditionally is a haven in a turbulent world. That sparked a huge rally in the greenback lately, rising 23% from mid-2014 to March. But after March, it slumped almost 6% until turning around in May.

So what happened? The rally ended because of downbeat U.S. economic news. First quarter gross domestic product, for instance, slid 0.2%, which was an upward revision from 0.7%. Still, it was negative. True, the GDP outlook for the rest of the year is better, but hardly booming. FactSet research projects a drop in Standard & Poor’s 500 second-quarter earnings of more than 4%. Lower oil prices are a factor, although the energy sector has improving a bit.

The paradox that could undermine the U.S., is the dollar’s strength, which diminishes profits earned overseas by American corporations. Our economic expansion is six years old too. Once it finally turns downward, the dollar could likely falter.

Meanwhile, the world situation is the greenback’s friend today. There are troubles with the Chinese stock market as its economy slows. Plus, low eurozone rates to combat stagnation there and ease Greece’s woes. And Federal Reserve plans to boost U.S. interest rates. These make investing in dollar-denominated securities and other items look even more attractive.

A strong dollar means that goods manufactured overseas are cheaper to buy and, when you travel, your dollar buys more.  The euro, in some assessments, remains expensive, and the economic and political problems of the region should keep the currency under pressure and force it down more. In contrast, the U.S. economic recovery is more robust and durable, acting as an important support for the dollar.

Further, with the rapid decline of a China stock market long fueled more by speculation than current fundamentals, it seems that nothing can stop the dollar’s and U.S. economy’s ascension.

Or are the global power dynamics about to shift, to the dollar’s detriment?

China’s stock market has suffered amid slowing economic growth, leading the government to support stock investors, a radical move.  That was part of the cold wind that buoyed the dollar. Still, Beijing’s moves appear to be working. The most recent GDP figures showed a 7% increase – down from its customary double-digit rate, yet still much better than people feared.

In Europe, once again, things appear to be resolved, for now. Many feared the chaos of a Grexit, or Greek exit from the eurozone. This country has more debt to more creditors than it could ever possibly pay back. Yet what happened? The creditors extended it another bailout as the Greek parliament approved more austerity measures.  

And let’s face it: Greece is not much of a force on the global scene. Greece’s GDP is a mere 0.38% of the world economy. However Spain is the 13th largest economy in the world, Italy is the ninth and both have debt issues of their own. Bet that they both will be watching closely to see what concessions are given to the Greeks.

At the same time, the European Central Bank is instigating negative interest rates to try and force banks to lend and citizens to spend in hopes of keeping Europe out of a prolonged recession. This may be working. Forecasters are raising their outlooks for the Continent.

When will the Fed finally raise rates?  While Fed Chair Janet Yellen says it will be sometime this year, will it? We have been told over and over again the U.S. Federal Reserve is on its way to raising rates short term interest rates from 0%-0.25% target to more normal level.

Will bond investors soon suffer major losses, once the Fed hikes rates? In the last few years, Bill Gross, Jim Rogers and other pundits have warned of a bond bubble. While it has yet to occur – the broad bond market yielded an annualized 4.42% from 2010 to 2014 – the threat remains.

Notice, however, that a rate raise keeps getting postponed. The prospect of higher rates has helped keep the dollar high. How long can investors remain patient?

Bank on one thing: The dollar’s supremacy is not guaranteed. Other economies, notably China’s, are growing faster than ours, and the Chinese have a much larger population.

Follow AdviceIQ on Twitter at @adviceiq.

Walid L. Petiri, AAMS, RFC, is chief strategist at Financial Management Strategies LLC in Baltimore. 

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

]]>
Everything in the world seems to conspire to keep the dollar’s value aloft. But will that persist forever? Of course not.

The dollar traditionally is a haven in a turbulent world. That sparked a huge rally in the greenback lately, rising 23% from mid-2014 to March. But after March, it slumped almost 6% until turning around in May.

So what happened? The rally ended because of downbeat U.S. economic news. First quarter gross domestic product, for instance, slid 0.2%, which was an upward revision from 0.7%. Still, it was negative. True, the GDP outlook for the rest of the year is better, but hardly booming. FactSet research projects a drop in Standard & Poor’s 500 second-quarter earnings of more than 4%. Lower oil prices are a factor, although the energy sector has improving a bit.

The paradox that could undermine the U.S., is the dollar’s strength, which diminishes profits earned overseas by American corporations. Our economic expansion is six years old too. Once it finally turns downward, the dollar could likely falter.

Meanwhile, the world situation is the greenback’s friend today. There are troubles with the Chinese stock market as its economy slows. Plus, low eurozone rates to combat stagnation there and ease Greece’s woes. And Federal Reserve plans to boost U.S. interest rates. These make investing in dollar-denominated securities and other items look even more attractive.

A strong dollar means that goods manufactured overseas are cheaper to buy and, when you travel, your dollar buys more.  The euro, in some assessments, remains expensive, and the economic and political problems of the region should keep the currency under pressure and force it down more. In contrast, the U.S. economic recovery is more robust and durable, acting as an important support for the dollar.

Further, with the rapid decline of a China stock market long fueled more by speculation than current fundamentals, it seems that nothing can stop the dollar’s and U.S. economy’s ascension.

Or are the global power dynamics about to shift, to the dollar’s detriment?

China’s stock market has suffered amid slowing economic growth, leading the government to support stock investors, a radical move.  That was part of the cold wind that buoyed the dollar. Still, Beijing’s moves appear to be working. The most recent GDP figures showed a 7% increase – down from its customary double-digit rate, yet still much better than people feared.

In Europe, once again, things appear to be resolved, for now. Many feared the chaos of a Grexit, or Greek exit from the eurozone. This country has more debt to more creditors than it could ever possibly pay back. Yet what happened? The creditors extended it another bailout as the Greek parliament approved more austerity measures.  

And let’s face it: Greece is not much of a force on the global scene. Greece’s GDP is a mere 0.38% of the world economy. However Spain is the 13th largest economy in the world, Italy is the ninth and both have debt issues of their own. Bet that they both will be watching closely to see what concessions are given to the Greeks.

At the same time, the European Central Bank is instigating negative interest rates to try and force banks to lend and citizens to spend in hopes of keeping Europe out of a prolonged recession. This may be working. Forecasters are raising their outlooks for the Continent.

When will the Fed finally raise rates?  While Fed Chair Janet Yellen says it will be sometime this year, will it? We have been told over and over again the U.S. Federal Reserve is on its way to raising rates short term interest rates from 0%-0.25% target to more normal level.

Will bond investors soon suffer major losses, once the Fed hikes rates? In the last few years, Bill Gross, Jim Rogers and other pundits have warned of a bond bubble. While it has yet to occur – the broad bond market yielded an annualized 4.42% from 2010 to 2014 – the threat remains.

Notice, however, that a rate raise keeps getting postponed. The prospect of higher rates has helped keep the dollar high. How long can investors remain patient?

Bank on one thing: The dollar’s supremacy is not guaranteed. Other economies, notably China’s, are growing faster than ours, and the Chinese have a much larger population.

Follow AdviceIQ on Twitter at @adviceiq.

Walid L. Petiri, AAMS, RFC, is chief strategist at Financial Management Strategies LLC in Baltimore. 

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

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Minnesota Department of Education and Pearson announce settlement for spring testing disruptions and plan to provide additional services for students http://mcrecord.com/2015/08/04/minnesota-department-of-education-and-pearson-announce-settlement-for-spring-testing-disruptions-and-plan-to-provide-additional-services-for-students/ http://mcrecord.com/2015/08/04/minnesota-department-of-education-and-pearson-announce-settlement-for-spring-testing-disruptions-and-plan-to-provide-additional-services-for-students/#comments Tue, 04 Aug 2015 13:31:35 +0000 http://mcrecord.com/?p=579849 Agreement includes cost reduction and additional in-kind services to schools

The Minnesota Department of Education announced a resolution Monday with Pearson, its testing contractor, regarding compensation for disruptions to this spring’s Minnesota Comprehensive Assessments (MCAs). As part of the agreement, Pearson will credit the department $1 million in fees and provide up to $4.69 million worth of additional services and support for districts and schools at no cost to the state.

“The disruptions experienced by students and teachers this spring were simply unacceptable,” said Education Commissioner Brenda Cassellius. “Pearson has been working with us in good faith to arrive at this significant settlement that provides us with assurances, and recognizes the magnitude of the impacts that the failures had on the state. This settlement also provides in-kind services that can help improve student outcomes statewide.”

This spring’s testing was complicated by complaints from districts about various issues, and several days of technical disruptions resulting from server delays and malicious, third-party “distributed denial of service” (DDoS) attacks, intended to overload and slow Pearson’s system. The impacts led the commissioner to suspend testing on two different occasions.

As part of the agreement, Pearson will:

  • Reduce overall contract price by $1 million.
  • Provide funding to support the administration of the ACT exam and augment funding provided by the state to assure all eligible students are given the opportunity to participate.
  • Provide Pearson Perspective at no cost to the state for the duration of the contract and renewals.Perspective is an online tool that helps teachers and students improve their performance by providing supplemental resources aligned to career and college readiness academic standards.
  • Provide Write to Learn to students in eighth and 10th grades at no cost to the state for the duration of the contract and renewals. Write to Learn is an online literacy tool that teachers use in classrooms to enhance learning opportunities for students through essay writing, and other writing activities aligned to reading comprehension, and vocabulary exercises.
  • Pay for a study to determine the testing options for a new writing exam required by the 2015 Legislature.
  • Provide additional training and support to staff and districts.
  • Implement various improvements to technical support and reporting.

In order to avoid similar issues next year, Pearson will move MCA testing to their newer cloud-based testing platform, which has additional security and data controls and the capability to automatically expand network access during DDoS disruptions. This newer testing platform had 100 percent uptime during the 2014-15 school year and users had no disruptions from DDoS attacks.

“Pearson is proud to continue to work with the Minnesota Department of Education to serve students and teachers across the state, and we are pleased that we could bring a positive resolution to this issue,” said Doug Kubach, Pearson’s president of school. “We look forward to a strong working relationship and providing new services that improve educational outcomes for students.”

For more information about Pearson, visit www.pearson.com.

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Committee works to strengthen finances at Holy Trinity School http://mcrecord.com/2015/08/04/committee-works-to-strengthen-finances-at-holy-trinity-school-2/ http://mcrecord.com/2015/08/04/committee-works-to-strengthen-finances-at-holy-trinity-school-2/#comments Tue, 04 Aug 2015 12:29:25 +0000 http://mcrecord.com/?p=579841 Catholic education has been a tradition in the Buckman, Lastrup and Pierz areas for longer than anyone can remember. The three schools combined into Holy Trinity Catholic School in Pierz in 1991. Since that time, Holy Trinity Catholic School (HTCS) has supported the education and Catholic faith development of youths in the area.

Currently, the parishes of St. Michael in Buckman, Holy Cross in Harding, St. John Nepomuk in Lastrup, and St. Joseph in Pierz have been supporting up to 70 percent of the school budget. This finance model puts most of the “eggs into one basket” and limits the school’s ability to be progressive as an educational institution, according to the Advancement Committee, a group that has formed to plan the school’s financial future. In addition, changes in parish finances directly affect the school’s finances.

The committee was formed as a result of strategic planning by school leadership and volunteers. The committee is tasked with developing long-term plans to manage reduction of the parish contributions and ensure financial stability through other funding sources. They have been meeting for about a year.

The Advancement Committee’s plan is to shift to equal financial support from tuition, parish investment, and philanthropy activities. The committee feels with this model, HTCS will be better situated to carry out its mission and strategic plan.

Jessica LeBlanc, a parishioner of St. Michael’s in Buckman, has four children who attend HTCS.

“I love that everyone who chooses to send their kids to Holy Trinity has the same beliefs and values that my husband and I do. It really is like an extended family who supports and helps our children be the best people and students possible,” she said.

“Holy Trinity also gives our students excellent academic opportunities which prepares them for high school and beyond.”

LeBlanc is one of eight people who serve on the Advancement Committee.

HTCS is supported by three sources — parish investment, tuition and fundraising, she said, like a three-legged stool.

Nathan Gruber, HTCS School Board member and parent of four students, also serves on the Advancement Committee.

“The school is not in crisis,” Gruber said, “but through the strategic planning effort, we all agreed we don’t want to get there. We’re being proactive, and want to balance the three-legged stool appropriately and responsibly.”

Debra Meyer-Myrum, administrator of HTCS, with an average of 185 students, said, “Tuition has had relatively small increases over the last number of years but will increase for the coming year by approximately 25 percent. Tuition should be a major revenue but can’t be the sole source of revenue or enrollment will be negatively impacted.”

The Committee is also rethinking and redefining the fundraising approach.

“We need to go beyond the world of smaller fundraisers,” Gruber said. “We are looking at the world of philanthropy. We are looking to appeal to people with the same philosophy and goals — that Catholic faith is important and the development of well-educated parish members is vital to the future of the Catholic Church.”

The task to establish a successful annual campaign is under way and the Advancement Committee will be working diligently to spread the word and meet with potential contributors.

Anyone who has ideas and thoughts for Holy Trinity Catholic School’s annual campaign or who wishes to join the effort through volunteering to serve or offering a financial contribution, may contact Debra Meyer-Myrum at (320) 468-6446.

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Dorothy Schneckenberg http://mcrecord.com/2015/08/03/dorothy-schneckenberg/ http://mcrecord.com/2015/08/03/dorothy-schneckenberg/#comments Mon, 03 Aug 2015 22:22:26 +0000 http://mcrecord.com/?p=579839 Dorothy   Schneckenberg

Dorothy Schneckenberg, 97 year old resident of Little Falls, formerly of Maplewood, died Thursday, July 30, 2015, at Diamond Willow Assisted Living Center in Little Falls.
A funeral service will be held Monday, Aug. 3, at 1 at the Emblom-Brenny Funeral Service in Little Falls, with the Rev. Phil Ronzheimer officiating. The burial will be held at Lakeview Cemetery in Chetek, Wis., Tuesday, Aug. 4. A visitation will be held Monday from 11 a.m. until the hour of the service at the funeral home.
Dorothy M. Clemmons was born May 22, 1918, in Chetek, Wis., to the late Amos and Katie (Morrison) Clemmons. Dorothy attended school in Chetek, Wis., and graduated with the class of 1936. She worked as an office clerk and bookkeeper for Midland Co-op in Fondue Lac, Wis., for a few years. She then went to work for the 912 Vo-Tech in Maplewood, from 1972 until retiring in 1983. She was a member of the Senior Federation in Maplewood and was a Lady in Waiting for the St. Paul Winter Carnival in 1984. Dorothy enjoyed traveling, painting, ceramics, gardening and walking.
Left to cherish her memory are her daughter, Gloria (John) Snyder of Little Falls; sons, Gary (Tracey) Schwersinske of Coleraine, Dan (Linda) Schneckenberg of Denver, Colo., Steven (Lucy) Schneckenberg of Bayport; nine grandchildren and nine great-grandchildren.
She was preceded in death by her parents, Amos and Katie Clemmons; first husband, Lawrence Norman Schwersinske; second husband, Maxamillion John Schneckenberg and a granddaughter, Christa Jilleen Snyder; siblings, Roy (Helen) Clemmons, Guy (Crystal) Clemmons, Walter Elden Clemmons, Amos (Mary) Clemmons, Harold (Babe) Clemmons, Roger (Millie) Clemmons, Lucille (Clarence) Dalum and Fay (Carl) Meyer.

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Why Not to Chase Returns http://mcrecord.com/2015/08/03/why-not-to-chase-returns/ http://mcrecord.com/2015/08/03/why-not-to-chase-returns/#comments Mon, 03 Aug 2015 19:30:04 +0000 http://mcrecord.com/?guid=7206617bf1f0b76ee28685bd83b8b8bb You hear advisors on TV talking about how they research and pick the securities with the highest returns. That sounds good since who doesn’t want the best? Why not jump in and catch the wave? Here are three reasons why not.

1. The past is too late. Those returns did happen, but the investment isn’t already in your portfolio. Regardless of how good they were, you don’t get the past returns of the investments you weren’t in.

If you take an old investment out and put a new investment into the portfolio after you notice it had better return, you get the returns of the lower performing investment. So you see the shell game? Switching out a lower performing investment gives you an illusion that your returns improve.

2. The future is unpredictable. Past performance does not guarantee future returns. You see this in every disclosure. Yet many still have the misperception that they can look at past returns to determine the future return of that investment.

Numerous studies have found that funds that did well in the past do not consistently go on to do so. The Standard & Poor’s ongoing reports on funds performance show that managers don’t year after year outperform the indexes.

I agree with advisor Daniel Solin’s article that we need a stronger disclaimer to better remind investors of this fact. A study he cites found that a more effective disclaimer would be: “Do not expect the fund’s quoted past performance to continue in the future. Studies show that mutual funds that have outperformed their peers in the past generally do not outperform them in the future. Strong past performance is often a matter of chance.”

3. Outperforming is not your goal. The real objective of investing is achieving your life goals, such as a sustainable retirement. That has more to do with your savings and spending rates that it does with returns. And unlike the returns the markets deliver, you can control how much you save or spend.

So how should you invest? Rather than chasing returns, simply invest in broad indexes and get what the markets give you – good and bad. This approach allows you to dial in the level of risk. You don’t get the occasional outperformance, but you also don’t underperform, either. Unless there are systematic risks – when the economy tanks, like it did in 2008 – you get consistent returns that match the markets.

One can wish for good returns all the time. But that is not how the markets work. Unexpected news and all participants’ expectations and reactions to it move prices. Your part is to let the markets work over time.

Follow AdviceIQ on Twitter at @adviceiq.

Larry R. Frank Sr., CFP, is a Registered Investment Advisor (California) in Roseville, Calif. He is the author of the book, Wealth Odyssey. He has an MBA with a finance concentration and B.S. cum laude in physics with which he views the world of money dynamically. He has peer-reviewed research published in the Journal of Financial Planning. http://blog.betterfinancialeducation.com/.

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

 

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You hear advisors on TV talking about how they research and pick the securities with the highest returns. That sounds good since who doesn’t want the best? Why not jump in and catch the wave? Here are three reasons why not.

1. The past is too late. Those returns did happen, but the investment isn’t already in your portfolio. Regardless of how good they were, you don’t get the past returns of the investments you weren’t in.

If you take an old investment out and put a new investment into the portfolio after you notice it had better return, you get the returns of the lower performing investment. So you see the shell game? Switching out a lower performing investment gives you an illusion that your returns improve.

2. The future is unpredictable. Past performance does not guarantee future returns. You see this in every disclosure. Yet many still have the misperception that they can look at past returns to determine the future return of that investment.

Numerous studies have found that funds that did well in the past do not consistently go on to do so. The Standard & Poor’s ongoing reports on funds performance show that managers don’t year after year outperform the indexes.

I agree with advisor Daniel Solin’s article that we need a stronger disclaimer to better remind investors of this fact. A study he cites found that a more effective disclaimer would be: “Do not expect the fund’s quoted past performance to continue in the future. Studies show that mutual funds that have outperformed their peers in the past generally do not outperform them in the future. Strong past performance is often a matter of chance.”

3. Outperforming is not your goal. The real objective of investing is achieving your life goals, such as a sustainable retirement. That has more to do with your savings and spending rates that it does with returns. And unlike the returns the markets deliver, you can control how much you save or spend.

So how should you invest? Rather than chasing returns, simply invest in broad indexes and get what the markets give you – good and bad. This approach allows you to dial in the level of risk. You don’t get the occasional outperformance, but you also don’t underperform, either. Unless there are systematic risks – when the economy tanks, like it did in 2008 – you get consistent returns that match the markets.

One can wish for good returns all the time. But that is not how the markets work. Unexpected news and all participants’ expectations and reactions to it move prices. Your part is to let the markets work over time.

Follow AdviceIQ on Twitter at @adviceiq.

Larry R. Frank Sr., CFP, is a Registered Investment Advisor (California) in Roseville, Calif. He is the author of the book, Wealth Odyssey. He has an MBA with a finance concentration and B.S. cum laude in physics with which he views the world of money dynamically. He has peer-reviewed research published in the Journal of Financial Planning. http://blog.betterfinancialeducation.com/.

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

 

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Halvorsons celebrate anniversary http://mcrecord.com/2015/08/03/halvorsons-celebrate-anniversary/ http://mcrecord.com/2015/08/03/halvorsons-celebrate-anniversary/#comments Mon, 03 Aug 2015 18:22:12 +0000 http://mcrecord.com/?p=579831

Ann-Halvorson-formattedMr. and Mrs. Weston (Wes) and Joan Halvorson of Little Falls, will celebrate their 50th wedding anniversary at a later date.
Grandchildren and great-grandchildren are Craig (Mary), Pamela (Josh), Sean (Amy), Senta (Robert).
Wes and Joan were married Aug. 14, 1965, at Zion Lutheran Church, Thief River Falls.

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Tiegen Kedrowski http://mcrecord.com/2015/08/03/kedrowski/ http://mcrecord.com/2015/08/03/kedrowski/#comments Mon, 03 Aug 2015 18:21:57 +0000 http://mcrecord.com/?p=579828 Tiegen Luke Kedrowski was born to Luke and Samantha Kedrowski on June 14, 2015 at 10:50 a.m. at St. Cloud hospital. He weighed 7 pounds 13 ounces and was 19.5 inches long.
Grandparents are Kathy Lashinski, Linda Pantzke, Pat Kedrowski, and Bernie and Lyann Lashinski. Great grandparents are Norma Pantzke and Frieda Kedrowski.

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How to Build Wealth http://mcrecord.com/2015/08/03/how-to-build-wealth/ http://mcrecord.com/2015/08/03/how-to-build-wealth/#comments Mon, 03 Aug 2015 16:30:06 +0000 http://mcrecord.com/?guid=79194ff8fc991d465e2560d96732212a My worried clients had needs for the future, but no idea how to get there. I looked them in the eye and told them how they’d get to where they wanted – through a sound discipline of saving money automatically, year after year, religiously.

We set up monthly direct transfers from their bank account to investments, occurring right after they got paid every month. Their paycheck went into a completely separate bank from the one used to pay bills. This assured that the old concept of "pay yourself first" happened.

We also tackled debt with the same relentless system. They are very thankful.

Unfortunately, a lot of people don’t adopt such a strict approach. And that’s to their detriment. Most folks want the result, but don’t know what is involved to attain it.

A few years ago, the television show that captivated Americans was called “Who Wants to Be a Millionaire?” Later, the Indian film Slumdog Millionaire, based on the same show, was an international hit. So the desire to be wealthy clearly has a broad global appeal. But how do you gain wealth? It’s not buying the correct lotto ticket. People often overlook a simple secret to building wealth the time value of money.

Disciplined saving and investing is the key. Oftentimes that lesson is lost in a consumption-based society that is always seeking the next hot thing, regardless of cost or value. Too many people, saving feels like a subtle punishment as though one is “losing” money that could be spent. Really saving is like building an ever-growing gift for yourself.

Ellen Rogin and Lisa Kueng, authors of a recently published book entitled Picture Your Prosperity: Smart Money Moves to Turn Your Vision into Reality. They cite a perceptual difference. Ask people if they can save 20% of their income, the answer may be a resounding “no” – but ask if they can live on 80% of their income, that may seem reasonable.

Saving money should make everyone feel great. It means effectively “paying yourself” or at least building up cash on hand. A household with a save-first financial approach may find itself making progress toward near-term and long-term money goals.

So why do some households save more than others? Building household savings may depend not only on cash flow, but also on psychology. With the right outlook, saving becomes a commitment. With a less positive outlook, it becomes a task – and as we recall from our youth tasks and chores are almost always postponed.

Rogen and Kueng point to something a truth that’s been around since the dawn of time, but only recently received academic study. That is the divergence between expectations and behavior. Since 2001, Gallup has asked Americans a poll question: “Thinking about money for a moment, are you the type of person who more enjoys spending money or more enjoys saving money?”

While more respondents have chosen saving over spending in every year the poll has been conducted, the difference in the responses never exceeded 5 percentage points from 2001-06. It hit 9 points in 2009, and has been 18 points or greater ever since. In 2014, 62% of respondents indicated they preferred to save instead of spend, with only 34% of respondents preferring spending.

So are Americans a nation of good savers? Not to the degree that these poll results might suggest. The most recently available Commerce Department data (January 2015) shows the average personal savings rate at 5.5% - a percentage point higher than two years ago, but subpar historically. During the 1970s, the personal savings rate averaged 11.8%; in the 1990s, it averaged 6.7%.

Economists know full well that a dollar received today is worth more than a dollar received a year from now. Why? Because that dollar could be invested, saved or spent to purchase an asset such as real estate that will appreciate in value. What's more, inflation slowly but steadily erodes the purchasing power of your money, rendering tomorrow's dollar less valuable than today's.

The relationship between time and money provides the foundation for virtually every financial decision you will make. Whether you are saving money for a future event or considering a loan to pay for a current financial need, you will be greatly affected by the time value of money. The following are some tips for making the most of your dollars, today and tomorrow.

That $30,000 luxury car you've had your eye on will cost you a whopping $67,872 just two decades from now.

The cost of some financial objectives will grow even faster than this. College costs, for example, have increased by some 9% over five years on average for private institutions, 12% for public. Planning for such cost increases will ensure that your asset accumulation level is sufficient to meet your objectives.

What's the best time to start preparing for a sound financial future? Twenty years ago, goes the old joke. Failing that, the second-best time is today.

Ways to save more? Automated retirement plan contributions or payroll withdrawals into an investment account can assist the growth of savings, and are a means of paying oneself first.

There is the envelope system, where a household divides its paycheck into figurative (or literal) envelopes, assigning X dollars per month to different packets representing different budget categories. When the envelopes are empty, you can spend no more. The psychology is never to empty the envelopes, of course – leaving a little aside each month that can be saved.

Households take an incremental approach: They start by saving one or two cents of every dollar they make, then gradually increase that percentage, household expenses permitting.

Frugality may help as well. A decision to live on 70% or 80% of household income frees up some dollars for saving. Another route to building a nest egg is to invest (or at least save) the accumulated consumer savings you realize at the mall, the supermarket, the recycling center – even pocket change amassed over time.

How many households budget like businesses? Perhaps more should. A business owner, manager or executive may realize savings through this approach. Take it line item by line item: spending $20 less each week at the supermarket translates to $1,040 saved annually.

Working with financial professionals may encourage greater savings. A study on workplace retirement plan participation from Natixis Global Asset Management had a couple of details affirming this. While employees who chose to go without input from a financial professional contributed an average of 7.8% of their incomes to their retirement plan accounts, employees who sought such input contributed an average of 9.5%.

The study also found that 74% of the employees who had turned to financial professionals understood how much money their accounts needed to amass for retirement, compared to 54% of employees not seeking such help.

Follow AdviceIQ on Twitter at @adviceiq.

Walid L. Petiri, AAMS, RFC, is chief strategist at Financial Management Strategies LLC in Baltimore.

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

 

]]>
My worried clients had needs for the future, but no idea how to get there. I looked them in the eye and told them how they’d get to where they wanted – through a sound discipline of saving money automatically, year after year, religiously.

We set up monthly direct transfers from their bank account to investments, occurring right after they got paid every month. Their paycheck went into a completely separate bank from the one used to pay bills. This assured that the old concept of "pay yourself first" happened.

We also tackled debt with the same relentless system. They are very thankful.

Unfortunately, a lot of people don’t adopt such a strict approach. And that’s to their detriment. Most folks want the result, but don’t know what is involved to attain it.

A few years ago, the television show that captivated Americans was called “Who Wants to Be a Millionaire?” Later, the Indian film Slumdog Millionaire, based on the same show, was an international hit. So the desire to be wealthy clearly has a broad global appeal. But how do you gain wealth? It’s not buying the correct lotto ticket. People often overlook a simple secret to building wealth the time value of money.

Disciplined saving and investing is the key. Oftentimes that lesson is lost in a consumption-based society that is always seeking the next hot thing, regardless of cost or value. Too many people, saving feels like a subtle punishment as though one is “losing” money that could be spent. Really saving is like building an ever-growing gift for yourself.

Ellen Rogin and Lisa Kueng, authors of a recently published book entitled Picture Your Prosperity: Smart Money Moves to Turn Your Vision into Reality. They cite a perceptual difference. Ask people if they can save 20% of their income, the answer may be a resounding “no” – but ask if they can live on 80% of their income, that may seem reasonable.

Saving money should make everyone feel great. It means effectively “paying yourself” or at least building up cash on hand. A household with a save-first financial approach may find itself making progress toward near-term and long-term money goals.

So why do some households save more than others? Building household savings may depend not only on cash flow, but also on psychology. With the right outlook, saving becomes a commitment. With a less positive outlook, it becomes a task – and as we recall from our youth tasks and chores are almost always postponed.

Rogen and Kueng point to something a truth that’s been around since the dawn of time, but only recently received academic study. That is the divergence between expectations and behavior. Since 2001, Gallup has asked Americans a poll question: “Thinking about money for a moment, are you the type of person who more enjoys spending money or more enjoys saving money?”

While more respondents have chosen saving over spending in every year the poll has been conducted, the difference in the responses never exceeded 5 percentage points from 2001-06. It hit 9 points in 2009, and has been 18 points or greater ever since. In 2014, 62% of respondents indicated they preferred to save instead of spend, with only 34% of respondents preferring spending.

So are Americans a nation of good savers? Not to the degree that these poll results might suggest. The most recently available Commerce Department data (January 2015) shows the average personal savings rate at 5.5% - a percentage point higher than two years ago, but subpar historically. During the 1970s, the personal savings rate averaged 11.8%; in the 1990s, it averaged 6.7%.

Economists know full well that a dollar received today is worth more than a dollar received a year from now. Why? Because that dollar could be invested, saved or spent to purchase an asset such as real estate that will appreciate in value. What's more, inflation slowly but steadily erodes the purchasing power of your money, rendering tomorrow's dollar less valuable than today's.

The relationship between time and money provides the foundation for virtually every financial decision you will make. Whether you are saving money for a future event or considering a loan to pay for a current financial need, you will be greatly affected by the time value of money. The following are some tips for making the most of your dollars, today and tomorrow.

That $30,000 luxury car you've had your eye on will cost you a whopping $67,872 just two decades from now.

The cost of some financial objectives will grow even faster than this. College costs, for example, have increased by some 9% over five years on average for private institutions, 12% for public. Planning for such cost increases will ensure that your asset accumulation level is sufficient to meet your objectives.

What's the best time to start preparing for a sound financial future? Twenty years ago, goes the old joke. Failing that, the second-best time is today.

Ways to save more? Automated retirement plan contributions or payroll withdrawals into an investment account can assist the growth of savings, and are a means of paying oneself first.

There is the envelope system, where a household divides its paycheck into figurative (or literal) envelopes, assigning X dollars per month to different packets representing different budget categories. When the envelopes are empty, you can spend no more. The psychology is never to empty the envelopes, of course – leaving a little aside each month that can be saved.

Households take an incremental approach: They start by saving one or two cents of every dollar they make, then gradually increase that percentage, household expenses permitting.

Frugality may help as well. A decision to live on 70% or 80% of household income frees up some dollars for saving. Another route to building a nest egg is to invest (or at least save) the accumulated consumer savings you realize at the mall, the supermarket, the recycling center – even pocket change amassed over time.

How many households budget like businesses? Perhaps more should. A business owner, manager or executive may realize savings through this approach. Take it line item by line item: spending $20 less each week at the supermarket translates to $1,040 saved annually.

Working with financial professionals may encourage greater savings. A study on workplace retirement plan participation from Natixis Global Asset Management had a couple of details affirming this. While employees who chose to go without input from a financial professional contributed an average of 7.8% of their incomes to their retirement plan accounts, employees who sought such input contributed an average of 9.5%.

The study also found that 74% of the employees who had turned to financial professionals understood how much money their accounts needed to amass for retirement, compared to 54% of employees not seeking such help.

Follow AdviceIQ on Twitter at @adviceiq.

Walid L. Petiri, AAMS, RFC, is chief strategist at Financial Management Strategies LLC in Baltimore.

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

 

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The Rising Rates Fallacy http://mcrecord.com/2015/08/03/the-rising-rates-fallacy/ http://mcrecord.com/2015/08/03/the-rising-rates-fallacy/#comments Mon, 03 Aug 2015 13:30:04 +0000 http://mcrecord.com/?guid=93e432929dcd879c51d764f3b752d004 Higher interest rates are coming.  That’s bad news for bond investors, right? Not necessarily. Such a widely held belief can beguile you into making mistakes with your bond holdings.

Who knows when and if higher rates are really coming, in spite of Fed Chair Janet Yellen’s statement that they are on the way later this year? Forget the dozen or so erroneous warnings over the past decade.  We also had 13 Triple Crown attempts since Affirmed in 1978, and only this year did a contender, American Pharoah, capture horseracing’s highest honor.

For the first time since June 2006, the Federal Reserve looks primed in the near future. The warning bells are ringing like this one from Fox Business’ website recently: “Lookout Retirees, Here Come Rising Interest Rates.”  The piece warns us to adjust our investment strategies as bond prices, which move in the opposite direction from rates, slide.

The basic premise of these warning bells is that a Federal Reserve rate hike will hurt bond returns so much that investors should reduce their bond allocation. Before taking cover and preparing for the impending rate raises, consider some of the faulty logic encouraging investment action. 

Fallacy 1: Higher interest rates are coming.  The futures market suggests that the Federal Reserve is likely to increase its target for the federal funds rate – which commercial banks charge between themselves for overnight loans – later this year or early in 2016.  Most people take this to mean that interest rates are headed higher. 

What’s not well understood is that the Federal Reserve does not set or directly control intermediate and long-term interest rates that matter most to bond prices. The federal funds rate affects extremely short-term rates, and thus has a strong impact on the yield of money markets, bank savings accounts and floating rate loans. It has much less influence on longer-term rates, which are a function of bond investors’ trades and market expectations. 

We need only go back to the last period of Federal Reserve rate hikes, which began in June 2004, for a clear example of the disconnect between the fed funds rate and longer-term interest rates.  On June 29, 2004, the day before the Federal Reserve began to increase rates, the 10-year U.S. Treasury yielded 4.7%.  Within three months of the first rate hike, the 10-year’s yield declined below 4.0%. 

That is, the Fed increased rates, but bond yields went the opposite direction.  A year after the first rate increase, the 10-year Treasury yield remained below 4% despite the fed funds rate increasing by two percentage points over that span. Purchasing a 10-year Treasury the day before the Fed started raising rates and holding it for a year resulted in a return of 10.1%.  A 20-year Treasury held over that same time earned 19.2%.

One reason: Back then, the Chinese were eager buyers of long-term Treasuries, which drove up their prices and pushed down their yields. Today, amid troubles in Europe and Asia, long Treasuries are the safe-harbor investment of choice for foreign investors. So much for the concept that you don’t want to own bonds when the Fed is increasing rates.

If the market anticipates that Fed rate hikes are likely to trigger an economic slowdown, recession or simply curtail any inflation pressures, expect longer-term bond yields to decrease, not increase.

Fallacy 2: Higher interest rates will hurt bond returns.  This belief holds true in the short-term, but not in the longer-term. If you buy a 10-year Treasury today and you’re seeking the highest nominal return over the next decade, the best-case scenario is that interest rates rise dramatically immediately after you purchase the bond. 

This logic flies in the face of traditional short-term thinking because most people associate rising interest rates with lower bond prices. True, the bond price will decline in the short-run and you would have been better waiting to buy the bond after rates increased, not before. 

But if rates immediately rise, you will be able to reinvest the coupon payments at higher reinvestment rates over the next 10 years, which will make for a higher holding period return over the bond’s decade-long term than if rates had remained constant or declined.  As demonstrated in the figures below, you actually earn an additional $5,460 from a $100,000 over the 10-year period when rates immediately increase by two percentage points rather than immediately drop by two points. 

10-Year Scenario if:

Holding Period Return

Ending Value

Interest Rates Immediately Decline to 0.5%

2.31%

 $        125,602

Interest Rates Remain at 2.5% for 10-Years

2.51%

 $        128,182

Interest Rates Immediately Increase to 4.5%

2.74%

 $        131,062

Fallacy 3: You should sell bonds in advance of Fed rate hikes.  As we showed above, bond yields are not directly tied to the federal funds rate.  Plus, anyone who sells bonds has to find a replacement investment for the sale proceeds.  Cash pays nearly nothing and stock prices have historically provided lackluster results in rate tightening cycles. Also, predicting outcomes is a fool’s errand. Timing the movement of interest rates has dumbfounded investors for decades and is likely to continue doing so. 

If you think you know the future path of interest rates, you are better served to open a hedge fund and make outlandish profits, than to simply make a few dollars on your own portfolio. Bonds in a diversified portfolio provide protection in stock market selloffs. 

While the Standard & Poor’s 500 lost 36.6% in 2008, an investment in 10-Year Treasuries gained 20.1%.  If you’re worried more about sharp portfolio losses than near-term fluctuations, a better idea is to maintain a bond allocation, rather than to abandon this protection. 

What do the fallacies of rising interest rates mean to you? Humans are inherently biased to do something, a point that is not lost on Wall Street.  People prefer action over inaction, regardless of whether inaction is optimal.  Since Wall Street profits from investor activity, there will continue to be warnings of rising interest rates and what you can do to protect yourself. as banks and brokerages have a vested interest in compelling trading activity.

Don’t let public perceptions drive your bond investing. Remember the difference between speculation and investment.

In the words of author Fred Schwed Jr., a stock trader who got out of the market in 1929: “Speculating is an effort, probably unsuccessful, to turn a little money into a lot.  Investment is an effort which should be successful, to prevent a lot of money from becoming a little.”  

Follow AdviceIQ on Twitter at @adviceiq.

Jason Lina, CFA, CFP is Lead Advisor at Resource Planning Group Ltd. in Atlanta. Website: www.rpgplanner.com.

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

  

 

 

 

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Higher interest rates are coming.  That’s bad news for bond investors, right? Not necessarily. Such a widely held belief can beguile you into making mistakes with your bond holdings.

Who knows when and if higher rates are really coming, in spite of Fed Chair Janet Yellen’s statement that they are on the way later this year? Forget the dozen or so erroneous warnings over the past decade.  We also had 13 Triple Crown attempts since Affirmed in 1978, and only this year did a contender, American Pharoah, capture horseracing’s highest honor.

For the first time since June 2006, the Federal Reserve looks primed in the near future. The warning bells are ringing like this one from Fox Business’ website recently: “Lookout Retirees, Here Come Rising Interest Rates.”  The piece warns us to adjust our investment strategies as bond prices, which move in the opposite direction from rates, slide.

The basic premise of these warning bells is that a Federal Reserve rate hike will hurt bond returns so much that investors should reduce their bond allocation. Before taking cover and preparing for the impending rate raises, consider some of the faulty logic encouraging investment action. 

Fallacy 1: Higher interest rates are coming.  The futures market suggests that the Federal Reserve is likely to increase its target for the federal funds rate – which commercial banks charge between themselves for overnight loans – later this year or early in 2016.  Most people take this to mean that interest rates are headed higher. 

What’s not well understood is that the Federal Reserve does not set or directly control intermediate and long-term interest rates that matter most to bond prices. The federal funds rate affects extremely short-term rates, and thus has a strong impact on the yield of money markets, bank savings accounts and floating rate loans. It has much less influence on longer-term rates, which are a function of bond investors’ trades and market expectations. 

We need only go back to the last period of Federal Reserve rate hikes, which began in June 2004, for a clear example of the disconnect between the fed funds rate and longer-term interest rates.  On June 29, 2004, the day before the Federal Reserve began to increase rates, the 10-year U.S. Treasury yielded 4.7%.  Within three months of the first rate hike, the 10-year’s yield declined below 4.0%. 

That is, the Fed increased rates, but bond yields went the opposite direction.  A year after the first rate increase, the 10-year Treasury yield remained below 4% despite the fed funds rate increasing by two percentage points over that span. Purchasing a 10-year Treasury the day before the Fed started raising rates and holding it for a year resulted in a return of 10.1%.  A 20-year Treasury held over that same time earned 19.2%.

One reason: Back then, the Chinese were eager buyers of long-term Treasuries, which drove up their prices and pushed down their yields. Today, amid troubles in Europe and Asia, long Treasuries are the safe-harbor investment of choice for foreign investors. So much for the concept that you don’t want to own bonds when the Fed is increasing rates.

If the market anticipates that Fed rate hikes are likely to trigger an economic slowdown, recession or simply curtail any inflation pressures, expect longer-term bond yields to decrease, not increase.

Fallacy 2: Higher interest rates will hurt bond returns.  This belief holds true in the short-term, but not in the longer-term. If you buy a 10-year Treasury today and you’re seeking the highest nominal return over the next decade, the best-case scenario is that interest rates rise dramatically immediately after you purchase the bond. 

This logic flies in the face of traditional short-term thinking because most people associate rising interest rates with lower bond prices. True, the bond price will decline in the short-run and you would have been better waiting to buy the bond after rates increased, not before. 

But if rates immediately rise, you will be able to reinvest the coupon payments at higher reinvestment rates over the next 10 years, which will make for a higher holding period return over the bond’s decade-long term than if rates had remained constant or declined.  As demonstrated in the figures below, you actually earn an additional $5,460 from a $100,000 over the 10-year period when rates immediately increase by two percentage points rather than immediately drop by two points. 

10-Year Scenario if:

Holding Period Return

Ending Value

Interest Rates Immediately Decline to 0.5%

2.31%

 $        125,602

Interest Rates Remain at 2.5% for 10-Years

2.51%

 $        128,182

Interest Rates Immediately Increase to 4.5%

2.74%

 $        131,062

Fallacy 3: You should sell bonds in advance of Fed rate hikes.  As we showed above, bond yields are not directly tied to the federal funds rate.  Plus, anyone who sells bonds has to find a replacement investment for the sale proceeds.  Cash pays nearly nothing and stock prices have historically provided lackluster results in rate tightening cycles. Also, predicting outcomes is a fool’s errand. Timing the movement of interest rates has dumbfounded investors for decades and is likely to continue doing so. 

If you think you know the future path of interest rates, you are better served to open a hedge fund and make outlandish profits, than to simply make a few dollars on your own portfolio. Bonds in a diversified portfolio provide protection in stock market selloffs. 

While the Standard & Poor’s 500 lost 36.6% in 2008, an investment in 10-Year Treasuries gained 20.1%.  If you’re worried more about sharp portfolio losses than near-term fluctuations, a better idea is to maintain a bond allocation, rather than to abandon this protection. 

What do the fallacies of rising interest rates mean to you? Humans are inherently biased to do something, a point that is not lost on Wall Street.  People prefer action over inaction, regardless of whether inaction is optimal.  Since Wall Street profits from investor activity, there will continue to be warnings of rising interest rates and what you can do to protect yourself. as banks and brokerages have a vested interest in compelling trading activity.

Don’t let public perceptions drive your bond investing. Remember the difference between speculation and investment.

In the words of author Fred Schwed Jr., a stock trader who got out of the market in 1929: “Speculating is an effort, probably unsuccessful, to turn a little money into a lot.  Investment is an effort which should be successful, to prevent a lot of money from becoming a little.”  

Follow AdviceIQ on Twitter at @adviceiq.

Jason Lina, CFA, CFP is Lead Advisor at Resource Planning Group Ltd. in Atlanta. Website: www.rpgplanner.com.

AdviceIQ delivers quality personal finance articles by both financial advisors and AdviceIQ editors. It ranks advisors in your area by specialty, including small businesses, doctors and clients of modest means, for example. Those with the biggest number of clients in a given specialty rank the highest. AdviceIQ also vets ranked advisors so only those with pristine regulatory histories can participate. AdviceIQ was launched Jan. 9, 2012, by veteran Wall Street executives, editors and technologists. Right now, investors may see many advisor rankings, although in some areas only a few are ranked. Check back often as thousands of advisors are undergoing AdviceIQ screening. New advisors appear in rankings daily.

  

 

 

 

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Upsala Heritage Festival 2015 celebrates 100 years of town’s Scandinavian heritage; medallion hunt begins Aug. 3 http://mcrecord.com/2015/08/02/upsala-heritage-festival-2015-celebrates-100-years-of-towns-scandinavian-heritage-medallion-hunt-begins-aug-3/ http://mcrecord.com/2015/08/02/upsala-heritage-festival-2015-celebrates-100-years-of-towns-scandinavian-heritage-medallion-hunt-begins-aug-3/#comments Sun, 02 Aug 2015 16:43:21 +0000 http://mcrecord.com/?p=579760 At Upsala’s celebration of its Scandinavian heritage during the Upsala Heritage Days event, folks come from far and near to take part in fun competitions and activities. Pictured at last year’s celebration, Upsala FFA volunteers Marjorie Schleper, left, and Mark Schleper helped kids of all ages during its tractor pull event
At Upsala’s celebration of its Scandinavian heritage during the Upsala Heritage Days event, folks come from far and near to take part in fun competitions and activities. Pictured at last year’s celebration, Upsala FFA volunteers Marjorie Schleper, left, and Mark Schleper helped kids of all ages during its tractor pull event

During Upsala’s Heritage Festival, Friday – Sunday, Aug. 7 – 9, the community welcomes residents, former residents and visitors to a celebration of the area’s Scandinavian heritage. The city of Upsala will celebrate its 100 years of existence.

Monday, Aug. 3, starts the festival with a medallion hunt. A clue is given each day until the medallion is found. Clues will be posted at 9 a.m. on the Upsala City website and at all area businesses.

Friday evening, beginning at 7 p.m., Upsala area musicians and bands will provide a free country and gospel concert. Guests are asked to bring their own chairs.

Saturday begins with a 5K run at 8 a.m. with registration at the school. The “best Central Minnesota small-town parade” begins on Main Street at 10:30 a.m.

Following the parade, visitors can head to the city park for “Fun in the Park,” featuring food, inflatables, kids tractor pull, bean bag tournament, games, vintage car show, beer garden and Fire Department water fights. The Upsala Area Historical Society will also be sponsoring events at the Borgstrom House.

Saturday evening fun begins at the Recreation Building with food, DJ music, a beer garden and the Upsala Area Fire Department raffle, as well as “fabulous fireworks,” sponsored by the Upsala Legion and Lions.

Upsala-City-Sign-webSunday, Aug. 9, from 9 a.m. – 1 p.m., visitors are invited to a Dad’s Belgian Waffles feed held in the school cafeteria. A community worship service will be held in the Upsala High School gym at 10 a.m.

Events close Sunday, with a community threshing bee at 1 p.m. at the Dennis Westrich property, 3478 50th Avenue, east of Upsala. Organizers say, “Bring your bundle fork and lawn chair.”

See the online calendar at www.cityofupsala.com for updates on the Heritage Festival events, times and contact information.

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Anderson-Johanningmeier http://mcrecord.com/2015/08/02/anderson-johanningmeier/ http://mcrecord.com/2015/08/02/anderson-johanningmeier/#comments Sun, 02 Aug 2015 11:22:32 +0000 http://mcrecord.com/?p=579816 STATE OF MINNESOTA
COUNTY OF MORRISON
IN DISTRICT COURT
PROBATE DIVISION
SEVENTH
JUDICIAL DISTRICT
Court File No.
49-PR-15-1126
NOTICE AND ORDER OF
HEARING ON PETITION FOR
ADJUDICATION OF INTESTACY,
DETERMINATION OF HEIRS,
AND APPOINTMENT OF
PERSONAL REPRESENTATIVES
IN UNSUPERVISED
ADMINISTRATION AND
NOTICE TO CREDITORS
In Re: Estate of
Marguerite Lynn
Anderson-Johanningmeier
TO ALL INTERESTED PERSONS AND CREDITORS:
It is Ordered and Notice is given that on the 25th day of August, 2015, at 8:30 a.m., a hearing will be held in the above-named Court at Little Falls, Minnesota, for the adjudication of intestacy, determination of heirs and for the appointment of Katie M. Anderson, residing at P.O. Box 63, Cushing, Minnesota, 56443; and Amy C. Anderson, residing at 27110 Red Stone Drive, Cushing, Minnesota, 56443, as Personal Representatives of the Estate of the above-named decedent in unsupervised administration, and that any objections thereto must be filed with the Court. That, if proper, and no objections are filed, said personal representatives will be appointed to administer the estate, to collect all assets, pay all legal debts, claims, taxes and expenses, and sell real and personal property, and do all necessary acts for the Estate. Upon completion of the administration, the representative shall file a final account for the allowance and shall distribute the estate to the persons thereunto entitled as ordered by the Court, and close the estate.
Notice is further given that ALL CREDITORS having claims against the Estate are required to present the claims to the personal representatives or to the Court Administrator within four months after the date of this Notice or the claims will be barred.
Dated: July 29, 2015
BY THE COURT
/s/ Douglas P. Anderson
Judge of District Court
Attorney for Estate of Marguerite
Lynn Anderson-Johanningmeier
Antoinette C. Wetzel, ID #261506
Wetzel Law Firm, LF, PA
309 NE 1st Street, Suite 103
Little Falls, MN 56345
320-632-2500

PUBLISH: August 2, 9, 2015
(428222)

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Public Hearing/Electric Rate http://mcrecord.com/2015/08/02/public-hearingelectric-rate/ http://mcrecord.com/2015/08/02/public-hearingelectric-rate/#comments Sun, 02 Aug 2015 11:22:25 +0000 http://mcrecord.com/?p=579814 NOTICE
City of Pierz will be holding a Public Hearing for an Electric Rate Increase on August 10, 2015 at 6:00 PM.
Meeting will be held at Pierz City Hall 101 Main Street S. Pierz, MN 56364.

PUBLISH: August 2, 9, 2015
(428179)

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MORRISON COUNTY BOARD OF http://mcrecord.com/2015/08/02/morrison-county-board-of-44/ http://mcrecord.com/2015/08/02/morrison-county-board-of-44/#comments Sun, 02 Aug 2015 11:22:21 +0000 http://mcrecord.com/?p=579812 MORRISON COUNTY BOARD OF COMMISSIONERS
TENTATIVE AGENDA
AUGUST 4, 2015
9:00 A.M. TO 10:55 A.M.
COUNTY BOARD ROOM
GOVERNMENT CENTER, LITTLE FALLS, MN.
1. CALL TO ORDER BY CHAIRMAN
2. PLEDGE OF ALLEGIANCE
3. APPROVAL OF COUNTY BOARD MINUTES
5. ADDITIONS/DELETIONS TO THE AGENDA
6. LITTLE FALLS/ MORRISON COUNTY AIRPORT
7. SOUTH COUNTRY
8. SOCIAL SERVICE REPORT
9. PUBLIC HEALTH REPORT
10. PLANNING & ZONING REPORT
11. ASSESSORS REPORT
12. AUDITORS REPORT
13. COUNTY BOARD WARRANTS
14. PUBLIC WORKS REPORT
15. ADMINISTRATORS REPORT
16. COMMITTEE REPORTS/UPCOMING SCHEDULE
17. ADJOURNMENT
IF YOU NEED ANY TYPE OF ACCOMMODATION TO PARTICIPATE IN THE MEETING PLEASE CALL 320-632-0295 AT LEAST 48 HOURS PRIOR TO THE MEETING.

PUBLISH: August 2, 2015 (428849)

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Agenda August http://mcrecord.com/2015/08/02/agenda-august-5/ http://mcrecord.com/2015/08/02/agenda-august-5/#comments Sun, 02 Aug 2015 11:22:16 +0000 http://mcrecord.com/?p=579810 MID-STATE EDUCATION DISTRICT GOVERNING BOARD MEETING AGENDA
Wednesday, August 5, 2015 at 4:00 PM Regular Meeting
Clover Glen Lane, Little Falls, Onamia & Holdingford Schools
1. Pledge of Allegiance.
2. Approval of Minutes for June 10, 2015
3. Approval/ Modification of Agenda
4. Approval of June Mid-State Bills
5. Staff/ Guest Speakers
6. Governing Board Action Items
A. Approve Program Food Service Contracts
B. Approve MCLC 2015-16 Literacy Plan
7. Technology
8. Personnel Items
A. Hiring Recommendations for 2015-16 SY MSED Positions
1. Approve the hiring of a Part-Time Administrative Assistant
2. Approve the hiring of a Transition Coordinator
B. Approve Postings for Early Childhood Positions for the 2015-16 SY
1. Early Childhood Teachers
2. Early Childhood Parent Educators
C. Approve Contract for at Will Employee
D. Approve Contract to Purchase Services
1. Sunbelt Staffing, LLC
E. Approve Resignations
F. Approve Separation Agreement
G. Approve Contracts to Sell Services
1. PT Services Contract to Rum River Education District
H. Approve Contract to Sell COTA Services for ESY
9. Approval of Reviewed Policies
10. Approval of Handbook Revisions
11. Discussion (Non-action) Items
12. Informational Items
13. Cash Flow Report for Period Ending June 30, 2015

PUBLISH: August 2, 2015
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Minutes June http://mcrecord.com/2015/08/02/minutes-june-6/ http://mcrecord.com/2015/08/02/minutes-june-6/#comments Sun, 02 Aug 2015 11:22:12 +0000 http://mcrecord.com/?p=579808 REGULAR SCHOOL BOARD MEETING
JUNE 29, 2015
MEMBERS PRESENT: Joanne Broschofsky, Steve Boser, Colleen Seelen, Patty Stangl, Dean Virnig, and Superintendent Weber.
MEMBERS ABSENT: Robert Litke
The regular meeting of the Board of Education of Independent School District No. 484 was held on Monday, June 29, 2015 in the District Office conference room. The meeting was called to order at 6:00 PM by Chair Colleen Seelen.
Motion by Boser; seconded by Stangl and was carried unanimously to approve the agenda as presented without changes. Motion by Boser; seconded by Stangl and was carried unanimously to approve the following consent agenda items:
Minutes:
Approve the regular board meeting minutes dated May 27, 2015.
Donations:
Approve May donations from: Pierz Firemen Relief Assn. to:
Baseball $600; Clay Target League $600; Dance $600; Boys Golf $300; Girls Golf $300; Pioneer Wrestling Club to FFA $150; Pheasants Forever to Clay Target League $500; Crow Wing Power Scholarships–$1,500
Wire Transfers:
Approve the following wire transfers to Farmers & Merchants State Bank for the month of June: MSDLAF on 6/12/15 in the amount of $780,000.00; MSDMAX on 6/12/15 in the amount of $2,000,000.00; MSDMAX Bond Fund on 6/12/15 in the amount of $350,000.00.
Bills:
Approval of May/June Bills in the amount of $1,147,221.63.
Personnel:
Accept the Head Boys Golf Coach resignation from Chris Dobis.
Accept the resignation of Hannah Athman, HS Para., effective May 29, 2015.
Approve the lane change request from Amy Schlichting, 1st Gr. Teacher, from BA+10 to MA effective September 1, 2015.
Approve the lane change request from Rich Teske, Science Teacher, from BA to BA+10 effective September 1, 2014 (retro).
Approve the employment of Karla Jensen, for the part-time (.5FTE) Elementary Phy. Ed. Teacher for the 2015-16 school year.
Approve the employment of Sandy Leikvoll and Bonnie Hiemenz for the part-time Custodian positions for the 2015-16 school year, pending criminal background checks.
Approve the employment of Joel Pohland as the High School Instrumental Music Teacher for the 2015-16 school year, pending criminal background check.
Approve the following Summer School Workers for July: Brenda Barker, Nancy Bednar, Charli Brausen, Lynn Folger, Ron Grittner, Karen Hayes, Jill Hoheisel, Mariah Hoheisel, Megan Hoheisel, Nicole Hoheisel, Samantha Lanners, Jason Lease, Gary Matlock, Melissa Poser, Carey Tordsen, Sarah Whitney.
Accept the resignation of Heather Kimman, Elem. Teacher, effective June 23, 2015.
Approve the posting for an Elementary Teacher for the 2015-16 school year.
Approve the child care leave request from Molly Becker, Elem. Teacher, beginning approximately September 16, 2015 for eight (8) weeks.
Motion by Stangl; seconded by Broschofsky and was carried unanimously to approve the amended 2014-2015 fiscal year budget information as presented and review of the sufficiency of the minimum unassigned general fund balance level.
FUND REVENUES
EXPENDITURES
DIFF. BETWEEN
REV. & EXP.
GENERAL FUND
9,054,454.00 9,534,672.00 (480,218.00)
FOOD SERVICE FUND
593,370.00 648,848.00
(55,478.00)
TRANSPORTATION FUND
753,789.00 776,587.00
(22,798.00)
COMMUNITY SERVICE FUND
328,197.00 350,197.00
(22,000.00)
CAPITAL OUTLAY FUND
1,336,362.00 1,262,563.00
73,799.00
CONSTRUCTION FUND
4,750,100.00 2,274,500.00
2,475,600.00
DEBT SERVICE FUND
345,970.00 362,775.00
(16,805.00)
OPEB TRUST FUND
18,500.00 0.00
18,500.00
TOTALS
17,180,742.00 15,210,142.00
1,970,600.00
Motion by Boser; seconded by Stangl and was carried unanimously to approve the proposed 2015-2016 fiscal year budget as presented.
FUND
REVENUES
EXPENDITURES
DIFF. BETWEEN
REV. & EXP.
GENERAL FUND
9,172,409 9.773,039 (600,630)
FOOD SERVICE FUND
605,000 631,684 (26,684)
TRANSPORTATION FUND
760,865 911,002 (150,137)
COMMUNITY SERVICE FUND
335,000 358,952 (23,952)
CAPITAL OUTLAY FUND
1,267,928 1,426,928 (159,000)
CONSTRUCTION FUND
2,000 2,477,600 (2,475,600)
DEBT SERVICE FUND
328,917 321,136 7,781
OPEB TRUST FUND
18,500 0 18,500
TOTALS
12.490,619 15,900,341 (3,409,722)
Motion by Boser; seconded by Broschofsky and was carried unanimously to do the annual review of Policy 714 fund balances and review fund assignments.
Motion by Seelen; seconded by Virnig and was carried unanimously to approve the payment of Climate Makers, Inc. Preventative Maintenance Agreement for the 2015-2016 fiscal year at an annual cost of $15,705.00.
Motion by Boser; seconded by Seelen and was carried unanimously to approve payment of the annual Minnesota Rural Education Association Membership Dues in the amount of $2,323.00 for July 1, 2015-June 30, 2016.
Motion by Virnig; seconded by Broschofsky and was carried unanimously to approve the property & casualty insurance in the amount of $57,794.65 and the workers compensation insurance in the amount of $61,994.00 with EMC Insurance for the 2015-16 fiscal year.
Motion by Stangl; seconded by Boser and was carried unanimously to approve an increase in the season passes and athletic fees for the 2015-2016 school year as follows:
Family Pass from $100 to $105
Single Adult Pass from $60 to $65
Single Student Pass $25 (no increase)
Gr. 9-12 Sports
1st sport from $60 to $65, 2nd sport from $60 to $65, 3rd sport $15 (no increase)
Gr. 7-8 Sports
1st sport from $30 to $35, 2nd sport from $30 to $35, 3rd sport Free (no increase)
Motion by Virnig; seconded by Boser and was carried unanimously to approve the Student Teaching Agreement between SCSU and Pierz ISD 484 beginning September 1, 2015 to August 31, 2020 as presented.
Motion by Boser; seconded by Stangl and was carried unanimously to approve the bid from Saehr Backhoe & Gravel not to exceed $30,000.00 to provide site work for additional parking spaces.
Motion by Broschofsky; seconded by Virnig and was carried unanimously to approve the proposed agreement between Pierz ISD 484 and Regional Resources effective August 1, 2015 through July 31, 2016 in the amount of $105,160.00.
Motion by Boser; seconded by Stangl and was carried unanimously to approve the recommendation for summer school wage guidelines as follows:
1. Current Para Employees who choose to work for Summer School will receive the same hourly compensation that they had the previous school year.
2. Paras hired for Summer School who are not employees will receive 90% of the first step on the Para salary schedule in place during the previous school year. (This would be consistent with long term sub pay)
3. Paras hired for Summer School who are not school year employees but were hired in prior years for Summer School employment as a para (worked prior years in our summer school program) will receive Step 1 from the Para Salary Schedule in place during the previous school year.
4. Paras hired for Summer School who are and will be returning high school students will receive 80% of Step 1 from the Para Salary Schedule in place during the previous school year.
Motion by Stangl; seconded by Seelen and was carried unanimously to approve the District Technology Plan for the 2016-2018 school years as presented.
Motion by Boser; seconded by Broschofsky and was carried unanimously to ratify the contract of Tom Otte, Elementary Principal, for the 2015-16 school year as presented.
Motion by Virnig; seconded by Boser and was carried unanimously to ratify the contract of Heidi Thielen, Technology Integrationist, for the 2015-16 school year as presented.
The next regular board meeting will be held Wednesday, July 29, 2015 at 6:00 PM in the District Office Conference Room.
Motion by Virnig; seconded by Boser and was carried unanimously to adjourn the meeting at 7:35 PM.
Colleen Seelen, Board Chair
Steve Boser, Board Clerk

PUBLISH: August 2, 2015
(428435)

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PUBLIC NOTICE MEMBERS OF THE http://mcrecord.com/2015/08/02/public-notice-members-of-the-22/ http://mcrecord.com/2015/08/02/public-notice-members-of-the-22/#comments Sun, 02 Aug 2015 11:22:07 +0000 http://mcrecord.com/?p=579806 PUBLIC NOTICE

MEMBERS OF THE MORRISON COUNTY BOARD OF COMMISSIONERS; EITHER AS A BOARD OR INDIVIDUALLY, WILL ATTEND THE FOLLOWING MEETINGS DURING THE WEEK OF AUGUST 3, 2015 TO AUGUST 7, 2015:

August 4 9:00 a.m. – County Board Meeting, Government Center, Board Room, Little Falls
August 4 6:00 p.m. – Board of Adjustments, Government Center, Board Room, Little Falls
August 5 9:30 a.m. – RIMPAC Meeting, National Joint Powers Alliance Office, Staples
August 6 8:00 a.m. – South Country, South Country Office, Owatonna
August 6 10:00 a.m. ARMER Legislative Conference Call, Little Falls
August 7 8:30 a.m. TSWAC, Landfill, Little Falls
IF YOU NEED ANY TYPE OF ACCOMMODATION TO PARTICIPATE IN THE MEETING, PLEASE CALL 320-632-0295 AT LEAST 48 HOURS PRIOR TO THE MEETING.

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ANNUAL DISCLOSURE REPORT City of http://mcrecord.com/2015/08/02/annual-disclosure-report-city-of/ http://mcrecord.com/2015/08/02/annual-disclosure-report-city-of/#comments Sun, 02 Aug 2015 11:22:04 +0000 http://mcrecord.com/?p=579804 ANNUAL DISCLOSURE REPORT
City of Upsala, Minnesota

Annual Disclosure of Tax Increment Districts for the Year Ended December 2014.

TIF District Name/Number TIF No. 2 – 4 TIF No. 3
Multi-family Housing Mollys Cafe;
Current net tax capacity – 2,039
Original net tax capacity – 365
Captured net tax capacity – 1,674
Principal and interest payments due in 2015 225 884
Tax increment received in 2014 – 2,969
Tax increment expended in 2014 5,640 965 Month and year of first tax increment receipt June, 2016 July, 2013
Date of required certification December 31, 2041 December 31, 2038
Additional information regarding each district may be obtained from:
Reva Mische, Clerk-Treasurer
City of Upsala
PO Box 159
Upsala, MN 56384
Phone: 320-573-4950
cityofup@surfsota.com

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