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Rick Cited in CNBC Piece on Estate Planning Errors

What’s the biggest issue we find at KFG when reviewing new clients’ estate plans? Surprisingly, it’s poorly drafted documents. Find out more about how to avoid this and other estate planning mistakes in a recent CNBC article by Deborah Nason titled “How to avoid estate, will blunders.”

Rick is one of the advisors quoted in the article.

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It’s Not How Much You Spend, It’s Why You Spend

“It’s not just shopping, it’s retail therapy.” As a bumper sticker or a joke between friends, this may be amusing. For those who shop to relieve stress, it’s not nearly so funny. Medicating or soothing painful feelings with money is no healthier a behavior than medicating with alcohol or food. When stressed or in difficult circumstances, some people drink, some people eat, and some people shop.

I have worked with several people with extreme forms of this behavior, who described their spending clearly as an addiction. It gave them a physical “high” similar to that experienced by an alcoholic or drug addict. Like other addictions, it had destructive consequences, such as creating overwhelming debt, draining life savings, destroying relationships, and even stealing from family members or employers.

Using spending as a medicator does not always show up in such dramatic ways, however. Even people who seem to live moderately and manage money responsibly can be “therapy shoppers” who spend in order to make themselves feel better.

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Rick Considering Giving Up CFP Designation

Since becoming the first Certified Financial Planner (CFP) in South Dakota in 1983, “I’ve been an ardent supporter of the CFP designation,” Rick says in a July 23 article in Financial Planning.

Keeping that designation may no longer be possible for Rick and other staff members at KFG. After a year of discussions with representatives of the CFP Board over new regulations, Rick received a letter this week informing him that, beginning August 1, he can no longer describe his practice as “fee-only.” The requirement is based on his 50% ownership of a family-owned real estate firm, even though Rick has not sold real estate for around 10 years, doesn’t actively participate in the day-to-day management, and does not receive any salary or commissions from the business.

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Is Financial Planning Profession Focused on Wrong F-Word?

A new article by Ann Marsh in Financial Planning has more on the current controversy regarding the CFP (Certified Financial Planner) designation. It quotes CFP Board Chairman Ray Ferrara as saying, “I think sometimes the profession is concerned about the wrong f-word. We really shouldn’t be talking about fees, we should be talking about fiduciary.”

Rick is one of the planners cited in the article.

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Judge Financial Gurus With Common Sense

“I see that firm’s ads everywhere.” “His books are best-sellers.” “That advisor does all kinds of free seminars for retirees.” “She’s on TV all the time.”

When a financial advisor, someone with a radio or television show, or an author of financial books becomes well-known, it’s easy to assume you can trust that person’s advice. This isn’t necessarily the case.

Recently I was selected by an Internet community site called moneytips.com as one of their top 50 “social influencers.” This is a list of professionals in the areas of wealth and personal finance who use social media and other Internet tools effectively.

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