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FINANCIAL PLANNING 101
Courtesy of Milan J. Torres, CFP ® , CRPC ® Financial Planner
Lincoln Financial Advisors Corp. 18400 Von Karman Avenue, Suite 550 Irvine, CA 92612 949-623-1764
Milan Torres@LFG.com www.MilanTorres.com
August 2017
NEVER STOP TEACHING, NEVER STOP LEARNING
The Power of Education
W
ith school about to be back in session, I’ve been thinking about the importance of education. As a financial
planner, I take pride in educating my clients on the strategies I think best suit their needs and desires. A plan is only as good as the explanation behind it, so I’m always happy to explain the reasoning behind my suggestions. However, that’s not the only educating I take part in over the course of the year. I’m happy to serve on the Certified Financial Planner ® (CFP) board at my alma mater, Cal State Fullerton. I feel really lucky to have attended a university that offered a financial planning concentration, and it spurred me down the path I’m on today. I love being able to mentor students and provide whatever feedback I can on the curriculum. Our program, one of only a handful of its kind in the state, was recently awarded a 2017 TD Ameritrade Institutional NextGen Grant. This grant will help us improve the program even more during the coming years, and everyone on the board was so excited to receive it. When I arrived at college, I didn’t yet know I would end up falling in love with finance. Not many kids, after all, grow up with dreams of becoming a financial planner. If there’s a fiduciary equivalent of LeBron James, I’ve never heard of him. After getting a job at one of the
largest mutual fund companies in the country, however, I knew I wanted to spend my career helping people manage their money. I learned a lot at that job, including that I wanted to do something more personal than working for a giant company where client interaction could be described as minimal, at best. Even after opening my own office, I’m still learning things to this day. Not only do I have to stay abreast of market trends, I also have to learn about the best possible ways to serve my clients. I set out on my own because I wanted to be personally invested in each and every client who walks through my door, and that means never being satisfied with the level of service I offer them. Financial planning isn’t just a job for
me — it’s my passion. That might sound strange to some people, but you can’t really pick your calling. More often than not, it picks you. I am as eager to keep learning as I am to guide the next generation of financial planners. Honestly, I hope to never reach a point where I feel satisfied with the knowledge and expertise I’ve acquired. In a field as complicated as finance, I don’t doubt there will always be avenues for me to explore with the goal of making my services just a little bit better. If you’re sending kids or grandchildren off to college soon, I hope they approach their field of study with the same passion and enthusiasm. – Milan Torres
www.MilanTorres.com | 1
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They Say Ignorance Is Bliss … But Is It Healthy? t’s nearly impossible to log on to social media or turn on the TV without seeing something distressing. Instead of dwelling on what’s troubling, let’s focus on how to protect our mental health. WHY IS THE NEWS SO NEGATIVE? I THE EFFECTS OF NEGATIVE NEWS HOW TO FIGHT THE NEGATIVITY
As news media revenue goes down and people become desensitized, news organizations feel the pressure to show emotionally relevant material such as crime and accidents. At a basic level, for something to be “newsworthy” — negative or not — it needs to be the exception to the rule, not the norm. That means watching the news might give you an inaccurate view of what daily life is like in the world.
It’s important to understand important issues of the day. But when the news becomes too much, psychologists encourage you to take a break with some good news — or no news at all. Advances in medicine and technology happen all the time! Seek out those stories, or take a break from news altogether. That’s when no news can become good news.
THE PSYCHOLOGY OF BAD NEWS
A study by Psychology Today found that people who watch negative news feel worse about pre- existing worries than people who watch happy or neutral events. That means people watching the news don’t just feel anxious about the world — they feel more anxious about their own lives. British psychologist Dr. Graham Davey, who specializes in the effects of media violence, says negative news can affect how you interact with the world around you. As you consume threatening news, you’re more likely to spot threats in your day-to-day activities that aren’t there, which leads to anxiety.
THERE’S NO RIGHT WAY TO RETIRE Should You Consider Semi-Retirement?
Traditional retirement used to be the only option for those seeking to end their full-time work days. This all-or-nothing approach meant that once a person hit a certain age or worked a certain number of years, it was time to stop entirely. For a lot of people, this type of retirement is still the end goal. For others, the thought of spending years focusing solely on family time and leisure activities is as much a cause for anxiety as it is for excitement. If you happen to fall into the latter group, you may want to consider semi-retirement. Semi-retirement means finding the right amount of work that brings you fulfillment, rather than choosing to stop working altogether. Maybe you’ll take on some part- time work or start a business that doesn’t require too much startup investment. If you think semi-retirement might be the best option for you, you should still plan like you are going to fully retire. Semi-retirement pursuits rarely yield a significant amount of
money, and you don’t want to be forced to pivot back into full-time employment due to improper planning. One trendy practice that often accompanies semi-retirement is rightsizing. Rightsizing is the process of finding the home and lifestyle that meets your needs without exceeding your resources. Doing a little rightsizing while you’re still at work will help you prepare for the time when you retire completely. For
those who don’t transition gradually, the income difference can be a shock. If you rightsize, you’ll be ready when retirement comes along. Regardless of how you want to retire, smart financial planning is the best way to ensure you get the most out of your later years. If you end up saving a little extra during a semi- retirement, all the better.
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When the Dice Come Up Snake Eyes Memorable Investment Failures
TED TURNER WHIFFS ON AOL In creating CNN and pioneering the concept of the cable superstation, Ted Turner left his mark on the American media landscape. Even a resume that sterling, though, doesn’t make you immune to a catastrophic decision. Turner’s Time Warner shelled out an obscene amount of money to acquire AOL in 1999. AOL was a behemoth at the time, but they were struggling not long after the merger. Not only did this cost Turner his job as chairman, it hurt his personal bottom line to the tune of $7 billion. While Ted’s still doing okay for himself, you have to imagine he still has nightmares featuring the phrase “you’ve got mail.”
THE NEW YORK TIMES MAKES A BEANTOWN BLUNDER Sometimes, you just can’t account for the future. When the New York Times purchased the Boston Globe for $1.1 billion, it looked like a coup. Of course they didn’t anticipate one huge innovation: the internet. With more and more people getting their news online, the Times was forced to shed the Globe and its sister properties for a fraction of the purchase price, losing hundreds of millions in the process. When you bet big, you have to be prepared to take a huge hit. The lesson these stories serve to illustrate is one that we talk about all the time in financial planning: Without diversification, you leave yourself vulnerable to disaster.
There’s no such thing as a foolproof investment. Even people and companies with a track record of success can end up making a decision that puts a serious dent in their bank account. Here are a couple of examples that prove the old adage, “Don’t put all your eggs in one basket.”
Sudoku
Not Your Father’s Food Court Trade Food Hall in Irvine When you hear the words “food court,” you probably think of the collection of neon-lit, substandard eateries that were a fixture of shopping malls in the ’90s. Since then, though, food culture in our country has improved dramatically. As the culinary scene has evolved, a new style of food court has emerged. Rather than featuring characterless chain restaurants, the new breed combines local eateries with delicious, handcrafted creations. The newly opened Trade Food Hall in Irvine is a great example of how far food courts have come. A trip to Trade Food Hall feels like going to a handful of great restaurants all at once. Each vendor turns out a different style of casual, thoughtful cuisine, and it will be hard to limit yourself to stopping by just one stand. HiroNori Craft Ramen serves up some of the best noodle soup in the city. If you’re in the mood for pork, Pig Pen Delicacy will blow your mind. For seafood lovers, Portside offers fish and chips, calamari, fish tacos, and more. If you want a craft cocktail to go along with your meal, Center Hub has you covered. And for dessert, Sweet Comforts doles out inventive takes on the classic Belgian waffle, covered in homemade toppings and drizzles. Just as inviting as the variety of food is the indoor-outdoor atmosphere. It’s perfect for hanging out with friends and family or a quick lunch
that will satisfy every palate in your office. One visit to Trade Food Hall will smash your preconceptions about what a food court can be. It will definitely take a few visits, though, to taste even a fraction of all the mouthwatering dishes under this one roof.
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FINANCIAL PLANNING 101
Courtesy of Milan J. Torres, CFP ® , CRPC ® Financial Planner
Milan Torres@LFG.com • www.MilanTorres.com • 949-623-1764
Lincoln Financial Advisors Corp. 18400 Von Karman Avenue, Suite 550 Irvine, CA 92612 California Insurance License #0H1958 4
Inside
This Issue
1. 2. 3. 4.
Never Stop Teaching, Never Stop Learning Ignorance Is Bliss … Is It Healthy? There’s No Right Way to Retire You Can’t Win ‘Em All Not Your Father’s Food Court View of a Lifetime
Milan J. Torres is a registered representative of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors, a broker-dealer (member SIPC) and registered investment advisor. Insurance offered through Lincoln Marketing and Insurance Agency, LLC and Lincoln Associates Insurance Agency, Inc. and other fine companies. CRN1722031-022817.
Where to Watch the Great American Eclipse On August 21, 2017, the greatest show of the summer will take place in the United States: a total solar eclipse! This eclipse will be visible across North America, but the path of totality — the area where the moon completely covers the sun — will only fall in the continental U.S., leading this cosmic event to be called the Great American Eclipse. camp out, and the vibrant city life means you’ll have a lot to do even when the eclipse is over. Sandhills, North Platte, Nebraska In the heartlands, you’ll be hard-pressed to find a more perfect viewing location than the Sandhills of western Nebraska. With wide- open skies, low rolling hills, and no towering buildings to get in the way, the Sandhills are sure to be a popular viewing spot. VIEW OF A LIFETIME If you’re already in the United States, a day’s road trip is all you need to grab a front row seat for this rare astronomical occurrence.
The Museum of Idaho, Idaho Falls, Idaho
Columbia, South Carolina
The Museum of Idaho has been designated an Official NASA Observation Site, and the museum is hosting four days of awesome events to celebrate. Enjoy live presentations, technology demonstrations, and special exhibits as you prepare to watch the total eclipse with NASA scientists.
Need a place to watch the eclipse in the southern U.S.? Then get yourself to South Carolina, where the state capital of Columbia is almost right in the middle of the path of totality. Plenty of hotels make Columbia a great viewing location for those who don’t want to
Visit the official website of the Great American Eclipse at greatamericaneclipse.com for everything you need to know about this once- in-a-lifetime sight!
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